1. What is Pareto diagram ?
A Pareto diagram is a combination of bar and line graphs of accumulated data, where data associated with a problem (e.g., a defect found, mechanical failure, or a complaint from a customer) are divided into smaller groups by cause or by phenomenon and sorted, for example, by the number of occurrences or the amount of money involved.
(The name “Pareto” came from an Italian mathematician who created the diagram.)
2. When is it used and what results will be obtained?
Please refer to the table on next slide for the usage and benefits of a Pareto diagram. It is mainly used to prioritize matters, and because of its easiness of use, the diagram is used in a wide variety of fields.
Pareto Diagram
- Used to identify a problem.
- Used to identify the cause of a problem.
- Used to review the effects of an action to be taken.
- Used to prioritize actions.
(Used during phases to monitor the situation, analyze causes, and review effectiveness of an action.)
Result
- Allows clarification of important tasks.
- Allows identification of a starting point (which task to start with).
- Allows projection of the effects of a measure to be taken
Example
Assessment using Pareto diagram (prioritization)
To identify a course of action to be emphasized using a variety of data.
Frequently used to check the effect of an improvement.
