Difference between revisions of "Pareto principle"

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The [[Pareto principle]] (alternatively known as [[Pareto's law]], the [[80/20 rule]], the [[law of the vital few]], or the [[principle of factor sparsity]]; hereinafter, the ''Principle'') is the hypothesis that roughly 80% of the effects come from 20% of the causes in many cases.
 
The [[Pareto principle]] (alternatively known as [[Pareto's law]], the [[80/20 rule]], the [[law of the vital few]], or the [[principle of factor sparsity]]; hereinafter, the ''Principle'') is the hypothesis that roughly 80% of the effects come from 20% of the causes in many cases.
  
The concepts of [[Pareto efficiency]] and [[Pareto chart]]s have derived from the ''Principle''.
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The concepts of [[Pareto efficiency]] and [[Pareto diagram]]s have derived from the ''Principle''.
  
  

Revision as of 13:42, 6 June 2020

The Pareto principle (alternatively known as Pareto's law, the 80/20 rule, the law of the vital few, or the principle of factor sparsity; hereinafter, the Principle) is the hypothesis that roughly 80% of the effects come from 20% of the causes in many cases.

The concepts of Pareto efficiency and Pareto diagrams have derived from the Principle.


Definition

According to Managing Quality by Foster (6th edition),

Pareto's law (the 80/20 rule). States that 80% of the problems are a result of 20% of the causes.