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What it is
Pareto Analysis is used to record and analyse data relating to a problem
in such a way as to highlight the most significant areas, inputs or issues.
Pareto Analysis often reveals that a small number of failures are
responsible for the bulk of quality costs, a phenomenon called the
‘Pareto Principle.’
This pattern is also called the ‘80/20 rule’ and shows itself in many ways.
For example:
Examples
• When possible, use Minitab’s version, as an industry standard,
rather than creating one in Excel - refer to Example 1 in this section
• Recognise the 80: 20 principle but if the original Pareto is very flat be
prepared to cut the defects in a different way, say 40:60 - Example 3
100
600
500 80
400
Percent
60
Count
300
40
200
20
100
0 0
c. e air al
d pe d an d ar d ed ep ov
ed aulty ing Fitte c t. S oint dere atpl f itte h Bo ds r
f itt ic R Rem blem hort ec to tion s
ag t F ss p. le J ol He Mis g a s
e Mi no ary Pro r S onn ina ther
s m
Defect Da m en Mi om et E med t S ing nt
n t o e h r ou
g L e o n
pt po Cmp ong Cot Me ef or nts n ouch pon not t Lon k Wir d Ec autio hioko Sold ulty Cont
l e C am O
Cm Com Wr pt n
D Joi t T om gs
L in y on rec T Fa
m m p C Le e P
Count 141 139 C69 52 22 C20 20 17 17 17 B16 13 10 10 10 8 6 5 29
Percent 23 22 11 8 4 3 3 3 3 3 3 2 2 2 2 1 1 1 5
Cum % 23 45 56 65 68 71 75 77 80 83 85 87 89 91 92 94 95 95 100
50
“Design”
as main
Percent
60
Count
40
30 40 cause of
20
20
failure
10
0 0
Defect De
s ign
mp
on
en
t
Bu
ild
Oth
er 2nd level
Co
Design Faults
100
50
80
40
Percent
60
Count
30
40
20
10 20
0 0
le s ule on
du tor rt od ati
Mo Mo Sta rM libr n
Defect nn
ec
t
rqu
e
Co
ld du
ce
IC
Ca IOP Imo
Co To ns AS
Tra
Count 21 10 8 8 5 3 2
Percent 36.8 17.5 14.0 14.0 8.8 5.3 3.5
Cum % 36.8 54.4 68.4 82.5 91.2 96.5 100.0
100
200
80
Percent
60
Count
100 40
20
0 0
-10 3 7E
88 46 77 80 82 95 16 82 4- 4 er s
Defect C7 C6 C7 C7 C7 C7 - 81 6- 7 27
C C C C C C 4 -66 4- 7 Oth
KD KD KD KD KD KD - 56 40 - 56
40 40
Count 18 13 11 11 11 10 9 9 8 138
Percent 7.6 5.5 4.6 4.6 4.6 4.2 3.8 3.8 3.4 58.0
Cum % 7.6 13.0 17.6 22.3 26.9 31.1 34.9 38.7 42.0 100.0
At first glance, this looks unhelpful. But of 238 data points, most were
counts of 1 or 2. A full Pareto would be very flat.
Therefore after the first cumulative 42% of defects (100) , the balance
of defects (138) are blocked together as “others”.
15 15
Peel
Count
Count
10 10
5 5
Other
0 0
Night Weekend
Smudge
15 15
Count
Count
10 10
5 5
0 0
• separate the ‘vital few’ from the ‘useful many’ things to do;
HINT !
The most frequent is not
always the most important! Be
aware of the impact of other
causes on Customers or goals.
References
• ASG aTQ training module 7.4 : Measure /Analyse - Pareto & Cause-
Effect Revisited