Pareto Chart Excel Template

Pareto Chart Excel Template | Step by Step guide of template usages:-

Download the Pareto chart Excel Template.

Pareto Chart Excel Template
Pareto Chart Excel Template

[Figure 1]

How to Use Pareto Chart Excel Template:

After download the above Pareto Chart Excel Template Carefully read the Note and red highlighted box marked in excel.

Note 1:- White cells are only changed values. The sky colour cells will automatically calculate based on formula within the cells.

Note 2:- Starting from the top, enter the name of causes into the table below in descending order (Largest to Smallest Values)

Example:-

Let we have ten causes as Damage, Crack, Shrinkage, Short-run, Blowhole, Pin-hole, Extra Metal, Sand-wash, Rough Surface, Low hardness, High elongation.

Causes Rejection Quantity
Damage 23
Shrinkage 20
Crack 11
Short-run 7
Blow-hole 8
Extra Metal 5
Sand wash 6
Rough surface 3
Low hardness 4
High elongation 1

Now you have to do the sorting of Rejection Quantity in Descending order (Largest to smallest value)

Descending order of Rejection Quantity of above causes are,-

Causes Rejection Quantity
Damage 23
Shrinkage 20
Crack 11
Blow-hole 8
Short-run 7
Sand wash 6
Extra Metal 5
Low hardness 4
Rough surface 3
High elongation 1

Now directly we have to enter the name of causes and Rejection quantity (After sorting the value in descending order) into white cells of excel template sheet. After entering the values the Pareto chart will look like as below.

Pareto Chart Excel Template
Pareto Principle (80/20 Rule):-

The 80/20 Rule or Pareto Principle is the most important part of Pareto Analysis. The rule 80/20 says that 80% of the effects come from 20% of the causes.

In Italy Vilfredo Pareto has originally observed that 20% of peoples were owned 80% of the land. This principle was applied to quality control and favoured the use of the statement of the phrase, which is “The Vital few and useful many” to define the 80/20 rule in 20th century by Dr. Joseph M. Juran. Now a day this principle is so popular and very useful to describe the contribution among the causes.

Understanding of Principle:-

Let’s get started with this principle, how it is applicable in different sectors like manufacturing and non-manufacturing unit or service sectors. This principle is no limited to any particular sector or unit’s problems or defects to identify the contribution. It will help you to resolve the 80% of problem /causes / defects among the 100% of Problem.  

How this principle is related to the different fields: – (Example)-

  • Filed failure (for example (a)-80% of the field failure come from 20% of the Causes.
    (b)-80% of the field failure come from 20% of the Customer).
  •  80% of the results come from 20% of the Team.
  • Risk Management (e.g. 80% of the Risk come from 20% of the Causes).

Let we have ten types of Causes and individual cause having the numbers of defects. Now we need to work on merely 80% contribution to resolve the problem. But the things are how to identify the causes those are coming under the 80% contribution. So for identify the contribution we need to use the Pareto chart for knowing the contribution. So I could recommend you to download the above Pareto Chart Excel Template and follow the steps and identify the contribution.

Advantages of Pareto Chart:

1. Production Optimisation.

2. Rejection Reduction.

3. Cost of Poor Quality Reduction.

4. Quality level Improvement.

5. Product Performance Improvement

6. Customer satisfaction Enhancement

7. Rework cost reduction.

Etc.

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