Pareto charts help users to identify the vital few contributors that account for most quality problems in a system. Pareto chart is also known as the 80/20 rule which states that 80% of the effects arise from 20% of the causes.What is a Pareto Chart?A Pareto chart is a bar graph that lists and prioritizes issues to demonstrate the relative significance of each. It is a quality control tool that aids in the identification of the most significant factors in a data set. The Pareto chart is constructed by arranging the categories in decreasing order of frequency, making it easier to interpret and identify trends. The most common categories are put on the left, and the least frequent are put on the right.Pareto Chart constructionThe following are the steps for constructing a Pareto chart:Define the problem and categorize its causes: The initial step is to determine the problem and define the categories that contribute to it. The causes should be ranked in order of significance.Collect and compile data: Collect data on the number of times each cause occurred and the severity of its impact.Draw a bar graph: For each cause, draw a vertical bar with a height proportional to the number of times it happened on the left vertical axis.Draw a cumulative percentage curve: A curve is constructed by adding the percentage of each category's frequency to the previous total. This curve is plotted on the right vertical axis.What are the advantages of using Pareto charts?Some advantages of using Pareto charts are as follows:It identifies the most significant issues that need to be addressed first.It enables the team to prioritize the issues in the data set and focus on the critical issues.It is a visual representation that is simple to understand and interpret.