Pareto Charts In Excel

The first step in putting a Pareto Chart together is to create a Frequency Table. To do this we need to define the categories we want to analyze. i.e. definitions, reasons for breakdown etc... In this case the categories we will be using are Quality Definitions.

List the definitions in column A of an Excel worksheet

In column B enter the number of times (frequency) each definition was marked down. Add the data in column B to get a total as seen in cell B7

Now we need to sort the data from the greatest frequency to the lowest frequency.

Now create a Relative Frequency or Percentage Column. This is done by dividing each frequency in column B by the total of frequencies in cell B7. For example: 3 ÷25=.12 or 12% To check your data you may want to sum the relative frequencies. If they add up to be 100% then you completed this step correctly.

With the Relative Frequency column complete we now have one last column of data to create. This is called the Cumulative Frequency or Cumulative Percentage Column. The Cumulative Frequency is obtained by just simply adding each relative frequency as you proceed down the column i.e = 40, = 64, = 84 and so on...

Now with our data set up, we are ready to create the Pareto Chart. Start by highlighting the columns containing the definitions and while holding down the CTRL key highlight the data in the Relative and Cumulative Frequency columns. Click the Chart Wizard icon

Click on the Custom Types tab and choose Line - Column on 2 Axes from the Chart type list. Click Next >

Nothing to do here, just click Next > again

Give your chart a title, then define your Category (x) axis, Value (Y) axis and Second value (Y) axis. Click Next >

Choose the ‘As new sheet:’ radio button then name your chart. Click Finish

Here is the finished product. Now format it to your liking and your done!