Glossary

Pareto

Tags: Glossary

A means of sorting data. For example, the number of quality faults by frequency of occurrence. This is an analysis comparing cumulative percentages of the rank ordering of costs, cost drivers, profits, or other attributes to determine whether a minority of elements have a disproportionate impact. Another example is identifying that 20% of a set of independent variables is responsible for 80% of the effect. Also see 80/20 Rule.