San Diego Finance

Aug 14 2017

Pareto Analysis (the 80: 20 rule) #pareto #chart #xls, #managers-net #management #pareto #analysis #(the #80:20

# Managers-Net Pareto Analysis (the 80:20 rule) The Pareto effect. In practically every industrial country a small proportion of all the factories employ a disproportionate number of factory operatives. In some countries 15 percent of the firms employ 70 percent of the people. This same state of affairs is repeated time after time. In retailing for example, one usually finds that up to 80 percent of the turnover is accounted for by 20 percent of the lines. This effect, known as the 80. 20 rule, can be observed in action so often that it seems to be almost a universal …