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Pareto Analysis (80/20 Rule)

Problem solvingRoot cause

Reference model

Steps in Pareto AnalysisA sequence of 5 steps, read from the first to the last: 1, Identify Problems; 2, Collect Data; 3, Sort Data; 4, Create a Chart; 5, Analyze Results.Identify ProblemsList all problems or causes.1Collect DataGather data on the frequencyor impact of each problem.2Sort DataRank the problems from most toleast significant.3Create a ChartVisualize the data in a barchart with a cumulative line.4Analyze ResultsFocus on the top problems thatcontribute to the majority ofissues.5

Focus on the vital few causes that contribute to the majority of the problems.

About this model

A statistical technique that uses the 80/20 rule to identify the most impactful factors in a dataset.

Originator not stated.

How to read it

  • Look for the largest bars in the chart to identify key issues.
  • Check the cumulative line to see how many problems are addressed by the top causes.

What this does

Identifies the most significant factors in a dataset, allowing teams to focus on the areas that will yield the greatest improvement.

When to use it

Use it when you have a list of problems or causes and need to prioritize which ones to address first based on their impact.

Not when: Do not use it when all problems are equally important or when the data does not lend itself to a clear ranking.

What happens next

Conduct a root cause analysis on the top issues identified.

Golden thread

Builds on ←

  • Problem statement
  • Data collection

Feeds into →

  • Root cause analysis

Use this tool, free

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Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.