According to the Pareto Principle, in many situations 80% of results come from 20% of causes or sources. A Pareto chart is specifically designed to evaluate whether process data fits this principle. It is commonly used in Six Sigma and other quality methodologies, and as part of general project management techniques, to determine the critical few priorities for a business. For instance, a business leader might use this type of chart to analyze customer survey data to determine the biggest sources of customer dissatisfaction, and then charter projects to address the top problems. Use our guide to find information about when to use a Pareto chart, how to interpret it, and even how to create one in Excel.
| Creating Pareto Charts With Microsoft Excel
If you want to make a Pareto chart to use in your project presentation but don’t have access to high-powered project management software, don’t panic. With these step-by... |
Examples of When to Use a Pareto Chart
A Pareto chart's main purpose is to provide information about whether categorical data can be described using the Pareto principle. Find out why this is useful for a Six Sigma project... |
| The Pareto Principle and Its Application in Six Sigma
A Pareto chart is a very popular Six Sigma tool. It is a special type of histogram that allows business leaders to determine if the Pareto Principle applies. Learn about the principle... |
Three Different Approaches in Total Quality Management
It's wise to evaluate approaches of Total Quality Management (TQM) that best suit your type of business, your personal management style, and your customers. Here we're... |
| When Do You Need to Use a Pareto Chart?
This article explains when a Pareto chart should be used and gives examples of those instances.... |
A Roundup of Quality Control Tools and Techniques
Ensuring Quality Assurance and Quality Control involves the use of several quality control tools and techniques. Read more about how these tools that are relevant for the PMP certification... |