Pareto Chart: (Bar Graph in descending order of frequency)

Definition: The Pareto diagram/chart is a very powerful tool for showing the relative importance of problems (or causes of a problem
Information can be collected initially by: a) an audit; b) a survey using a questionnaire; c) developing a Driver Diagram and using Multi
change ideas.

The highest frequency is the first bar in the Pareto Diagram and the next bar is the second highest frequency etc...
A graph will automatically build as you enter your information into the table below.

Steps to follow:
Step 1: Download this spread sheet onto your computer via 'Save as'.
Step 2: Starting from the top (Cause / Problem 1) enter the name of your 'Causes / Problems' into the table below in
Step 3: Delete the rows you have not used (highlight row from left hand column and 'delete').
Step 4: Enter the frequencies (#) next to the appropriate causes
Step 5: Enter the Title of your graph: Click on the graph, click on the title, then enter the information you want displayed
Step 6: To print graph: Click on graph to highlight it, then click 'print' button.
Step 7: To copy graph to Power Point presentation: Click on graph to highlight it, right click and click 'Copy', open power point file, se
Step 8: HOW TO INTERPRET YOUR PARETO CHART: The 'dots' from the red cumulative Frequency % line that fall UNDER the green "8
'priority'. However, you can act on any of the 'causes' particularly if they maybe easy to address or of high risk.

Note: Only change values is the 'white' cells. The 'grey' cells will automatically calculate based on formulas within the cells.
Template developed by Wendy Jamieson - April, 2001. Updated July 2020.

Pareto Chart template with Cumulative line and 80% cut off
Do not alter this Do not alter this Do not alter this
column. It column. It column. It
calculates calculates calculates
automatically automatically automatically

Cumulative Cumulative % 80% (80/20

Causes #
Total rule)
Cause / Problem area 1 0 #DIV/0! 80%
Cause / Problem area 2 0 #DIV/0! 80%
Cause / Problem area 3 0 #DIV/0! 80%
Cause / Problem area 4 0 #DIV/0! 80%
Cause / Problem area 5 0 #DIV/0! 80%
Cause / Problem area 6 0 #DIV/0! 80%
Cause / Problem area 7 0 #DIV/0! 80%
Cause / Problem area 8 0 #DIV/0! 80%
Cause / Problem area 9 0 #DIV/0! 80%
Cause / Problem area 10 0 #DIV/0! 80%
Cause / Problem area 11 0 #DIV/0! 80%
Cause / Problem area 12 0 #DIV/0! 80%

Total 0

Simple Pareto Chart template

 Causes #
Cause / Problem area 1
Title:

Frequency #
Pareto Chart
Cause / Problem area 2 Operational Definition: Data Col
Cause / Problem area 3 12
Cause / Problem area 4 10
Cause / Problem area 5
Cause / Problem area 6 8
Cause / Problem area 7 6
Cause / Problem area 8
4
Cause / Problem area 9
Cause / Problem area 10 2
Cause / Problem area 11 0
Cause / Problem area 12

9
ea

ea

ea

ea

ea

ea

ea

ea

ea
ar

ar

ar

ar

ar

ar

ar

ar

ar
Cause / Problem area 13

em

m
m

em

em

m
le

le

le

le

le
Cause / Problem area 14

bl
ob

ob

ob

ob

ob

ob
ob

ob

ob
Pr

Pr

Pr

Pr

Pr

Pr

Pr

Pr

Pr

Pr
Cause / Problem area 15

e/

e/
e/

e/

e/

e/

e/

e/

e/

e/
us

us

us

us

us

us

us

us

us

us
Ca

Ca

Ca

Ca

Ca

Ca

Ca

Ca

Ca
Total 0

Ca

C
 lems (or causes of a problem).
iver Diagram and using Multi & Weighted Voting to tally up the number of votes when prioritising

ency etc...

ble below in DESCENDING order

u want displayed

py', open power point file, select required slide, right click and 'Paste'.
e that fall UNDER the green "80% cut off" line relate to the 'causes' that you should focus on as a
gh risk.

ulas within the cells.

12 What patient doing when fell 100%

90%

Cumulative %
80% line (80/20 Rule)
Frequency #

10
80%

70%
8
60%

6 50%

40%
4
30%

20%
2
10%

0 0%
Cause / Cause / Cause / Cause / Cause / Cause / Cause / Cause / Cause / Cause / Cause / Cause /
Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem
area 1 area 2 area 3 area 4 area 5 area 6 area 7 area 8 area 9 area 10 area 11 area 12
 /P ar
ro ea
5

hart
Ca bl
us em
e/ ar
Pr ea
Ca ob 6
l e
us
e/ m
ar
Pr ea

nal Definition:
Ca ob 7
le
us
e/ m
ar
Pr ea
Ca ob 8
us le
e/ m
Pr ar
ob ea
Ca l e 9
us
e/ m
ar
Pr ea
Ca ob 10
le
us
e/ m
ar
Pr ea
Ca o bl 11
us em
Data Collection Date/s:

e/ ar
Pr ea
Ca ob 12
l e
us
e/ m
ar
Pr ea
Ca ob 13
le
us
e/ m
ar
Pr ea
ob 14
Sample Size:

le
m
ar
ea
15
 100%

90%
Cumulative %

ine (80/20 Rule)

80%

70%

60%

50%

40%

30%

20%

10%

0%
Cause / Cause / Cause /
Problem Problem Problem
area 10 area 11 area 12
Pareto Chart examples Example data only Pareto Chart example

Cumulative 80% (80/20 100

Type of Medication error # Cumulative % 92
Total rule)

Frequency #
90
Dose missed 92 92 21% 80% 83
80
Wrong time 83 175 41% 80%
Wrong drug 76 251 58% 80% 70
Over dose 59 310 72% 80% 60
Wrong patient 53 363 84% 80% 50
Wrong route 27 390 91% 80%
40
Wrong calculation 16 406 94% 80%
Duplicated drugs 9 415 97% 80% 30

Under dose 7 422 98% 80% 20

Wrong IV rate 4 426 99% 80% 10
Technique error 3 429 100% 80%
0
Unauthorised drug 1 430 100% 80% e
ed
i ss g tim
Example data ng
Total 430 em on ro
only
D os W
r
W

N um ber of incidents reported

Medication Safety Incidents
Example data
(all incidents in 6 months only
n=3797)

Type of Medication involved # of Cumulative 80% (80/20

in incident incidents Total Cumulative % rule)
900 854
Oxycodone 854 854 22% 80%
800
Morphine 723 1577 42% 80% 723
700
Fentanyl 587 2164 57% 80%
600
Insulin 293 2457 65% 80%
500
Paracetamol 233 2690 71% 80%
400
Other 211 2901 76% 80%
300
Hydromorphone 204 3105 82% 80%
200
Methadone 193 3298 87% 80%
100
Diazepam 182 3480 92% 80%
0
Enoxaparin 97 3577 94% 80%
Midazolam 79 3656 96% 80%
Heparin 59 3715 98% 80%
Warfarin 49 3764 99% 80%
Frusemide 33 3797 100% 80%
Total 3797

60 Causes of Discharge Delay from Emergency D

Pareto Chart
Audit of discharge delays in May & June (n=1
52
50
quency

40
 60 Causes of Discharge Delay from Emergency D
Pareto Chart
Causes of discharge delay Audit of discharge delays in May & June (n=1
from Emergency Department Frequency 52
(Audit in May & June) 50

Frequency
X-rays 52
Bed shortage on ward 21 40

Review by team 16
Doctor busy 11
30
Patient complications 4
Other 3
21
Total 107
20
Example data 16
only
11
10

N u m b e r o f f a lls 0
X-rays Bed shortage on Review by team Doctor
ward

W h e r e p a tie n t f a l l o ccu r r e d o n A g e d C a r e
P ar e to C h a r t
2 5 2 3 O p e r atio n a l d e fi n i tio n : A f al l is an e v e n t w
i n a d v e rt e n tl y o n t h e g ro u n d o r fl o o r o r o
2 0 12 m o n t h re t r o s p e c tiv e a u d i t o f i n ci d en t

1 5
1 2
1 0
6
5 4
2 2

Where fall occurred on Aged

B ed s id e C h ai r T o il et In r o o m B at h r o om W a l ki n g W
f r ame w

A rea w here pati ent fal l oc curre

Care Ward Frequency

(12 months retrospective data)

Bed side 23
Chair 12
Toilet 6
In room 4
Bathroom 2
Walking frame 2
Walking on ward 2
Nurses station 1
Transferring from Bed to com 1
Wheelchair 1
Total 54
Example data
only
Num ber of Patient falls

If the patient was moving

when they fell, how were Frequency
they moving
Attempting to stand 15
How was patient moving when they fell
Walking 14 Pareto Chart
16 15 Operational definition: A fall is an event which
Getting out of bed 10
14 inadvertently on the ground or floor or other
Attempting to sit down 4 14
12 month retrospective audit of Aged Care Wa
Bending/leaning/reaching over 3 12
Climbing over/around bedrails 3 10
10

Not known 2
8
Transferring from Chair to bed 2
Slid off bed pan 1 6
4
Slipped off chair 1 4 3 3

Total 55 2
Example data 0
only
 4
4 3 3

2
0

What was the patients

activity at the time of the Frequency What was the patients activity at the time of
Pareto Chart

Number of Falls
fall 12
11 Operational definition: A fall is an event whi
Attempting to stand 11 inadvertently on the ground or floor or othe
Getting out of bed 6 10 12 month retrospective audit of Aged Ca
Moving 6
Standing 6 8
Walking 6
Moving to go to toilet 5 6 6 6 6
6
Sitting 5 5 5 5
Toileting 5
Attempting to sit down 2 4
Climbing over/around bedrails 2 2 2 2
Sleeping in bed 2 2
Transferring from Chair to bed 2
Bending/leaning/reaching 0
d ed g g g t ng g n s d
over 1 an b in in in ile tin ow ail be
st of ov an
d alk to Sitti ile d dr in
Changing pad 1 o ut M St W to To s it be g
gt o go to d in
n
ng un ep
pti to ng ro Sle
C
Picking up item off floor 1 em Ge
tti in
g
pti r/a fro
m
Att ov em ve g
Sleeping in chair 1 M Att n go rri
n
bi fe
Other 1 im a ns nd
Cl Tr Be
Total 63
Example data
only

What was the patients

activity at the time of the Frequency What was the Patients activity at the time of
fall Pareto Chart
Number of falls

30
Operational definition: A fall is an event whic
Going to bathroom / Toileting 25 25 inadvertently on the ground or floor or other
Walking 11 25 12 month retrospective audit of Aged C
Restless Sleep 9
Slipped when getting up 7 20
Changing pad 5
15
Going for a walk 4
11
Getting out of bed 3 9
10
Picking up item off floor 2 7
Sitting in chair 1 5
5 4
3
Sleeping in chair 1 2
Standing 1 0
Stood up and them fell 1 Going to Walking Restless Slipped Changing Going for Getting Pick
bathroom Sleep when pad a walk out of bed up i
Total 70 / Toileting getting up off fl

Reasons why a risk screen

Number of votes

was not conducted on

admission (reason stated by Frequency Reasons why a Risk Screen was not conducted on a
9 (reasons stated by staff in Focus Group meeting)
staff member) 8 Pareto Chart (n=33)
8
Too busy 8 7
7
6
6

5
4
4
 Reasons why a Risk Screen was not conducted on a
9

Number of v
(reasons stated by staff in Focus Group meeting)
8 Pareto Chart (n=33)
8
7
7
6
eMR fragmented / difficult to 7 6
use
5
No access to computer on 6 4
ward to complete risk screen 4

Screening too time consuming 4 3

Got interrupted and did not 2

4
complete falls screen
1
Thought it was not relevant 2 0
Too busy eMR No access to Screening too Got inte
Thought it was not fragmented / computer on time consuming and did
2 difficult to use ward to comple
mandatory to risk screen complete risk screen
screen
Total 33
Example data
only

Example only: A QI project team working to

improve immunization rates in the USA believed
that the cost of vaccination was the biggest Reasons stated by parent for lack of child immunization
barrier to improvement. After surveying the Pareto Chart
parents who were not up to date with their child's 200 Survey of parents (n=368)
immunization, they found that cost was not an 185
issue, however transport to the clinic was the 180
biggest barrier.
160
Number

140

Reasons stated by parent for 120

lack of child immunization Frequency
100

No Transport 185 80
No childcare 49
No information 35 60 49
See no need 33 40 35 33 29
Cost 29
No clinic 25 20
No time 12 0
Total 368 No Transport No childcare No information See no need Cost
Example data
only
Number of complaints

What patients complained # complaints

about
Pain Management 73 Type of patient complaint
Respect 62 Pareto Chart
80 73 (n=209)
Communication / Information 21
70
Emotional Support 11 62
60
Care co-ordination 9
Noise on ward 8 50
Food 7 40
Cleanliness 7 30
21
Comfort 6 20
11 9 8 7 7
10
0
 50
40
30
21
20
Discharge process 3 11 9 8 7 7
10
Family Involvement 2
0
Total 209
Example data
only

Focus group - In relation to providing high

quality care for consumers, what were the
top issues you would consider important to
address? i.e. : When you come to work,
what was the pebble (or pebbles) in your
shoe?

Causes # of votes Number of votes

Leadership & Culture 35 40 Mental Health Staff Focus Group
Pareto Chart
Managing agitation & aggression 23 35 Staff votes on the top / most important issues to
35
to provide high quality care for Mental Health co
Compassionate care 22
Physical health 20 30
Prevention & early intervention (de-
escalation) 19 25 23
22
Staffing 18 20
20 19
18
Team work 17 17
16
Environment 16 15 13
Care Planning 13 10
10 9
Admission process 10 8
Boredom 9
5
Clinical Information sharing 8
Medication reconciliation 7 0
re e ) ng rk t g s g
Policy 5 io
n ar lth on en in es m in
ltu s c ea affi wo n oc do ar
Cu es te lh lati St on
m an pr re sh
3 gr na ica ca am
vir Pl Bo
Clinical Review
ip
& ag io ys es Te re io
n on
h & ss e- En Ca iss ati re
c
rs n pa Ph (d m
Inter-ward transfer 1 de tio m on
m o r on
ea ita Co Ad f ti
L ag nti l In ica
Leave 1 g rve ica ed
in te lin M
ag in C
Total 227 an rly
M ea
Example data &
on
only nti
eve
Pr

Incomplete documentation in Electronic Medical Record (e

Audit in Acute Care Mental Health Unit (n=90)
30 28

Incomplete documentation 25
in eMR
Count

Count 21
Audit in Acute Care Mental Health 20
Unit 20

Metabolic monitoring 28 15
Care plan 21
Admission checklist 20 10
Fall risk screen 6 6
Snr Medical Officer countersign MDS 4 5 4 4

0
Metabolic Care plan Admission Fall risk Snr Medical Correct
monitoring checklist screen Officer
countersign
MDS
 10
6
5 4 4

Correct GP 4
0
Strengths based language 4 Metabolic Care plan Admission Fall risk Snr Medical Correct
No GP documented 3 monitoring checklist screen Officer
countersign
Total 90 MDS
Example data
only

Tally of reason
Reasons for incomplete metabolic monitoring in Acute Care Ment
Reasons for incomplete Pareto Chart
metabolic monitoring in Tally of 35
(n=135)
30
Acute Care Mental Health Reasons 30 27
Unit
Missing equipment 30 25
20
Staff forgot 27 20 18
Business of Unit 20
15 12
Agency staff unaware 18 10
Broken equipment 12 10
Unit staff unaware 10 5
Consumer acuity 10
0
Consumer refusal 6 t t t e t e
en r go U ni ar en ar
Reason undetermined 2 w w ac
i pm fo of na i pm na
qu aff ss u u u er
Total 135 ge St ne ta
ff eq aff um
si n st ns
in Bu ys ke it
Example data i ss en
c
Br
o
Un Co
M
only Ag

Barriers to antipsychotic Tally of Barriers to antipsychotic monitoring

monitoring Reasons 40 Pareto Chart
35
(n=114)
Missing Equipment 35 35
Over reliance on GP 24
30
Tally

Limited referral information 20 24

25
Poor Communication 10 20
20
Clinical staff unaware 8
Missed appointments 8 15
10
Consumer refusals 7 10 8 8
Unclear cause 2
5
Total 114
Example data 0
t n e s
only en GP o n o ar en
t
m n ati ati w
u ip eo rm ni
c na nt
m
Eq nc nf
o u ff
u i
g li a li m ta po
in r e ra om ls ap
iss er fe
r C i c a ed
M Ov re or in i ss
d Po Cl M
i te
m
Li
Number of c-sections

Indications for elective

caesarean section #
Previous caesarean section 152
Malpresentation 87
Indications for Elective Caesarean Section
Major degree placenta previa 50 160 152 Pareto Chart
(n=506)
140
120
100 87
80
 Number of c-sec
Indications for Elective Caesarean Section
160 152 Pareto Chart
Hypertensive disorders 44 (n=506)
140
Foetal macrosomia 39 120
Risky obstetric history 33 100 87
Multiple pregnancy 25 80
Previous vesico-vaginal fistula repair 21 60 50
44 39
40 33
Retroviral positive pregnancy 12 25 2
20
Severe intrauterine growth
restriction 8 0
Other 26
Total 497
Example data
only

Fall Prevention Strategies NOT undertaken - Audit of 30 Medical Records

Fall Prevention Strategies

NOT undertaken # Fall Prevention Strategies NOT
Pareto Chart
Multidisc. Rounds 30 (n=30)
35
Othostatic hypotension monitoring 27
Medications review 21 30
Risk Assessment 19 30
27
Falls Screening 12
Frequency

Delirium Screen 12 25
Cognition screen 7 21
Intentional Rounding 5 20 19
Environment management 1
Safe Mobilisation 1 15
Example data 12
only
10

0
Multidisc. Othostatic Medications Risk Falls D
Rounds hypotension review Assessment Screening S
monitoring
 Pareto Chart example with Cumulative line

Types of Medication Errors Example data

Pareto Chart only
100 12 months of retrospective incident data (n=430) 100%
92

Cumulative %
80% line (80/20 Rule)
Frequency #

90 90%
83
80 76 80%

70 70%
59
60 60%
53
50 50%

40 40%

30 27 30%

20 16 20%
9 7
10 4 10%
3 1
0 0%
ed m
e
ru
g
os
e nt ut
e
on ug
s
os
e te ro
r
ru
g
i ss g ti gd d tie ro la
ti dr rd ra er d
em n n er pa g u d de I V e d
os ro ro Ov ng on lc te n ng qu i se
D W W ro r ca i ca U ro ni or
W W ng pl W ch t h
ro Du Te au
W Un
N um ber of incidents reported

Example data only

Medication Safety Incidents by Medication Name
Pareto Chart
All incidents reported in 6 months (n=3797)
Cum ulative %

# of incidents Cumulative % 80% (80/20 rule)

900 854 100%
800 80% line (80/20 Rule) 90%
723
700 80%
587 70%
600
60%
500
50%
400
293
40%
300 233 211 204 30%
193 182
200 20%
97 79
100 59 49 33 10%
0 0%

Name of Medication

arge Delay from Emergency Department

rge delays in May & June (n=107)
Example data
only
 arge Delay from Emergency Department
rge delays in May & June (n=107)
Example data
only

16

11

4 3

Review by team Doctor busy Patient Other

complications

l o ccu r re d o n A ge d Ca r e Wa r d
i tio n : A fa ll i s a n e v e n t w h i ch r e su l t s i n a p atie n t c om i n g t o re s t
t h e g r o u n d o r fl o o r o r o th e r l o w e r l ev e l.
p e c tiv e a u d i t o f i n ci d en t d a t a ( n

2 2 2
1 1 1

o om B at h r oo m W a l ki n g W a lk in g o n N u r se s T r an sf er r in g Wh e elc h ai r
f r ame w ar d st ati o n fr o m B e d t o
co mm o d e
A rea w here p ati ent fall oc curred

E
x
a
m
p
l
e
d
a
t
a
o
n
l
y

moving when they fell

nition: A fall is an event which results in a patient coming to rest
the ground or floor or other lower level. Example
pective audit of Aged Care Ward incident da data only

4
3 3
2 2
1 1
4
3 3
2 2
1 1

ents activity at the time of the fall

ition: A fall is an event which results in a patient coming to rest

the ground or floor or other lower level.
ective audit of Aged Ca

5 5

2 2 2 2
1 1 1 1 1

ng tin
g n
ail
s
be
d d ve
r
pa
d or air he
r
tti ile ow dr be go flo ch Ot
d
be in to ng ff n
To s it d in
g
air h in gi o
ng
i
to un ep ac an m pi
ng Ch re Ch ite
ro Sle m g/ p lee
pti er/a fro
ni
n g u S
em v ng lea in
Att n go rri g/ P ick
bi e in
sf nd
Cl
im an Be
Tr

ents activity at the time of their fall Example data only

tion: A fall is an event which results in a patient coming to rest
he ground or floor or other lower level.
ctive audit of Aged C

5
4
3
2
1 1 1 1

hanging Going for Getting Picking Sitting in Sleeping Standing Stood up

ad a walk out of bed up item chair in chair and them
off floor fell

creen was not conducted on admission

aff in Focus Group meeting)
)

4 4
creen was not conducted on admission
aff in Focus Group meeting)
)

4 4

2 2

ss to Screening too Got interrupted Thought it was Thought it was

er on time consuming and did not not relevant not mandatory
complete falls to risk screen
e risk screen

t for lack of child immunization E

x
a
) m
p
l
e
d
a
t
a
o
n
l
y

33 29 25
12

n See no need Cost No clinic No time

Example data only

atient complaint
hart

8 7 7 6
3 2
 8 7 7 6
3 2

Focus Group
op / most important issues to address Example data only
ality care for Mental Health consumers

16
13
10
9
8
7
5
3
1 1

t g s g n y r e
en in es do
m
ar
in tio lic iew fe av
m an
n oc re ilia Po ev ns Le
on Pl pr o sh c lR tra
re io
n B on co
n ica ar
d
Ca iss ati re Cl
in
m rm n er-w
Ad fo tio In
t
l In ca
ica edi
in M
Cl

in Electronic Medical Record (eMR)

Health Unit (n=90)

6
4 4 4
3

Fall risk Snr Medical Correct GP Strengths No GP

creen Officer based documented
countersign language
MDS
 6
4 4 4
3

Fall risk Snr Medical Correct GP Strengths No GP

creen Officer based documented
countersign language
MDS

monitoring in Acute Care Mental Health Unit Example data only

12
10 10
6
2

t e l
en ar ity sa ed
w u fu in
i pm na ac r e rm
u u er er te
eq ta
ff um um d e
n ns un
ke i ts ns
o
Un Co Co on
eas
R

ntipsychotic monitoring

10
8 8 7

n e t s l s se
tio ar en sa au
ca w fu c
u na nt
m r e ar
ff oi er c le
ta p um Un
als ap ns
ni
c ed Co
i i ss
Cl M

Elective Caesarean Section

Elective Caesarean Section

39
33
25 21 26
12 8

evention Strategies NOT undertaken

Chart

19

12 12

7
5

1 1

s Risk Falls Delirium Cognition Intentional Environment Safe

Assessment Screening Screen screen Rounding management Mobilisation
Simple Pareto Chart example

Types of Medication Errors

Pareto Chart Example data only
100
92
12 months of retrospective incident data (n=430)
Frequency #

90
83
80 76

70
59
60
53
50

40

30 27

20 16
9 7
10 4 3 1
0
ed e g e t te n s e te or ug
i ss
m ru os en ou o ug os ra r dr
ti d d ati r ati dr rd er
em ng ng er p ng ul ed de gI
V
ue d
os ro ro Ov g
ro al
c
at q i se
D W W ro
n c ic Un ro
n ni ho
r
W W ng pl W ch t
ro Du Te au
W Un
Num ber of incidents reported

Medication Safety Incidents by Medication Name

Pareto Chart
All incidents reported in 6 months(n=3797) Example data only
900 854

800
723
700
587
600
500
400
293
300 233 211 204 193 182
200
97 79
100 59 49 33
0

Name of Medication
 Causes of discharge delay
from Emergency Department

Bed shortage on ward

Doctor busy
Patient complications
Other
X-rays
Review by team
Total
 A
Types of Medication ErrorsP
Pie Chart i
16 92 e
27 94 7 3 1
c
h
a
53 r
Example data only t
i

data (n=430) s
n
o
t
83
59 76
r
e
c
o
m
Do se missed Wro ng time Wro ng dru g Over m
dose
e
Wro ng patient Wro ng rou te Wro ng c al c ul ation Dupl i
n cated d rugs
Un der do se Wro ng IV rate Tec hni q ue error d ori sed dru g
Unauth
e
d
a
s
i
t
i
s
d
i
f
f
i
c
u
l
t
t
o
i
n
t
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Example data only

7 79 59 49 33
Frequency

21
11
4
3
52
16
107
 83

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Pareto Principle or 80/20 Rule

The Pareto Principle was developed by 20th century business scholar Joseph Juran, who named the rule afte
Juran described it as the rule of the “vital few and trivial many" since it's used to weed out less important fac
Further reading:
The Pareto principle (also known as the 80–20 rule, the law of the vital few, and the principle of factor sparsi
Management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfred
Essentially, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population;
Pareto developed the principle by observing that 20% of the pea pods in his garden contained 80% of the pea
It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients."

HOW TO INTERPRET YOUR PARETO CHART: The 'dots' from the red cumulative Frequency % line that fall UNDER the green "80% cut
However, you can act on any of the 'causes' particularly if they maybe easy to address or of high risk.

Cumulative
Causes # Cumulative % 80% Cut off
Total
Cause 1 380 380 39% 80%
Cause 2 300 680 70% 80%
Cause 3 130 810 83% 80%
Cause 4 60 870 89% 80%
Cause 5 40 910 93% 80%
Cause 6 30 940 96% 80%
Cause 7 20 960 98% 80%
Cause 8 10 970 99% 80%
Cause 9 5 975 100% 80%
Cause 10 3 978 100% 80%

Total 978
who named the rule after Italian economist Vilfredo Pareto.  
ed out less important factors in decision making.

principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.
Italian economist Vilfredo Pareto, who, while at the University of Lausanne in 1896, published his first paper "Cours d'écon
y 20% of the population;
contained 80% of the peas

ll UNDER the green "80% cut off" line relate to the 'causes' that you should focus on as a 'priority'.

Vital Few
400 380
Contribute to 80% of the problem
100%

C u m u lati ve %
Fre q u e n cy #

90%
350
80% Cut off (80/20 Rule)
300 80%
300 Trivial Many
70%

250
60%

2200 50%

0 40%
%150 130
30%
100
o 60 20%
f 50 40
30 10%
20
10 5 3
t 0 0%
h Cause 1 Cause 2 Cause 3 Cause 4 Cause 5 Cause 6 Cause 7 Cause 8 Cause 9 Cause 10
e

c
a
u
s
e
s
m 20% of the causes.
d his first paper "Cours d'économie politique."

% of the problem
100%
C u m u lati ve %

90%
80/20 Rule)
80%

70%

60%

50%

40%

30%

20%

10%
5 3
0%
Cause 9 Cause 10
Creating at Pareto chart via a Pivot table
Also watch and learn from this You Tube clip: https://www.youtube.com/watch?v=dMWq48_TsNo