How to create a Pareto Chart in Excel ?

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Today we will read on this article how to create a Pareto chart in Excel

The Pareto Principle states that, for many events, about 80% of the effects come from 20% of the causes. In this example, we will see that about 80% of the complaints come from the 20% type of complaint.

To create a Pareto chart in Excel 2016 or later, follow the steps

First download the excel demo file.. or create your own data.

  • Step 1. Select the range A3:B13.
  • Step 2. On the Insert tab, in the Charts group, click the Histogram symbol.
  • Step 3. Click Pareto.

 

Pareto Chart in excel

Pareto Chart in excel – a Pareto chart combines a column chart and a line graph.

Enter a chart title.

Step 4. Click the + button on the right side of the chart and click the check box next to Data Labels.

Enter a chart title.

Enter a chart title.

The orange Pareto line shows that (789 + 621) / 1722 are 80% of complaints are 2 out of 10 = 20% of the complaint types (override and small parts). In other words: the Pareto principle applies.

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