Free Preparation Discussions
MENU
CIPS L3M2 Exam - Topic 3 Question 42 Discussion
Topic #: 3
The Pareto Principle, broadly speaking, is also known as (choose two):
Pareto Analysis is sometimes known as the 80-20 Rule. It is the basis of ABC Analysis.
'in any series of elements to be controlled, a selected small factor [say 20%] in terms of number of elements almost always accounts for a large factor [say 80%] in terms of effort'. The figures in square brackets are illustrative - Pareto did not include these numbers and the % can be otherwise. The principle that a small percentage of 'things' will soak up a large amount of resource is what actu-ally matters.
For example, if you have 100 suppliers, a disproportionate amount of energy / time / spend will be devoted to a small number of them. Similarly if you have 100 staff members. Or a stock range of thousands. Similarly for customers. And so on.
A relatively simple concept, worth it's weight in gold in my opinion - my favourite management concept.
Domonique
3 months agoTamesha
3 months agoLamar
3 months agoJade
4 months agoBrigette
4 months agoJuan
4 months agoGregoria
5 months agoBettina
5 months agoHildegarde
5 months agoHaley
5 months agoRemedios
5 months agoAlishia
5 months agoJina
6 months agoAngella
6 months agoLaquanda
6 months agoCatherin
6 months agoWynell
6 months agoMelda
6 months agoTalia
7 months agoAntonette
7 months agoKatie
7 months agoRory
7 months agoBrianne
8 months agoMargart
8 months agoDenae
2 months agoBrendan
3 months agoMelodie
3 months agoJillian
3 months agoQuentin
7 months ago