Is Zero Rework Possible?

WHAT IS PARETO ANALYSIS?

Let’s get the obvious questions out of the way: it’s pronounced PREE-toe, and while it’s named after Vilfredo Pareto, a 19th century Italian economist, it was actually invented by Dr. Joseph Juran, an American quality expert who is still with us today.

Pareto discovered that 80 percent of the wealth was held by only 20 percent of the people, and examples of his 80/20 rule abound today. Juran took that rule and applied it to quality: 20 percent of the causes of rework are responsible for 80 percent of the cost of rework. This 20 percent is the vital few—the problems that, if solved, will make the greatest impact. It’s really like organized common sense—easy to understand, implement and benefit from. Here’s how it’s done.