Pareto Pareto

PARETO diagram using the Pareto diagram may detect problems that have more relevance through the application of the Pareto principle (vital few, many trivial) that says that there are many problems without important compared to just a serious. Since 80% of the total results usually originate in 20% of the items. The vital minority appears to the left of the graph and the useful majority to the right. There are times that it is necessary to combine the most useful elements in one single classification known as others, which must always be placed on the far right. The vertical scale is for the cost in monetary units, frequency or percentage.

The graph is very useful to allow visually identify a single revision such minorities of vital features which is important to pay attention and thus use all the resources necessary to carry out a corrective action without wasting efforts. Some examples of such vital minority would be: the minority of customers who represent the most of the sales. The minority of products, processes, or causing the quality characteristics of the bulk of waste or the costs of reprocessing. The minority of rejections that represents the majority of complaints of customers. The minority of sellers who is linked to the majority of rejected parts. The minority of the bulk of the delay in a process that cause problems. The minority of products that represent the majority of earnings. The minority of elements representing the bulk of the cost of an inventory.

Concept the Pareto diagram is a graph where different classifications of data are arranged in descending order, from left to right using bars simple after having gathered data to qualify the causes. So you can assign an order of priorities. What is it? Pareto name was given by Dr. Joseph Juran in honour of the Italian Economist Vilfredo Pareto (1848-1923) who conducted a study on the distribution of wealth, which discovered that the minority of the population He owned most of the wealth and the majority of the population had the lower part of the wealth.