A Pareto Chart, inspired by the 80/20 Pareto Principle, is a bar graph that ranks causes or issues by their frequency or impact in descending order. The principle behind it is the famous "80/20" rule, also known as the Pareto Principle. Named after the Italian economist Vilfredo Pareto, it observes that, in many situations, roughly 80% of effects come from 20% of the causes. In a quality control context, this could translate to 80% of defects originating from 20% of the identified issues.
This tool is invaluable in quality control as it helps with:
- Communication: A visual tool like the Pareto chart is excellent for presentations and meetings. It provides a clear picture to stakeholders, from shop floor technicians to top management, about where the main problems lie.
- Continuous Improvement: As issues get resolved, the Pareto chart can be updated to reflect current data. This dynamic nature of the tool ensures that the quality control team is always focused on the most pressing concerns.
- Validation: After implementing corrective actions, a new Pareto chart can illustrate the reduction in defects or complaints, validating the efforts of the quality control team and justifying their initiatives.
The chart typically has two axes:
- The primary vertical axis represents the frequency of occurrence, often displayed as numbers or percentages.
- The secondary vertical axis (on the right) represents the cumulative percentage of the total number of occurrences.
- The horizontal axis lists the categories or causes of defects in descending order from left to right based on their frequency or impact.
With limited resources at their disposal, quality control departments can use Pareto charts to prioritize areas needing improvement. By focusing on the few critical causes that result in the majority of defects, organizations can get the best return on their investment.
In essence, Pareto charts provide clarity and direction, helping quality control departments target and resolve key challenges.
