Pareto Analysis
Decision MakingProblem SolvingEfficiency
Pareto Analysis, also known as the 80/20 rule, focuses on identifying the 20% of causes that result in 80% of the effects.
Introduction
Pareto Analysis, also known as the 80/20 rule, focuses on identifying the 20% of causes that result in 80% of the effects.
Key Steps
- Identify Problems: List all contributing issues or factors.
- Quantify Impact: Measure the significance of each factor.
- Prioritize: Focus on the most impactful 20% of causes.
Applications
- Business: Identifying key revenue drivers.
- Quality control: Addressing major defects.
Related Resources
- Book: "The 80/20 Principle" by Richard Koch.
- Tools: Pareto charts, Excel templates.