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Pareto chart template

A Pareto chart is a bar chart of problem categories sorted from the largest to the smallest, with a line for the cumulative percentage, so you can see which few categories make up most of the total. ASQ counts it among the seven basic quality tools, and the bars can show how often a problem happens or what it costs. This template has a printable tally, sort table and blank chart, a worked example and an Excel workbook. In the Excel you enter counts by day or shift and a cost per occurrence; it sorts the categories with Other last, works out the % and cumulative %, marks the vital few up to an 80% cut you can change, draws the chart by count and by cost (the order often changes), checks that Other is not hiding a big category, and compares a before and after period per 1,000 units made.

Free to use: print it, copy it and edit it for your team. Enter your name and work email once to download.

Page 1 of the Pareto chart templateHeader fields, a tally sheet with ten categories plus other and count and cost columns, a sort table with percentage, cumulative percentage and a vital few column, and a blank chart with an 80% line.
Tally sheetSorted tableCumulative % and 80% cutOther handledCount and cost ParetoBefore and afterWorked example
Filled-in Pareto chart template: two weeks of defects in an injection molding cell
The same sheet filled in with the worked example (page 2 of the PDF, illustrative numbers). Open full size (opens the picture in a new tab)

When to use it

When to use a Pareto chart

  • To choose which defect, downtime reason or complaint to work on first.
  • At the start of a root cause analysis or an A3, to show with data why this problem was picked.
  • When problems differ a lot in cost, to see whether the most frequent one is also the most expensive.
  • After a fix, to compare the same categories before and after and see whether the top bar came down.
  • Not with only a handful of events: count long enough that the order of the bars is stable.

How to fill it in

  1. 1

    Decide what to count, and the unit

    Pick one thing, such as defects, stops over five minutes or complaints, and the unit: occurrences, minutes or cost. Write it and the period on the sheet.

  2. 2

    Set the categories before you start

    Agree clear names and keep them for the whole period. Keep an Other row for rare, mixed problems.

  3. 3

    Tally for a fixed period

    Make a stroke each time it happens, in groups of five, or enter the counts per day or shift in the Excel. Add a cost (or minutes) per occurrence if you want the cost Pareto.

  4. 4

    Sort and add up

    List the categories from the largest total to the smallest, with Other last whatever its size. Work out each one's % of the total and the cumulative %.

  5. 5

    Mark the vital few

    Draw the 80% line. The vital few are the categories up to and including the first one whose cumulative % reaches it. 80% is a convention: the Excel lets you change the cut.

  6. 6

    Check the cost view

    Look at the cost Pareto next to the count Pareto. A rare but expensive problem can move to the top.

  7. 7

    Fix, then count again

    Start root cause work on the top bar. Afterwards count the same categories for the same length of time and compare per 1,000 units made.

Reading the chart

Four decisions the chart asks you to make

The chart sorts the data; these choices decide whether it points at the right problem.

  • Where to cut

    Rule
    Categories up to and including the first that reaches 80% cumulative
    In the example
    By count: short shots, flash, sink marks (82.7%)
  • What to do with Other

    Rule
    Always last; split it if it is bigger than the largest category
    In the example
    Other is 4 of 110 (3.6%): fine
  • Count or cost

    Rule
    Draw both when problems differ in cost
    In the example
    By cost: wrong color, short shots, scratches (81.7%)
  • Did the fix work

    Rule
    Same categories, same length of time, per 1,000 units
    In the example
    4.58 to 2.17 defects per 1,000 units (−52.6%)

A filled-in example

Illustrative, not a benchmark

An example (illustrative): two weeks of defect counts from an injection molding cell, recorded at the end of each day shift, with an illustrative scrap or rework cost per defect. The Excel Example sheets give the same numbers.

The example, drawn as a Pareto chart

  • Short shots: 46, 42% of the total, cumulative 42%.
  • Flash: 31, 28% of the total, cumulative 70%.
  • Sink marks: 14, 13% of the total, cumulative 83%.
  • Scratches: 9, 8% of the total, cumulative 91%.
  • Wrong color: 6, 5% of the total, cumulative 96%.
  • Other: 4, 4% of the total, cumulative 100%.

Pareto chart of 110 defects: short shots 46, flash 31, sink marks 14, scratches 9, wrong color 6, other 4. Cumulative 42, 70, 83, 91, 96 and 100 percent.

Short shots and flash are 70% of the 110 defects, so the root cause work starts there. The cumulative line flattens after the third bar.
  • 110 defects: short shots 46, flash 31, sink marks 14, scratches 9, wrong color 6 and other 4. Short shots are 41.8% of the total and short shots and flash together are 70.0%.
  • The first three categories reach 82.7% on the cumulative line, so they are the vital few at an 80% cut.
  • By cost ($143.20 in all) the order changes: wrong color 6 × $7.50 = $45.00 (31.4%), short shots 46 × $0.90 = $41.40, scratches 9 × $3.40 = $30.60. Those three reach 81.7%.
  • Two weeks after the root cause work on short shots and flash: 51 defects (short shots 9, flash 12, sink marks 13), with 23,500 units made against 24,000 before.

The team started on short shots, the only category in both vital fews, then flash. Defects fell from 4.58 to 2.17 per 1,000 units made (−52.6%), and sink marks became the biggest bar, so the next Pareto starts there.

Common mistakes

  • Changing the categories halfway

    Renaming or splitting categories during the count makes the totals meaningless. Fix them first.

  • Too short a period

    A few days of data can put a one-off at the top. Count long enough that the order settles.

  • A big Other bar

    If Other is bigger than your largest category, it is hiding something. Split it up.

  • Counting when cost matters more

    The most frequent defect is not always the most expensive. In the example, wrong color is 5th by count and 1st by cost.

  • Treating 80/20 as a law

    Your split might be 70/30 or 90/10. It is a rule of thumb (Juran later wrote that even the name was a mistake): look at where your own data bunches up.

  • Comparing before and after without volume

    Fewer defects in a quieter fortnight is not an improvement. Divide by units made.

Download the template

Free to use: print it, copy it and edit it for your team. Enter your name and work email once to download.

Run this template in LeanSuite

LeanSuite's QA Matrix puts a dollar cost and a priority on each defect, and a live Pareto chart shows which defects cost the most, so engineering knows what to fix first.

See it in a 45-minute demo

FAQ

Pareto chart template: common questions

  1. A bar chart of problem categories sorted from the largest to the smallest, with a line showing the cumulative percentage. It shows which few categories make up most of the total, so a team knows where to start. ASQ lists it among the seven basic quality tools.

  2. The observation that a small share of causes often accounts for most of the effect. Joseph Juran named it after the economist Vilfredo Pareto, who had studied income distribution, and coined the vital few and the trivial many (later useful many). Juran wrote in 1975 that attaching Pareto's name was a mistake. The split is rarely exactly 80/20.

  3. Draw a line at 80% on the cumulative scale. The vital few are the categories up to and including the first one whose cumulative % reaches it. In the example, short shots, flash and sink marks reach 82.7%.

  4. Either, and often both. ASQ notes the bars can show frequency or cost. A count chart shows what happens most often; a cost chart can put a rare but expensive problem first, as wrong color moves from 5th to 1st in the example.

  5. Rare, mixed problems that are not worth a bar of their own. Put Other last whatever its size. If it grows bigger than your largest category, split it into categories of its own; the Excel checks this for you.

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