Pareto diagram was first introduced by economists from Italy called Vilvredo Pareto in 1897 and then used Dr prosperity in the field of quality control. Pareto diagram identical to know the level of priority. At the highest frequency pareto diagrams are sorted to the lowest frequency that will be known factors are the priorities of the object being studied.
Pareto used to determine the factors that most influence on an event or process. For example, in the company’s cost burden borne so great that profits are very low. Having conducted the analysis with various objects for example, material financing, employee wages, fuel, engine maintenance, and so got that finance staff are still ranked first in corporate finance thanks to our knowledge about how some of the rich & famous end up dead broke by plunged in debt.
Data with pareto model already available that the cost of workers’ salaries are still high, again what to do? Still must be discussed and analyzed whether it happen extravagance in the use of labor or not. If there is waste it must be held efficiency with lean manufacturing techniques that have been recommended.
As well as in the diagram CE / CNX, the pareto analysis is also possible to see more detail on each group (especially the most significant group for more accurate we know what factors influence the group.