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You dont have to be a math wiz to understand what a Pareto Chart is. ## What is a Pareto Chart?A Pareto Chart is a graph that indicates the frequency of defects, as well as their cumulative impact. Pareto Charts are useful to find the defects to prioritize in order to observe the greatest overall improvement. To expand on this definition, lets break a Pareto Chart into its components.
Lets look at the table of data for the Pareto Chart above to understand what cumulative percentage is. For Collar Defects, the % of Total is simply (10/59)*100. The Cumulative % corresponds to the sum of all percentages previous to and including Collar Defects. In this case, this would be the sum of the percentages of Button Defects, Pocket Defects, and Collar Defects (39% + 27.1% + 16.9%). The last cumulative percentage will always be 100%. Cumulative percentages indicate what percentage of all defects can be removed if the most important types of defects are solved. In the example above, solving just the two most important types of defects Button Defects and Pocket Defects will remove 66% of all defects. In any Pareto Chart, for as long as the cumulative percentage line is steep, the types of defects have a significant cumulative effect. Therefore, it is worth finding the cause of these types of defects and solving them. When the cumulative percentage line starts to flatten, the types of defects do not deserve as much attention since solving them will not influence the outcome as much.
The idea behind a Pareto Chart is that the First, the first bars are always the tallest, indicating the most common sources of defects. Second, the cumulative percentage line indicates which defects to prioritize to get the most overall improvement.
## What is the Pareto Principle?The Pareto Principle states that 80% of the results are determined by 20% of the causes. Therefore, you should try to find the 20% of defect types that cause 80% of all defects. While the 80/20 rule does not apply perfectly to the example above, focusing on just 2 types of defects (Button and Pocket) has the potential to remove the majority of all defects (66%). ## Applying the Pareto Principle to Quality in ManufacturingWhen it comes time to build Pareto Charts to analyze defects in your production lines, you should not have to open Excel. With the right frontline operations software, your Pareto Charts will be created automatically. Tulip Analytics integrates all your operations data in one place. All your reports and graphs including Pareto Charts will be displayed on dashboards in real-time. That way, you will conduct root cause analysis for the defects that have the most influence on your output. ## Build Your Own Production Dashboard With TulipDownload our Production Tracking Dashboard App from the Tulip Library to better-analyze quality defects real-time! Start Your 30-Day Free Trial Claire Lamarre Aug 06, 2019 ## Video |