Question

The 80/20 Principle. What is it all about? Provide examples

Answer 1

80/20 Principle:

The 80/20 principle is also the Pareto principle suggested by the Italian economist Vilfredo Pareto which states that 80 percent of the effects(output) for any given event is based on 20 percent of the causes (input). The management consultant Dr. Joseph Juran applied the same principle in the quality control in which he found that 80 percent of issues with products were caused by 20 percent of the production defects. For example, by applying the 80/20 principle in the business world, 80 percent of the sales in a particular company is from 20 percent of the customers.