The Presentation covers the topics like Introduction to Pareto Chart, 80-20 rule, examples, when to use Pareto, and how to draw a pareto chart on excel.

1. PARETO DIAGRAM
OVERVIEW
BY TANMAY LATURKAR

2. PARETO DIAGRAM
• Pareto Analysis is a ranked comparison of
factors related to a quality problem.
• It is a combination of Bar chart and line graph,
where bar chart represents actual data in
descending order and line graph represents
cumulative data in ascending order
• The purpose of this diagram is to bifurcate the
major problems in a process from the trivial
ones
• This makes the user focus the efforts where
they can have highest potential of impact
• It works on the 80-20 Principle, meaning the
20% of the causes are leading to 80% of the
problems
• This was discovered by Italian economist
Vilfredo Pareto.

3. THE 80 20 PRINCIPLE WITH EXAMPLES
• The PARETO CHART follows the 80-20 Principle
• The principle states that 80% of the problems are due to 20% of the causes
• It helps in identifying the Vital Few from the Trivial Many
• Helps focusing on what really matters
• Examples-
• 20% of the car drivers cause 80% of accidents
• 80% of wealth belongs to 20% of population
• 20% of time spent on a task leads to 20% of customers

4. PARETO DIAGRAM
1. While Prioritizing problem
2. While Analyzing Symptoms
3. Providing effective Remedy
• Identifies vital few problems instead of
trivial many
• Prioritizes the issues Responsible for a
Problem
• Gives an Idea about the Cumulative
impact of the Problem
WHEN TO USE A PARETO
CHART
PARETO AS QC TOOL

5. HOW TO DRAW THE PARETO CHART ON
EXCEL
• Collect the Raw data and arrange it in descending order of occurrence.
STEP 1
SR.NO. DEFECTS OCCURENCE
1 Sand Hole defect 340
2 Cold Up defect 78
3 Sand Burning Defect 40
4 Joint Flash Defect 23
5 Porosity Shrinkage 21
6 Misrun Defect 15
7 Sand Inclusion 12
8 Shrinkage Cavity 8
537

6. • Calculate Cumulative Occurrence percentage
STEP 2
SR.NO. DEFECTS OCCURANCE Cum. %
1 Sand Hole defect 340 63
2 Cold Up defect 78 78
3 Sand Burning Defect 40 85
4 Joint Flash Defect 23 90
5 Porosity Shrinkage 21 93
6 Misrun Defect 15 96
7 Sand Inclusion 12 99
8 Shrinkage Cavity 8 100
537

7. • Select the entire data and
STEP 3
INSERT
CHARTS
2-D
COLUMN
CLUSTERED
COLUMN

8. • Right click on any of the bars and select Change Series ChartType.
STEP 4

9. • In the Change ChartType dialogue box,
select Combo in the left pane.
• Make the following changes:
• # of Complaints:Clustered Column.
• Cumulative %: Line (also check the Secondary
Axis check box)
STEP 5

10. • YOUR PARETO CHART IN EXCEL IS READY
340
78
40
23 21 15 12 8
63
78
85
90
93 96 99 100
0
20
40
60
80
100
120
0
50
100
150
200
250
300
350
400
Sand Hole defect Cold Up defect Sand Burning Defect Joint Flash Defect Porosity Shrinkage Misrun Defect Sand Inclusion Shrinkage Cavity
VITAL FEW