Pareto charts

- Say you own a chain of pizza restaurants.…Complaints are high and you're losing revenue…as a result.…A Lean Six Sigma project was launched…to reduce the number of complaints.…The first question that comes to mind…is what is the most common complaint?…At the same time, which store location…has the most number of complaints?…To answer these questions,…there is a graphical tool to do just that.…Ti's called the Pareto chart.…It has been used in sales for many years.…

Salespeople focus their attention and sales efforts…on the top few customers,…perhaps the top 20% who account for 80% of total sales.…This is properly known as the 80/20 rule.…More accurately it is called the Pareto effect…and to display that, we use the Pareto chart.…Back to our pizza example.…Here's the Pareto chart of complaints.…Since this may be the first time you are seeing…a Pareto chart, let me explain.…

The top blue line is the cumulative percentage line…referencing the right axis.…The left axis is the actual frequency count…as shown by the height of each bar for each category.…