Pareto Chart

What is Pareto Chart?

‘Pareto Chart’ refers to a chart which contains both bar graphs and line graphs. The bar graphs would be arranged in descending order of their values and their cumulative sum being represented by the line graph.

The Pareto chart is based on the Pareto principle, which has been named after noted Italian economist and sociologist, Vilfredo Pareto. It is usually used in quality assurance to understand which areas require immediate attention.

It is actually one of the seven Basic Tools of Quality, which is a set of tools that aid in improving the quality parameters of any organization. The rest of the toolset consists of check sheets, control charts, flow charts, histograms, Ishikawa diagrams and scatter diagrams.

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