A Pareto diagram, a key Six Sigma tool, visualizes the 80/20 rule: 80% of problems stem from 20% of causes. By displaying data in descending order, it highlights the most significant issues. Businesses use this to prioritize improvements, targeting the root causes with the biggest impact first. This approach enhances efficiency, reduces costs, and improves quality. In essence, the Pareto diagram helps organizations focus their efforts where they matter most, driving more effective problem-solving and decision-making. It’s a straightforward yet powerful tool for continuous improvement and operational excellence.
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