Pareto Analysis
MANAGEMENT ACCOUNTING & PERFORMANCE EVALUATION MAF 635 PARETO ANALYSIS GROUP 10 PREPARED FOR: PN. ZARINAH ABDUL RASIT
CONTENT | PAGE | INTRODUCTION | 2 | WHAT IS PARETO ANALYSIS? | 2 | HISTORY OF PARETO ANALYSIS | 3 | WHEN TO USE PARETO ANALYSIS | 3 | HOW TO USE PARETO ANALYSIS | 4 | RISK AND WAYS TO AVOID IT | 7 | ADVANTAGES & DISADVANTAGES | 8 | CONCLUSION | 8 | APPENDIX | 9 |
INTRODUCTION
In this chapter, we will discuss on Pareto Analysis topic which is a statistical techniques in decision making.
We will focus on: * The definition of Pareto Analysis. * The history of Pareto Analysis. * When we can use Pareto Analysis. * How to use Pareto Analysis. * The risks of using Pareto Analysis. * Ways to avoid the risks arises. * The advantages and disadvantages of Pareto Analysis.
WHAT IS PARETO ANALYSIS?
The definition of Pareto Analysis can be identified as statistical techniques in decision making.
The difference between other decision making techniques is this analysis are applying the 80/20 rule. Which is by doing 20% of works, will gain 80% advantage of the entire works. Meaning here is by only focusing on significant issue or problems, we can gain a 80% returns as we focus on the entire works.
This Pareto Analysis is a creative way of looking at causes of problems to help stimulate thinking and organize thought.
HISTORY OF PARETO ANALYSIS
WHEN TO USE PARETO ANALYSIS
* During problem analysis, to find those sub-problems that will return the greatest benefits. * Used in any general situation where you want to prioritise action. For example, use it when selecting potential solutions, by comparing their cost-benefit ratios. * Use it in a team situation to show results of voting.
HOW TO USE PARETO ANALYSIS STEPS | DESCRIPTION | EXAMPLE | Identify Items to compare | * Identify the items to be analysed and charted. *
CONTENT | PAGE | INTRODUCTION | 2 | WHAT IS PARETO ANALYSIS? | 2 | HISTORY OF PARETO ANALYSIS | 3 | WHEN TO USE PARETO ANALYSIS | 3 | HOW TO USE PARETO ANALYSIS | 4 | RISK AND WAYS TO AVOID IT | 7 | ADVANTAGES & DISADVANTAGES | 8 | CONCLUSION | 8 | APPENDIX | 9 |
INTRODUCTION
In this chapter, we will discuss on Pareto Analysis topic which is a statistical techniques in decision making.
We will focus on: * The definition of Pareto Analysis. * The history of Pareto Analysis. * When we can use Pareto Analysis. * How to use Pareto Analysis. * The risks of using Pareto Analysis. * Ways to avoid the risks arises. * The advantages and disadvantages of Pareto Analysis.
WHAT IS PARETO ANALYSIS?
The definition of Pareto Analysis can be identified as statistical techniques in decision making.
The difference between other decision making techniques is this analysis are applying the 80/20 rule. Which is by doing 20% of works, will gain 80% advantage of the entire works. Meaning here is by only focusing on significant issue or problems, we can gain a 80% returns as we focus on the entire works.
This Pareto Analysis is a creative way of looking at causes of problems to help stimulate thinking and organize thought.
HISTORY OF PARETO ANALYSIS
WHEN TO USE PARETO ANALYSIS
* During problem analysis, to find those sub-problems that will return the greatest benefits. * Used in any general situation where you want to prioritise action. For example, use it when selecting potential solutions, by comparing their cost-benefit ratios. * Use it in a team situation to show results of voting.
HOW TO USE PARETO ANALYSIS STEPS | DESCRIPTION | EXAMPLE | Identify Items to compare | * Identify the items to be analysed and charted. *