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Data Visualization, Process Manufacturing

The Pareto chart is a quality improvement tool that is based upon the Pareto principle, the principle that 80% of an outcome comes from 20% of its inputs. Vilfredo Pareto, an Italian engineer and economist, first observed the 80/20 rule in relation to population and wealth. At the beginning of the 20th century, Pareto noted that in Italy and several other European countries, 80% of the wealth was controlled by just 20% of the population.