Vilfredo Pareto established that 80 percent of the land in Italy was owned by 20 percent of the population. Later, he discovered that the pareto principle was valid in other parts of his life, such as gardening: 80 percent of his garden peas were produced by 20 percent of the peapods.
Some Sample 80/20 Rule Applications
80 percent of process defects arise from 20 percent of the process issues.
20 percent of your sales force produces 80 percent of your company revenues.
80 percent of delays in schedule arise from 20 percent of the possible causes of the delays.
80 percent of customer complaints arise from 20 percent of your products or services.
How to Construct a Pareto Chart
BUDGETING? NOT NECESSARILY CAN BE ALSO USED TO CHECK DEFECT RATE & OCCURRENCES
A pareto chart can be constructed by segmenting the range of the data into groups (also called segments, bins or categories). For example 2, if your business was investigating the delay associated with processing credit card applications, you could group the data into the following categories:
- No signature
- Residential address not valid
- Non-legible handwriting
- Already a customer
The left-side vertical axis of the pareto chart is labeled Frequency (the number of counts for each category), the right-side vertical axis of the pareto chart is the cumulative percentage, and the horizontal axis of the pareto chart is labeled with the groupnames of your response variables.
You then determine the number of data points that reside within each group and construct the pareto chart, but unlike the bar chart, the pareto chart is ordered in descending frequency magnitude. The groups are defined by the user.
What Questions the Pareto Chart Answers
- What are the largest issues facing our team or business?
- What 20 percent of sources are causing 80 percent of the problems (80/20 Rule)?
- Where should we focus our efforts to achieve the greatest improvements?
- On a no longer profitable or opportunity for a new market
Depends on the Type of Customers catered to and how much of a change is going to occur in the new plan.
Also a 360 Degree feedback from
1) Existing Clients Serviced
2) Potential Clients to be served to sustain the business
3) Current and Past Suppliers from the Business who will support the Business for future Services / Products.
Root Problem of going bankrupt might also be related Current ways of Poor Decision making due to poor knowledge in the field one is in. Or Poor reputation due to poor behavior / conduct. Or unpredictable Rent increases and other Administrative cost such as visa renewals etc.
Let’s say I sell and over achieve targets always but I’ve been stealing from my colleague sales leads. Or I sell the wrong product just to show profits / sales which are rejected or returns. In the end isn’t business a long term relationship with clients and suppliers.
Stop ticking a questioner and do the asking by calling meets. Best way forward as Guilty Conscience Pricks.
Find out the WHY
5 Whys to Validate Assumptions
Problem Statement: Customers are unhappy because they are being shipped products that don’t meet their specifications.
1. Why are customers being shipped bad products?
– Because manufacturing built the products to a specification that is different from what the customer and the sales person agreed to.
2. Why did manufacturing build the products to a different specification than that of sales?
– Because the sales person expedites work on the shop floor by calling the head of manufacturing directly to begin work. An error happened when the specifications were being communicated or written down.
3. Why does the sales person call the head of manufacturing directly to start work instead of following the procedure established in the company?
– Because the “start work” form requires the sales director’s approval before work can begin and slows the manufacturing process (or stops it when the director is out of the office).
4. Why does the form contain an approval for the sales director?
– Because the sales director needs to be continually updated on sales for discussions with the CEO.
In this case only four Whys were required to find out that a non-value added signature authority is helping to cause a process breakdown.
Let’s not call and do a check shall we !
My door is always open, kettle can always be on and my sofa is always warm and a place of peace and non-judgment. Any of my friends are welcome to chat, or just ‘be’, anytime. It’s no good suffering in silence. I have tea & coffee in the cupboard, hot chocolate, milk, sugar etc.
You are always welcome. I’m sure that you all already know this, but everyone needs reminding that I have an #OpenDoorPolicy
We are trying to demonstrate that someone is always listening
OPEN SET : Incognito having one’s true identity concealed. Or an assumed, false identity.
Red Bindi :
The red bindi has multiple meanings
From Vedic times, the bindi was created as a means to worship one’s intellect. Used by both men and women. Worship of the intellect to ensure that thoughts, speech, actions, habits and ultimately one’s character becomes pure.
A strong intellect can help one to make noble decisions in life, be able to stand up to challenges in life with courage, and recognise and welcome good thoughts in life.
The belief was and is that on this a strong individual, a strong family and strong society can be formed. Red represents honor, love and prosperity, hence it was worn to symbolise these aspects.
Bindi is called by various names across India and a Tip in Bengali
USE OF BINDI IN THE SOCIETY:
Society has always wanted to tag people in groups and the bindi performed a similar function in the ‘Social’ realm. The social purpose being to ward away evil eye of the young unmarried girl by making her wear a ‘black’ Bindi. The married women wore a red Bindi.
4 castes wore different coloured tilak i conservative families in Indian villages.
1. The Brahmins who were priests or academicians wore a tilak of white sandal wood signifying purity.
2. The Khatriyas (Kings, Warriors and Administrators) wore red tilak to signify valor.
3. The Vaishyas (Business men) wore a yellow tilak signifying prosperity.
4. The Sudra (service class) wore black tilak to signify service to the other classes.
USE OF WEARING BINDI FROM A HEALTHY VIEWPOINT:
The bindi is worn between the eyebrows where the pineal gland lies. This is an important nerve center and applying sandalwood or ash keeps the nerves cool and so keeps one cool and conserves energy. In the past the bindi was made from the yellow and red sandalwood, red and yellow turmeric, saffron, various flowers, ash, zinc oxide. All these had cooling properties in nature.
SPIRITUAL SIGNIFICANCE OF A BINDI:
The Ajna Chakra is considered to be the place of the “Third Eye” where one applies the Bindi. The Ajna Chakra is the site where one finally loses Ahamkara (ego or sense of individuality) when one achieves self-realization or reaches a higher level of spirituality. It is a way to remind one another in the society to see through the mind’s eye and see the bigger picture of the “Universe as One”.
Ancient Indian belief is that “the human body is divided into seven vortices of energy, called chakras, beginning at the base of the spine and ending at the top of the head. The sixth chakra, also known as the third eye, is centered in the forehead directly between the eyebrows and is believed to be the channel through which humankind opens spiritually to the Divine”.
Thus the kumkuma is placed at the location of the body which is believed by Indians to be the most holy.