Pareto analysis-simplified
J.Skorkovský, KPH


What is it ?
•tool to specify priorities
•which job have to be done earlier than the others
•which rejects must be solved firstly
•which product gives us the biggest   revenues
•80|20 rule

How to construct Lorenz Curve and Pareto chart
•list of causes (type of rejects) in %
•table where the most frequent cause is always on the left side of the graph
•
•
Reject
Type
Importance
Importance (%)
Accumulative (%)
1
Bad size
10
71%
71 %=71%
2
Bad material
3
21 %
92%=71%+21%
3
Rust
1
8%
100 %=92%+8%

Pareto chart
Lorenz curve
High priorities