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What it is
Pareto Analysis is used to record and analyse data relating to a problem
in such a way as to highlight the most significant areas, inputs or issues.
Pareto Analysis often reveals that a small number of failures are
responsible for the bulk of quality costs, a phenomenon called the
Pareto Principle.
This pattern is also called the 80/20 rule and shows itself in many ways.
For example:
1 Pareto Analysis
Pareto Analysis
How to use it
1. Gather facts about the problem, using Check Sheets or
Brainstorming, depending on the availability of information.
Examples
When possible, use Minitabs version, as an industry standard,
rather than creating one in Excel - refer to Example 1 in this section
Recognise the 80: 20 principle but if the original Pareto is very flat be
prepared to cut the defects in a different way, say 40:60 - Example 3
2 Pareto Analysis
Pareto Analysis
Examples
Example 1 : Minitabs version of Pareto is used as an industry standard.
It gives summary information and starts the cumulative % count at the
top of the first bar:
600 100
500 80
400
Percent
60
Count
300
40
200
20
100
0 0
c. e air al
d pe d an d ar d ed ep ov
ed aulty ing Fitte c t. S oint der e atpl f itte h Bo ds r
f itt ic R Rem blem hort ec to tion s
ag t F ss p. le J ol He Mis g a s
e Mi no ar y Pr o r S onn ina ther
s m
Defect Da m en Mi om et E med t S ing nt
n t o e h r ou
g L e o n
pt po Cmp ong Cot Me ef or nts n ouch pon not t Lon k Wir d Ec autio hioko Sold ulty Cont
l e C am O
Cm Com Wr pt n
D Joi t T om gs
L in y on r ec T Fa
m m p C Le e P
Count 141 139 C69 52 22 C20 20 17 17 17 B16 13 10 10 10 8 6 5 29
Percent 23 22 11 8 4 3 3 3 3 3 3 2 2 2 2 1 1 1 5
Cum % 23 45 56 65 68 71 75 77 80 83 85 87 89 91 92 94 95 95 100
3 Pareto Analysis
Pareto Analysis
Examples
Example 2 : a series of Pareto charts drill down to more detail:
50
Design
as main
Percent
60
Count
40
30 40 cause of
20
20
failure
10
0 0
Defect De
s ign
mp
on
en
t
Bu
ild
Oth
er 2nd level
Co
Design Faults
100
50
80
40
Percent
60
Count
30
40
20
10 20
0 0
le s ule n
du tor rt od atio
Mo Mo Sta rM libr n
Defect nn
ec
t
rqu
e
Co
ld du
ce
IC
Ca IOP Imo
Co To ns AS
Tra
Count 21 10 8 8 5 3 2
Percent 36.8 17.5 14.0 14.0 8.8 5.3 3.5
Cum % 36.8 54.4 68.4 82.5 91.2 96.5 100.0
4 Pareto Analysis
Pareto Analysis
Examples
Example 3 : if the original Pareto is very flat, be prepared to cut the
defects in a different way, here, it is 40:60
100
200
80
Percent
60
Count
100 40
20
0 0
0 7E
88 46 77 80 82 95 6-1
82
3
4- 4
1
6- 7 27 er s
Defect KD
CC7
KD
CC6
KD
CC7
KD
CC7
KD
CC7
KD
CC7
- 56
4- 81
-66 4- 7 Oth
40 40 0 - 56
4
Count 18 13 11 11 11 10 9 9 8 138
Percent 7.6 5.5 4.6 4.6 4.6 4.2 3.8 3.8 3.4 58.0
Cum % 7.6 13.0 17.6 22.3 26.9 31.1 34.9 38.7 42.0 100.0
At first glance, this looks unhelpful. But of 238 data points, most were
counts of 1 or 2. A full Pareto would be very flat.
Therefore after the first cumulative 42% of defects (100) , the balance
of defects (138) are blocked together as others.
5 Pareto Analysis
Pareto Analysis
Examples
Example 4 : an extra dimension to Pareto charts - cut defects across another
variable - eg work shift:
15 15
Peel
Count
Count
10 10
5 5
Other
0 0
Night Weekend
Smudge
15 15
Count
Count
10 10
5 5
0 0
6 Pareto Analysis
Pareto Analysis
How it helps
Pareto Analysis is a useful tool to:
separate the vital few from the useful many things to do;
HINT !
The most frequent is not
always the most important! Be
aware of the impact of other
causes on Customers or goals.
References
ASG aTQ training module 7.4 : Measure /Analyse - Pareto & Cause-
Effect Revisited
7 Pareto Analysis