Pareto’s principle

Spend time where it benefits you the most. Use Pareto s principle (80% of the resnlts can be found from 20% of the effort). Find the key 20%. 

I have observed over the years, but not through scientific study, that Pareto s principle applies generally to employee injuries and illnesses, fires, auto incidents, product liability incidents, and enviromnental incidents. 

The Pareto chart allows us to visualise whieh effeets are really important. According to Pareto s principle, only a few effeets will be relevant. The name was assigned after Italian economist Vilfredo Pareto (1848-1923), who observed that 80% of ineome in Italy went to 20% of the population this was generalised to a common rule of thumb in business and quality eontrol, e.g. 80% of your sales and/or quality faults come from 20% of your clients/ technical problems, and so we might discard the others . As can be seen in our example, the main effeet is due to faetor A (pH), followed by the effect of the interaetion BC (temperature x time) and factor B (temperature). The other effeets are small, even eompared with the effect of the highest interaction... 

The Pareto principle says that most of a plant s problems stem from a few basic causes. The Pareto chart, based on this principle, Is a tool for selecting the critical causes of problems — the ones that should be resolved first. 

How to assess risk is addressed elsewhere in this text. For further guidance refer to G.L. McDonald s concept of Class I, Class II and Class III accidents in Chapter 1, and remember the Pareto principle - 80% of the cost comes from 20% of the accidents , and so 80% of the effort should go into reducing that 20% of accidents. 

Critical few refers to the general principle that a minority of the system elements will cause a majority of the system hazards. This philosophy follows the Pareto principle, which states that for many events, roughly 80% of the effects come from 20% of the causes. For example, 80% of a product s sales will typically come from 20% of the clients. 

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