Learn in the textbookBusiness Investigation Methods and QC-Style Problem Analysis
DefinitionA Pareto chart (パレート図) lines up values such as counts or amounts for each category as a bar chart sorted from largest to smallest, and overlays their cumulative percentage as a line graph.
ExplanationThe cumulative percentage is found by adding values from the top item down and expressing each running total as a share of the grand total. Since it shows at a glance which items make up most of the whole, it is used to set priorities when tackling quality defects or complaints. It is counted among the seven QC tools (QC七つ道具) widely used in quality control.
Memory hookThe name comes from Pareto, an Italian economist who showed that wealth is concentrated in the hands of a few.