Pareto principle

E382867

The Pareto principle is an economic and management concept stating that roughly 80% of effects come from 20% of causes, often used to prioritize efforts and resources.

All labels observed (2)

Label Occurrences
Pareto principle canonical 4
Pareto chart 1

How this entity was disambiguated

Statements (50)

Predicate Object
instanceOf decision-making tool
economic principle
heuristic rule
management principle
statistical observation
alsoKnownAs 80/20 rule
law of the vital few
principle of factor sparsity
appliedExample a minority of customers often generate a majority of revenue
a minority of features often delivers most user value
a small number of defects often cause most quality problems
a small number of products often account for most sales
a small portion of tasks often produces most results
assumption causes of outcomes are unevenly distributed
category empirical regularity
management theory
productivity technique
coreIdea a small proportion of inputs often accounts for a large proportion of outputs
roughly 80% of effects come from 20% of causes
fieldOfUse business management
economics
marketing
operations management
productivity
quality management
risk management
software engineering
time management
inspired Pareto chart
isApproximate true
isExactLaw false
namedAfter Vilfredo Pareto
originatedFrom Vilfredo Pareto's observation of income distribution in Italy
relatedConcept ABC analysis
Pareto distribution
Pareto efficiency
long tail
power law
supports focus on the vital few rather than the trivial many
typicalRatio 70/30
80/20
90/10
usedFor customer segmentation
defect analysis
focusing on high-impact activities
identifying key causes of problems
inventory control
prioritizing efforts
resource allocation
workload optimization

How these facts were elicited

Referenced by (5)

Full triples — surface form annotated when it differs from this entity's canonical label.

Vilfredo Pareto knownFor Pareto principle
Pareto knownFor Pareto principle
subject surface form: Vilfredo Pareto
Pareto hasDerivedConcept Pareto principle
Pareto hasDerivedConcept Pareto principle
this entity surface form: Pareto chart
Pareto distribution relatedConcept Pareto principle