Chargement…

READY TO ROCK?

Click the button below to start exploring our website and learn more about our awesome company
Start exploring
User Avatar
Uncategorized

The pareto chart

Lifetime access
All levels
4 lessons
0 quizzes
18 students

In a few word

The Pareto principle, also called the 80/20 law, estimates that if you act on 20% of your causes allows you to resolve 80% of the effects.

This principle was created by the Italian engineer Vilfredo Pareto, who based on studies on the distribution of wealth in Italy found that 20% of people own 80% of the wealth.

The Pareto chart is the tool that highlights this principle with a graphic representation. Presented in the form of a histogram, it shows the importance of the different causes of a phenomenon. This histogram graphically illustrates the hierarchy of causes to be treated in order to concentrate efforts on 20% of the causes that will produce 80% of the effects.

The bars of the histogram are sorted in descending order and accompanied by a curve of the cumulative values of the bars.

The Pareto chart is a very popular tool, because many phenomena follow Pareto’s law, so it’s used in many fields like industry, marketing, or management.

Main Content