How you can identify significant causes of problems using Pareto chart?

Have you ever been confused between multiple causes of problems and failed to understand which cause is most significant? Well, this is the common issue project team face while working on problem-solving or improvement projects. That is where the application of Pareto chart?comes into the picture.

The Pareto chart is one of the best quality management and problem-solving tool used across the organization. This effective decision-making tool visually displays the most significant causes of the problem.

It helps the project team to separate the vital few significant factors which have the highest impact on the output from trivial many.

In this article, I am going to discuss the Pareto chart in detail like the fundamental concept behind this tool, and how to create this chart step by step.

Advantages and disadvantages of this tool, one practical example, interpretation of the complete chart, and its different applications, etc.

In the end, you will understand how to use this tool at your workplace to identify significant causes of problems. So Let's start...

?

History of Pareto chart

The Pareto chart was originally used by Vilfredo Pareto who was one of the famous Italian professors of the economy in the 19th century. In his research work, he observed that the top 20% of any country's population accounts for more than 80% of the country's total income.

This concept later become popular in economical decision-making by the name of the 80/20 principle. After that Dr. Joseph Juran (quality guru) saw Read more...

Continue reading...

Author - Ashwin More