How to Create a Pareto Chart in MS Excel 2010

Pareto Analysis is a simple technique for prioritizing potential causes by identifying the problems. The article gives instructions on how to create a Pareto chart using MS Excel 2010.

1. Identify and List Problems. Make a list of all of the data elements/work items that you need to prioritize using the Pareto principal. This should look something like this. If you don't have data to practice, then use the data shown in the image and see if you make the same Pareto chart, which is shown here.

2. Arrange different Categories in Descending Order, in our case “Hair Fall Reason” based on “Frequency”.

3. Add a column for Cumulative Frequency. Use formulae similar to what is shown in the figure.Now your table should look like this.

4. Calculate total of numbers shown in Frequency and add a column for Percentage.Ensure the Total should be same as the last value in Cumulative Frequency column.

Now your data table is complete and ready to create the Pareto chart.

Your data table should look like this.

5. Go to Insert-->Column and select the 2-D Column chart.

6. A blank Chart area should now appear on the Excel sheet. Right Click in the Chart area and Select Data.

7. Select Column B1 to C9. Then put a comma (,) and select column E1 to E9.This is one of the important step, extra care need to be taken to ensure correct data range is being selected for the Pareto.

8. Now, your Pareto Chart should look like this. Frequency is shown as Blue bars and Percentage is shown as Red bars.

9. Select one of the Percentage bars and right click. Click on “Change Series Chart Type” to “Line with Markers”.

Following screen should appear.

10. Now your chart should look like this.

Percentage bars are now changed to line-chart.

11. Select and right click on the Red Line chart for Percentage and Click on Format data series.

Now, Format Data Series pop-up will open, where you need to select "Secondary Axis".

12. Secondary "Y" axis will appear.

The only problem with this Pareto Chart is the fact that the secondary Y-axis is showing 120%. This needs to be corrected. You may or may not face this issue.

13. Select the Secondary Y-axis. Right click and click on "Format Axis" option shown as you right clickGo to Axis Options in the "Format Data Series" dialog box and Change the value for "Maximum" to 1.0.

14. Your Pareto is complete and should look like this

However, you can still go ahead and Add some final touch to your Pareto to make it more appealing.Go to Chart Tools --> Layout. You can add Chart Title, Axis Title, Legend and Data Tables, if you want.