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Pareto Charts & 80-20 Rule

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The Pareto Chart is a very powerful data analysis tool that can be used to show the relative importance of problem areas and their root causes. They are composed of both bars and lines, where individual values are represented in descending order by bars, and the cumulative total of the sample is represented by the curved line. The 80/20 rule (also known as the Pareto principle or the law of the vital few and trivial many) states that, for many events, roughly 80% of the effects come from 20% of the causes. Joseph Juran, a well-regarded Quality Management consultant, suggested the principle and named it after the Italian economist, Vilfredo Pareto, who noted the 80/20 connection in 1896. Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population. Pareto also observed that 20% of the peapods in his garden contained 80% of the peas. According to the Pareto Principle, in any group of things that contribute to a common effect, a relatively few contributors account for the majority of the effect.

Maintenance, Reliability and Troubleshooting in Rotating Machinery

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