Pareto analysis is a ranked comparison of factors related to a quality problem and is a statistical decision ...WhatistheParetoPrinciple(80/20Rule)?TheParetoPrinciple,alsoknownasthe80/20Rule,TheLawoftheVitalFewandThePrincipleofFactorSparsity,illustratesthat80%ofeffectsarisefrom20%ofthecauses–orinlamensterms–20%ofyouractions/activitieswillaccountfor80%ofyourresults/outcomes.TheParetoPrinciplegetsitsnamefromtheItalian-borneconomistVilfredoPareto(1848-1923),whoobservedthatarelativefewpeopleheldthemajorityofthewealth(20%)–backin1895.Paretodevelopedlogarithmicmathematicalmodelstodescribethisnon-uniformdistributionofwealthandthemathematicianM.O.Lorenzdevelopedgraphstoillustrateit.Dr.JosephJuranwasthefirsttopointoutthatwhatParetoandothershadobservedwasa“universal”principle—onethatappliedinanastoundingvarietyofsituations,notjusteconomicactivity,andappearedtoholdwithoutexceptioninproblemsofquality.Intheearly1950s,Jurannotedthe“universal”phenomenonthathehascalledtheParetoPrinciple:thatinanygroupoffactorscontributingtoacommoneffect,arelativefewaccountforthebulkoftheeffect.Juranhasalsocoinedtheterms“vitalfew”and“usefulmany”or“trivialmany”torefertothosefewcontributions,whichaccountforthebulkoftheeffectandtothosemanyotherswhichaccountforasmallerproportionoftheeffect.ThefollowingvideoshowsthehistoricaloriginsoftheParetoPrinciple.80/20Rule–ParetoPrincipleinPracticeAsexperiencedmanagersandprofessionals,weintuitivelyrecognizetheParetoPrinciple(8020Rule)andtheconceptsofthevitalfewandusefulmany,forweseetheminoperationineverydaybusinesssituations.Forexample,wemightobservethat:Thetop15percentofourcustomersaccountfor68percentofourtotalrevenuesOurtopfiveproductsorservicesaccountfor75percentofourtotalsalesAfewemployeesaccountforthemajorityofabsencesInatypicalmeeting,afewpeopletendtomakethemajorityofcomments,whilemostpeoplearerelativelyquietTheprinciplesofthevitalfewandusefulmanyalsoapplytoRCCAopportunities.Eachqualityeffectthatwecanobserve(forexample:qualitycosts,defects,rework,customerdiss