The trivial many causes are only contributing to 20% of the problem. And the vital few are the causes that are contributing to 80% of the problem. So the vital few are the priority areas that need to be addressed in order to make a major improvement. The data points above the 80% line indicate the trivial many categories. The cumulative percent data points that fall under the 80% line indicate the category is known as the vital few. And this line assists frequency in the determination of the 80/20 rule or the Pareto Principle. The last component of the Pareto Chart is the 80% cut-off line. In other words, the cumulative total of data relating to each bar. The right Y-axis, or, the right-hand vertical axis, is the cumulative percent. The left y-axis can also be presented as a percentage. In other words, the number or the count of cases or observations. The left hand or the vertical axis is the frequency of observations. That’s why it has a Y-axis on the left and the right. And the categories generally reflect either problem areas in a process or the causes of a problem. It’s non-numeric data, so you can’t take the average or the median of this particular data. In other words, it’s data that could be grouped by name. The X-axis or the horizontal axis in a Pareto Chart displays categorical data, also called nominal data. A Pareto Chart can be either a simple bar chart in descending order or a more sophisticated, Dual Y-Axis chart with a cumulative percent line and an 80% line included in the chart. The Pareto Chart assists the quality improvement team in focusing on areas of improvement with the greatest impact. The height of the bars reflects the frequency or the impact of the problems. Pareto Chart is a bar chart sorted in descending order from the highest frequency to the lowest frequency from left to right.
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December 2022
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