The Pareto Principle is a universal pattern that exists everywhere in the world, including in manufacturing. It's a simple yet powerful rule that can ...SkiptocontentSupportSignInRequestDemoCapabilitiesAuditAdministrationMobilePlantAuditsReportingandDashboardsDemoRequestSolutionsAutomotiveAerospaceManufacturingLayeredProcessAuditsCOVID-19AuditsResourcesBlogFreeDownloadsWebinarsandEventsChampionsforQualityAwardsWhatareLayeredProcessAudits?SupportCompanyAboutEASEOurCustomersNewsroomCareersContactUsBlogQualityHowtoConductRootCauseAnalysisUsingParetoChartsQualityByEASEOctober22,2020TheParetoPrincipleisauniversalpatternthatexistseverywhereintheworld,includinginmanufacturing.It’sasimpleyetpowerfulrulethatcanhelpyouidentifywasteinyourprocessesandhelpyouconductmoreeffectiverootcauseanalysis.Inthe19thcentury,ItalianeconomistVilfredoParetoobservedthat80%ofthewealthinItalywasheldby20%ofthepopulation.Whileaheadofitstime,thisconceptwaslaterfoundtoapplytonearlyeveryrelationshipimaginable:80%oftheworkinadepartmentiscompletedby20%ofitspeople80%oftheerrorsinaproductionlinecomefrom20%ofitsmachines80%ofafirm’sproblemscomefrom20%ofthecauses80%ofbadpartscomefrom20%ofsuppliersInthemanufacturingenvironment,creatingaParetochartisagreatwaytovisualizethisconcept.Thechartwillnotonlyshowyouwhereyourproblemsare,butpointyouintherightdirectionwhenconductingrootcauseanalysis.LearnmoreaboutRootCauseAnalysisToolsforMoreEffectiveProblem-SolvingCollectYourDataAswithmanyqualityprocesses,itallstartswithdatacollection.First,youhavetochoosewhatyou’regoingtocountandforhowlong.Forexample,let’ssayyouhaveanassemblylinethatstopsalotandyouwanttofigureoutwhy.Anynumberofreasonscouldbecausingtheproblem,soyou’llneedtomakealistofthecommoncausesandcountwhentheyhappen.Inthisscenario,theassemblylinestopsbecauseofoneofthefollowingreasons:MissingpartsMissingtoolsWrongpartsBlockedlineMaintenanceissuesOtherThe“other”categoryisforissuesyouhaven’tthoughtofyet.Thenextstepistositonthelineeachdayforasetperiodoftime—let’ssayfive