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80:20 analysis

02/09/2008 2:36 AM

how to use 80:20 anlysis for problem in hand

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#1

Re: 80:20 analysis

02/09/2008 3:20 AM

In simple terms, identify the few main factors that most influence your process and focus your efforts on improving those specific factors. Another way of looking at it is to determine the point of diminishing returns; that point where greater effort results in a correspondingly smaller improvement (i.e. 10% more effort results in 8% improvement).

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#2

Re: 80:20 analysis

02/09/2008 4:10 AM

Say you have a dozen known types of error which can occur in your system/process etc

80% of you problems are due to 20% of those errors.

Concentrate on fixing those errors first and you cure most of your problems.
The hard thing is identifying which are the critcal 20%...
So you need to record errors, analyse their causes, find which causes produce most errors and fix them first...

Common sense really.

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#3
In reply to #2

Re: 80:20 analysis

02/09/2008 8:23 AM

Del,

I seem to remember you answering the same question about three months ago.

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#4
In reply to #3

Re: 80:20 analysis

02/09/2008 12:35 PM

I think you'll find 80% of my sensible answers are in 20% of my posts .

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#5

Re: 80:20 analysis

02/09/2008 10:50 PM

Actually its called Pareto analysis. named for an italian economist named Willifredo Pareto,

There are many good resources on the web once you know what its called, heres a simple one:

http://www.mindtools.com/pages/article/newTED_01.htm

milo

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#6
In reply to #5

Re: 80:20 analysis

02/10/2008 12:28 AM

Nice link Milo. That should help. Ky.

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#7

Re: 80:20 analysis

02/10/2008 7:07 PM

If you sort the number of failures for any given system (or situation, or group of people, etc) and make a histogram of the causes of the failure against the number of failures, you will find that a large number of failures can be related to a few causes. Nominally, according to Pareto's Law about 80% of the failures will be due to ~20% of the causes. It is frequently the first step in isolating what needs to be done to improve process control.

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#8

Re: 80:20 analysis

02/11/2008 9:30 AM

An easy way to look at it is: 20% of the people have 80% of the money.

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#9
In reply to #8

Re: 80:20 analysis

02/11/2008 9:51 AM

Or 80% of the people are dumber than the remaining 20%

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#10
In reply to #8

Re: 80:20 analysis

02/11/2008 11:44 AM

No it's worse than that...prob nearer 2% have 90%

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#11
In reply to #10

Re: 80:20 analysis

02/11/2008 11:53 AM

Del's an optimist.

milo

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agua_doc (1); Anonymous Poster (1); CSM Engineer (1); DGCYS (1); ky (1); Milo (2); TVP45 (1); user-deleted-1105 (3)

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