Pareto Chart
Vilfredo Pareto
(1848-1923) discovered that:
· 80% of the wealth in
Italy was held by 20% of the population
· 20% of customers
accounted for 80% of sales
· 20% of parts
accounted for 80% of cost, etc.
These observations were
confirmed by Juran (1960) and resulted in what is known as the Pareto
Principle.The Pareto Principle states that:
"Not all of the causes of a
particular phenomenon occur with the same frequency or with the same impact". Pareto analysis gives recognition
to the fact that, invariably, a small number of problem types account for a
large percentage of the total number of problems that occur. Thus it is
also called as “80/20” rule. Such characteristics can be
highlighted using Pareto Charts.Pareto charts show the most frequently occurring factors. The lengths of th
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