This document discusses the Pareto principle and provides examples of its application. The Pareto principle, also known as the 80/20 rule, suggests that 20% of inputs often account for 80% of outputs. The document explains that Joseph M. Juran suggested the principle based on Vilfredo Pareto's observation that 20% of the Italian population owned 80% of the wealth. It then provides examples of using Pareto charts to analyze reasons why students bunk lectures and which reasons account for most bunked lectures, finding that 20% of reasons accounted for 80% of bunking instances.

1. Pareto Principle
Presented By:
Priyanka TS
Rohit Kaul
Prasann Saxena
Sydenham Institute of Management Studies, Research &
Entrepreneurship Education (S.I.M.S.R.E.E), Mumbai

2. Background
• Suggested by – Joseph M. Juran
• Named after Vilfredo Pareto - Italian
Economist
• In 1906, V. Pareto observed that 20% of
Italian population owned 80% of Italy’s
Wealth
• Also known as 80-20 principle

3. What it is?
• One of the Seven Quality Control tools
• Statistical technique in decision making for
selection of limited tasks which have
significant overall impact

4. Pareto Principle
• 20% of inputs (time, resources, efforts)
accounts for 80% of outputs (results, rewards)
• Separates “Vitals few” from “Trivial Many”

5. Pareto Chart
• A Pareto chart is a series of bars whose heights
represent frequency or impact of problems
• The bars are arranged in descending order of
heights from left to right
• Bars on left are relatively more important than
the bars on the right
• Separates the Vitals from Trivial

6. Bunking Lectures

7. Reasons
Not able to wake up in the morning
Depends on mood
Committee work
Lecture is boring
Due to off-summers work
Participating in competitions
Went to native place
Personal Reasons
Lecture is not important academic point of view

8. Pareto Chart (No. of Students)
25
15
2 2
1 1 1 1 1 1
50%
80%
84%
88%
90%
92%
94%
96%
98%
100%
0
20
40
60
80
100
120
0
5
10
15
20
25
30
Not able to
wake up in
the morning
Depends on
mood
Committee
work
Participating
in
competitions
Lecturer is
not good
Due to off-
summers
work
Lecture is
boring
Went to
native place
Personal
Reasons
Lecture is
not
important
academic
point of view
No. of Students
Cummulative %

9. Pareto chart(No. of Lectures)
36%
70%
77%
80%
83%
87%
90%
93%
97%
100%
0
20
40
60
80
100
120
0
2
4
6
8
10
12
Not able to
wake up in
the morning
Depends on
mood
Committee
work
Participating
in
competitions
Lecturer is
not good
Due to off-
summers
work
Lecture is
boring
Went to
native place
Personal
Reasons
Lecture is
not
important
academic
point of view
No. of
Lectures

10. Conclusion
• From Above charts it is clear that
20% reasons are responsible for 80% of the students
bunking the lectures.
 70% lectures are bunked due to 20% of reasons