MiC Quality MiC Quality BI-MONTHLY UPDATE
APRIL 2009 
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Online Course Instructor
Glen Netherwood
MiC Quality

 

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In Focus: Pareto Principle and Charts

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Due to the Victorian Bushfires of February 7, 2009 when the fires raged just a few kilometers from our offices on the outskirts of Melbourne, there was no February Bi-Monthly Update. While we were not affected directly a lot people near us were. The recovery and re-building is now on the way.

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:: Pareto Principle and Charts

The Pareto principle was originated by an Italian economist, Vilfredo Pareto, who found that 20% of the population owned 80% of the resources. This principle applies to many phenomena, in process improvement it is often found that 80% of problems will result from 20% of the causes. Sometimes expressed as ‘The vital few and the trivial many’.

The Pareto chart is a type of ordered histogram often used to evaluate the frequency of occurrence of defects. It is called a Pareto Chart because the distribution of defects typically obeys the Pareto Principle, 20% of the defect categories account for 80% of the defects.

Pareto Chart

It is usual to include the grouped results in the bars, and a line graph of the cumulative total.

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