Tài chính công : Pareto Principle

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Pareto Principle
“The Vital Few and Trivial Many Rule”
“Predictable Imbalance”
“80:20 Rule”

Named after Vilfredo Pareto
-an Italian economist
•He observed in 1906 that 20%
of the Italian population owned
80% of Italy's wealth
•He then noticed that 20% of the
pea pods in his garden
accounted for 80% of his pea
crop each year

The Pareto Principle
• A small number of causes is responsible for a
large percentage of the effect-usually a 20-percent to 80-percent ratio.
• This basic principle translates well into quality
problems - most quality problems result from a
small number of causes.
• You can apply this ratio to almost anything,
from the science of management to the physical

Addressing the most troublesome 20% of the
problem will solve 80% of it.
Within your process, 20% of the individuals will
cause 80% of your headaches.
Of all the solutions you identify, about 20% are
likely to remain viable after adequate analysis.
80% of the work is usually done by 20% of the

80% of the quality can be gotten in 20% of the
time -- perfection takes 5 times longer
20% of the defects cause 80% of the problems.
Project Managers know that 20% of the work
(the first 10% and the last 10%) consume 80%
of the time and resources.

A Pareto chart is a useful tool for graphically
depicting these and other relationships
It is a simple Histogram style graph that ranks
problems in order of magnitude to determine the
priorities for improvement activities
The goal is to target the largest potential
improvement area then move on to the next, then
next, and in so doing address the area of most
benefit first
The chart can help show you where allocating
time, human, and financial resources will yield
the best results.

While the rule is not an absolute, one
should use it as a guide and reference
point to ask whether or not you are truly
focusing on:


20% - The Vital Few
80% - The Trivial Many

True progress results from a consistent
focus on the 20% most critical

The simplicity of the Pareto concept
makes it prone to be underestimated
and overlooked as a key tool for
quality improvement.

Generally, individuals tend to think
they know the important problem areas
requiring attention……
if they really know, why do problem
areas still exist?

Although the idea is quite
simple, to gain a working
knowledge of the Pareto
Principle and its application, it
is necessary to understand the
following basic elements:

Pareto Analysis
Creating an tabular a...
Pareto Principle
“The Vital Few and Trivial Many Rule”
“Predictable Imbalance”
“80:20 Rule”
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