Pareto Chart

A Pareto chart is a specific type of histogram, ordered by frequency of occurrence. It shows how many defects were generated by type or category of identified cause (Figure 8-10). Rank ordering is used to focus corrective action. The project team shouid address the causes creating the greatest number of defects first.

Pareto diagrams are conceptually related to Pareto's Law, which hoids that a relatively small number of causes will typicaiiy producc a majority of the problems or dcfccts. This is commonly referred to as the 80/20 principle, where 80% of the problems arc due to 20% of the causes. Pareto diagrams also can be used to summarize ali types of data for 80/20 analyses.

Pareto Diagram of Causes of Late Time Entry

â–¡ Cumulative

Process Documentation

Insufficient Time


System Failure

Management Direction











Figure 8-10. Pareto Diagram

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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