Pareto Analysis (how to create a Pareto Chart, analyze results, and understand the 80 20 Rule)
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- Опубликовано: 26 июн 2024
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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)
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Thanks for the explanation! It has helped me to finally understand how the Pareto chart works.
One of the best explanations for Pareto chart in RUclips. Thanks😊
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
Thank you for explaining how the percentages are plotted! That was a huge help in understanding and no other videos I found explained it.
Great explanation! I needed this for my current project. Thank you
Super beneficial ! Finally someone who made this so simple to understand!
Broke it down so well for me. Much appreciated
You explained it so well. Thank you.
Fantastic explanation. Thank you so much!
This is the best lesson on Pareto chart I have understood well within a short time. Thank you so much 🙏😊
This is the best explanation i have ever received. Thanks
Thanks for making the concept so simple and easy
Thank you! I used the 80/20 rule watching this video, I spent 5 minutes to get the 80% outcome.
Watched several videos on this topic but this Was the best explanation in my opinion. Thanks
Perfectly Explained Thanx.
Excellent and thorough explanation.
This is outstanding! Thank you!
Amazing explanation, informative and easy to follow .Thank you
Your explanations are very good, with simple examples and easy to follow, immediately I can apply them in my work
Glad to hear it - mission accomplished!
Great Explanation !! Thanks .
Very nice and straight forward presentation.
You're amazing.. Thank you so much!!
The explanation is wonderful.
Thanks for the amazing explanation!
great presentation. ty
Thankyou!..well explained :)
Brilliant explanation! Thanks for making this amazing vid!
Very well eplained . Thank you
Thanks for more clarification.
It is indeed a brief and understandable explanation compared to others available on the web
Explained in a usable way, Thanks
Thank you very much
Loved. Subscribed
Great Introduction
thank for the info great content
Good video for understanding pareto analysis
Very informative and helpful to me especially since I am new to Quality Management. Looking forward to the root cause analysis tutorial :)
That was really informative
Thank you for an informative, well-organized, and balanced (pros and cons) explanation. The visuals are spot on. Nicely done!
You've earned your 486th subscriber. =)
Amazing - thank you so much!
Loved. Subscribed
Great Explanation. Thank you 🤭
Great video! Keep it up! Very informative!
Thanks so much!
Great explanation
This was a great video, good job man.
Thanks dude
Outstanding! Thank you very much. Subscribed gladly.
Thanks Namgay!
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).
Thank you so much 🙏
So we’ll explained. Thanks
So useful
One of the best explanations I've seen, this video makes an easy concept easy to understand.
Thanks
I didnt understand when my Plant manager told about Pareto charts.I checked Internet but didnt understand much,Your video was extremely helpful.
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!
Excelent video! By far the best explantion on the Pareto Chart on RUclips!
Question - Do you have any videos regarding SQDCP/SQDC Boards?
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.
Super 😎
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!
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.
I enjoyed the lesson. Can't find the subscribe and notification button
Nice and easy explanation. I would like to ask how to use it with rolling correlation data? what i might gain?
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.
Is the data that is used to create the Pareto graph a Histogram? Thanks. Great job!
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!
Hi there, can you please add the link for Root Cause Analysis
Hi - that video is not available yet. I’ll link it once completed 👍
Many thanks for this lesson. Any chance you can post a link to that Excel workbook?
Sorry Helton, unfortunately now - in the future I will make worksheets available 🙂
@@risrcareers Thanks, Raff. Cheers!
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?
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.
@@risrcareers ok, I'll look into it.
whats the next best alternative than the pareto ? which could get 5 stars
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
Whats the font used
Avenir 🤓
Lol someone being naughty 😆😅