The Pareto shows the distribution of items and arranges

them from the most frequent to the least frequent with

Q the final bar being misc.
U
A The tools are named after Wilfred Pareto, the Italian
L economist who determined that wealth is not evenly
I distributed. Some of the people have most of the money.
T
Y This tool is a graphical picture of the most frequent
causes of a particular problem. It shows where to put
T your initial effort to get the best gain.
O
O Normally one would be, to line up by height a group of Pareto charts are extremely useful because they can be
L people in a course. used to identify those factors that have the greatest
S Normally one would be the tallest and one would be the cumulative effect on the system, and thus screen out
shortest and there would be a cluster of people around the less significant factors in an analysis. Ideally, this
an average height. allows the user to focus.

Hence the phrase Normal distribution. In addition to the
ease with which they can be constructed, histograms
provide the easiest way to evaluate the distribution of
data.
When to Use
• When the data are numerical
• When you want to see the shape of the data's
distribution, especially when determining whether the
output of a process is distributed approximately
normally.
This, in other words called as 80:20 analysis. Prioritizing
the vital few issues is the significance of this tool.
Monitoring "Vital few, trivial many"
When to use
• When analyzing data about the frequency of problems
or causes in a process.
• When there are many problems or causes and you
want to focus on the most significant

• During analysis whether a process can meet the • When analyzing broad causes by looking at their
customer's requirements. specific components.

• When analyzing what the output from a supplier's
process looks like.
• When seeing whether a process change has occurred
from one time period to another.
• When communicating with others about your data.
How to use
• Decide what categories you will use to group items.

• When determining whether the outputs of two or more • Decide what measurement is appropriate. Common
processes are different. measurements are frequency, quantity, cost and time.

• When you wish to communicate the distribution of • Decide what period of time the chart will cover : One
data quickly and easily to others. work cycle? One full day? A week?

How to use
• Calculate the range of the observations
• Decide on the number of classes in the frequency
distribution table
• Find the class interval
• Find the class boundaries and class mid points
• Construct the frequency distribution table tallying the
observations
• Construct the histogram with the class intervals in the
X axis and the frequency in the Y axis
• Superimpose the specification limits
3 Pareto Chart
A pareto chart is a graphical tool that helps to break a big
problem down into its parts and identify which parts are
the most important.
• Collect the data, recording the category each time.
(or assemble data that already exist.)
• Subtotal the measurements for each category.
• Determine the appropriate scale for the
measurements you have collected.
The maximum value will be the largest subtotal from
step 5. (If you will do optional steps 8 and 9 below,
the maximum value will be the sum of all subtotal
from step 5.) Mark the scale on the left side of the
chart.
• Construct and label bars for each category. Place the
tallest at the far left, then the next tallest to its right
and so on. If there are many categories with small
measurements, they can be grouped as "other". Steps
8 and 9 are optional but are useful for analysis and
communication.

122 Employability Skills - (NSQF) Quality Tools : Theory 2.5.62

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