A Pareto chart is a special type of bar chart where the values being plotted are arranged in descending order. It is named after
Vilfredo Pareto, and its use in
quality assurance was popularized by
Joseph M. Juran and
Kaoru Ishikawa.The Pareto chart is one of the seven basic tools of quality control, which include the
histogram, Pareto chart,
check sheet,
control chart,
cause-and-effect diagram,
flowchart, and
scatter diagram. See glossary of quality management.Typically on the left vertical axis is frequency of occurrence, but it can alternatively represent cost or other important unit of measure. The right vertical axis is the cumulative percentage of the total number of occurrences, total cost, or total of the particular unit of measure. The purpose is to highlight the most important among a (typically large) set of factors. In
quality control, the Pareto chart often represents the most common sources of defects, the highest occurring type of defect, or the most frequent reasons for customer complaints, etc.
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A graphical tool for ranking causes from most significant to least significant. It is based on the Pareto principle, which was first defined by J. M. Juran in 1950. The principle, named after 19th century economist Vilfredo Pareto, suggests most effects come from relatively few causes; that is, 80% of the effects come from 20% of the possible causes. The Pareto chart is one of the "seven tools of quality."