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Can some one explain the meaning of 80 % principle of Pareto Chart? Thank you

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Tam Nguyen Annandale, Va, United States
Can someone explain the meaning of 80%20% principle of Pareto Chart? Thank you
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Senkodi Mururgesan Chennai, Tamilnadu, India
The Pareto principle or 80/20 rule or law of the vital few says that 80% of the effects come from 20% of the causes.
This principle is used in mostly in all area ( Economics, Quality etc., ).

Mainly in Quality management system, Pareto chart is one of basic Quality tools

This principle is used in quality control systems .With the available data , when we plot the graph , its representation will look like 80/20.
So, we can identify & focus on 20% main causes and other 80% causes can be treated as general one / less priority.
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1 reply by Tam Nguyen
Jun 02, 2017 3:17 AM
Tam Nguyen
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thank you so much,
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Navdeep Singh Sethi Lead Technical Programme Manager| Tesco Bengaluru Private Limited Bangalore, Karnataka, India
Pareto Chart - 80% of the problems emerges from the 20% of the reasons

Example : Interior Refit project

Problems : At finalization stage of the newly done interiors, The maximum problem emerges due to dust which has a direct impact on the various activities like – Final coat of Paint, Installation of SUN CONTROL FILM in window glass, Installation of delicate acoustic panels and soundscape ceiling. Installation of collaborative furniture (soft seating with cushions), shampooing of carpets and installation of final branding / signage’s and artworks etc. – 80%

Reason : This cause is due to unnecessary movement of vendor staff for services – HVAC, Electrical, FAPA/CCTV, Plumbing. – 20%

Solution : Minimizing the staff / vendor movement on the newly refreshed floor allowing people related to final testing and should be entered with marks, gloves and shoe covers.

Hope this helps.
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1 reply by Tam Nguyen
Jun 02, 2017 3:10 AM
Tam Nguyen
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thank you so much. I love your example
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Seema Sonkiya Head Business Analysis Practices, PMI-PBA trainer| iZenBridge Consultancy Private Limited Jaipur, Rajasthan, India
The Pareto principle is based on the simple concepts that things which matter are less in quantity but has the significant impact instead. To be successful, we need to discover these vital few. When we solve the right problem, it automatically solves many other problems.

Pareto Principle states that roughly 80% of the effects come from 20% of causes. For example, when you test a solution, you may get many issues. Now for issue resolution, you are in need to find the areas of development which are creating most of the issues, because you know focusing there may solve most of the issues. You need to identify highly impacting small area (20%) which is creating most of the issues (80%)

I have written a detailed blog on it:https://www.izenbridge.com/blog/pareto-ana...c-quality-tool/
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2 replies by Tam Nguyen
Jun 02, 2017 3:09 AM
Tam Nguyen
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very good instruction. Thank you very much
Jun 02, 2017 3:52 AM
Tam Nguyen
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I wonder how we can calculate Serious Frequency and Minor Frequency?
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Tam Nguyen Annandale, Va, United States
Jun 01, 2017 1:25 PM
Replying to Seema Sonkiya
...
The Pareto principle is based on the simple concepts that things which matter are less in quantity but has the significant impact instead. To be successful, we need to discover these vital few. When we solve the right problem, it automatically solves many other problems.

Pareto Principle states that roughly 80% of the effects come from 20% of causes. For example, when you test a solution, you may get many issues. Now for issue resolution, you are in need to find the areas of development which are creating most of the issues, because you know focusing there may solve most of the issues. You need to identify highly impacting small area (20%) which is creating most of the issues (80%)

I have written a detailed blog on it:https://www.izenbridge.com/blog/pareto-ana...c-quality-tool/
very good instruction. Thank you very much
avatar
Tam Nguyen Annandale, Va, United States
Jun 01, 2017 2:20 AM
Replying to Navdeep Singh Sethi
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Pareto Chart - 80% of the problems emerges from the 20% of the reasons

Example : Interior Refit project

Problems : At finalization stage of the newly done interiors, The maximum problem emerges due to dust which has a direct impact on the various activities like – Final coat of Paint, Installation of SUN CONTROL FILM in window glass, Installation of delicate acoustic panels and soundscape ceiling. Installation of collaborative furniture (soft seating with cushions), shampooing of carpets and installation of final branding / signage’s and artworks etc. – 80%

Reason : This cause is due to unnecessary movement of vendor staff for services – HVAC, Electrical, FAPA/CCTV, Plumbing. – 20%

Solution : Minimizing the staff / vendor movement on the newly refreshed floor allowing people related to final testing and should be entered with marks, gloves and shoe covers.

Hope this helps.
thank you so much. I love your example
avatar
Tam Nguyen Annandale, Va, United States
Jun 01, 2017 2:12 AM
Replying to Senkodi Mururgesan
...
The Pareto principle or 80/20 rule or law of the vital few says that 80% of the effects come from 20% of the causes.
This principle is used in mostly in all area ( Economics, Quality etc., ).

Mainly in Quality management system, Pareto chart is one of basic Quality tools

This principle is used in quality control systems .With the available data , when we plot the graph , its representation will look like 80/20.
So, we can identify & focus on 20% main causes and other 80% causes can be treated as general one / less priority.
thank you so much,
avatar
Tam Nguyen Annandale, Va, United States
Jun 01, 2017 1:25 PM
Replying to Seema Sonkiya
...
The Pareto principle is based on the simple concepts that things which matter are less in quantity but has the significant impact instead. To be successful, we need to discover these vital few. When we solve the right problem, it automatically solves many other problems.

Pareto Principle states that roughly 80% of the effects come from 20% of causes. For example, when you test a solution, you may get many issues. Now for issue resolution, you are in need to find the areas of development which are creating most of the issues, because you know focusing there may solve most of the issues. You need to identify highly impacting small area (20%) which is creating most of the issues (80%)

I have written a detailed blog on it:https://www.izenbridge.com/blog/pareto-ana...c-quality-tool/
I wonder how we can calculate Serious Frequency and Minor Frequency?

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