The Pareto Principle
Pareto analysis follows the Pareto Principle, stating that roughly 80% of effects result from 20% of causes. This approach aids in prioritizing efforts by identifying the most influential factors within a dataset. By focusing resources on the critical few, Pareto analysis enhances decision-making and resource allocation, yielding efficient and impactful outcomes.
By meticulously dissecting the dataset, Pareto analysis provides a clear visualization of the most significant contributors to a problem or phenomenon. This not only streamlines decision-making processes but also assists in crafting targeted strategies to optimize results. As a result, organizations can harness the power of Pareto analysis to make informed choices, allocate resources judiciously, and ultimately drive substantial improvements in various aspects of their operations.
How to do it
Since this analysis doesn’t depend on the date for the exercise, a calendar table has not been added.
By Vicente Argenis Chaffardet - 16th August 2023 - fp20 analytics
Conclusion - The Avantages of The Pareto Principle
The advantages of using this type of analysis is to quickly identify in the case of sales where 80% of the income comes from.
Identify customer profiles and develop sales strategies
Choose the right Chart
Identify where where the measurements should go in the available fields of chartasurements should go in the available fields of chart builder.
Let's go to the visual options
3.Fx Conditional Formatting
4.We choose Rules and in the field, we look for the % Ingresos por producto measure