Pareto Analysis

Question 1

What is Pareto Analysis?

Answer 1

A decision-making technique for assessing problems and measuring the impact of solving them.

Question 2

What is Pareto Analysis also known as?

Answer 2

Vilfredo Pareto’s 80/20 rule.

Question 3

What is the Pareto Principle?

Answer 3

80% of a project’s benefit comes from 20% of work.

Question 4

What are the benefits of Pareto Analysis?

Answer 4

• Workload is organised more effectively
• Improved productivity
• Improved profitability

Question 5

What is Step 1 of Pareto Analysis?

Answer 5

Identify and List problems - where possible, gather feedback from clients and team.

Question 6

What is Step 2 of Pareto Analysis?

Answer 6

Identify the root causes of each problem.

Question 7

What is Step 3 of Pareto Analysis?

Answer 7

Score Problems - score each problem in order of importance.

Question 8

What is Step 4 of Pareto Analysis?

Answer 8

Group Problems Together - Root Cause Analysis can group problems by common cause.

Question 9

What is Step 5 of Pareto Analysis?

Answer 9

Add up scores and Plot - identify the group with the highest score; these are the highest priority problems.

Question 10

What is Step 6 of Pareto Analysis?

Answer 10

Take Action - Higher scoring problems will likely have a bigger payoff once solved.