8.4. PARETO ANALYSIS

Definition—Pareto analysis is the process of ranking opportunities to determine which of many potential opportunities should be pursued first. It is also known as "separating the vital few from the trivial many."

Usage—Pareto analysis should be used at various stages in a quality improvement program to determine which step to take next. Pareto analysis is used to answer such questions as "What department should have the next SPC team?" or "On what type of defect should we concentrate our efforts?"

8.4.1. How to perform a Pareto analysis

  1. Determine the classifications (Pareto categories) for the graph. If the desired information does not exist, obtain it by designing check sheets and log sheets.

  2. Select a time interval for ...

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