{"id":12498,"date":"2025-10-20T23:52:41","date_gmt":"2025-10-20T21:52:41","guid":{"rendered":"https:\/\/sxe-consulting.com\/?page_id=12498"},"modified":"2025-10-20T23:52:41","modified_gmt":"2025-10-20T21:52:41","slug":"pareto-definition","status":"publish","type":"page","link":"https:\/\/sxe-consulting.com\/en\/glossaire-industriel\/pareto-definition\/","title":{"rendered":"The Pareto method, or 80\/20 principle"},"content":{"rendered":"

Visit Pareto principle<\/strong>, or 80\/20 law<\/strong>, is a rule of thumb which states that, in most situations, 80 % of effects come from 20 % of causes<\/strong>. This principle was originally formulated by the Italian economist Vilfredo Pareto, who observed that 80 % of wealth was held by 20 % of the population. It was later popularized in the field of quality by Joseph Juran.<\/p>\n

<\/p>\n

In-depth definition :<\/strong> In the context of the\u2019Operational Excellence<\/strong> and Industrial Engineering<\/strong>, The Pareto method is an essential analysis and decision-making tool. It enables us to identify and prioritize root causes ( 20 % reviews<\/strong>) that generate the majority of problems, waste (Muda<\/em>), or delays. The aim is not to solve everything, but to focus on Continuous Improvement (KAIZEN)<\/strong> where the return on investment will be greatest. It is often represented graphically by a Pareto chart<\/strong>, which combines a histogram (frequency of problems) and a cumulative curve (percentage of effects covered).<\/p>\n

Key applications of 80\/20 in industry<\/strong><\/h3>\n

The Pareto principle applies to all areas of the Industrial Performance<\/strong> :<\/p>\n

1. Quality and defects<\/strong><\/h3>\n
    \n
  • Application:<\/strong> 80 % of non-conformities<\/strong> or scrap are caused by 20 % fault types<\/strong> (or 20 % machines, or 20 % operators).<\/li>\n
  • Action:<\/strong> The Quality<\/strong> and Industrial Engineering<\/strong> uses a Root Cause Analysis (RCA)<\/strong> on the small number of major defects. By resolving these 20 % causes, the company achieves a massive and rapid impact on the non-quality rate (one KPI<\/strong> essential).<\/li>\n<\/ul>\n

    2. Maintenance and OEE<\/strong><\/h3>\n
      \n
    • Application:<\/strong> 80 % of downtime<\/strong> (indicated by the Availability<\/strong> in the TRS<\/strong>) are due to 20 % failure types<\/strong> (for example, the failure of a critical component or a Bottleneck<\/strong>).<\/li>\n
    • Action:<\/strong> The efforts of Preventive Maintenance<\/strong> or the installation of sensors IoT<\/strong> for the Predictive Maintenance<\/strong> are concentrated on this small percentage of critical machines or breakdowns, maximizing the impact on production time.<\/li>\n<\/ul>\n

      3. Inventory Management and Supply Chain<\/strong><\/h3>\n
        \n
      • Application:<\/strong> 80 % of inventory value<\/strong> (or 80 % of order volume<\/strong>) comes from 20 % references<\/strong> (the A items of the ABC analysis).<\/li>\n
      • Action:<\/strong> Inventory management, purchasing strategy and the implementation of Pull flow (Kanban)<\/strong> are hyper-rationalized for these 20 % high-value items, while simpler management is applied to the remaining 80 %.<\/li>\n<\/ul>\n

        The PDCA Cycle and Pareto<\/strong><\/h3>\n

        The Pareto method fits in perfectly with the Planning (Plan)<\/strong> cycle PDCA (Plan-Do-Check-Act)<\/strong> :<\/p>\n

          \n
        1. Plan (Prioritization) :<\/strong> Use data analysis (Big Data<\/strong> via the MY<\/strong>) to identify the vital group of causes (the 20 %) responsible for the problem.<\/li>\n
        2. Do (Solution):<\/strong> Implement the solution on these specific causes.<\/li>\n
        3. Check :<\/strong> Measure the impact. If action on the 20 % has solved 80 % of the problem, the performance gain is validated.<\/li>\n
        4. Act (Standardization) :<\/strong> The solution is standardized, and the team can then run the Pareto analysis again on the remaining 20 % problems (which become the new 100 % for the next analysis).<\/li>\n<\/ol>\n

          Conclusion: Efficiency and Focussing<\/strong><\/h3>\n

          The principle of Pareto<\/strong> is proof that when it comes to performance, efficiency is more important than quantity. It enables small and medium-sized enterprises (SMEs) to keep their focus and focus efforts where value is created<\/strong> solving a few key problems that improve the majority of KPI<\/strong>. It's the practical guide for any team manager looking to guarantee a Series Production<\/strong> reliable and cost-effective.<\/p>\n

          <\/p>\n

          <\/p>","protected":false},"excerpt":{"rendered":"

          Le Principe de Pareto, ou Loi des 80\/20, est une r\u00e8gle empirique qui stipule que, dans la plupart des situations, 80 % des effets proviennent de 20 % des causes. Ce principe a \u00e9t\u00e9 formul\u00e9 \u00e0 l’origine par l’\u00e9conomiste italien Vilfredo Pareto, qui observait que 80 % des richesses \u00e9taient d\u00e9tenues par 20 % de […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":12324,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"definition":[99],"class_list":["post-12498","page","type-page","status-publish","hentry","definition-definition"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/pages\/12498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/comments?post=12498"}],"version-history":[{"count":0,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/pages\/12498\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/pages\/12324"}],"wp:attachment":[{"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/media?parent=12498"}],"wp:term":[{"taxonomy":"definition","embeddable":true,"href":"https:\/\/sxe-consulting.com\/en\/wp-json\/wp\/v2\/definition?post=12498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}