80% of your Revenue is from 20% of your Customers

Pareto's 80/20 applied to your company. If this is true of your company there are many implications on how you make decisions. Often these decisions do not take the 80/20 results into account.

Test it. This link provides you a very simple WONDERMENT Project to play with this idea
http://www.jacquard.com/wonderment.htm

simple simpler101

Simpler Analysis

"The Significant Few versus the Trivial Many" Joseph Juran

Juran, a key quality leader, made Pareto's 80/20 Popular .

In any analysis 80% of the results are caused by 20% of the incidents. For Pareto in 1900 Italy, 80% of the wealth in each State was in the hands of 20% of the people. 80% of your revenue comes from 20% of your customers

For analysis use a Pareto Diagram . To learn, follow this link
http://www.qualityadvisor.com/sqc/pareto_diagram.php

simple simpler101

"Don't Add, Subtract"

There is no better simpler way to start this blog on simpler than this story


A Very Important Idea

Years ago on being appointed President of a division of a FORTUNE 100 Company, the President of the Corporation said to me

'I want you to learn one lesson When there are problems our natural instinct is to add assets - Don't.

Subtract. Subtract people, various process steps, equipment. Add is the exception to the rule" He is constantly right.

Thank You Dr. Chang

simple simpler101