The Pareto Principle: History, Foundations, Applications, and Graphical Representation

Abstract

The Pareto Principle, commonly known as the 80/20 rule, states that a small number of causes often account for the majority of effects. This concept, rooted in economics and later adopted in quality management and reliability engineering, serves as a cornerstone for prioritization, resource optimization, and continuous improvement.

1. Definition

The Pareto Principle asserts that: