A lot of folks tend to dismiss the Pareto chart as a simple bar chart with little value. But the pareto chart shows us the distribution of many phenomena including earnings and losses. The chart posted here shows athletes' salaries in June 2008. I chose this one rather than an industrial example to show the universality of the pareto principle. When we are talking about solving problems in manufacturing, knowing which problem ranks #1 is highly valuable. Here's why. The difference between successive entries on a pareto is alway a trivial amount except the top one or two. So your top problem, measured by cost, will outrank your second problem not by 2% or 5% but 50% or 100% or more. It is well worth collecting data on all your top problems to see which one is top dog.
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