# Pareto plot in Excel tutorial

This tutorial will help you draw and interpret a Pareto plot in **Excel** using the XLSTAT statistical software.

## Dataset to generate a Pareto plot

The data are from [Pyzdek Th. (2003), The six sigma Hanbook Revised and expanded, McGraw Hill, New York] and correspond to arrival inspections of peaches of super market during 1 month.

## What is a Pareto plot?

A **Pareto chart** draws its name from an Italian economist, but J. M. Juran is credited with being the first to apply it to industrial problems.

The **causes** that should be investigated (e. g., nonconforming items) are listed and their respective percentages are calculated. The percentages are then used to construct a **bar chart**. Pareto chars can be used in various fields from quality control to sales and marketing.

XLSTAT allows you to create **basic** or **advanced** Pareto charts (multiple series, sorting options, combining causes, changing colors).

## Setting up a a Pareto plot

Once XLSTAT is activated, select the **XLSTAT / Statistical Process Control (SPC) / Pareto charts** command.

The **Pareto charts** dialog box appears.

In the **General** tab, select column A in the **Root Causes** field and column B in the **Frequencies** field. Activate the **Variable Labels** option.

In the **Options** tab, you can sort or combine causes.

In the **Charts** tab, select **Frequencies** to display them on the left axis of the bar chart.

The computations begin once you have clicked on **OK**.

## Interpreting a Pareto plot

The first table displays **descriptive statistics** for the set of causes such as Frequency and Cumulative %.

Then the Pareto chart is displayed in the form of a bar chart.

We may conclude that 3 defects (rotten, bruised and undersized) represent 95% of all defects. These causes should be followed up during continuous improvement programs.

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