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Pareto Analysis

Pareto Analysis

Pareto is a principle that helps to focus on the most important matters to obtain the maximum benefits. It describes a phenomenon that a small number of high values contribute more to the total than a high number of low values. The main idea behind the Pareto analysis is to identify the ‘vital few’ from the ‘trivial many’. It is one of the seven basic tools of quality, and often referred to as the 80/20 principle and the law of the vital few.

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