What is a Pareto chart?

A Pareto chart is indeed characterized as a bar graph that displays the frequency or impact of problems, allowing users to quickly identify which issues are most significant. The fundamental principle behind a Pareto chart is based on the Pareto principle, or the 80/20 rule, which asserts that in many cases, roughly 80% of effects come from 20% of the causes. By using this chart, practitioners can focus their efforts on resolving the most critical issues, as it highlights the problems that have the greatest impact or occur most frequently.

This is vital in Lean Six Sigma practices, which emphasize effective problem-solving and continuous improvement. The visual nature of a Pareto chart makes it easier for teams to ascertain which problems need immediate attention, helping them prioritize their initiatives for maximum efficiency and effectiveness.