Summary
A Pareto chart is a type of bar chart in which the factors that contribute to an overall effect are arranged in order from most frequent to least. This ordering helps identify the "vital few" — the factors that warrant the most attention.
It also includes a line showing the cumulative % (so you can see easily for example that the top three causes account for 80% of incidents).
According to the "Pareto Principle," in any group of things that contribute to a common effect, relatively few account for the majority of the effect.
Content
Using a Pareto chart helps a team concentrate its improvement efforts on the factors that have the greatest impact. It also helps a team communicate the rationale for focusing on certain areas.
For example you might want to look at:
- type of safety incidents that occur
- causes of a specific type of problem
- reasons for cancellation.
They are a useful tool not only when identifying opportunities for improvement, but also in drilling down to understand the reasons for special causes on graphs showing counts, percentages and rates.
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