Scribd
Upload
24 views1 page

Pareto Analysis

Uploaded by

joel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
24 views1 page

Pareto Analysis

Uploaded by

joel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Pareto Analysis is a statistical technique in decision-

making used for the selection of a limited number of


tasks that produce significant overall effect. It uses the
Pareto Principle (also known as the 80/20 rule) the idea
that by doing 20% of the work you can generate 80% of
the benefit of doing the entire job. Take quality
improvement, for example, a vast majority of problems
(80%) are produced by a few key causes (20%). This
technique is also called the vital few and the trivial many.

In the late 1940s Romanian-born American engineer and


management consultant, Joseph M. Juran suggested the
principle and named it after Italian economist Vilfredo
Pareto, who observed that 80% of income in Italy went
to 20% of the population. Pareto later carried out surveys
in some other countries and found to his surprise that a
similar distribution applied.

You might also like