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.
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