Rofu's Famous Tapa

14

120%

12

100%

10

80%

8
60%
6
40%

20%

2
0

Facilities

Price

Service
Count

Enviroment

People

Product

0%

Cumulative %

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Pareto Analysis is a statistical technique in decision-making used for the
selection of a limited number of tasks that produce significant overall effect. It uses the
Pareto Principle (also known as the 80/20 rule) the idea that by doing 20% of the work
you can generate 80% of the benefit of doing the entire job.
In the diagram, it enables you to see what 20% of cases are causing 80% of the
problems and where efforts should be focused to achieve the greatest improvement. In
this case, we can see that Facilities, Price, Service and Environment should be the
focus to be improve.
The value of the Pareto Principle for a project manager is that it reminds you to focus on
the 20% of things that matter. Of the things, you do for your project, only 20% are
crucial. That 20% produces 80% of your results. Identify, and focus on those things first,
but don't entirely ignore the remaining 80% of the causes.the

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