A team has been formed with the goal of reducing the number of chemical suppliers.

A Pareto chart is an effective tool for prioritizing and identifying the most significant factors contributing to a problem or situation. In this case, the team’s goal is to reduce the number of chemical suppliers. By creating a Pareto chart, the team can visually represent the frequency or impact of each supplier. The chart will help them identify the critical few suppliers (the 20% that contribute to 80% of the issues) and focus their efforts on those suppliers. This approach aligns with the Pareto principle, which states that a small number of factors often account for a large percentage of the total effect. Once the team has identified the key suppliers, they can develop targeted strategies to address the issue and achieve their goal1.