The Pareto chart makes it possible to determine irregularities in an organization, identify its points of improvement and define which action plan is essential to attack its losses. Do you want to know more about the Pareto chart, the advantages of applying it and how to make one? Continue reading! What is the Pareto chart? The Pareto chart is a graph that organizes values, which are separated by bars and organized from highest to lowest, from left to right respectively. This graph allows you to assign an order of Thailand Phone Number List priorities for decision-making in an organization and determine which are the most serious problems that must be solved first. Its purpose is to make visible the real problems that are affecting the achievement of the company’s objectives and reduce the losses it has. In addition, it allows us to previously evaluate what the needs of the target audience are and how to satisfy them with our product or service, also achieving the objective of marketing .How did the Pareto chart come about? It was first enunciated by the Italian engineer, sociologist, economist and philosopher Vilfredo Pareto .
Through his study of the division of wealth in Italy at that time, he concluded that 80% of wealth was in the hands of 20% of the population and the other 20% of wealth was in the remaining 80%.Determining this, he first published it in 1896 in his “Course d ‘economies politique. “How does the Pareto principle work? Represents the 80/20 rule , i.e. that in most situations, 80% of the consequences because 20% of the shares or 80% of the defects of a product is because 20% of the Causes.
In other words, we can say that, although many factors contribute to a cause, few are responsible for that result .Although the relationship is not always exact, the Pareto principle is usually true and is the basis for this diagram. What are the elements of the Pareto chart? The Pareto chart is made up of a structure divided into three parts: The left “Y” axis is the frequency of occurrence of the problem. The “Y” axis on the right side is the cumulative percentage of the total number of occurrences.
The bottom of the “X” axis shows the problems, complaints, defects or waste that were presented. What are the advantages of using the Pareto chart? By allowing us to focus on what actually affects the business, the Pareto chart achieves: that the company continuously improves; problem analysis and prioritization; optimize effort and time by focusing on aspects whose improvement will have a direct impact; provide a simple and comprehensive view of problems; make the graph easy to understand; stimulate the work team in the search for continuous improvement; In advance, check which is the best automation tool to use or buy for our marketing strategy .In addition, the Pareto chart allows you to compare the diagrams of the same problem at different times, thus determining if there were improvements, changes and positive effects on those problems.