The Pareto Analysis

Pareto Analysis is a decision-making tool that helps prioritize problems or tasks by identifying the most significant factors contributing to an issue. Based on the 80/20 rule, it suggests that roughly 80% of effects come from 20% of causes. For example, in business, a small number of customers might generate most of the revenue. By focusing on these key areas, individuals or organizations can achieve the greatest impact with their efforts, leading to more effective problem-solving and resource allocation. This method is widely used in fields like quality control, project management, and business strategy.