Monday, January 28, 2013

Using the 80/20 Rule to Improve Quality

Trying to solve quality problems can sometimes seem like you are trying to move a mountain with a spoon.  It can seem impossible and even too daunting to begin.  But what if you could make a big impact on your quality without doing much at all?

There is a principle called the 80/20 rule or Pareto rule.  In the early 1900s, an Economist found that 80% of the wealth in the world is controlled by 20% of the population.  Since then, Economists and professionals in almost every other field have applied this theory over and over again to find versions of it to be true.  It is not always 80/20, but it is some unbalanced proportion.  In come cases it could be 70/30 while in other cases it could be 98/2. 

Take a salad for instance.  80% of your calories usually come from the dressing as does 80% of the flavor. 

So, how can we apply this to solving quality issues.  First, you have to know what is causing the quality issue.  You can do this by breaking down processes.  Start by detailing out your process in a numbered list.  List the number of quality issues you have experienced that were caused by each step in the process.  Take the part of the process that has the most quality issues and focus only on that part of the process.  You will soon find that you can tackle half of your quality issues by focusing on just one or two steps in the process. 

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