Nageswara Rao Poluparthi

One argument I’ve heard against the 80/20 rule goes like this, “If you keep applying the 80/20 rule, eliminating the wasteful 80%, eventually you’ll end up with nothing" With skills often goes against the 80/20 Rule, Instead of eliminating the need for that last 20%, you invest most your time to master the last 20%. In few times, people try to create a diagram explaining the 80/20 rule with a pie chart; One fifth of the pie chart is labeled 20% and the rest is labeled 80%.

Misuse of Pareto Analysis The 80/20 Rule points out the imbalance of effects. The goal when using the 80/20 Rule is to maximize the small and powerful twenty percent and reduce the wasteful eighty percent. REF - http://thenewageparents.com/80-20-rule-to-relationships/ Example. If you analyze the breakdowns of equipment’s of a production line, if one equipment “B is causing 80% breakdowns. I will focus and work on that equipment “B” to reduce breakdowns and ensure availability of machine to produce as and when required. Despite the popularity of the rule, few people seem to understand it. I’ve seen many of misapplications and confusions. Some of these errors are due to not understanding what the rule means. Others are just my opinion of unfair attacks on an otherwise useful principle. - REF - http://www.profitbooks.net/how-to-use-paretos-80-20-rule-to-grow-your-business/ Here are the worst attempts at using the 80/20 Rule: - 80/20 to Perfection I’ve seen the rule misapplied is when building skills. It might take 2 year to become 80% proficient. But in order to get that last 20% of skill you need to invest another 8 years. While this is a fair use of the rule, the advice with skills often goes against the 80/20 Rule. Instead of eliminating the need for that last 20%, you invest most your time to master the last 20%. The point of the 80/20 Rule is that you should downplay or minimize the inefficient 80% of inputs. There are times, of course, when this rule doesn’t apply. Mastering a skill can be one of those areas where the 80/20 advice is faulty. REF - http://www.lifehack.org/articles/featured/the-top-4-misapplications-of-the-8020-rule.html 80 + 20 = 100 I’ve seen a few times where people try to create a diagram explaining the 80/20 rule with a pie chart. One fifth of the pie chart is labeled 20% and the rest is labeled 80%. While those of us with basic math skills can see how this adds up to 100%, the calculation undermines what the rule is about. Don’t get caught up on the numbers. Both 80 and 20 are just examples of one type of uneven balances. The fact that they add up to 100 is a coincidence. REF - https://www.hrzone.com/community/blogs/mark-mccormack/applying-the-8020-rule How to relay on 80/20 rule: Find ways to eliminate the rest. Get rid of activities that don’t have a high payoff. Stop spending time in relationships that don’t create enough value. Stop wasting money on investments that aren’t giving you a greater quality of life.

Misuse of Pareto Analysis.docx