Sunday, October 18, 2009

Pareto Charts

The Pareto
effect even operates in quality improvement: 80% of problems usually stem from 20% of the causes. Pareto charts are used to display the Pareto principle in action, arranging data so that the few vital factors that are causing most of the problems reveal themselves.
Concentrating improvement efforts on these few will have a greater impact and be more cost-effective than undirected efforts.