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The Pareto Principle states that a small number of causes, typically 20%, are responsible for the majority of problems or outcomes. To use Pareto Analysis, gather data on the frequency of causes, rank them from most to least important, and calculate the cumulative percentage to identify the "vital few" causes that produce most of the problems. Addressing those key 20% of causes can have a large impact on overall outcomes.

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Sreeja Govindankutty
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25 views

7 QC Tools

The Pareto Principle states that a small number of causes, typically 20%, are responsible for the majority of problems or outcomes. To use Pareto Analysis, gather data on the frequency of causes, rank them from most to least important, and calculate the cumulative percentage to identify the "vital few" causes that produce most of the problems. Addressing those key 20% of causes can have a large impact on overall outcomes.

Uploaded by

Sreeja Govindankutty
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Pareto Analysis

What is it? The Pareto Principle states that only a "vital few" factors are responsible for producing most of the problems. This principle can be applied to quality improvement to the extent that a great majority of problems (80%) are produced by a few key causes (20%). If we correct these few key causes, we will have a greater probability of success
How to use it:

1.Gather data on the frequency of the causes using a tally sheet. Rank the causes from the most to the least important, and calculate the cumulative percentage (the cumulative percentage is the first percentage plus the second percentage, and so on).

Causes

Percentage of Total

Computation

Cumulative Percent

20%

0+20%= 20%

20%

18%

20%+18%=38%

38%

15%

38%+15%=53%

53%

11%

53%+11%=64%

64%

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