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have you ever been faced with multiple
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problems in a project and wondered where
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do I even start which issues should I
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tackle first to have the greatest impact
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hi I'm Andrew from PM
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aspin if this is your first time here
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welcome to the channel we dive into all
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things project management to help you a
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your certification and improve your
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project management skills if you haven't
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already make sure to subscribe and hit
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the notification Bell so you don't miss
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strategies today we're talking about a
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powerful tool used in quality management
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and problem solving the Paro chart if
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you've ever heard of the 8020 rule this
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tool is based on that principle and it
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helps you focus on the most critical
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issues that will have the biggest impact
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resolved so what exactly is a Paro chart
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It's a combination of a bar and line
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graph that shows the frequency of
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defects or causes of problems in
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descending order the goal is to help you
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quickly identify the vital few factors
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that are causing the majority of your
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issues by focusing on these you can make
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the biggest improvements with the least
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amount of effort the Paro chart is all
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about prioritization in project
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management we often have limited time
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and resources so we need to make smart
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decisions about where to focus our
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efforts that's where the parado chart
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comes in it helps you determine which
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problems are the most significant and
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will have the greatest impact if
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resolved in quality management this tool
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is used to guide decisions about which
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issues to address first to improve
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overall quality it's commonly used in
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processes like manage quality and
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control quality within the project
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quality management knowledge area let's
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talk about how a par chart is structured
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the bars represent individual causes of
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defects or problems arranged in
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descending order from left to right the
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tallest bar on the left shows the most
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frequent cause and as you move to the
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right the bars get shorter representing
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less frequent causes the line graph
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shows the cumulative percentage of the
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total defects or problems As you move
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from left to right across the bars this
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line indicates the cumulative impact of
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addressing each cause the beauty of this
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structure is that it visually tells you
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that if you address the first few causes
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you're tackling the majority of the
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problem it's a clear way to
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prioritize when interpreting a Paro
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chart the bars show the individual
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contribution of each cause to the
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overall problem while the cumulative
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line tells you how much progress you'll
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make as you address these causes in
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order by focusing on the first few bars
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on the left side you can address the
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causes that have the largest impact
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these are often referred to as the vital
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addressing these issues first will give
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improvements the cumulative line helps
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you see the overall impact of your
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corrective actions for example if the
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first two bars contribute to 70% of the
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problem solving those two issues could
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drastically improve your project
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performance or quality the key concept
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behind the Paro chart is the Paro
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principle also known as the 8020 rule
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this principle suggests that roughly 80%
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of the effects come from 20% of the
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for example in project management you
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might find that 20% of defects cause 80%
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of the quality issues if you focus on
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fixing that 20% you'll resolve the bulk
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of your problems it's an incredibly
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powerful way to prioritize efforts and
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efficiency now that we know what a Paro
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chart is and how it works let's discuss
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when you should use it one quality
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management when your team is dealing
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with multiple defects or problems the
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Paro chart helps you determine which
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issues to prioritize for resolution it's
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especially useful when you want to focus
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your limited resources on the most
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significant problems two process
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Improvement if you're working on process
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Improvement initiatives the Paro chart
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helps identify which factors have the
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biggest impact on quality or performance
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this way you can focus your efforts on
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the right areas three root cause
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analysis after identifying multiple
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causes of a problem you can use a par to
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chart to highlight the most critical
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causes that need to be addressed first
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it's great for visualizing the results
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of a root cause analysis and guiding
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your next steps creating a paredo chart
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is pretty straightforward here's how you
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do it step one identify and categorize
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the problems or defects you want to
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analyze step two collect data on the
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frequency of each problem or defect for
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example how often does each defect occur
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process step three arrange the data in
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descending order of frequency the cause
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that happens the most goes on the left
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and the less frequent causes go to the
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right step four create a bar chart where
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the height of each bar represents the
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cause step five add a cumulative
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percentage line to show the overall
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impact as each cause is
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addressed step six use the chart to
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prioritize which causes to tackle first
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the causes represented by the tallest
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bars on the left are your top
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priorities as a project manager it's
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your respon ibility to facilitate the
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use of par charts effectively you'll
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need to ensure that accurate data is
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collected on defects or
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problems help your team focus on the
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most significant issues based on the
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findings of the Paro chart monitor the
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results after corrective actions are
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taken to ensure the desired improvements
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achieved by doing this you help Drive
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continuous Improvement and maintain
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highquality standards in your
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projects before we wrap up let's briefly
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compare the Paro chart to other common
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tools cause and effect diagram Ishikawa
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this diagram is used to identify
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potential causes of a problem while the
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Paro chart helps prioritize which of
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those causes to focus on based on
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frequency control charts while Paro
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charts focus on identifying the most
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frequent causes of problems at a
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specific point in time control charts
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are used to monitor process stability
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over time histograms both histograms and
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Paro charts use bar charts to display
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data but Paro charts arrange the data in
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descending order of importance and
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include a cumulative line to show the
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impact of addressing each cause in
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summary the Paro chart is a powerful
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tool for prioritizing issues and
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improving project quality by focusing on
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the most significant causes of problems
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mastering the par chart can help you
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make smarter decisions and drive greater
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success if you found this video helpful
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make sure to give it a thumbs up and
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for more project management insights
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thanks for watching and I'll see you in
