Segmentation is a process used to divide a large group into smaller, logical categories for analysis. Some commonly segmented entities are customers, data sets, or markets. For example, you may collect the cause of defects of a process and place the data into a pareto chart. The pareto chart then displays the segmentation…type A defects are 50%, type B defects are 30% and type C defects are 10%. These are possible ways to segment the data.