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 80% (80/20

Causes # Cumulative %
Total rule)
Cause / Problem area 1 23 23 8% 80%
Cause / Problem area 2 34 57 21% 80%
Cause / Problem area 3 45 102 37% 80%
Cause / Problem area 4 37 139 50% 80%
Cause / Problem area 5 24 163 59% 80%
Cause / Problem area 6 10 173 62% 80%
Cause / Problem area 7 4 177 64% 80%
Cause / Problem area 8 67 244 88% 80%
Cause / Problem area 9 2 246 89% 80%
Cause / Problem area 10 9 255 92% 80%
Cause / Problem area 11 10 265 96% 80%
Cause / Problem area 12 12 277 100% 80%

Total 277

Simple Pareto Chart template

 Causes #
Title
Cause / Problem area 1
Pareto

Frequency #
Cause / Problem area 2 Operational Definition: Data Co
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 1 2 3 4 5 6 7 8 9
ea ea ea ea ea ea ea ea ea
Cause / Problem area 13 ar ar ar ar ar ar ar ar ar
em em em em em em em em em
Cause / Problem area 14 o bl o bl o bl o bl o bl o bl o bl o bl o bl
Pr Pr Pr Pr Pr Pr Pr Pr Pr ob
Cause / Problem area 15 e/ e/ e/ e/ e/ e/ e/ e/ e/ / Pr
aus us us us us us us us us us
e
Total 0 C Ca C a Ca C a C a C a Ca C a
Ca C
blems (or causes of a problem).
river 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.

What patient doing when fell

80 100%

Cumulative %
90%
Frequency #

70 67
80% line (80/20 Rule)
80%
60
70%
50 45 60%
40 37 50%
34

30 40%
23 24
30%
20
12 20%
10 9 10
10
4 10%
2
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
 Title:
Pareto Chart
onal Definition: Data Collection Date/s: Sample Size:

5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5
ea ea ea ea ea ea ea ea ea ea ea
ar ar ar ar ar ar ar ar ar ar ar
em em em em em em em em em em
o bl o bl o bl o bl bl bl bl bl bl bl
/ Pr Pr Pr Pr Pr
o
Pr
o
Pr
o
Pr
o
Pr
o
Pr
o
e/ e/ e/ e/ e/ e/ e/ e/ /
aus aus aus us us us us us u se
C C C C a C a C a C a C a Ca
 100%
Cumulative %

90%
ine (80/20 Rule)
80%
70%
60%
50%
40%
30%

12 20%
9 10
10%
0%
Cause / Cause / Cause /
Problem Problem Problem
area 10 area 11 area 12
 F re q u e n cy #
Pareto Chart examples Example data only Pareto Chart example with
10 0
1
92
90
83
80 7 6

70
60
50
40
30
20
10
0

Type of Medication Cumulative 80% (80/20

# Cumulative %
error Total rule)
Dose missed 92 92 21% 80%
Wrong time 83 175 41% 80%
Wrong drug 76 251 58% 80%
Over dose 59 310 72% 80%
Wrong patient 53 363 84% 80%
Wrong route 27 390 91% 80%
Wrong calculation 16 406 94% 80%
Duplicated drugs 9 415 97% 80%
Under dose 7 422 98% 80%
Wrong IV rate 4 426 99% 80%
Technique error 3 429 100% 80%
Unauthorised drug 1 430 100% 80%
Example data
Total 430 only

N um ber of incidents reported

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

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

Cumulative %
involved in incident incidents Total rule)
Oxycodone 854 854 22% 80% 900 854
#

Morphine 723 1577 42% 80% 800 723

Fentanyl 587 2164 57% 80% 700
587
Insulin 293 2457 65% 80% 600

Paracetamol 233 2690 71% 80% 500

400
Other 211 2901 76% 80% 2
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
F re q u e n cy

Ca uses of D isc har ge D el ay f ro m Em e rge ncy De par tm

Pa r eto Ch ar t
6 0 A udit of dis cha rg e d el ay s in M ay & June (n=10 7
52
5 0

4 0

3 0

2 1
2 0
1 6

1 1
1 0

0
X -r ay s B e d sh o r t ag e on R e vi ew b y t e a m Do ct o r b u sy
w a r d
 F re q u e n cy
Ca uses of D isc har ge D el ay f ro m Em e rge ncy De par tm
Pa r eto Ch ar t
6 0 A udit of dis cha rg e d el ay s in M ay & June (n=10 7
52
5 0

4 0

3 0

2 1
2 0
1 6

1 1
1 0

0
X -r ay s B e d sh o r t ag e on R e vi ew b y t e a m Do ct o r b u sy
w a r d

Causes of discharge
delay from Emergency
Department (Audit in Frequency
May & June)

X-rays 52
Bed shortage on ward 21
Review by team 16
Doctor busy 11
Patient complications 4
Other 3
Total 107
Example data
only

Where fall occurred

on Aged Care Ward Where patient fall occurred on
Number of falls

Frequency
(12 months retrospective Pareto Char
data)
Operational definition: A fall is an event whi
Bed side 23 25 23
rest
Chair 12 inadvertently on the ground or flo
Toilet 6 20 12 month retrospective audit
In room 4
Bathroom 2 15
12
Walking frame 2
Walking on ward 2 10
Nurses station 1 6
5 4
Transferring from Bed 1 2 2 2
N u m b e r o f P a ti e n t f a l l s

Wheelchair 1
0
Total 54 Bed side Chair Toilet In room Bathroom Walking Walking
frame ward
Example data
only Area where patient fall occurred

If the patient was Oper ati onal de fin iti o

H
n
o
:
w
A
w a
f al
s p
l i s
a ti
an
en
P
ev
t
en
mo
a reto
t
v i
Ch
w h
n
i
g
ch
w h
a rt
re

moving when they

16 1 5 in ad v ert en tly o n th e gr o u nd o r fl oo r o
1 4 12 mo n th r etro s p ec ti ve au d it o f A g ed C
14
12
1 0
10

Frequency
8

6
4
4 3 3
2
2
0

fell, how were they

moving
Attempting to stand 15
Walking 14
Getting out of bed 10
Attempting to sit down 4
Bending/leaning/reaching 3
over
Climbing over/around 3
bedrails
Not known 2
Transferring from Chair to
bed 2
Slid off bed pan 1
Slipped off chair 1
Total 55
 Example data
only

What was the

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

Number of Falls
12 Operational definition: A fall is an event which re
Attempting to stand 11 11 inadvertently on the ground or floor o
Getting out of bed 6 12 month retrospective audi
Moving 6 10
Standing 6
Walking 6 8
Moving to go to toilet 5 6 6 6 6
Sitting 5 6
5 5 5
Toileting 5
Attempting to sit down 2 4
Climbing over/around be 2
2 2 2 2
Sleeping in bed 2 2
Transferring from Chair 2
Bending/leaning/ 0
reaching over 1
Changing pad 1
Picking up item off floor 1
Sleeping in chair 1
Other 1
Total 63
Example data
only

What was the

patients activity at Frequency What was the Patients activity at the
the time of the fall Pareto Chart
Operational definition: A fall is an event which re
Number of falls

Going to bathroom / Toilet 25 30 inadvertently on the ground or floor o

Walking 11 12 month retrospective audi
25
Restless Sleep 9 25
Slipped when getting up 7
Changing pad 5 20
Going for a walk 4
Getting out of bed 3 15
11
Picking up item off floor 2 9
10
Sitting in chair 1 7
Sleeping in chair 1 5
5 4
3
Standing 1 2
Stood up and them fell 1 0
Going to Walking Restless Slipped Changing Going for Getting Picking Si
Total 70 bathroom Sleep when get - pad a walk out of bed up item
/ Toileting ting up off floor
 Reasons why a risk
screen was not

Number of votes
Reasons why a Risk Screen was not conducted on admission
conducted on Frequency (reasons stated by staff in Focus Group meeting)
admission (reason 9 Pareto Chart (n=33)
stated by staff 8
8
Too busy 8 7
7
eMR fragmented / 7 6
difficult to use 6
No access to computer 5
on ward to complete 6
4 4
risk screen 4
Screening too time con 4 3
Got interrupted and
did not complete falls 4 2
screen
1
Thought it was not
relevant 2
0
Thought it was not Too busy eMR fragmented / No access to Screening too Got interrupted
difficult to use computer on time consuming and did not
mandatory to risk 2 ward to com- complete falls
screen plete 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 Reasons stated by parent for lack of child immunization
the biggest barrier to improvement. After Pareto Chart
surveying the parents who were not up to Survey of parents (n=368)
date with their child's immunization, they 200
found that cost was not an issue, however 185
transport to the clinic was the biggest 180
barrier.
160
Number

140
Reasons stated by
parent for lack of child 120
Frequency
immunization
100
No Transport 185
80
No childcare 49
No information 35 60 49
See no need 33 35
40 33 29
Cost 29 25
No clinic 25 20
No time 12
0
Total 368 No Transport No childcare No information See no need Cost No cl
Example data
only
Number of complaints

What patients # complaints

complained about
Type of patient complaint
Pain Management 73
Pareto Chart
Respect 62 (n=209)
80 73
70
62
60
50
40
 Number of complaint
Type of patient complaint
Pareto Chart
80 (n=209)
21 73
Communication / Information
70
Emotional Support 11 62
Care co-ordination 9 60
Noise on ward 8 50
Food 7 40
Cleanliness 7 30
21
Comfort 6 20
3 11 9
Discharge process 8 7 7 6
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. :
N u m b e r o f v o te s

When you come to work, what was

the pebble (or pebbles) in your shoe?

Causes # of votes 4

1
0

5
3 5

2 3
22
2 0
S ta ff

1
to p

9
r
v
o
o

1
t
v

8
i
es
de
o
h
n
M

i g

1
h
en
the
q

7
u
t a
to
l

al
p
H ea
/
i ty

1
P
m
c

6
l th
ar
o
a re

1
s

3
S ta ff
eto
t
fo
C
i mp
r

1
h

M
F o
ar
o
en

0
t
cus
rta n
ta l

9
t
G

H
ro
issu
u

ea lt
p
es

8
h
t
co
o
n
ad
s

7
u

35
0

Leadership & Culture

Managing agitation &
aggression 23
Compassionate care 22
Physical health 20
Prevention & early
intervention (de-escalation) 19
Staffing 18
Team work 17
Environment 16
Care Planning 13
Admission process 10
Boredom 9
Clinical Information sharing 8
Medication reconciliation 7
Policy 5
Clinical Review 3
Inter-ward transfer 1
Leave 1
Total 227
Example data
only

Incomplete documentation in Electronic Medical Record (eMR)

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

25
Count

21
20
20

15

10
 Incomplete documentation in Electronic Medical Record (eMR)
Audit in Acute Care Mental Health Unit (n=90)
30 28
Incomplete
documentation in 25

Count
eMR Count
Audit in Acute Care Mental 21
20
Health Unit 20
Metabolic monitoring 28
15
Care plan 21
Admission checklist 20
10
Fall risk screen 6
Snr Medical Officer 6
countersign MDS 4
5 4 4
Correct GP 4
Strengths based language 4
0
No GP documented 3 Metabolic Care plan Admission Fall risk Snr Medical Correct GP S
Total 90 monitoring checklist screen Officer
countersign
Example data MDS
only
Tally of reason

Reasons for Reasons for incomplete metabolic monitoring in Acute Care Mental Hea
incomplete metabolic Pareto Chart
monitoring in Acute
Tally of (n=135)
Reasons 35
Care Mental Health 30
Unit 30 27
Missing equipment 30
25
Staff forgot 27 20
Business of Unit 20 20 18

Agency staff unaware 18 15 12

Broken equipment 12 10 10
10
Unit staff unaware 10
5
Consumer acuity 10
Consumer refusal 6 0
Reason undetermined 2
Total 135
Example data
only

Barriers to Tally of Barriers to antipsychotic monitoring

antipsychotic Pareto Chart
monitoring Reasons
40 (n=114)
Missing Equipment 35 35
35
Over reliance on GP 24
Limited referral 30
information 20
Tally

24
Poor Communication 10 25
20
Clinical staff unaware 8 20
Missed appointments 8 15
Consumer refusals 7 10
10 8 8
Unclear cause 2
Total 114 5
Example data 0
t e s
only en GP on o n
ar en
t
m n ati ati w
u ip eo rm ni
c na nt
m
Eq nc nf
o u ff
u
oi e
g li a li m ta p m
in r e ra om ls ap su
iss er fe
r C i c a ed on
M Ov re or in iss C
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 Pareto Chart
160 152 (n=506)
Hypertensive disorders 44
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
Retroviral positive pregnancy 12 40 33
25 21
Severe intrauterine growth 20
restriction 8
0
Other 26
Total 497
Example data
only

Fall Prevention Strategies NOT undertaken - Audit of 30 Medical Records

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

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

10

0
Multidisc. Othostatic Medications Risk As- Falls Screen- Delirium
Rounds hypotension review sessment ing Screen
monitoring
 C u m u l a ti v e %
F re q u e n cy #

Pareto Chart example with Cumulative line

T yp e s of M e d i catio n E r ro r s
P a re to C ha rt Ex amp le d at a

10 0
1 2 mo n th s of r e tro s p e c tiv e i n c id e n t da t a (n= 4 3 0
o)
nl y
1 0 0%
9 2
9 0 90 %
8 3
8 0 7 6
80 % li ne ( 80/ 20 Rule) 80 %

7 0 70 %
5 9
6 0 5 3 60 %
5 0 50 %
4 0 40 %
3 0 2 7 30 %
2 0 1 6 20 %
9 7
1 0 4 10 %
3 1
0 0%
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 90%
723 80% line (80/20 Rule)
700 80%
587 70%
600
60%
500
50%
400
293 40%
300 233 211 204 193
30%
182
200 20%
97 79
100 59 49 33 10%
0 0%

Name of Medication

ha rge D e lay fr om E m erg en cy D epa rtm ent

P a reto Ch a rt
s cha rg e d el ay s in M ay & Jun e (n=1 07)
E xa m pl e d ata
o n ly

1 6

1 1

4 3

Re v ie w b y t e am Do ct o r b u sy P a ti
e n t co m pl i
- Ot h e r
c ati o n s
ha rge D e lay fr om E m erg en cy D epa rtm ent
P a reto Ch a rt
s cha rg e d el ay s in M ay & Jun e (n=1 07)
E xa m pl e d ata
o n ly

1 6

1 1

4 3

Re v ie w b y t e am Do ct o r b u sy P a ti
e n t co m pl i
- Ot h e r
c ati o n s

Where patient fall occurred on Aged Care Ward

Pareto Chart
efinition: A fall is an event which results in a patient coming to
rest
ertently on the ground or floor or other lower level.
12 month retrospective audit of incident data (n

4
2 2 2
1 1 1

oom Bathroom Walking Walking on Nurses Transferring Wheelchair

frame ward station from Bed to
commode
Area where patient fall occurred

Ho w w as p a tie nt mo v in g w h en they f ell

P a reto Ch a rt
d efin iti on : A f all is an ev e n t w h ich res u lts in a pa ti en t co mi ng t o re st
nad v er ten tl y o n th e g ro u n d o r fl o o r or o th er l ow er lev el.
mo n th retro sp ec ti v e au dit of A g ed Ca re W ar d in ciden t d a

4
3 3
2 2
1 1

E
x
a
m
p
l
 E
x
a
m
p
l
e

d
a
t
a

o
n
l
y

hat was the patients activity at the time of the fall

Pareto Chart
nition: A fall is an event which results in a patient coming to rest
vertently on the ground or floor or other lower level.
12 month retrospective audit of Aged Ca

5 5

2 2 2 2
1 1 1 1 1

at was the Patients activity at the time Example

of their falldata only
Pareto Chart
nition: A fall is an event which results in a patient coming to rest
ertently on the ground or floor or other lower level.
12 month retrospective audit of Aged C

5
4
3
2
1 1 1 1

hanging Going for Getting Picking Sitting in Sleeping Standing Stood up

pad a walk out of bed up item chair in chair and them
off floor fell
 een was not conducted on admission E
by staff in Focus Group meeting) x
eto Chart (n=33)
a
m
p
l
e
4 4 d
a
t
a2 2

o
ss to Screening too Got interrupted
n
Thought it was Thought it was
er on time consuming and did not not lrelevant not mandatory to
com- complete falls risk screen
screen screen y

for lack of child immunization E

to Chart x
arents (n=368) 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

patient complaint
areto Chart
(n=209)
 Example data only
patient complaint
areto Chart
(n=209)

8 7 7 6
3 2

n ta l H ea lth St a ff F o cu s G ro u p
P a reto Ch a rt
e to p / mo st imp o rta n t iss u es t o addr ess
qu al i ty ca re fo r M en ta l H ea lt h co nsum ers Exa mp le da t a o nl y

1 6
1 3
1 0
9 8
7
5
3
1 1

in Electronic Medical Record (eMR)

Mental Health Unit (n=90)
 in Electronic Medical Record (eMR)
Mental Health Unit (n=90)

6
4 4 4
3

Fall risk Snr Medical Correct GP Strengths No GP doc-

screen Officer based umented
countersign language
MDS

monitoring in Acute Care Mental Health Unit

areto Chart Example data only
(n=135)

12
10 10
6
2

ntipsychotic monitoring
areto Chart
(n=114)

10
8 8 7
2

n
ar
e t s ls se
tio en sa au
ca w fu c
u na nt
m r e ar
ff oi er c le
ta p um Un
a ls ap ns
ni
c ed Co
i iss
Cl M
Elective Caesarean Section
Pareto Chart
(n=506)

39
33
25 21 26
12 8

Prevention Strategies NOT undertaken

Pareto Chart
(n=30)

19

12 12

7
5

1 1

s Risk As- Falls Screen- Delirium Cognition Intentional Environment Safe Mobil-
sessment ing Screen screen Rounding management isation
 F re q u e n cy #
Simple Pareto Chart example
Ty pes of M e d ic a tio n Err o rs
Pa r e to C ha rt
1 2 mo n th s of re tr os pe c tiv e in c id e n t da t a (n=4 3 0 )E xa mpl e d a ta o nly
1 00
9 2
90
8 3
80 7 6

70
59
60
5 3
50

40
30 27

20 1 6
9 7
10 4 3 1
0
N u m b e r o f in c id e n t s r e p o r t e d

Medic ati on S afety In c iden ts b y M edi cati on Name

P are to Ch art
A ll inci dents rep or ted i n 6 m o nths (n =3797) E xam ple d at a on ly
90 0 8 5 4

80 0
7 2 3
70 0
5 8 7
60 0
50 0

40 0
2 9 3
30 0 2 3 3
2 1 1 2 0 4 1 9 3 1 8 2
20 0
9 7 7 9
10 0 5 9 4 9 3 3
0

Name of Medi cati on

 Causes of discharge delay
from Emergency Department

Bed shortage on ward

Doctor busy
Patient complications
Other
X-rays
Review by team
Total
or s
A
Types of Medication Errors
data (n=4 3 0) E xam ple d at a on ly

P
Pie Chart i
4 3 1 e
4 3 1

27 16 9 7 92

c
h
a
53 r
t
i
s
n 83
o
59 76 t
r
e
c
o
m
Dose missed Wrong time W rong drug Over
m dose
W rong patient Wrong rout e W rong calcul ation e
Dupl icated drugs
n
Under dose Wrong IV rate Technique error Unaut hori sed drug
d
e
d
a
s
i
t
i
s
d
i
f
f
i
c
u
l
t
t
o
i
n
t
e
r
p
r
e
t
c
o
m
p
a
t
e
d
t
o
a
P
a
r
e
t
o
C
h
a
r
t

Ex amp le da t a on ly

7 9 5 9 4 9 3 3
Frequency

21
11
4
3
52
16
107
 83

ose
at ed drugs
horised drug
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
on as a 'priority'. However, you can act on any of the 'causes' particularly if they maybe easy to address or of high risk.

V ital F ew
400 380
Contribute to 80% of the problem
100%

Cumu lative %
90%
350

Fre quency #
80% Cut off (80 /2 0 Rule)
300 80%
300 Trivial M any
70%
250
60%

2 200 50%
0 40%
%150 130
30%
o 100 20%
60
f 50 40
30 10%
20
10
t 0
5 3
0%
h Cause 1 Cause 2 Cause 3 Cause 4 Cause 5 Ca use 6 Cause 7 Cause 8 Cause 9 Cause 10
e
c
a
u
s
e
s

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
n, who named the rule after Italian economist Vilfredo Pareto.  
weed out less important factors in decision making.

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

at fall UNDER the green "80% cut off" line relate to the 'causes' that you should focus
ess or of high risk.

V ital F ew
400 380
Contribute to 80% of the problem
100%
Cumu lative %

90%
350
Fre quency #

80% Cut off (80 /2 0 Rule)

300 80%
300 Trivial M any
70%
250
60%

2 200 50%
0 40%
%150 130
30%
o 100 20%
60
f 50 40
30 10%
20
10
t 0
5 3
0%
h Cause 1 Cause 2 Cause 3 Cause 4 Cause 5 Ca use 6 Cause 7 Cause 8 Cause 9 Cause 10
e
c
a
u
s
e
s
 om 20% of the causes.
hed his first paper "Cours d'économie politique."
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