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What is a "Pareto Chart" and how is it used?
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A Pareto Chart is a type of bar graph that represents the frequency or impact of problems or causes in a process, arranged in descending order. It is based on the Pareto Principle, also known as the 80/20 rule, which suggests that roughly 80% of effects come from 20% of the causes.
Uses of a Pareto Chart:
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A Pareto Chart is a combined bar and line graph used to identify and prioritize problems or causes of defects. The bars show the frequency of issues in descending order, while the line represents the cumulative percentage. It's mainly used to:
- Identify major problems,
- Prioritize actions, and
- Monitor progress over time.
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