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Statistical Advisor, Pareto Chart Analyses

Use QUALITY CONTROL. This chapter discusses techniques for performing Pareto chart analyses.

The Pareto chart analysis is a simple but powerful way of identifying the causes of quality problems or loss. It amounts to constructing a histogram of the number of quality problems or loss by some meaningful units, for example, by type of problem or division within the company. According to the so-called Pareto principle, the majority of the quality loss is caused by a small number of factors. Put another way, in many cases, few types of problems often cause the majority of quality loss, or a few divisions within the company may produce the majority of loss. Such 'maldistribution' (uneven distribution) of quality loss is very common, and can easily be detected via the Pareto chart.