Practical Management

for Career Readiness

Effective Problem Solving and
Decision Making
Module 2

with Rob Stone, M.Ed., PMP

Pareto Charts
Cause and Effect Diagrams
Histograms
Pareto Chart
 Pareto Principle:
80/20 Rule

Vilfredo Pareto
Pareto chart
A vertical bar graph in which values
are plotted in decreasing order of
relative frequency from left to right
What Does a Pareto Chart Show Us?

Information in a descending hierarchical order

Issues that cause most of our problems

The most important things

Pareto Analysis
 200 Most Pareto Chart
Often
Occurs Used for problem solving

150
Data is put into different categories
Ordered starting with most problematic
FREQUENCY

100

Least
50 Often
Occurs

0
Category 1 Category 2 Category 3 Category 4 Category 5 Category 6

CATEGORIES
 Pareto Chart
Restaurant Complaints Jan - Dec
100

Category Measure
90
Parking Problems 112
80
Rude Waiters 73
70 Cooking Problems 50
COUNT

60 Noisy 11
Food Cold 5
50
Dirty 3
40
Coffee Bad 2
30 Long Wait 1

20 TOTAL 257

10

0
Parking Rude Waiters Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait (1)
problems (73) Problems (5) (2)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
100

90

80
Vital Few

70
COUNT

60

50

40

30

20
Trivial Many
10

0
Parking Rude Waiters Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait (1)
problems (73) Problems (5) (2)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
100
250
Restaurant Complaints
Jan - Dec

Parking Problems 112 43.6% 80

200

Rude Waiters 73 72.0%

COUNT

Cooking Problems 50 91.4% 60

150

Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
100
250
Restaurant Complaints
Jan - Dec

Parking Problems 112 43.6% 80

200

Rude Waiters 73 72.0%

COUNT

Cooking Problems 50 91.4% 60

150
112 / 257 = .436
43.6% Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
100
250
Restaurant Complaints
Jan - Dec
112 + 73 = 185 80
200 Parking Problems 112 43.6%
185 / 257 = .7198
72.0% Rude Waiters 73 72.0%
COUNT

Cooking Problems 50 91.4% 60

150
112 / 257 = .436
43.6% Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
100
250
Restaurant Complaints
Jan - Dec
112 + 73 = 185 80
200 Parking Problems 112 43.6%
185 / 257 = .7198
72.0% Rude Waiters 73 72.0%
COUNT

Cooking Problems 50 91.4% 60

150
112 / 257 = .436
43.6% Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
100
250
Restaurant Complaints
Jan - Dec
112 + 73 = 185 80
200 Parking Problems 112 43.6%
185 / 257 = .7198
72.0% Rude Waiters 73 72.0%
COUNT

Cooking Problems 50 91.4% 60

150
112 / 257 = .436
43.6% Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
112 + 73 + 50 = 235 100
250
235 / 257 = .914 Restaurant Complaints
91.4% Jan - Dec
112 + 73 = 185 Parking Problems 112 43.6% 80
200
185 / 257 = .7198
72.0% Rude Waiters 73 72.0%
COUNT

Cooking Problems 50 91.4% 60

150
112 / 257 = .436
43.6% Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
112 + 73 + 50 = 235 100
250
235 / 257 = .914
Restaurant Complaints
91.4%
Jan - Dec
112 + 73 = 185 Parking Problems 112 43.6% 80
200
185 / 257 = .7198
72.0% Rude Waiters 73 72.0%
COUNT

Cooking Problems 50 91.4% 60

150
112 / 257 = .436
43.6% Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
 Pareto Chart
Restaurant Complaints Jan - Dec
112 + 73 + 50 = 235 100
250
235 / 257 = .914
Restaurant Complaints
91.4%
Jan - Dec
112 + 73 = 185 Parking Problems 112 43.6% 80
200
185 / 257 = .7198
72.0% Rude Waiters 73 72.0%
COUNT

Cooking Problems 50 91.4% 60

150
112 / 257 = .436
43.6% Noisy 11 95.7%
Food Cold 5 97.7%
100
40
Dirty 3 98.8%
Coffee Bad 2 99.6%

50
Long Wait 1 100% 20

TOTAL 257

0 0
Parking Rude Cooking Noisy (11) Food Cold Dirty (3) Coffee Bad Long Wait
problems Waiters (73) Problems (5) (2) (1)
(112) (50)
How and why to do it

Determine the Problem Categories

Tabulate the Data

Plot the Chart

Understand and Act on the Results