Pareto Chart Excel Template | Step by Step guide of template usages:-
Download the Pareto chart Excel Template.
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)
Let we have ten causes as Damage, Crack, Shrinkage,
Short-run, Blowhole, Pin-hole, Extra Metal, Sand-wash, Rough Surface, Low
hardness, High elongation.
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,-
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.
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
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.