RISK FACTORS Jumping to conclusion by selecting the wrong items rather than using proven facts Using the

misappropriate items in measurements

MITIGATES RISKS Analyse the main problem before jump to the conclusion Focus on the most important item as to get right measurements. Educate the key players and check with manager as they need to do extra work. RISK FACTORS & MITIGATE RISKS nineteenth century Italian economist and sociologist based on the 80:20 rules observed and noticed that 80 per cent of the wealth of Milan was owned by 20 per cent of its citizens Joseph Juran applied the principle to quality-control the vital few and the trivial many deserves a place in every managers thinking HISTORY OF PARETO ANALYSIS A method of analysis based on the concept that 20 per cent of the variables included in an analysis are responsible for 80 per cent of the results. A statistical technique in decision making that is used for the selectionof a limited number of tasks that produce significant overall effect. The vital few & the trivial many

Assuming the key players involving in the measurement is motivated and capable to do. Ending with things that are given too thunderous to address

Consider the action taken not too much. If given too thunderous impact to address, then take another step to find a lower level of focus.

PARETO ANALYSIS

MANAGEMENT ACCOUNTING & PERFORMANCE EVALUATION (MAF 635) STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUE: PARETO ANALYSIS