Do you want your business to flourish and stay ahead of your competition? Then you need to stay ahead of them in all aspects of your business. Continual or continuous process improvement is a must for business survival, Failure to continuously improve your processes will eventually losing business to your competitors who are working hard to achieve continuous process improvement themselves.
The Pareto chart is a quality tool that can help you achieve this. Combined with the Pareto Principle or the 80:20 Rule, it can help you focus on those vital few areas in your business that can give the most benefit. Without a planned program of continuous process improvement utilizing quality tools like Pareto you will never stay ahead of the competition.
The Pareto Principle is based around the founders observation that 80% of a country's wealth was in the hands of only 20% of the population, a ratio that he saw across the various countries that he looked at. This ratio can be applied also within industry allowing you to focus your efforts into the vital few areas that will give the most benefit. For example 80% of your quality problems are probably due to only 20% of your products, or only 20% of the potential causes, focusing on this 20% will enable you to remove the 80%. As you can see the Pareto principle is a very important aspect to consider to direct your business improvement efforts efficiently.
For more information on the Pareto principle and how it can help you improve your business, read: Pareto Chart:: Continuous Process Improvement::80:20 Rule.