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.
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.
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.