Class, ….CLaass, …CLAAss, … CLAASS! …..SHUT UP! (G. Carlin)
Today I would like to find out how many of you have heard of Vilfredo (Fredo) Pareto.
Good, I see a few hands out there.
Jon, tell me what you know of Mr. Pareto.
“Well, you know …uhm, he invented the Pareto Chart. …He also made good Pizzas.”
Ok Jon, that’s a good start. Do you know where he was born and when he lived?
“I think he was born in Italy.”
That’s not correct.
Who knows what time frame? Ron…
“He was born in the 19th century.”
Anything else?
“Yes, he was an economist.”
OK Beth, I see you stretching both your hands, before you fall out of your chair, tell me what you know about Mr. Pareto.
“Vilfredo Poreto was born in Paris, France in 1848 to an Italian couple. He moved to Italy in 1876 and died in 1923. He was an economist and also a sociologist.”
That’s very good Beth.
“He came up with the 20/80 principle, along with many other economic principles.”
Can anyone else tell me what the 20/80 principle is?
“The Pareto Principle states that a small number of causes are responsible for a large percentage of the effect - usually a 20-percent to 80-percent ratio.”
That’s good Beth, but can we give someone else a chance to tell us what they know? ...Mike? ...Tell us what you know about Pareto.
“His main economic contribution was his exposition of "Pareto's Law" of income distribution. He argued that in all countries and times, the distribution of income and wealth follows a regular logarithmic pattern.”
…Very good.
Cody, I know you’re holding back. You know this stuff …jump in here.
“Well, Fredo started the principle but actually Dr. Joseph Juran (of total quality management fame) formulated the Pareto Principle after expanding on the work of Wilfredo Pareto, the nineteenth century economist and sociologist. He came up with the ideas that:
- Addressing the most troublesome 20% of the problem will solve 80% of your problems.
- 20% of your customers will give you 80% of your business
- 20% of the individuals (customers) will cause 80% of your headaches.
- 20% of the people will command 80% of your time."
Mike, what can you add to this?
"A Pareto chart can be a useful tool for graphically depicting these and other relationships. The chart can help show you where allocating time, human, and financial resources will yield the best results. Pareto Chart is a bar chart based on cumulative percentages.”
That’s very good. So in other words, the Poreto Chart is a tool used in helping to evaluate and reduce problems, costs, time, etc.
That’s very good class. You may take the rest of the day off.
Disclaimer: Names (other than Pareto’s) are all fictional and were used at random. They were not meant to resemble anyone. No animals or humans were hurt during the writing of this story. All negative comments can be faxed to 1-800-EAT-S44T or 1-800-DON-CARE.
All financial contributions can be mailed to: Genesis Pressure Cleaning Ltd. - c/o Paul B. (Mean Papa – Blues Meister)
Today I would like to find out how many of you have heard of Vilfredo (Fredo) Pareto.
Good, I see a few hands out there.
Jon, tell me what you know of Mr. Pareto.
“Well, you know …uhm, he invented the Pareto Chart. …He also made good Pizzas.”
Ok Jon, that’s a good start. Do you know where he was born and when he lived?
“I think he was born in Italy.”
That’s not correct.
Who knows what time frame? Ron…
“He was born in the 19th century.”
Anything else?
“Yes, he was an economist.”
OK Beth, I see you stretching both your hands, before you fall out of your chair, tell me what you know about Mr. Pareto.
“Vilfredo Poreto was born in Paris, France in 1848 to an Italian couple. He moved to Italy in 1876 and died in 1923. He was an economist and also a sociologist.”
That’s very good Beth.
“He came up with the 20/80 principle, along with many other economic principles.”
Can anyone else tell me what the 20/80 principle is?
“The Pareto Principle states that a small number of causes are responsible for a large percentage of the effect - usually a 20-percent to 80-percent ratio.”
That’s good Beth, but can we give someone else a chance to tell us what they know? ...Mike? ...Tell us what you know about Pareto.
“His main economic contribution was his exposition of "Pareto's Law" of income distribution. He argued that in all countries and times, the distribution of income and wealth follows a regular logarithmic pattern.”
…Very good.
Cody, I know you’re holding back. You know this stuff …jump in here.
“Well, Fredo started the principle but actually Dr. Joseph Juran (of total quality management fame) formulated the Pareto Principle after expanding on the work of Wilfredo Pareto, the nineteenth century economist and sociologist. He came up with the ideas that:
- Addressing the most troublesome 20% of the problem will solve 80% of your problems.
- 20% of your customers will give you 80% of your business
- 20% of the individuals (customers) will cause 80% of your headaches.
- 20% of the people will command 80% of your time."
Mike, what can you add to this?
"A Pareto chart can be a useful tool for graphically depicting these and other relationships. The chart can help show you where allocating time, human, and financial resources will yield the best results. Pareto Chart is a bar chart based on cumulative percentages.”
That’s very good. So in other words, the Poreto Chart is a tool used in helping to evaluate and reduce problems, costs, time, etc.
That’s very good class. You may take the rest of the day off.
Disclaimer: Names (other than Pareto’s) are all fictional and were used at random. They were not meant to resemble anyone. No animals or humans were hurt during the writing of this story. All negative comments can be faxed to 1-800-EAT-S44T or 1-800-DON-CARE.
All financial contributions can be mailed to: Genesis Pressure Cleaning Ltd. - c/o Paul B. (Mean Papa – Blues Meister)
