Pareto is an analysis and principle used to identify and prioritize the main problems or causes within a given system. This tool identifies the most significant factors or problems that influence adverse events.
This principle is also known as the 80/20 rule. Which states that approximately 80% of the results are due to 20% of the causes. The Pareto principle states that in many situations the causes. Or factors that influence the results are not evenly distributed, but only a small part of the factors bear the majority of the problems frequency. Then we will build a Pareto diagram , graphically displaying the distribution. We use a column chart with factors and their frequency.
A Pareto chart helps identify the key causes or factors that have the greatest impact on problems or outcomes. This allows resources and efforts to be focused on solving the most important problems in order to achieve improvement and optimization of results.