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What is Pareto Diagram in Project Management? PDF | Download eBooks

Learn Pareto Diagram definition in project management with explanation to study “What is Pareto Diagram”. Study pareto diagram explanation with project management terms to review project management course for online MBA programs.

Pareto Diagram Definition

Pareto Diagram Explanation

Non-conformities in products can occur due to many different reasons. Whatever the reason of defects is, it must be controlled in order to produce products according to the specifications. Seven tools of quality are used to statistically control the processes. One of the seven tools is Pareto diagram. Pareto diagram is based on the Pareto law which is also called 80/20 rule. Pareto law states that 80% of the problems are due to 20% causes. Pareto diagram, on the basis of Pareto law, tends to prioritize the quality problems. Pareto diagram looks like a histogram. Pareto diagram is used to identify the major causes of the occurred defects and allows the organization to focus those causes in order to eliminate most of the quality problems.

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