The Pareto Principle
1:14:44 2025-06-29 52

The successful Italian economist Vilfredo Pareto (1848–1923) is the originator of this principle — known as the Pareto Principle — which is essentially based on addressing the most important causes.

For example, in a certain company, it might be observed that 80% of purchases are made by only 20% of customers (a specific group). Pareto also found through a statistical study that around 80% of the land in Italy was owned by only 20% of the population.

This principle can also be applied in problem-solving.

When analyzing a certain problem, one might often find that a large portion of the causes — possibly up to 80% — stems from only 20% of the factors. Therefore, focusing on addressing this small portion (20%) is often enough to resolve the problem.

 

Case Example

Officials at a large company that sells various products noticed an increasing number of returned goods that were shipped to customers.

Upon investigating the reasons behind this issue, they found that about 85% of the causes were due to one of two specific factors:

  1. Sending products that did not exactly match what the customer ordered.
  2. Sending products that had some defect.

The remaining percentage of causes included other reasons such as the goods being broken or damaged during shipping.

By focusing their attention on correcting these two main issues, the company saw a significant drop in the return rate. This improvement came after officials made sure to select the correct product types and verify they were free from defects before shipping.

 

Reality Of Islam

A Mathematical Approach to the Quran

10:52:33   2024-02-16  

mediation

2:36:46   2023-06-04  

what Allah hates the most

5:1:47   2023-06-01  

allahs fort

11:41:7   2023-05-30  

striving for success

2:35:47   2023-06-04  

Imam Ali Describes the Holy Quran

5:0:38   2023-06-01  

livelihood

11:40:13   2023-05-30  

silence about wisdom

3:36:19   2023-05-29  

MOST VIEWS

Importance of Media

9:3:43   2018-11-05

Illuminations

smiling

1:38:41   2021-12-08

humanity

6:28:21   2022-12-20

use you time well

4:26:43   2022-02-21

allah timing

6:14:3   2023-01-18

do not burn out

2:34:48   2022-01-18

hud & his people

7:45:39   2018-06-21

never answer to your lusts

7:0:55   2022-05-17



IMmORTAL Words
LATEST The Pareto Principle Interpretation of Sura Hud - Verses 81-83 Appearance of Righteous Virtues Within Evaluate What You Hear Interpretation of Sura Hud - Verses 78-80 The Advantages and Effects of Patience Fasting Every Other Day May Be More Effective Than Daily Dieting, Research Finds Battery Breakthrough: Scientists Double Performance with Dry Electrodes New Discovery of Deep-Sea Spiders Is Unlike Anything We have Seen Before One Avocado a Day Could Help You Sleep Better, Says Groundbreaking Study Window-Sized Device from MIT Pulls Drinking Water from Thin Air, even in the Desert Emperor Penguins Disappearing Faster Than Worst Estimates, Study Finds