Last answered:

06 Feb 2023

Posted on:

04 Feb 2023

0

Resolved: Pareto Analysis

When to use Pareto principle in our analysis?

2 answers ( 1 marked as helpful)
Posted on:

06 Feb 2023

4

the top 20% of the bars (depening up on your number of bins on the bar chart, usually the first 1-4 bar)on the pareto diagram shows the top 80% of the data. 


it is helpful in case you are looking at the number of defects vs reasons for defects. if you can chart it in the form of a pareto diagram, you can see that about 80% of the defects are being caused by about 20% of the reasons.


80-20 is an arbitary ratio. not exactly 80-20 but roughly. hope this helps.

Posted on:

06 Feb 2023

0

That make so much sense! Thank you, Mahesh!

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