A Pareto chart in Excel is a chart which is consists of a column chart and a line chart to show a cumulative position. This is often a good chart to show an 80/ 20 scenario, where 80 % of the costs are achieved by 20% of the cost drivers. These charts are useful to identify areas to focus on first in process improvement. Pareto charts show the ordered frequency counts of values for the different levels of a categorical or nominal variable.
About Dynamic Pareto Analysis free excel template
This dynamic pareto analysis uses a combination of line chart and column chart. The example set of data used in this template is number of hotel complaints. You can modify the test case as per your requirement. You can use pareto analysis for your business and professional career as well. It will help you identify the areas where more focus is necessary.
Also, the color scheme of the charts in this template is also customizable. The charts in this template updates automatically.
Simply modify the list of items in the table and have your pareto analysis on the side automatically with the help of this free dynamic pareto analysis. Furthermore, there are two sheets – Simple Pareto Analysis and Dynamic Pareto analysis. You can use these templates as per your requirement.
Steps for Pareto Analysis
This template is useful for students, teachers and professionals. To use pareto analysis in a efficient manner, follow the below steps :
- Identify and List Problems. Write out a list of all of the problems that you need to resolve. These problems can be identified from experience or user feedbacks in any business or organization.
- Identify the Root Cause of Each Problem. Next, get to the root cause of each problem. This requires in depth understanding of the overall problem scenario. You will need to identify the contributing factors for the problems.
- Based on the root cause analysis, you can now score the problems based on their likelihood, risk rating and impact.
- You can also group the similar problems or problems having similar contributing factors.
- Once, you identify problem and group the ones, possible – you will need a group wise cumulative scores.
- The pareto chart will get automatically updated. Based on the chart, majority of the problems will have some limited root cause. This will help you identify the right set of approach where you need to focus on.
Download and use Pareto Analysis Excel Template
To use this free PARETO ANALYSIS excel template, you should have Microsoft Office/ Microsoft Excel installed in your system.
Once extracted, you can open the file using Excel and start entering data or customizing the template. You can customize this free excel template as per your requirement.