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    Pareto - S Principle

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    Oliver John
    The document discusses Pareto's Principle, also known as the 80/20 rule. It states that 20% of your work is really important in any given moment, so you should focus 80% of your time and energy on that 20%. It also explains that the principle reminds us to focus on the 20% that matters most, as 20% of causes often account for 80% of the effects or results. The document provides background on where the principle came from, how it can help prioritize efforts, and examples of how Pareto charts can be used to visualize important data.

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    Pareto - S Principle

    Uploaded by

    Oliver John
    224 views10 pages
    The document discusses Pareto's Principle, also known as the 80/20 rule. It states that 20% of your work is really important in any given moment, so you should focus 80% of your time and energy on that 20%. It also explains that the principle reminds us to focus on the 20% that matters most, as 20% of causes often account for 80% of the effects or results. The document provides background on where the principle came from, how it can help prioritize efforts, and examples of how Pareto charts can be used to visualize important data.

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    Pareto's Principle overview

    Original Title

    Pareto_s Principle~~

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    The document discusses Pareto's Principle, also known as the 80/20 rule. It states that 20% of your work is really important in any given moment, so you should focus 80% of your time and energy on that 20%. It also explains that the principle reminds us to focus on the 20% that matters most, as 20% of causes often account for 80% of the effects or results. The document provides background on where the principle came from, how it can help prioritize efforts, and examples of how Pareto charts can be used to visualize important data.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    224 views10 pages

    Pareto - S Principle

    Uploaded by

    Oliver John
    The document discusses Pareto's Principle, also known as the 80/20 rule. It states that 20% of your work is really important in any given moment, so you should focus 80% of your time and energy on that 20%. It also explains that the principle reminds us to focus on the 20% that matters most, as 20% of causes often account for 80% of the effects or results. The document provides background on where the principle came from, how it can help prioritize efforts, and examples of how Pareto charts can be used to visualize important data.

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    Pareto's Principle~~

    20/80 Rule
    Daily reminder that 20% of your work is really
    important in any given moment; therefore, focus 80
    % of your time, energy and talents that 20 percent.

    Don't just "work smart", work smart on the right


    things.

    How It Can Help You


    The value of the Pareto Principle is that it reminds us to focus

    on the 20% that matters.

    Of the things we do, only 20% really matters, in any given

    moment.

    Those 20% produce 80% of the results.


    Identify and focus on those things.
    When the crisis drills of the day begin to sap our time, energy

    and patience remind yourself of the 20 % you need to focus on.

    If something in the schedule has to slip, make sure it's not part

    of that 20%

    The Vital Few: What It


    Means
    The 80/20 Rule means that in anything a few

    (20 %) are vital and many (80 %) are trivial.


    In Pareto's case it meant 20 % of the people

    owned 80 % of the wealth.


    In Juran's work he identified 20 % of the

    defects (error types) causing 80 % of the


    problems.

    Where It Came From


    The original observation was in

    connection with income and


    wealth.

    Quality Management pioneer, Dr.

    Juran, in the 1930s recognized a


    Universal Principle he called the
    Vital Few & Trivial Many".

    Pareto noticed that 20% of the

    population owned 80% of Italy's


    wealth.
    After Pareto made his observation,

    As a result, the principle that 20

    percent of something always are


    responsible for 80 percent of the
    results.

    he created a formula.
    You can apply the 80/20 Rule to
    Many others observed similar

    phenomena in their own areas of


    expertise.

    almost anything, from the science


    of management to the physical
    world.

    Pareto Chart
    named afterVilfredo Pareto, is a type of chart that

    contains bothbarsand aline graph, where individual


    values are represented in descending order by bars,
    and the cumulative total is represented by the line.
    The left vertical axis is thefrequency of occurrence ,

    but it can alternatively represent cost or another


    importantunit of measure. The right vertical axis is
    the cumulative percentage of the total number of
    occurrences, total cost, or total of the particular unit
    of measure.

    also called a Pareto distribution diagram, is a

    verticalbar graphin which values are plotted


    in decreasing order of relative frequency from
    left to right.
    useful for analyzing what problems need
    attention first because the taller bars on the
    chart, which represent frequency, clearly
    illustrate which variables have the greatest
    cumulative effect on a given system.

    What is the Purpose?


    The purpose of the Pareto chart is to highlight

    the most important among a (typically large)


    set of factors. Inquality control, it often
    represents the most common sources of
    defects, the highest occurring type of defect,
    or the most frequent reasons for customer
    complaints, and so on.

    When and why to use?


    When analyzing data about the frequency of

    problems or causes in a process.


    When there are many problems or causes and
    you want to focus on the most significant.
    When analyzing broad causes by looking at
    their specific components.
    When communicating with others about your
    data.

    Examples

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