Pareto Analysis (how to create a Pareto Chart, analyze results, and understand the 80 20 Rule)

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  • Опубликовано: 26 июн 2024
  • 🏆 Download my FREE 8-page guide "1:1 Mastery for Employees" here www.risevale.com/fg1
    Complete guide to Pareto Analysis: How to create a Pareto Chart (animated step-by-step), analyze results and avoid common pitfalls, and how this all relates to the Pareto Principle, the 80 20 Rule, and the concept of the "Vital Few".
    Pareto prioritization is a powerful problem solving technique that can be applied to determine cause and effect, leverage priorities, understand diminishing returns, and personal productivity. It's used across the globe across industries and demographics, as a generalist analysis technique and specialist tool (for example during Lean Six Sigma root cause analysis).
    LEARN IT ALL IN 14 MINUTES!
    I've broken this all down so you can start using Pareto Analysis straight away, with an understanding of exactly what to do, how to do it, and why.
    In this episode, I start by covering the Pareto Principle and the 80 20 rule. I then take a set of data and step you through how to make a Pareto Chart in Excel, demystifying common areas of confusion. We then analyze the results, drawing high level insights and hypotheses, highlighting a critical mistake often made.
    Timecodes:
    0:00 - Intro
    0:31 - Outline
    1:19 - What is Pareto (and the 80/20 rule)
    3:03 - How to make a Pareto chart
    6:50 - How to use Pareto
    10:08 - Pros & cons
    11:14 - Rating Pareto as a prioritization method
    12:03 - Power tip!
    13:17 - Outro
    Check out the HOW TO PRIORITIZE playlist here: • How to prioritize
    Root Cause Analysis video link: (not yet available)
    My mission here at RISR is to help YOU go further, faster in your career - whether you're completely new to this, perhaps found yourself in a management position, maybe struggling to get ahead, or simply trying to be the best you can be.
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    www.risrcareers.com (coming soon!)
    #risr #risrcareers

Комментарии • 83

  • @Androslop
    @Androslop 2 года назад +13

    Thanks for the explanation! It has helped me to finally understand how the Pareto chart works.

  • @yesheysingye1778
    @yesheysingye1778 15 дней назад

    One of the best explanations for Pareto chart in RUclips. Thanks😊

  • @beyondtheads
    @beyondtheads 5 месяцев назад +3

    if you want more profits, it also matters WHO is making the complaints. If the marginal majority are making the complaints, then it may not be worth any of your time or effort addressing them. If you want more profitable customers, then you'd focus on addressing their 80/20 complaints by eliminating them from operations and by highlighting these new benefits and features in your marketing materials and media buy targeting

  • @whyareallnamestaken69
    @whyareallnamestaken69 Год назад +4

    Thank you for explaining how the percentages are plotted! That was a huge help in understanding and no other videos I found explained it.

  • @Swaggn012
    @Swaggn012 2 года назад +1

    Great explanation! I needed this for my current project. Thank you

  • @ShaliniSingh-kp9mw
    @ShaliniSingh-kp9mw 2 месяца назад

    Super beneficial ! Finally someone who made this so simple to understand!

  • @munirumagomu8366
    @munirumagomu8366 9 месяцев назад +1

    Broke it down so well for me. Much appreciated

  • @aysaleyahb5595
    @aysaleyahb5595 2 года назад

    You explained it so well. Thank you.

  • @victorhugovaldezsoto
    @victorhugovaldezsoto 9 месяцев назад +1

    Fantastic explanation. Thank you so much!

  • @nicholasgoma3257
    @nicholasgoma3257 Год назад +1

    This is the best lesson on Pareto chart I have understood well within a short time. Thank you so much 🙏😊

  • @ashishkahu3673
    @ashishkahu3673 2 года назад

    This is the best explanation i have ever received. Thanks

  • @bikramray9562
    @bikramray9562 2 года назад

    Thanks for making the concept so simple and easy

  • @zainudinnoori8365
    @zainudinnoori8365 3 месяца назад

    Thank you! I used the 80/20 rule watching this video, I spent 5 minutes to get the 80% outcome.

  • @aniruddhashinde
    @aniruddhashinde 6 месяцев назад

    Watched several videos on this topic but this Was the best explanation in my opinion. Thanks

  • @lalyanamit
    @lalyanamit 2 года назад

    Perfectly Explained Thanx.

  • @roderickmose4691
    @roderickmose4691 5 месяцев назад

    Excellent and thorough explanation.

  • @stephenshort4281
    @stephenshort4281 2 года назад

    This is outstanding! Thank you!

  • @mmmansour4273
    @mmmansour4273 11 месяцев назад

    Amazing explanation, informative and easy to follow .Thank you

  • @user-lo3pv8rk7t
    @user-lo3pv8rk7t 29 дней назад

    Your explanations are very good, with simple examples and easy to follow, immediately I can apply them in my work

    • @risrcareers
      @risrcareers  29 дней назад

      Glad to hear it - mission accomplished!

  • @pentamail9381
    @pentamail9381 2 года назад

    Great Explanation !! Thanks .

  • @user-eq6tj3dm3f
    @user-eq6tj3dm3f 4 месяца назад

    Very nice and straight forward presentation.

  • @manartarik4717
    @manartarik4717 2 года назад +1

    You're amazing.. Thank you so much!!

  • @blisschuks6581
    @blisschuks6581 4 месяца назад

    The explanation is wonderful.

  • @jeffryjohn2508
    @jeffryjohn2508 2 года назад

    Thanks for the amazing explanation!

  • @jem30six
    @jem30six 18 дней назад +1

    great presentation. ty

  • @vijaybhadauria9102
    @vijaybhadauria9102 2 года назад +1

    Thankyou!..well explained :)

  • @fredericoamigo
    @fredericoamigo 4 месяца назад

    Brilliant explanation! Thanks for making this amazing vid!

  • @0025Shankar
    @0025Shankar 2 года назад

    Very well eplained . Thank you

  • @hajikhamis4981
    @hajikhamis4981 Год назад

    Thanks for more clarification.

  • @khuram2311
    @khuram2311 Месяц назад

    It is indeed a brief and understandable explanation compared to others available on the web

  • @luisozuna2626
    @luisozuna2626 2 года назад +1

    Explained in a usable way, Thanks

  • @bilakmey
    @bilakmey 3 месяца назад

    Loved. Subscribed

  • @ramyajayamanne5504
    @ramyajayamanne5504 3 года назад

    Great Introduction

  • @jianrainlopez5617
    @jianrainlopez5617 3 года назад

    thank for the info great content

  • @shrenikkole770
    @shrenikkole770 2 года назад

    Good video for understanding pareto analysis

  • @vansmaniago03
    @vansmaniago03 Год назад

    Very informative and helpful to me especially since I am new to Quality Management. Looking forward to the root cause analysis tutorial :)

  • @yashjaiswal4453
    @yashjaiswal4453 2 года назад

    That was really informative

  • @elizabethwang2.0
    @elizabethwang2.0 2 года назад +5

    Thank you for an informative, well-organized, and balanced (pros and cons) explanation. The visuals are spot on. Nicely done!

    • @elizabethwang2.0
      @elizabethwang2.0 2 года назад +1

      You've earned your 486th subscriber. =)

    • @risrcareers
      @risrcareers  2 года назад

      Amazing - thank you so much!

    • @bilakmey
      @bilakmey 3 месяца назад

      Loved. Subscribed

  • @chisomvictoria3170
    @chisomvictoria3170 Год назад +1

    Great Explanation. Thank you 🤭

  • @emilialozarita661
    @emilialozarita661 3 года назад +1

    Great video! Keep it up! Very informative!

  • @school77231
    @school77231 7 месяцев назад

    Great explanation

  • @TariqTheTutor
    @TariqTheTutor 2 года назад

    This was a great video, good job man.

  • @namgaydorji7224
    @namgaydorji7224 2 года назад

    Outstanding! Thank you very much. Subscribed gladly.

  • @chrysanth267
    @chrysanth267 Год назад +1

    High-quality content, thank you. This was the sixth video I watched on the Pareto Chart, and you went above and beyond in your explanation of this analytical technique. Subscribed in case you drop anything else (no pressure though).

  • @chandanlimma3443
    @chandanlimma3443 2 года назад

    So we’ll explained. Thanks

  • @rashagomaa9431
    @rashagomaa9431 Год назад

    So useful

  • @chihotdog1554
    @chihotdog1554 Год назад +1

    One of the best explanations I've seen, this video makes an easy concept easy to understand.

  • @sebasreyes9097
    @sebasreyes9097 Год назад

    Thanks

  • @manojthomas9859
    @manojthomas9859 2 года назад

    I didnt understand when my Plant manager told about Pareto charts.I checked Internet but didnt understand much,Your video was extremely helpful.

    • @risrcareers
      @risrcareers  2 года назад +1

      Excellent - glad to hear it. It has been awhile but I have a number of process improvement videos coming soon that you might be interested in… stay tuned!

  • @MattMullGaming
    @MattMullGaming Год назад

    Excelent video! By far the best explantion on the Pareto Chart on RUclips!
    Question - Do you have any videos regarding SQDCP/SQDC Boards?

    • @risrcareers
      @risrcareers  Год назад

      Thanks 🙏… unfortunately not; I will probably talk about visual management and VMBs in general in the future, but unlikely to get as specific as SQDC.

  • @vikaasb2016
    @vikaasb2016 2 года назад

    Super 😎

  • @shrikantbentur
    @shrikantbentur Год назад +2

    I was really looking for such an explanation & want to learn such analysis-related skills, can suggest any books for this and please keep these videos coming, thank you so much!

    • @risrcareers
      @risrcareers  Год назад

      Thanks for the feedback. I'm sure there are books available, but I can't recommend any as I personally learned these tools through practice (at work). Stay tuned for more analysis-related skills videos and courses.

  • @mimilale343
    @mimilale343 2 года назад

    I enjoyed the lesson. Can't find the subscribe and notification button

  • @aminaahmedalibelal5676
    @aminaahmedalibelal5676 Год назад

    Nice and easy explanation. I would like to ask how to use it with rolling correlation data? what i might gain?

    • @risrcareers
      @risrcareers  Год назад

      You could consider analysing changes from period to period (e.g. monthly) to understand what and then why the data is moving in certain ways.

  • @boyshanks
    @boyshanks Месяц назад

    Is the data that is used to create the Pareto graph a Histogram? Thanks. Great job!

    • @risrcareers
      @risrcareers  Месяц назад

      Not exactly. Paretos and histograms are both visual representations of data. Histograms illustrate the distribution of data, and show the “shape” of the data of a variable. If you were showing how many dirty rooms there were each day over the course of a year, a histogram would be a better way of displaying this than a Pareto. Hope that helps a little!

  • @user-ip1fc6hz9h
    @user-ip1fc6hz9h 7 месяцев назад

    Hi there, can you please add the link for Root Cause Analysis

    • @risrcareers
      @risrcareers  7 месяцев назад +1

      Hi - that video is not available yet. I’ll link it once completed 👍

  • @heltoncarvalho9786
    @heltoncarvalho9786 Год назад

    Many thanks for this lesson. Any chance you can post a link to that Excel workbook?

    • @risrcareers
      @risrcareers  Год назад +1

      Sorry Helton, unfortunately now - in the future I will make worksheets available 🙂

    • @heltoncarvalho9786
      @heltoncarvalho9786 Год назад

      @@risrcareers Thanks, Raff. Cheers!

  • @mr.e2962
    @mr.e2962 24 дня назад

    I have taken an interest in stocks and investing. I am curious about applying the pareto analysis to this. Can't you create a video on how to apply this to investors?

    • @risrcareers
      @risrcareers  23 дня назад

      This channel is focussed around how to go further, faster in your career so unlikely that I’ll cover stock investing.
      I will, however, recommend that you look into the topic of Trading Analaysis, and look into some really excellent tools such as Tradingview (my personal favourite) which includes a number of these in their free package.
      Also, some of the best TAs out there are in the crypto space, and their skills are totally transferable to ordinary stocks, so it’s worth checking out YT channels such as Benjamin Cowen and Jason Pellegrino for tools and tips.
      Suggest you also read The Intelligent Investor by Ben Graham (Warren Buffetts mentor).
      Pareto is way too simplistic for trading imo.

    • @mr.e2962
      @mr.e2962 23 дня назад

      @@risrcareers ok, I'll look into it.

  • @ShaDoWChornos
    @ShaDoWChornos 4 месяца назад

    whats the next best alternative than the pareto ? which could get 5 stars

    • @risrcareers
      @risrcareers  4 месяца назад

      That really depends on what you’re analysing. In my example, a multifactorial analysis using a statistical analysis tool such as Minitab would be extremely useful

  • @avineeth0804
    @avineeth0804 Год назад

    Whats the font used

  • @dzulkarnaenmohdkamal6842
    @dzulkarnaenmohdkamal6842 Год назад

    Lol someone being naughty 😆😅