In a Pareto chart, the categories of data are shown as columns and the height of each column represents the total from all the samples.
The order of the columns is arranged so that the largest is shown on the left, the second largest next and so on. Since these counts usually represent defects or non-conformities, the biggest problems are therefore the categories on the left of the chart.
Our Pareto chart makes it immediately obvious that the most frequent problem is Smidgers appearing on the assembly.
It is common practice on Pareto charts to superimpose a cumulative percentage curve. At each point on this curve you can see the percentage of the overall number of non-conformities or imperfections which are caused by the categories to the left of the point. This is best illustrated by example. We have added a red line for the second defect Scrim pitted. By eye, follow the red lines from the column to the % scale on the right.
The red line points to just under 80%. This means the first two columns account for nearly 80% of all the non-conformities or imperfections that occur in Assembly M412. If we concentrate our efforts on reducing the number of smidgers and pitted scrims, then even if we are only partially successful, we are likely to make a substantial difference to the number of assembles which we have to send for rework.
Of course, all types of problems do not have an equal impact in terms of cost or importance. So if we know the cost of putting right each type of problem, then it is better to draw the Pareto chart with the column heights representing the total cost.