Pareto’s Law, also known as the 80/20 rule, tells us that 20% of inputs are responsible for 80% of results. Even when it’s not an even 80/20 split, the idea that a few factors drive a large proportion of outcomes applies to many business processes and everyday situations.
Like how a majority of complaints often result from a few key defects. Or how 20% of our time accounts for 80% of our productivity, with the remaining 80% spent on meaningless tasks.
In the automotive and aerospace industries, organizations can use a range of tools to leverage the 80/20 rule for bigger, faster quality improvements. Pareto management is the most obvious of these, but manufacturers should also apply the rule to performance metrics, risk management and audits.
