In this blog, I’ll describe how to create Pareto Chart in Power BI.
What is Pareto Analysis?
Pareto Analysis is a technique used for decision-making based on the Pareto Principle. The Pareto Principle is based on the 80/20 rule: ” 80% of the benefits come from only 20% of the effort”.
Here are some examples:
1. 20% of employees do 80% of the work.
2. 20% of drivers cause 80% of accidents. 3. 80% of revenue is from 20% of company products.
How to create Pareto Chart in Power BI
A Pareto chart is a chart that contains both bars and a line graph. The lengths of the bars represent the sum Value, and the line shows the cumulative total.
The screenshot of the pareto chart is shown below.
Step 1: – Pick the visual “Line and clustered column chart” Drag the sales and product category from the field section to the value fieldand the sum of sales is represented in descending order.
Step 2: – Calculate the Cumulative sum of the sales.
Cumulative sales =
Var A= SUM(Orders[Sales])
return
SUMX(
FILTER(
SUMMARIZE(ALL(Orders),Orders[Product Sub-Category],
“revenue”,[Sales_]),
[revenue]>=A),
[revenue]
)
Step 3:- In order to create a line graph, create a measure with a cumulative percentage.
cumulative percentage =
Var A=[Cumulative sales]
var B=CALCULATE([Sales_],All(Orders))
return DIVIDE(A,B)
Drag the Cumulative percentage measure from the field section to the Line y-axis field.
Step 4:- I have also added a static 80% line.
line = 0.8
According to the graph, the spotlight product category generates 80% of the revenue.
Rahul Prajapati
Data Analyst