Pareto Diagram



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Iowa Support System for Schools and Districts in Need of Assistance


Pareto Diagram

Source: The Handbook for SMART School Teams, pp 148-149



What Is It?

The Pareto Diagram was developed in the early 1900’s by Vilfredo Pareto and then popularized by Joseph M. Juran in the 1940’s. It is based on the law of the “significant few versus the trivial many.” The concept of pareto is that 80 percent of the result comes from 20 percent of the factors. The purpose of paretoing is to separate the significant aspects of a problem - the 20% of the factors that contribute to 80% of the problem.


The value of the Pareto Principle is that it reminds us to focus on the 20 percent that matters. Those 20 percent produce 80 percent of your results. Identify and focus on those things.
The Pareto Diagram is a combination of a bar graph and a histogram – with the bar graph representing information of separate categories and the cumulative frequency of the categories as the sum total of the data being analyzed.
How Do You Use It?


  1. Select the categories for the identified topic/problem/issue. Usually, data can be divided into categories by location, time, type, or symptom.

  1. Specify the time period in which the data will be collected.

  • For example, the time period might be one quarter.

  1. Collect the data by category based on the specified time period.

  • For example, collect the frequency of each of the categories – e.g., tardiness, unexcused absences, class disruption, fighting/assault, drug/alcohol abuse, illegal parking, vandalism, dress code – during the specified time period (e.g., one quarter).

  1. Construct a frequency table from the data, listing the categories in decreasing rank order.

  2. Construct a bar graph, with the horizontal x-axis based on the categories and the left vertical y axis based on the frequency.

  3. Divide the right vertical y axis based on percentage of total incidences (e.g., 100%, 75%, 50%, 25%).

  4. Note the frequency of the first category with a dot; then note the “cumulative frequency” of the first and second category with another dot; then the “cumulative frequency” of the first, second, and third categories with a dot. Continue until you have the “cumulative frequency” of all the categories, which would equal 100%. This allows you to see very quickly which few categories make up 80% of the concern – and where you might focus your attention if you want to reduce the frequency.

Diagnosis Phase: Pareto Diagram ©2008 Diagnosis -

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