Pareto analysis in Tableau - Dashboard Guide

Dashboard Mode - Pareto analysis

Business Question

Which products contribute the most to total sales, and how can we identify the top 20% of products that generate about 80% of sales?

Sample Data

Product	Sales
Product A	5000
Product B	3000
Product C	2000
Product D	1500
Product E	1000
Product F	800
Product G	700
Product H	500

Dashboard Components

• KPI Card: Total Sales
  Formula: SUM([Sales])
  Result: 14500
• Bar Chart: Sales by Product
  Shows each product's sales in descending order.
• Calculated Field: Running Total Sales
  Formula: RUNNING_SUM(SUM([Sales]))
  Calculates cumulative sales as products are ordered by sales descending.
• Calculated Field: Cumulative Percentage
  Formula: RUNNING_SUM(SUM([Sales])) / TOTAL(SUM([Sales]))
  Shows cumulative sales as a percentage of total sales.
• Line Chart: Cumulative Percentage Line
  Overlaid on bar chart to visualize Pareto curve.
• Reference Line: 80% Sales Threshold
  Placed at 0.8 on cumulative percentage axis to identify top contributors.

Dashboard Layout

+----------------------+-------------------------+
|      Total Sales      |   Sales by Product Bar   |
|       (KPI Card)      |      Chart (Descending)  |
+----------------------+-------------------------+
|                      Cumulative Percentage Line Chart (Pareto Curve)           |
+-----------------------------------------------------------------------------+
|                      Reference Line at 80% Sales Threshold                   |
+-----------------------------------------------------------------------------+
    

Interactivity

Filters on product categories or regions can update all components simultaneously. Selecting a product highlights its sales and cumulative contribution on the bar and line charts. The KPI card updates to show total sales for the filtered data.

Self Check

If you add a filter to show only products with sales above 1000, which components update?

• The Total Sales KPI Card updates to sum only filtered products.
• The Sales by Product Bar Chart shows only products with sales above 1000.
• The Cumulative Percentage Line Chart recalculates cumulative percentages based on filtered data.
• The Reference Line remains at 80% but relative to the filtered total sales.

Key Result

Dashboard shows product sales ranked with cumulative sales percentage to identify top 20% products contributing to 80% of sales.

Practice

1. What is the main purpose of Pareto analysis in Tableau?

easy

A. To identify the few key items that cause most of the effect

B. To create detailed pie charts for all categories

C. To calculate averages of all data points

D. To filter out all data except the top item

Solution

1. Step 1: Understand Pareto analysis concept

   Pareto analysis focuses on the vital few items that contribute most to an outcome, often called the 80/20 rule.

2. Step 2: Relate to Tableau usage

   In Tableau, Pareto analysis helps highlight these key items by sorting and showing cumulative impact visually.

3. Final Answer:

   To identify the few key items that cause most of the effect -> Option A

4. Quick Check:

   Pareto analysis = Identify key items [OK]

Hint: Remember 80/20 rule means few items cause most effect [OK]

Common Mistakes:

• Thinking it calculates averages
• Assuming it filters to only one item
• Confusing it with pie chart creation

2. Which Tableau calculation is essential to create a Pareto chart showing cumulative impact?

easy

A. RANK(SUM([Quantity]))

B. SUM([Sales]) / COUNT([Orders])

C. AVG([Profit])

D. RUNNING_SUM(SUM([Sales]))

Solution

1. Step 1: Identify calculation for running total

   RUNNING_SUM(SUM([Sales])) computes a running total across sorted data, key for cumulative impact.

2. Step 2: Compare other options

   Other options calculate averages, ranks, or ratios, not cumulative sums needed for Pareto.

3. Final Answer:

   RUNNING_SUM(SUM([Sales])) -> Option D

4. Quick Check:

   Running total = RUNNING_SUM(SUM([Sales])) [OK]

Hint: Use RUNNING_SUM for running totals in Tableau [OK]

Common Mistakes:

• Using AVG instead of running sum
• Confusing rank with cumulative sum
• Dividing sums incorrectly

3. Given this Tableau calculation for cumulative percentage:
RUNNING_SUM(SUM([Sales])) / TOTAL(SUM([Sales]))
What is the output for the first sorted item with Sales = 100 and total Sales = 500?

medium

A. 100

B. 0.2

C. 1.0

D. 0.5

Solution

1. Step 1: Calculate running sum for first item

   Running sum for first item is SUM([Sales]) = 100.

2. Step 2: Calculate total sum and divide

   Total sum is 500, so cumulative percentage = 100 / 500 = 0.2 (20%).

3. Final Answer:

   0.2 -> Option B

4. Quick Check:

   100/500 = 0.2 [OK]

Hint: Divide running sum by total sum for cumulative percent [OK]

Common Mistakes:

• Using total sum as numerator
• Confusing running sum with total sum
• Not converting to percentage

4. You created a Pareto chart but the cumulative percentage line is not showing correctly. Which fix is most likely needed?

medium

A. Remove sorting on the dimension and use default order

B. Replace RUNNING_SUM with SUM([Sales]) only

C. Change calculation to use RUNNING_SUM(SUM([Sales])) / TOTAL(SUM([Sales])) and set table calculation to compute along sorted dimension

D. Use AVG([Sales]) instead of SUM([Sales]) in calculation

Solution

1. Step 1: Identify correct cumulative percentage formula

   RUNNING_SUM(SUM([Sales])) / TOTAL(SUM([Sales])) is the correct formula for cumulative percent.

2. Step 2: Ensure table calculation computes along sorted dimension

   Sorting is essential so running sum accumulates in correct order; setting compute using sorted dimension fixes line.

3. Final Answer:

   Change calculation to use RUNNING_SUM(SUM([Sales])) / TOTAL(SUM([Sales])) and set table calculation to compute along sorted dimension -> Option C

4. Quick Check:

   Correct formula + sorting = proper Pareto line [OK]

Hint: Always set table calc direction along sorted dimension [OK]

Common Mistakes:

• Using SUM instead of RUNNING_SUM
• Ignoring sorting order
• Using average instead of sum

5. You want to create a Pareto chart in Tableau showing top products contributing to 80% of sales. Which steps should you follow?

hard

A. Sort products by sales descending, calculate running sum of sales, compute cumulative percent, then combine bar and line charts

B. Filter top 80% products by sales, then create a pie chart of sales

C. Calculate average sales per product and highlight those above average

D. Sort products alphabetically, then plot sales as bars without cumulative calculations

Solution

1. Step 1: Sort products by descending sales

   Sorting ensures the largest contributors appear first for cumulative calculation.

2. Step 2: Calculate running sum and cumulative percent

   Use RUNNING_SUM(SUM([Sales])) and divide by TOTAL(SUM([Sales])) to get cumulative percent.

3. Step 3: Combine bar chart for sales and line chart for cumulative percent

   This visual combination clearly shows which products contribute to 80% of sales.

4. Final Answer:

   Sort products by sales descending, calculate running sum of sales, compute cumulative percent, then combine bar and line charts -> Option A

5. Quick Check:

   Sort + running sum + combo chart = Pareto analysis [OK]

Hint: Sort descending, running sum, cumulative %, then combo chart [OK]

Common Mistakes:

• Filtering before calculating cumulative percent
• Using average instead of cumulative sum
• Not combining bar and line charts