Learn what a Pareto chart is, see a few examples of the Pareto Principle in action, read benefits of the Pareto charts and learn the eight steps involved in creating a Pareto chart.

Pareto analysis states that 80% of a project’s results are due to 20% of the inputs, and 80% of problems can be traced to 20% of the causes.

Tip: Create a Pareto chart in Excel by first creating a column chart with your data. Then, add a secondary axis and create a line chart that displays the cumulative percentage.

Using a Pareto Chart for Root Cause Discovery Now that we’ve defined what a Pareto chart is and how the principle driving it works, it’s time to create your own.

Excel 2016's many new features include six new chart types. Here we cover Histogram, Pareto, and Waterfall, which cover statistical, trend, and other relationships.