What Is a Pareto Chart?
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- Jade Burns
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1 What Is a Pareto Chart? Bar chart arranged in descending order of height from left to right Bars on left relatively more important than those on right Separates the "vital few" from the "trivial many" (Pareto Principle) PARETO CHART VIEWGRAPH 1
2 Why Use a Pareto Chart? Breaks big problem into smaller pieces Identifies most significant factors Shows where to focus efforts Allows better use of limited resources PARETO CHART VIEWGRAPH 2
3 Constructing a Pareto Chart Step 1 - Record the data Step 2 - Order the data Step 3 - Label the vertical axis Step 4 - Label the horizontal axis Step 5 - Plot the bars PARETO CHART VIEWGRAPH 3
4 Constructing a Pareto Chart Step 6 - Add up the counts Step 7 - Add a cumulative line Step 8 - Add title, legend, and date Step 9 - Analyze the diagram PARETO CHART VIEWGRAPH 4
5 Analysis Sheet Example Outstanding Debts Category Amount ($) School tuition (monthly installments) 2,030 Visa 2,007 Church pledge (monthly installments) 2,000 Mastercard 1,983 Balance of car loan 1,971 Home improvement loan balance 1,956 Total 11,947 PARETO CHART VIEWGRAPH 5
6 Amount Owed $ Pareto Chart Example Outstanding Debts 12,000 10,800 9,600 8,400 7,200 6,000 4,800 3,600 2,400 1,200 0 Tuition Visa Church MC Car Home Type of Debt LEGEND: AMOUNT OWED ON OUTSTANDING DEBTS AS OF 12 FEB 95. PARETO CHART VIEWGRAPH 6
7 Analysis Sheet Example Interest Rates on Outstanding Debts Category Int. Rate (%) Visa Mastercard Balance of car loan Home improvement loan balance School tuition (monthly installments) Church pledge (monthly installments) 1 PARETO CHART VIEWGRAPH 7
8 Interest Rates Pareto Chart Example Interest Rates on Outstanding Debts Visa MC Car Home Tuition Church Type of Debt LEGEND: INTEREST RATES CHARGED ON OUTSTANDING DEBTS AS OF 12 FEB 95. PARETO CHART VIEWGRAPH 8
9 Data on BEQ / BOQ Complaints Complaint Feb Mar Apr Total Loud stereo noise after Insufficient hot water Towels too small and/or thin Inadequate lighting Poor quality TV reception Worn-out furniture Insufficient storage space Cockroaches Rooms too warm or too cold PARETO CHART VIEWGRAPH 9
10 EXERCISE 1 ANALYSIS SHEET ANSWER KEY BEQ / BOQ Complaints Category Amount Percent Cum. % * Cockroaches Rooms too warm or cold Inadequate lighting Insufficient storage space Loud stereo noise after 2300 Poor quality TV reception Insufficient hot water Towels too small and/or thin Worn-out furniture Total 2225 * Cumulative percent column does not equal 100% because of rounding. PARETO CHART VIEWGRAPH 10
11 Number of Complaints EXERCISE 1 PARETO CHART ANSWER KEY BEQ / BOQ Complaints Break point Temp Storage TV Roaches Lighting Stereo Type of Complaint Towels Water Furn 100 % LEGEND: COMPLAINTS RECORDED IN BEQ / BOQ, 1 FEB - 30 APR 95. PARETO CHART VIEWGRAPH 11
12 Data on Injuries by Department FALL EYE INJURY CUT / ABRASION SPORT MOTOR VEHICL E ADMIN OPS MAINT SAFETY TRAIN PARETO CHART VIEWGRAPH 12
13 Data on Injuries by Personnel Assigned ADMIN OPS MAINT SAFETY FALL EYE INJURY CUT / ABRASION SPORT MOTOR VEHICL E TRAIN PARETO CHART VIEWGRAPH 13
14 EXERCISE 2A ANALYSIS SHEET ANSWER KEY Injuries by Department Category No. Injuries Percen Cum. % * Maintenance Operations Admin Training Safety t Total 57 * Cumulative percent column does not equal 100% because of rounding. PARETO CHART VIEWGRAPH 14
15 Injuries EXERCISE 2A PARETO CHART ANSWER KEY Injuries by Department Break point 100 % Maint Ops Admin Trng Safety Department LEGEND: INJURIES TO SQUADRON PERSONNEL 1 FEB - 30 APR 95. PARETO CHART VIEWGRAPH 15
16 EXERCISE 2B ANALYSIS SHEET ANSWER KEY Injuries by Personnel Assigned Training Admin Operations Category Injury Rate Percent Cum. % * Safety Maintenance Total * Cumulative percent column does not equal 100% because of rounding. PARETO CHART VIEWGRAPH 16
17 EXERCISE 2B PARETO CHART ANSWER KEY Injuries by Personnel Assigned Injuries / Personnel Assigned Break point 100 % Safety Trng Admin Ops Maint Department LEGEND: INJURIES TO SQUADRON PERSONNEL 1 FEB - 30 APR 95. BASED ON NUMBER OF PERSONNEL ASSIGNED. PARETO CHART VIEWGRAPH 17
18 Data on Injuries by Department FALL EYE INJURY CUT / ABRASION SPORT MOTOR VEHICL E ADMIN OPS MAINT SAFETY TRAIN PARETO CHART VIEWGRAPH 18
19 EXERCISE 2C ANALYSIS SHEET ANSWER KEY Injuries by Type Category No. Injuries Percent Cum. % Sports Motor vehicle Cuts/abrasions Falls Eye injuries Total PARETO CHART VIEWGRAPH 19
20 Number of Injuries EXERCISE 2C PARETO CHART ANSWER KEY Injuries by Type Break point Sports Vehicle Cuts Falls Eye 100 % Type of Injury LEGEND: INJURIES TO SQUADRON PERSONNEL 1 FEB - 30 APR 95. BASED ON TYPE OF INJURY. PARETO CHART VIEWGRAPH 20
21 Little League Yankees Stats Type of Error Number Wild pitch 5 Missed fly ball to the outfield 29 Missed grounder 7 Missed pop fly to the infield 4 Missed coaching signal 5 Taken third strike 42 Throw to wrong cutoff player 25 Failure to back up the play 6 Passed ball 3 PARETO CHART VIEWGRAPH 21
22 EXERCISE 3 ANALYSIS SHEET ANSWER KEY Stats for Little League Yankees Type of Error Number Percent Cum. % * Taken third strikes Missed fly balls Throws to wrong cutoff player Missed grounders Failure to back up play Wild pitches Missed coaching signals Missed pop flies Passed balls Total 126 * Cumulative percent column does not equal 100% because of rounding. PARETO CHART VIEWGRAPH 22
23 Number of Errors EXERCISE 3 PARETO CHART ANSWER KEY Stats for Little League Yankees Break point Strike FB Throw GB Backup WP Pop fly Signal PB Type of Error 100 % LEGEND: ERRORS COMMITTED DURING FIRST FIVE GAMES OF SPRING SEASON PARETO CHART VIEWGRAPH 23
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