Pareto chart show 80% of data distributed over the 3 higher frequent defects on this sample. This simple chart explain much about your daily troubles and let you decide first what impacts most in specific problems you are facing.
In continuous improvement this mantra let you focus your resources to find the most impactful action and soon enough you will become more resilient in a specific field of work.
Try to do it in R for a huge amount of data and try to be agile in your daily life. If you have small data set I recommend you to do it in excel file or even worksample it on a piece of paper.
Thanks Vilfredo Pareto.
suppressPackageStartupMessages(library(dplyr))
d <- data.frame(id = 1:5, Category = c("Price", "Schedule", "Supplier", "Contact", "Item"), defect = c(80,27,66,94,33))
d <- arrange(d, desc(defect)) %>%
mutate(
cumsum = cumsum(defect),
freq = round(defect / sum(defect), 3),
cum_freq = cumsum(freq)
)
d
## id Category defect cumsum freq cum_freq
## 1 4 Contact 94 94 0.313 0.313
## 2 1 Price 80 174 0.267 0.580
## 3 3 Supplier 66 240 0.220 0.800
## 4 5 Item 33 273 0.110 0.910
## 5 2 Schedule 27 300 0.090 1.000
## R code to generate Pareto Chart
## Saving Parameters
def_par <- par()
## New margins
par(mar=c(5,5,4,5))
## bar plot, pc will hold x values for bars
pc = barplot(d$defect,
width = 1, space = 0.2, border = NA, axes = F,
ylim = c(0, 1.05 * max(d$cumsum, na.rm = T)),
ylab = "Cummulative Counts" , cex.names = 0.7,
names.arg = d$category,
main = "Pareto Chart (version 1)")
## Cumulative counts line
lines(pc, d$cumsum, type = "b", cex = 0.7, pch = 19, col="cyan4")
## Framing plot
box(col = "grey62")
## adding axes
axis(side = 2, at = c(0, d$cumsum), las = 1, col.axis = "grey62", col = "grey62", cex.axis = 0.8)
axis(side = 4, at = c(0, d$cumsum), labels = paste(c(0, round(d$cum_freq * 100)) ,"%",sep=""),
las = 1, col.axis = "cyan4", col = "cyan4", cex.axis = 0.8)
## restoring default paramenter
par(def_par)
## Warning in par(def_par): graphical parameter "cin" cannot be set
## Warning in par(def_par): graphical parameter "cra" cannot be set
## Warning in par(def_par): graphical parameter "csi" cannot be set
## Warning in par(def_par): graphical parameter "cxy" cannot be set
## Warning in par(def_par): graphical parameter "din" cannot be set
## Warning in par(def_par): graphical parameter "page" cannot be set