Pareto Chart Analysis excel or spreadsheet template creates a Pareto Chart automatically as you enter the different factors and data.
You can use this excel template for quickly performing a Pareto Analysis to identify the most significant causes, defects, or problems.
The values you enter can be defect counts, sales numbers, etc. This template is designed as a professional pareto analysis report, ready for printing.
What is a Pareto Chart ?
A Pareto Chart (also called a Pareto Diagram) is a unique type of bar chart with the values ordered from largest to smallest and a superimposed line graph showing the cumulative total. The line graph uses the secondary axis (the axis on the right side) with values between 0% and 100%. In a Pareto Analysis, you simply look at where the line graph crosses 80% and the categories to the left of that point are your “vital few” or most significant factors. See below for more information.
About Pareto Analysis Excel Template
The Pareto Principle, or 80-20 Rule, is a general rule-of-thumb or guideline that says that 80% of the effects stem from 20% of the causes. Vilfredo Pareto originally observed that in Italy, 80% of the land was owned by 20% of the people.
Dr. Joseph M. Juran, a 20th century evangelist for quality management, applied this principal to quality control and preferred the use of the phrase “the vital few and the useful many” to describe the 80-20 rule. Today, Pareto Analysis is a guiding principle in business for –
- Customer Complaints (e.g. 80% of the complaints come from 20% of the customers)
- Management (e.g. 80% of the results come from 20% of the group)
- Sales (e.g. 80% of the profits come from 20% of the products)
- Quality Management for identifying the most important causes for defects (e.g. 80% of the problems come from 20% of the causes)
A pareto chart can help you quickly identify the most significant factors, but choosing which problems to fix may still require a cost-benefit analysis.
References : Vilfredo Pareto
You can also download other Pareto Chart Analysis Excel Templates from Excel Downloads.
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.
After installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software.
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.