The difference between #4 and #5 is not as great as #1 and #2, or better yet, a blank drawing and #1 (the time from to ).
You really have to look to see the differences on the car between #4 and #5, while the contribution #1 makes is quite obvious. The point of the Pareto principle is to recognize that most things in life are not distributed evenly.
It can mean all of the following things: But be careful when using this idea! Remember that the 80/20 rule is a rough guide about typical distributions.
Make decisions on allocating time, resources and effort based on this: These techniques may or may not make sense – the point is to realize you have the option to focus on the important 20%.
Lastly, don’t think the Pareto Principle means only do 80% of the work needed.
In economics terms, there is diminishing marginal benefit.
This is related to the law of diminishing returns: each additional hour of effort, each extra worker is adding less “oomph” to the final result. Take a look at this awesome video of an artist drawing a car in Microsoft Paint.
It may be true that 80% of a bridge is built in the first 20% of the time, but you still need the rest of the bridge in order for it to work.
It may be true that 80% of the Mona Lisa was painted in the first 20% of the time, but it wouldn’t be the masterpiece it is without all the details.
20% of bugs contribute 80% of crashes: Focus on fixing these bugs first.
20% of customers contribute 80% of revenue: Focus on satisfying these customers. The point is to realize that you can often focus your effort on the 20% that makes a difference, instead of the 80% that doesn’t add much.
Originally, the Pareto Principle referred to the observation that 80% of Italy’s wealth belonged to only 20% of the population. Think about it — in a group of 100 workers, 20 could do all the work while the other 80 goof off.