6.4.5.4: Pareto Charts

Managing Technology Projects · LibreTexts

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    From LibreTexts, under CC BY-NC 4.0, as the source states it; its equations are written in TeX, which the PDF shows typeset. This page at LibreTexts.

    A special type of bar chart that shows the number of occurrences of a particular characteristic, ordered from highest to lowest. The X axis represents each characteristic and the Y axis is the number of times this occurrence was recorded. In addition, a cumulative percent line shows the cumulative percentage that each category represents. The Y axis on the right hand side of the chart corresponds to the percentage on this line. In the management of quality, managers must allocate resources to rectify the most frequently occurring problems. A Pareto analysis helps us focus our attention on the defects that occur the most frequently and to allocate the resources accordingly.

    Steps in a Pareto Analysis:

    1. Collect your raw data and put it into a simple table in descending order. Sum the total number of results at the bottom of the column.
    Table \(\PageIndex{1}\): Complaints in descending order of frequency
    Complaints Number
    Long wait time 81
    food not hot 48
    Server unknowledgeable 20
    bill inaccurate 16
    floor not clean 9
    Menu items sold out 7
    1. Include a cumulative column and calculate the cumulative percentage of each.
    Table \(\PageIndex{2}\): Complaints in descending order of frequency with cumulative frequency and cumulative percent
    Complaints Number Cumulative Cumulative Percent
    wait time long 81 81 44.8
    food not hot 48 129 71.3
    Server unknowledgeable 20 149 82.3
    bill inaccurate 16 165 91.2
    floor not clean 9 174 96.1
    Menu items sold out 7 181 100.0
    1. In EXCEL, your Pareto analysis will look like this.
      Details in Accessibility Note.
      Figure \(\PageIndex{3}\): Example of a Pareto chart.
    Accessibility Note

    Figure \(\PageIndex{3}\) shows a vertical bar chart labeled Restaurant Complaints as its top title. The number of complaints is on the left vertical axis and vertical blue bars show the complaint count for wait time long, food not hot, server not knowledgeable, bill inaccurate, floor not clean, and Menu items sold out. An orange line going up from left to right shows the cumulative percent of complaints, which is on the vertical axis on the right hand side.

    Note

    Changes made:

    • Accessibility fixes.
    • Deleted video.

    6.4.5.4: Pareto Charts is shared under a CC BY-NC 4.0 license and was authored, remixed, and/or curated by LibreTexts.