Pareto’s Principle The 80 / 20 Rule :
Pareto’s Principle The 80 / 20 Rule 1906 Italian Economist Vilfredo Pareto
He Observed that 20% of the People Owned 80% of the wealth
Created Mathematical Formula
Where It Came From :
Where It Came From 1930’s and 1940’s Quality Management Pioneer Dr. Joseph Juran
Dr. Joseph Juran Wrote about the 80-20 Rule “Vital Few and Trivial Many”
Pareto’s Principle and Business :
Pareto’s Principle and Business The 80-20 Rule can be Applied to Business
Rule of Thumb for Business – 80% of Your Sales come from 20% of Your Customers
A Handful of Products Produce the Majority of the Orders
How Pareto Principle Can Help Individuals :
How Pareto Principle Can Help Individuals The 80/20 Rule can be Utilized by Everyone in their Daily lives
A Manager needs to Focus on the 20% of the Tasks that Produce 80% of the Results
Helps Prioritize, and Focus on the Important Tasks
Pareto Charts are Used to Show on a Graph What is Important from Top to Bottom
Multiply the Profitability of Corporations
Life Isn’t Fair :
Life Isn’t Fair Perfect World Every Employee would Contribute Equally
Out of 5 Suggestions
Only 1 will Result
in a “Cool” Idea (green
line- 80/20 Rule)
Red Line is Every Idea
is Great, Not Reality
Work Cited :
Work Cited Azad, K. (2007, March 8). Observations: Understanding the Pareto Principle (The 80/20 Rule). Retrieved October 7, 2010 from BETTER EXPLAINED: http://betterexplained.com/aricles/understanding-the-pareto-principle-the-8020rule/
Eisenberg, Bryan. March 11, 2002. The Pareto Principle: Applying the 80/20 Rule to Your Business. Retrieved From http://www.clickz.com/clickz/column/1716017/the-pareto-principle-applying-80-rule-your-business
Gassner.(n.d.). Pareto Principle-The 80-20 Rule-Complete Information. Retrieved October 6, 2010, from Gassner: http://www.gassner.co.il/pareto/
John, R.F. (2010). Pareto’s Principle – The 80-20 Rule. Retrieved October 6, 2010, from ABOUT.COM – Management: http://management.about.com/cs/generalmanagement/a/aPareto081202.htm.
Team 5 Thanks You :
Team 5 Thanks You