The following is a group of problems occurring in an office which has been analyzed by the office in-charge. If the in-charge does the pareto analysis, what is the percentage of problems which need to be solved on an urgent basis?

01

  1. Form an explicit table listing the causes and their frequency of occurrence as a percentage
  2. Arrange the rows in decreasing order of importance of the causes (i.e., the most important cause first)
  3. Add a cumulative percentage column to the table, then plot the information
  4. Plot (#1) a curve with causes on x- and cumulative percentage on y-axis
  5. Plot (#2) a bar graph with causes on x- and percent frequency on y-axis
  6. Draw a horizontal dotted line at 80% from the y-axis to intersect the curve. Then draw a vertical dotted line from the point of intersection to the x-axis. The vertical dotted line separates the important causes (on the left) and trivial causes (on the right)
  7. Explicitly review the chart to ensure that causes for at least 80% of the problems are captured

en.wikipedia.org/wiki/Pareto_analysis#Steps_to_identify_the_important_causes_using_80/20_rule