Thursday, September 22, 2016

Pareto Diagram



The Pareto diagram is a graphical overview of process problems in ranking order from the most frequent, down to the least frequent. It illustrates the frequency of fault or defect types. Using a Pareto, you can decide which is the most serious or frequent offender. The principle was developed by Vilfredo Pareto. The basic underlying rule behind the Pareto principle is that in almost every case, 80% of the total problems incurred are caused by 20% of the problem causes. Therefore, by concentrating on the major problems first, you can eliminate the majority of your problems. The few problems that occur most often result in the majority of your defects. You may also have many occasional problems that cause the occasional defect. This is called the "vital few over the trivial many" rule.

·         The X axis represents problems category
·         The Y axis represents Frequency of problem
·         The cumulative percentage line is from 0 to 100%, the line actually states improvement.

                                
This is a simple example of a Pareto diagram using sample data showing the relative frequency of causes for errors on websites. It enables you to see what 20% of cases are causing 80% of the problems and where efforts should be focused to achieve the greatest improvement.
From the figure it can be said that 63% website problems can be reduced if spelling error is minimized.