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Benchmark Six Sigma - War Room

You may find it interesting that while the 80:20 Rule (Pareto Principle) is one of the most used tools in problem solving, it is also the one which carries different meaning for different people. I have picked up some of the most interesting dilemmas in the use of Pareto Principle and listed them for voting so that we all can see percentage preferences on each side.

1. In the questions that follow, click on the option you find more appropriate – A or B. Once you click, you shall be able to see percentage responses on each option so far.
2. If you wish to discuss with others or want to see my response on 6th May, just mark a comment in the comments section.

Question 1 – Is it necessary that the categories used in the Pareto Chart are mutually exclusive?
[dilemma cats = ‘1047’]

Question 2 -While solving a business problem, the best way to work with a Pareto Chart is to plot number of occurrences (frequency) and corresponding cumulative percentage on the Y axis. Do you agree?
[dilemma cats = ‘1046’]

Question 3 – Pareto principle is universally applicable to every problem. Do you agree?
[dilemma cats = ‘1045’]

Question 4 – Repeated application of the principle – For a given problem, Pareto is not a principle meant for just one time use. One may like to identify the most dominant categories from a high level pareto analysis and then IN MOST CASES, it is possible to carry out a next level pareto analysis on each of the dominant categories. Do you agree?
[dilemma cats = ‘1048’]

Question 5 – The categories that end up as low priority as a result of Pareto analysis can be safely ignored. Do you agree?
[dilemma cats = ‘1049’]

Question 6 – The 80-20 rule is not an absolute rule. It can be 70:30 or even 90:10 – the total must remain 100. Do you agree?
[dilemma cats = ‘1050’]