What does a Pareto chart illustrate?

A Pareto chart is a type of bar graph that represents the frequency of problems or defects in descending order of their impact, often accompanied by a line that shows the cumulative percentage of the total. This visual representation is based on the Pareto principle, which suggests that a small number of causes often lead to the majority of problems. By displaying issues in this manner, teams can easily identify the most significant factors contributing to defects or problems, allowing for focused efforts on the areas that would yield the most improvement when addressed.

The focus on frequency and impact helps organizations prioritize their improvement efforts effectively, enabling them to allocate resources to tackle the most critical issues first, ultimately achieving more significant overall reductions in defects or process inefficiencies.