Pareto Analysis
Pareto Analysis
Pareto Analysis
This technique helps to identify the top portion of causes that need to be addressed to resolve the majority
of problems. Once the predominant causes are identified, then tools like the Ishikawa diagram or Fish-bone
Analysis can be used to identify the root causes of the problems. While it is common to refer to pareto as
"80/20" rule, under the assumption that, in all situations, 20% of causes determine 80% of problems, this
ratio is merely a convenient rule of thumb and is not, nor should it be considered, an immutable law of
nature.
The application of the Pareto analysis in risk management allows management to focus on those risks that
have the most impact on the project.[1]
See also
Pareto distribution
Pareto chart
Pareto interpolation
Ishikawa diagram
References
1. David Litten, Project Risk and Risk Management (http://www.pmhut.com/project-risk-and-risk
-management), Retrieved May 16, 2010
2. "Pareto Analysis" (https://web.archive.org/web/20120208180732/http://erc.msh.org/quality/p
stools/pspareto.cfm). Archived from the original (http://erc.msh.org/quality/pstools/pspareto.cf
m) on 8 February 2012. Retrieved 12 January 2012.