Pareto chart (80-20 rule)

A Pareto Chart is a bar chart that displays the number of times each of the causes have been responsible for the defects. The Pareto Principle states that a small number of causes is responsible for a large percentage of the effect-usually 20% of the causes have 80% of the effect. This principle is graphically represented in the form of a chart called “Pareto Chart” or “80-20 diagram”. This tool applied to our problem solving approach helps us narrow down to the “vital few” causes.