Pareto Analysis
Pareto analysis is used to judge frequency and importance of various items, e.g. faults, errors etc. The Pareto chart is based on ordering various items by their amount. The Pareto 80/20 rule says that 80% of problems is caused by 20% of causes. The rule has been found approximately valid in many practical situations. When expenditures or financial losses are known, the Pareto analysis can be performed on them as well.

Pareto Analysis - Pdf manual

Example:

Task: Classification of mechanical fault causes

Data:
 Defect Cause Count Repair Cost Flange Packing 40 5 Corrosion A 3 60 Corrosion B 35 20 Turn-cock 14 130 Cover B 5 52 Nuts 62 13 Condenser 21 28 Ball bearing H 5 300 Ball bearing M 17 220 Hose 36 40

Output:
 Pareto Chart Task name : Pareto1 Cost unit : USD Occurrences Causes Count Cost Occurrence ratio Cumulative ratio Cost per occur. Cost ratio Nuts 62 13 26,05 26,05 806 7,17 Flange Packing 40 5 16,81 42,86 200 1,78 Hose 36 40 15,13 57,98 1440 12,82 Corrosion B 35 20 14,71 72,69 700 6,23 Condenser 21 28 8,82 81,51 588 5,23 Ball bearing M 17 220 7,14 88,66 3740 33,29 Turn-cock 14 130 5,88 94,54 1820 16,2 Ball bearing H 5 300 2,1 96,64 1500 13,35 Cover B 5 52 2,1 98,74 260 2,31 Corrosion A 3 60 1,26 100 180 1,6 Total : 238 11234 Cost Causes Count Cost Occurrence ratio Cost per occur. Cost ratio Cumul. cost ratio Ball bearing M 17 220 7,14 3740 33,29 33,29 Turn-cock 14 130 5,88 1820 16,2 49,49 Ball bearing H 5 300 2,1 1500 13,35 62,84 Hose 36 40 15,13 1440 12,82 75,66 Nuts 62 13 26,05 806 7,17 82,84 Corrosion B 35 20 14,71 700 6,23 89,07 Condenser 21 28 8,82 588 5,23 94,3 Cover B 5 52 2,1 260 2,31 96,62 Flange Packing 40 5 16,81 200 1,78 98,4 Corrosion A 3 60 1,26 180 1,6 100 Total : 238 11234