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Measure · Tool guide 18 of 40

Pareto Chart

A Pareto chart orders categories from largest to smallest and often adds cumulative percentage. It highlights where the measured burden is concentrated. The burden may be frequency, cost or another consistently defined quantity.

Expected output: A ranked burden view supporting a transparent investigation priority.

01 · Purpose

Why and when to use it

Use it to prioritise investigation when many issue categories compete for attention.

Who takes part?

The measurement owner works with people who understand the process and the recorded data. Statistical or measurement-system decisions should involve someone able to check the assumptions and study design.

02 · Application

How to apply it

Start with an agreed measurement purpose, explicit units and trustworthy observations. Identify missing cases and assumptions before calculating.

  1. Choose the unit of burden and define categories.
  2. Collect consistent counts or costs over a stated period.
  3. Sort categories in descending order.
  4. Calculate cumulative burden and percentage.
  5. Use the concentration to prioritise investigation, considering severity and feasibility too.

03 · Example

A worked measurement example

Original fictional teaching example. Small datasets illustrate the method; they are not proposed as sufficient study sizes. Supplied parameters are assumptions, not estimates from a real process.

IssueCountCumulative percentage
Missing stock5050%
Picking correction3080%
Other20100%
050Missing stock50Picking correction30Other20100%0%
Issue counts in descending order; green line shows cumulative share.

04 · Interpretation

What the result tells you

The first two categories account for 80 of 100 recorded issues. This happens to resemble an 80/20 pattern; the rule is not guaranteed, and issue categories are not verified root causes.

Completion check: A ranked burden view supporting a transparent investigation priority.

05 · Judgement

Mistakes and limitations

Frequent minor issues may deserve less attention than rare severe ones. Categories, exposure and double-counting can change the ranking; state the selected burden.

07 · Reading

Sources and further reading

The tool list follows the accepted LeanTrainingLab overview and its reference to Six Sigma+Lean Toolset, second edition (Lunau, editor; Springer, 2013). The book chapters were not available for direct review during this build. Explanations, examples and worksheets are original teaching material. Further reading supplies professional background; local conventions are stated explicitly.