How to Conduct a Pareto Analysis
The Pareto principle states that eighty percent of problems are produced by twenty percent of possible causes for the problems. The Pareto analysis utilizes this principle for statistical data analysis. You can conduct a Pareto analysis if you have the types of complaints for a process and the number of each type of complaint.
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Instructions
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1
Create a table in a new spreadsheet with columns titled "Type of complaint," "Number of complaints," "Percentage of complaints," and "Cumulative percentage of complaints." Fill each column with data corresponding to the title.
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2
Highlight the three columns of data under "Number of complaints," "Percentage of complaints," and "Cumulative percentage of complaints." Click "Sort and Filter" on the top right side and choose "Custom Sort."
Select "Number of complaints" in the "Sort by" box, "Values" in the "Sort on" box and "Largest to Smallest" in the "Order" box. Click "OK" to get a table that is sorted in descending order.
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3
Highlight the same data that you highlighted in Step 2. Click on "Insert" and then "Column." Choose the first 2-D chart on the left. Drag the chart that pops up to a blank location on your spreadsheet.
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4
Right click on a "Cumulative percentage of complaints" bar. Choose "Select series chart type" and then click on "Line" and "Ok" to get a Pareto chart with a bar chart depicting the type and number of complaints per type and a line chart depicting the cumulative percentage of complaints. Review the chart to ensure that at least 80% of the complaints are captured.
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