PARETO ANALYSIS "80/20 Rule"

Vilfredo Pareto, the 19th century economist and sociologist who gave the 80/20
rule, often stated using examples such as 20% of your customers bring you 80% of
your revenue.
Pareto charts are a great way to help business decision makers decide where
to focus resources for the greatest impact. Peopple use Pareto charts to identify:
Where to focus support and quality control
Which clients should have greater focus
Which product features are most desirable
Which issues cause the greatest dissatisfaction
S. No
1
2
3
4
5
6
7
8
9
10

Customer
France
USA
China
England
Pakistan
Japan
India
Spain
Australia
Africa

Revenue
% Of Total
Cumm %
Dummy
97,754
21.87%
21.87%
80%
88,524
19.81%
41.68%
80%
59,413
13.29%
54.98%
80%
55,234
12.36%
67.34%
80%
35,204
7.88%
75.22%
80%
31,405
7.03%
82.24%
80%
29,981
6.71%
88.95%
80%
18,663
4.18%
93.13%
80%
17,428
3.90%
97.03%
80%
13,279
2.97%
100.00%
80%

120,000

100,000

80,000

60,000

40,000

20,000

120,000

100.00%
90.00%

100,000

80.00%
70.00%

80,000

60.00%
60,000

50.00%
40.00%

40,000

30.00%
20.00%

20,000

10.00%
France

China

Revenue India
Pakistan

Cumm
%
Australia

0.00%