Lean Definition

Pareto Chart

Pareto Chart is a tool (histogram or vertical bar chart) used for analysing the relative occurrence of defects, developed by Italian economist Vilfredo Pareto A.D 1900. Pareto’s law refers to Pareto’s observation that wealth distribution generally follows a pattern where 20% of people control 80% of all wealth, This principle has been generalised to show that in general,20% of categories contain 80% of the data, and hence is also known as the 80/20 rule.

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