• Illustrates data relevance
• Focuses on areas of complaints/defects
• User Friendly
• Clearly illustrates improvement possibilities
A Pareto diagram is a bar graph in which the highest values are displayed on the left and decrease as the representations move to the right. The arrangement of the vertical bars gives a visual indication of the relative frequency of the contributing causes of the problem with each bar representing one cause (McLaughlin, pp. 117). These diagrams are most effective illustration the areas that are most vital and detect the most complaints within an organization. These charts use bars as well as line graphs to display either the positive or the negative things that are recorded so the organization can improve the problem areas.
Pareto Chart/diagram, named after an economist Vilfredo Pareto, uses the concepts of “Pareto’s Law” applying the logic that the “vital few” causes account for most of the defects, while the “useful many” account for a much smaller portion of the defect (McLaughlin, pp. 117).
The benefit of using a Pareto Chart, when appropriate for quality control is that is helps an organization visualize the areas that corrective action needs to be implemented to improve processes within the organization. Pareto charts allow for a visual of the difference between groups of data, clearly displaying where improvements need to be made. These charts are beneficial because of their visual simplicity and their ability to be used on a daily basis. Another reason these are so popular and user-friendly is that programs like Microsoft Excel works incredibly well to produce quality charts with the information provided. A Pareto chart can not only be used to help solve existing issues within an organization, but also to prevent future issues.
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