The Pareto Chart is a type of bar charts where bars are categories and the height of the bar represents its frequency. The bars are sequenced in descending order and there is also a cumulative percentage line that indicates the added contribution of each category to the total. The Pareto Chart is usually used to identify the ‘vital few’ from the ‘trivial many’. For example, if categories are different types of defects, it helps you identify the most frequently occurring defect to help you focus improvement efforts.
At the Excel Menu (For Excel 2007, go to Add-ins first)
Choose ProcessMA > Graphs > Pareto Chart
In Variable, select the column containing the data (Numeric)
In Frequency, select the column containing frequency counts (Optional, Integer)
In % To Comine, enter value to combine categories with percent contribute less than or equals to it (Optional, Numeric, >0, <1)
You found out that one of the reasons for processing delays is due to incomplete application forms. You collected data on the type of information missing in the application forms received for the past 2 weeks. You want to use the Pareto Chart to identify the types of information that are most frequently missing.
Open data worksheet by choosing ProcessMA > Tools > Data
Choose ProcessMA > Graphs > Pareto Chart
In Variable, select A - Missing
Click OK
Since 76% of the missing information in application forms are ‘bank code’ and ‘invoice number’, you may want to focus improvement efforts on resolving these two issues first.
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