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.
It is usual to include the grouped results in
the bars, and a line graph of the cumulative total.
Follow the link for other Process
Improvement Tools in MiC
Quality Six Sigma Glossary.
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