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What is Pareto? History of Pareto Chart & How to Make Pareto Chart In Excel.

Updated: Aug 29, 2020

What is Pareto? History of Pareto Chart & How to Make Pareto Chart In Excel: The Pareto chart is a combination of line and bars graph chart that indicates the frequency of the defects, as well as their cumulative impact. In every industry, we use Pareto to prioritize the defects.

What is Pareto? Introduction of Pareto Chart, History of Pareto Chart & Examples of Pareto Chart.
What is Pareto? Introduction of Pareto Chart, History of Pareto Chart & Examples of Pareto Chart.

What is Pareto? Definition, History & Examples: In the Pareto Chart each bar represents the defects of the products and services and at the same time the line chart has shown their cumulative impact.


Why the Pareto Chart? What is the Pareto Principle?


The Pareto principle says that 80% of the results are determined by 20% of the causes.


In other words: Roughly 80% of the effects come from 20% of the causes.


History of Pareto Chart, Pareto Concept

Vilfredo Pareto
Vilfredo Pareto (Image Source: Google)

The Pareto Chart, Concept, and 80-20 Principle were introduced by Italian economist Vilfredo Pareto in 1897.


He was the first who discover that income flows a Pareto distribution, which is a power-law probability distribution.


The Pareto principle named after him, and it was built on observation of his such as that 80% of the wealth in Italy belong to about 20% of the population.


His legacy as an economist was profound.







Examples Of Pareto Charts? How to make a Pareto Chart?


With the below-mentioned examples, you can learn how to make Pareto Chart in Excel.

Data Sample for Pareto Analysis
how to make Pareto Chart in Excel: Data Sample

Step 1: Firstly create a data table from your database. (Your database could be your Quality Evaluation Sheet, Your Check Sheet, or anything on which you're collecting data of your process.


Make sure your data should be in upper to lower value (Largest to Smallest).



Step 2: Select all the data (Stationary + Defect Count). Click on the Insert tab on your excel workbook.

Step Second for Pareto Analysis.
how to make Pareto Chart in Excel: Step 2

Step 3: Click on the Pareto chart

how to make Pareto Chart in Excel. Sample.
how to make Pareto Chart in Excel.

Result: This is the easiest way to make a Pareto Chart.

the easiest way to make a Pareto Chart: Sample Result
the easiest way to make a Pareto Chart.

Note: After getting the result of Preto Chart double click on chart title and mentioned chart title as per your requirement.


Then click on the chart border and you can see + (Plus) Icon. Click on Plus Icon and check the box of data level.

Sample Pareto Chart
How to make easiest Pareto Chart in Excel: Sample Pareto Charts.

You Can Also Read: Introduction of 7 QC tools for process Improvement with Examples