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Tuesday, July 20, 2004

Pareto Principle (80-20 Rule)

Image Hosted by ImageShack.us Vilfredo Pareto was an economist who is credited with establishing what is now widely known as the Pareto Principle or 80/20 rule. When he discovered the principle, it established that 80% of the land in Italy was owned by 20% of the population. Later, he discovered that the pareto principle was valid in other parts of his life, such as gardening: 80% of his garden peas were produced by 20% of the peapods.

Some Sample 80/20 Rule Applications :
- 80% of process defects arise from 20% of the process issues.
- 20% of your sales force produces 80% of your company revenues.
- 80% of delays in schedule arise from 20% of the possible causes of the delays.
- 80% of customer complaints arise from 20% of your products or services.
(The above examples are rough estimates.)

So, it is possible to solve 20% cause of 80% of all your problems in life. Isn't it? Well, it's worth to try, but what are those 20%, ya?

2 comments:

MSO said...

halo mas Agus, akhirnya bergabung di dunia perbloggeran. lumayan nih blognya; klasik, rada bosen juga liat yang funky2. keep up the good work.
http://maorit.blogspot.com

My Bloginning said...

Thanks ya Rit.... Emang temanya agak2 old fashion... tapi gue bakalan tambahin crita gue en yang funky-funky... BTW blognya orit Udah gue tambahin koq di Links.