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How To Create Pareto Chart In Excel || Pareto Analysis in Excel - 80/20 Rule or Pareto Principle

Updated: Jun 20, 2020

In this tutorial, let us learn about Pareto chart and how to create this in Excel.

Pareto chart is based on Pareto principle also known as 80:20 rule. this is basically used in project management.


According to this principle 80% of problems are caused because of 20% of issues or else

80% of results are because of 20% efforts that we put in. So in project management, we use this principle to solve 80% of the problems by targeting 20% of those issues.

So, let us now see how to create this Pareto chart in Excel for our further analysis.

This is my example data as shown here.


Here, I am showing different reasons and their respective occurrences.


Steps:


1. Arrange this data in the descending order of occurrences i.e column D