𝐖𝐡𝐚𝐭 𝐢𝐬 𝐏𝐚𝐫𝐞𝐭𝐨 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬: 𝟖𝟎/𝟐𝟎 𝐑𝐮𝐥𝐞?
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐏𝐚𝐫𝐞𝐭𝐨 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬: 𝟖𝟎/𝟐𝟎 𝐑𝐮𝐥𝐞? The Pareto Principle (or the 80/20 Rule) teaches us that 80% of outcomes are driven by 20% of causes. Whether you’re tackling quality issues, customer complaints, or resource optimization, Pareto Analysis is a powerful tool to focus on what truly matters. Here’s everything you need to know to apply Pareto Analysis effectively: 𝙒𝙝𝙖𝙩 𝙞𝙨 𝙩𝙝𝙚 𝙋𝙖𝙧𝙚𝙩𝙤 𝙋𝙧𝙞𝙣𝙘𝙞𝙥𝙡𝙚? The Pareto Principle, introduced by economist Vilfredo Pareto, reveals that a small percentage of causes are responsible for a majority of results. In business and quality management, it means identifying and addressing the “vital few” problems that have the most significant impact. 10 𝙎𝙩𝙚𝙥𝙨 𝙩𝙤 𝙋𝙚𝙧𝙛𝙤𝙧𝙢 𝙖 𝙋𝙖𝙧𝙚𝙩𝙤 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨 1. Define the problem: Identify the issue you want to analyze (e.g., defects, delays, complaints). 2. Collect data: Gather relevant data over a specific period. ...