Pareto Charts – Seven Basic Quality Tools

pareto charts

You will find this concept by the name of Pareto Diagrams in certain texts. Keep a note of that just in case one of the options in your PMP exam mentions Pareto Diagrams instead of Pareto Charts.

With the help of Pareto Charts you will be able to rank problems based on the frequency of their occurrence. This will help in determining the order in which to resolve them. So basically, Pareto Charts will help you figure out which problems need your attention right away while others can wait.

pareto charts example - Pareto Charts - Seven Basic Quality Tools

You might have heard of the 80/20 rule i.e. 80% of the defects are usually caused by 20% of the causes. By the way the 80/20 rule is also known as the Pareto principle.

Pareto charts are actually based on the same concept. Using Pareto charts, you will plot out the frequency of defects and sort them in descending order. In the chart above, most defects are caused by requirement issues so improving the way requirements are gathered will help significantly reduce issues in the upcoming projects.

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