Template · Industrial engineering

Pareto analysis of defects (80/20 chart)

Ranks defect categories by count and by cost, flags the vital few and tracks them by line and week.

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Pareto analysis of defects
Example data — replace the blue input cells with your own.
DEFECTS LOGGEDTOTAL COSTTOP CATEGORYVITAL-FEW CATEGORIES
1,817$983Short shot4
160 log rowsQuantity times cost per part34% of defectsHold the first 80% of defects
Settings
Vital-few threshold80%Categories up to and including the one that crosses this share are vital few.
First day of the 13-week windowJul 6, 2026Use a Monday. Week 1 starts on this date; each week is seven days.
Top 6 categories by count
CategoryCountCount barCumulative %Cumulative progressVital few?
Short shot618████████████████████34%███████░░░░░░░░░░░░░Vital few
Flash414█████████████57%███████████░░░░░░░░░Vital few
Sink marks317██████████74%███████████████░░░░░Vital few

Showing the first 16 of 39 rows and 7 of 7 columns. Cells with formulas show the formula on hover.

What does this template do?

A Pareto chart ranks defect categories from most to least frequent, so a quality team can see which few causes produce most of the defects. This workbook is for process, quality and production engineers who log defects by line and shift and want the ranking to update as the log grows.

The Defect log holds up to 500 records. Each row has a date, a line, a shift, a defect category, a quantity of defective parts and a cost per part. The Pareto tab sums counts and costs by category, sorts them with LARGE and INDEX/MATCH, and computes the cumulative share. A category counts as vital few when the cumulative share before it is below the threshold on the Dashboard, 80% by default. The By line and Trend tabs split the same records by line and by week.

The example data is fictional: 160 defect records from an injection molding plant with three lines over 13 weeks. Short shot, flash and sink marks make up most of the counts, while contamination and dimensional defects cost more per part.

What’s inside

  • Counts and costs by category, ranked with LARGE and INDEX/MATCH
  • Vital-few flag and a threshold marker on the cumulative share, 80% by default
  • Count ranking and cost ranking side by side, so a rare but costly category stands out
  • Line by category grid with heat shading and the top category on each line
  • Weekly trend with sparklines, week-over-week change and reconciliation checks

Which tabs does the workbook have?

TabWhat it holds
DashboardKPI tiles, the threshold and window settings, top categories, line and weekly views, and checks.
Defect logRoom for 500 defect records, with a week number, cost per record and a row check.
ParetoCategory list, count and cost sums, count and cost rankings with cumulative shares, bars and vital-few flags.
By lineCounts by category and line, heat shading, the top category per line and line totals with bars.
TrendWeekly counts by category with sparklines, weekly totals with bars and week-over-week change.
NotesWhat the workbook does, how to use it, the formulas, assumptions and limits.

What formulas does this template use?

This template holds 2,825 formulas in 4,031 cells across 6 tabs, so 70% of its cells calculate. They use 18 distinct functions; the longest formula is 1,939 characters and 1,385 of them read from another tab.

FunctionUsesWhat it does
IF4,522one result when a test is true, another when false
MAX2,531largest value
OR2,052true when any test is true
ROUND831rounds to a number of digits
MIN625smallest value
REPT612repeats text
COUNTIF504counts cells meeting one condition
INT500rounds down to a whole number
SUMIFS221adds values meeting several conditions
CHOOSE205picks the nth value from a list
ISNUMBER169true for a number
SUM84adds numbers

The 12 most used of 18 functions. Counted from the workbook itself. Only functions that Excel, LibreOffice Calc, Google Sheets and Apple Numbers evaluate the same way are used, so the formulas survive every download format.

How do you use it?

  1. Set the vital-few threshold and the first day of the 13-week window on the Dashboard.
  2. Enter defect records on the Defect log: date, line, shift, category, quantity of parts and cost per part.
  3. Keep the category names on the Pareto tab in step with the log; the Row check column flags any category that is not in the list.
  4. Read the vital few on the Dashboard or the Pareto tab, then compare the count ranking with the cost ranking.
  5. Use By line and Trend to see where and when the top categories occur.

What is it good for?

  • Ranking scrap causes for a weekly quality review
  • Choosing which defect to attack first in an improvement event
  • Comparing defect counts and cost by production line
  • Checking whether the top categories fall after a process change

Questions about this sheet

What does the vital-few flag mean?

A category is flagged vital few when the cumulative share of the categories ranked above it is below the threshold. With the default 80%, the flagged categories together make up most of the defects.

Why can the cost ranking differ from the count ranking?

Count ranks defective parts. Cost multiplies each record's quantity by its cost per part, so a category with few parts but a high cost per part can rank first by cost and lower by count.

Can I add more defect categories?

Yes. The category list on the Pareto tab has 12 slots, and the log checks every category against it. Type a new name in an empty slot and the rankings, lines and trend pick it up.

Does the workbook replace root-cause analysis?

No. It ranks what the log records. Confirm causes on the shop floor before deciding on a fix.