Pareto Analysis
Pareto analysis ranks problems by their contribution to total loss so teams can focus on the few causes creating the greatest impact.
What this term means in maintenance
Pareto analysis ranks problems by their contribution to total loss so teams can focus on the few causes creating the greatest impact.
How Pareto analysis works
Failures or losses are grouped by a consistent category and ranked from largest to smallest.
Possible measures include:
- Failure count
- Downtime
- Maintenance cost
- Production loss
- Repeat work
- Safety events
- Spare-parts usage
Practical example
A plant records 200 hours of breakdown downtime. A Pareto chart shows that three failure categories account for 125 hours. Improvement work can focus on those categories first.
Choosing the correct measure
The ranking changes depending on whether the team uses event count, downtime, cost, or consequence. A frequent low-impact problem may rank highly by count but low by downtime.
Data quality
Useful Pareto analysis requires consistent failure codes and meaningful categorization. Large “Other” or “Unknown” categories reduce its value.
Common mistake
The 80/20 rule is a useful idea, not a guaranteed mathematical result. Teams should act on the actual distribution in their data.
Related concepts
Related maintenance terms
Keep exploring connected CMMS, reliability, and maintenance planning terms.
Failure Code
A failure code is a controlled classification used to record how an asset or component failed in a consistent, reportable way.
Equipment Downtime
Equipment downtime is the period when an asset is required or scheduled to operate but is unavailable or unable to perform its intended function.
Root Cause Analysis
Root cause analysis is a structured investigation used to identify the underlying conditions that allowed a failure or problem to occur and determine actions that reduce recurrence.
Glossary FAQs
- What is the purpose of Pareto analysis?
It ranks problems by contribution to total loss so improvement can focus on the largest sources.
- Should Pareto analysis use failure count or downtime?
Use the measure matching the business question. Count, downtime, cost, and consequence can produce different rankings.
- Does Pareto always follow the 80/20 rule?
No. The rule is a useful principle, not a guaranteed distribution.