the Pareto principle


the Pareto principle
the Pareto principle UK US noun [S] (also Pareto's law , INFORMAL the 80/20 rule) ECONOMICS, WORKPLACE, PRODUCTION
the idea that a small quantity of work or resources (= time, money, employees, etc.) can produce a large number of results: »

The Pareto principle, when applied to time, states that 20% of your time determines 80% of your production.

»

The Pareto principle can be applied to quality improvement, as the majority of problems (80%) are produced by a few key causes (20%).


Financial and business terms. 2012.

Look at other dictionaries:

  • Pareto principle — The Pareto principle (also known as the 80 20 rule, the law of the vital few and the principle of factor sparsity) states that, for many events, 80% of the effects come from 20% of the causes. Business management thinker Joseph M. Juran suggested …   Wikipedia

  • Pareto principle — Put in terms of preferences, this is the principle that (i) if everyone in a society is indifferent between two alternatives then the society should be indifferent as well, and (ii) if at least one individual prefers x to y, and everyone else… …   Philosophy dictionary

  • Pareto Principle — A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put… …   Investment dictionary

  • Pareto principle — A principle of welfare economics derived from the writings of Vilfredo Pareto , which states that a legitimate welfare improvement occurs when a particular change makes at least one person better off, without making any other person worse off. A… …   Dictionary of sociology

  • Pareto principle — noun the principle that describes the phenomenon wherein a small percentage of a population accounts for a large proportion of a particular characteristic of that population e.g. that a small proportion of users account for a large proportion of… …   Wiktionary

  • Pareto principle — economic principle stating that an economic policy is desirable if it suits part of the population and does no harm to the rest …   English contemporary dictionary

  • principle — prin‧ci‧ple [ˈprɪnspl] noun 1. [countable, uncountable] a moral rule or set of ideas that makes you behave in a particular way: • The single European market works on market principles. • As a matter of principle (= a rule that is very important …   Financial and business terms

  • Pareto analysis — is a statistical technique in decision making that is used for selection of a limited number of tasks that produce significant overall effect. It uses the Pareto principle the idea that by doing 20% of work you can generate 80% of the advantage… …   Wikipedia

  • Pareto distribution — Probability distribution name =Pareto type =density pdf cdf Pareto cumulative distribution functions for various k with x m = 1. The horizontal axis is the x parameter. parameters =x mathrm{m}>0, scale (real) k>0, shape (real) support =x in [x… …   Wikipedia

  • Pareto index — In economics the Pareto index, named after the Italian economist and sociologist Vilfredo Pareto, is a measure of the breadth of income or wealth distribution. It is one of the parameters specifying a Pareto distribution and embodies the Pareto… …   Wikipedia