Pareto Analysis (how to create a Pareto Chart, analyze results, and understand the 80 20 Rule)

Complete guide to Pareto Analysis: How to create a Pareto Chart (animated step-by-step), analyze results and avoid common pitfalls, and how this all relates to the Pareto Principle, the 80 20 Rule, and the concept of the "Vital Few".

Pareto prioritization is a powerful problem solving technique that can be applied to determine cause and effect, leverage priorities, understand diminishing returns, and personal productivity. It's used across the globe across industries and demographics, as a generalist analysis technique and specialist tool (for example during Lean Six Sigma root cause analysis).

LEARN IT ALL IN 14 MINUTES!
I've broken this all down so you can start using Pareto Analysis straight away, with an understanding of exactly what to do, how to do it, and why.

In this episode, I start by covering the Pareto Principle and the 80 20 rule. I then take a set of data and step you through how to make a Pareto Chart in Excel, demystifying common areas of confusion. We then analyze the results, drawing high level insights and hypotheses, highlighting a critical mistake often made.

Timecodes:
0:00 - Intro
0:31 - Outline
1:19 - What is Pareto (and the 80/20 rule)
3:03 - How to make a Pareto chart
6:50 - How to use Pareto
10:08 - Pros & cons
11:14 - Rating Pareto as a prioritization method
12:03 - Power tip!
13:17 - Outro

Root Cause Analysis video link: (not yet available)

My mission here at RISR is to help YOU go further, faster in your career - whether you're completely new to this, perhaps found yourself in a management position, maybe struggling to get ahead, or simply trying to be the best you can be.

RISR socials:

RISR website:

#risr #risrcareers

[Androslop]

Thanks for the explanation! It has helped me to finally understand how the Pareto chart works.

[whyareallnamestaken]

Thank you for explaining how the percentages are plotted! That was a huge help in understanding and no other videos I found explained it.

[AdamGraciainc]

This was very helpful, I just started as the Manager of Operations at a large Hotel.

[yesheysingye]

One of the best explanations for Pareto chart in YouTube. Thanks😊

[beyondtheads]

if you want more profits, it also matters WHO is making the complaints. If the marginal majority are making the complaints, then it may not be worth any of your time or effort addressing them. If you want more profitable customers, then you'd focus on addressing their 80/20 complaints by eliminating them from operations and by highlighting these new benefits and features in your marketing materials and media buy targeting

[khuram]

It is indeed a brief and understandable explanation compared to others available on the web

[zainudinnoori]

Thank you! I used the 80/20 rule watching this video, I spent 5 minutes to get the 80% outcome.

[ShaliniSingh-kpmw]

Super beneficial ! Finally someone who made this so simple to understand!

[aniruddhashinde]

Watched several videos on this topic but this Was the best explanation in my opinion. Thanks

[nicholasgoma]

This is the best lesson on Pareto chart I have understood well within a short time. Thank you so much 🙏😊

[munirumagomu]

Broke it down so well for me. Much appreciated

[elizabethwang.]

Thank you for an informative, well-organized, and balanced (pros and cons) explanation. The visuals are spot on. Nicely done!

[victorhugovaldezsoto]

Fantastic explanation. Thank you so much!

[eqtjdmf]

Very nice and straight forward presentation.

[ashishkahu]

This is the best explanation i have ever received. Thanks

[shrikantbentur]

I was really looking for such an explanation & want to learn such analysis-related skills, can suggest any books for this and please keep these videos coming, thank you so much!

[Swaggn]

Great explanation! I needed this for my current project. Thank you

[manojthomas]

I didnt understand when my Plant manager told about Pareto charts.I checked Internet but didnt understand much, Your video was extremely helpful.

[lopvrkt]

Your explanations are very good, with simple examples and easy to follow, immediately I can apply them in my work

[vansmaniago]

Very informative and helpful to me especially since I am new to Quality Management. Looking forward to the root cause analysis tutorial :)