...eighty/ twenty rule that Malcolm Gladwell discusses in the novel, meaning that eighty percent of work is done by twenty percent of people, is very relatable to the real world. This 80/20 rule is known mainly as Pareto's Law. Founded by Vilfredo Pareto in 1906, the formula was established to describe the inequal distribution of wealth in Pareto's home country of Italy. He stated that 20% of the people owned 80% of the countries wealth and hence the eighty/ twenty rule was established. The 80/20 rule has been changed from its strictly economical meanings to purely mean that in anything a few (20 percent) are vital and many(80 percent) are trivial. Two modern day examples where this rule is clearly visible are in the classroom and also in athletics. In sports the eighty twenty rule could be displayed in many different ways. One example would be the salaries of players. If you look at the roster of the New York Knicks, a basketball team in the Eastern Conference of the NBA, you will find that they have had a total of 21 players this season. Between those 21 athletes the team as a whole was set to make over eighty-one million dollars. If you look at the individual player salaries though you will find that not all players make an even amount. In fact, the top four earners on the team (Carmelo Anthony, Amare Stoudemire, Andrea Bargnani, and Jose Caledron) were set to earn almost 63 million dollars alone. That's almost 77% of the teams total salary split between less that 20% of the teams...
Words: 1296 - Pages: 6
...that twenty percent of the people owned eighty percent of the wealth. 80% of Output comes from 20% of Input 80% of Results generates from 20% of Effort 80% of Consequences results from 20% of Causes What It Means The 80/20 Rule means that in anything a few (20 percent) are vital and many(80 percent) are trivial. In Pareto's case it meant 20 percent of the people owned 80 percent of the wealth. Project Managers know that 20 percent of the work (the first 10 percent and the last 10 percent) consume 80 percent of your time and resources. You can apply the 80/20 Rule to almost anything, from the science of management to the physical world. You know 20 percent of your stock takes up 80 percent of your warehouse space and that 80 percent of your stock comes from 20 percent of your suppliers. Also 80 percent of your sales will come from 20 percent of your sales staff. 20 percent of your staff will cause 80 percent of your problems, but another 20 percent of your staff will provide 80 percent of your production. It works both ways. How It Can Help You The value of the Pareto Principle for a manager is that it reminds you to focus on the 20 percent that matters. Of the things you do during your day, only 20 percent really matter. Those 20 percent produce 80 percent of your results. Identify and focus on those things. When the fire drills of the day begin to sap your time, remind yourself of the 20 percent you need to focus on. If something in the schedule has to slip...
Words: 372 - Pages: 2
...Question 1 The 80/20 rule has a few marketing-related applications. One application relates to how money is spent on advertising and other marketing campaigns. In general, 20 percent of marketing messages produce 80 percent of your campaign results. Understanding which of your investments produce the greatest results lets you eliminate some of the costs associated with less productive techniques. This improves your marketing efficiency and returns. This means 20% of customers consume 80% of the product. This rule is important to marketers in two different cases. One way this is important is that a firm may want to focus marketing efforts on that 20%. Another way this is important is that since most firms are competing for that 20%, you might want to focus on targeting the other 80% of consumers. Example of a marketing investment: relates to how money is spent on advertising & marketing campaigns. Generally, 20% of marketing messages produce 80% of campaigns results. Understanding this, marketers will be able to eliminate costs associated with less productive techniques improves marketing efficiency & returns. Product mix: 80% of company’s revenue is derived from 20% of its products or services. Marketers can emphasize the value of core products in a better way to target customers & expand business by targeting new customer groups. Profits: most useful applications of 80/20 rule in marketing relaters to profits. A company can earn 80% of its profits from the top 20% of its customer...
Words: 269 - Pages: 2
...Fall 2012 Sam (Sang-Jin) Han, Ph.D 13. Decision Support Systems Mongolian International University Project #2 T-test and Chi-Square Test TChi- Make an example of T Test and Chi-square test. Chi(Examples should be related to business/management) - Make a group of three people. Every body should present. - Prepare 5 minutes of presentation. Prepare Q & A. - You MUST submit the presentation file by December 3rd 8:30AM. (-10 point will be deducted and additional -1 point/hour will be deducted if your submission are getting late) T-test (Followings should be included): 1. Problem description. 2. Choose the right test (paired or independent). State if the two conditions for T Test are satisfied. 3. H0 and Ha (Specify one tailed or two tailed) 4. Sample size (N) and P-value should be included in the result. P5. Conclusion and references ChiChi-Test: 1. Problem description. 2. H0 and Ha 3. Degree of freedom and P-value should be included in the result P4. Your conclusion and References ChiChi-Square Test: degree of freedom DOF=number of categories -1 Decision Support Systems Decision Tree RuleRule-based System Business Information System, MIU, Sam Han DSS-ES connections These two can be completely different. The differences are technological as well as managerial. But they complement each other, creating powerful and integrated computer based systems that can improve managerial decision making capabilities . (Differences b/w DSS and ES) Objective Who makes...
Words: 1472 - Pages: 6
...Using the 80/20 rule and time matrix, how would you manage your time if your boss asked you to finish an assignment in one week and that same week you had also promised a friend that you would meet at the Aquarium for one day that week. Assume that this assigned work involves reading a 300 page report, writing a summary of findings and preparing a presentation. Is it possible to do everything without stressing yourself out? Also, comment on the quality of your work and life during that week. What could the manager have done differently? According to the 80/20 rule, only 20 percent of the work produces 80 percent of the value; and the most important 20 percent of the work should be spent on the important task. By using the time matrix, I would analyze and consider that, the assignment is important and urgent, and visit the Aquarium with my friend is important but not urgent. I would put my time and effort finishing the assignment first; and have my visit to the Aquarium with my friend in the weekend if I could finish the assignment beforehand. Everyone takes stress in a different way; and I think it is easy to get stress nowadays because most employers want their employees to have high productivity all the time. It is possible to do everything without stressing out by seeing the stress as a eustress; and using the 80/20 rule and time matrix. It is important to prioritize the tasks, have a good planning of time spent, and follow the plan. The quality of that week for...
Words: 350 - Pages: 2
...also known as the 80/20 rule, is a theory maintaining that 80 percent of the output from a given situation or system is determined by 20 percent of the input (Bunkley, Nick. 2008) In Pareto's case, he found that roughly 20 percent of the people in his country dominated with 80 percent of the wealth. The principle doesn’t stipulate that all situations will demonstrate that precise ratio – it refers to a typical distribution. More generally, the principle can be interpreted to say that a minority of inputs results in the majority of outputs. Here are a few examples of the Pareto principle in action (Richard Koch): • 20 percent of employees produce 80 percent of a company’s results. • 20 percent of a given employee’s time yields 80 percent of their output. • 20 percent of a company’s investments produce 80 percent of its investment profits Pareto's Principle should serve as a reminder to us to stay focused on investing 80 percent of our time and energy on the 20 percent of work that’s really important. It’s not just important to “work hard” and “work smart”, but also to work smart on the right things. In this point I think it is also can link to the knowledge retention. In an organization, much of vital knowledge can be held by single people. A single subject matter expert may hold vital operational knowledge in his or her head, representing a “single point of failure” for the organization. (In here, we can say this is the 20% of employees produce 80% of a company's results...
Words: 681 - Pages: 3
...Secrets of Successful Learning Top of Form |[pic] |[pic] | Bottom of Form TUESDAY, APRIL 3, 2012 Time Management "Don't wait. The time will never be just right. " One always has time enough, if one will apply it well. Many students discover the need to develop their time management skills when they arrive at college. Unlike high school where teachers frequently structured the assignments and classes filled the day, in college, students will have less in-class time, more outside of class work, and a great deal of freedom and flexibility. Keys to successful time management include: • Self knowledge and goals • Developing and maintaining a personal, flexible schedule |[pic] | |Quantumlearn (2012) | Class Activity Assessing Your Time Management Skills 1. I like my watch to be set a few minutes ahead of the correct time. 1. I tend to arrive at most functions at least 5 minutes early. 1. In the course of my daily activities I tend to take my time. 1. In high school I almost always completed my daily assignments. 2. I sometimes spend more than 15 minutes at a time on the telephone. 2. I like to finish assignments and reports exactly on their due dates. 1. I rarely spend more than an hour eating a meal. 1. I never watch more than 1 1/2 hours of TV on a weeknight. 2. I...
Words: 1982 - Pages: 8
...Inventory Management | Intro to Logistics and Supply Chain Management | Susan Calhoun | Gettemeier, Alexandria | 4/1/2012 | Inventory Management “Inventory Management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory.” (BarcodesINC 1) An inventory manager supervises the product from the manufacturer to the warehouse where it is being stored; then from the point of sale to the customer. An inventory manager becomes involved in the fine lines between replenishment lead-times, storage costs, asset management (to include returns and defective material), and demand forecasting. It is very important to balance these competitive requirements in order to determine the optimal inventory levels required to meet business objectives. The success in managing the inventory determines the overall health of the supply management chain and has impact to the financial balance sheet. The Inventory manager must be a very detailed person who must continually monitor material as it moves in and out of stockroom locations, maintain accurate records of inventory levels, and take the appropriate action to ensure stock is available when it is needed. Important Factors in Inventory Management The factor that is the most important in inventory management, in order to have a successful business, is meeting the demand of the customer. The supplier must have the products available when the customer needs or wants them. If the...
Words: 1287 - Pages: 6
...Example of Rule on a Listed Tree-Rule Firewall For example, Rule-3 in Table1 is a shadowed rule because any packet that matches this rule has already matched Rule-1 in order of precedence. 1.3.2. REDUNDANT RULE: If more than one rule can do the same action in the set of rules is called redundant rule, otherwise one rule is redundant to another rule with the same action. For example, Rule-8 in Table 1 is redundant to Rule-9. The firewall policy won’t change while removing a redundant rule. It will waste the firewall processing time and it leads to speed problem and also it require lot of memory to store the redundant rule. Without any change in the firewall policy, we can able to delete the redundant rules which are not necessary to check. 1.3.3. SWAPPING THE RULE POSITION: In Listed-Rule firewall if two rules have different action then swapping the position of that rule can cause policy changes on the firewall and both of them can be matched with the same packet. For example, swapping between Rule-7 and Rule-8 (see Table 1) will change the action on the packet (with Source IP = 172.3.3.9, Destination IP = 20.3.3.9, Destination Port = 80) from being accepted to being...
Words: 1317 - Pages: 6
...Chapter 10 | Layout | | 11. Assembly-line balancing. Longest work element rule to produce 40 units per hour. a. [pic] b. [pic] c. Sl = {A, C, E}, S2 = {B}, S3 = {G, D}, S4 = {H, F, I}, S5 = {J, K} | | | | | |Work Element |Cumulative |Idle Time | | | |Station |Candidate(s) |Choice |Time (sec) |Time (sec) |([pic] sec) | | | |S1 |A |A |40 |40 |50 | | | | |C |C |30 |70 |20 | | | | |E |E |20 |90 | 0 | | | |S2 |B |B |80 |80 |10 | | | |S3 |D, F, G |G |60 |60 |30 | | | | |D, F, I |D |25 |85 | 5 | | | |S4 |F, H, I |H |45 |45 |45 | | | | |F, I |F |15 |60 ...
Words: 480 - Pages: 2
...single person could make significant changes in society although they represent a very insignificant number in the total population. If that one person is responsible for a tipping point a chain reaction can be made out of a single decision. Tipping points are exactly what the phrase describes; a point where the threshold has been met, so it theoretically “tips.” This does not come due to chance however. Gladwell argues that there are certain aspects of a product, norm, or person that are required to exceed a threshold and cause a reaction, he states, “The three rules of the tipping point—the Law of the Few, the Stickiness Factor, and the Power of Context—offer a way of making sense of an epidemic. They provide us with direction for how to go about reaching a tipping point.” Gladwell’s examples and messages throughout his work resonate with the three rules he presented at the beginning of his book. The first rule, the law of the few, is described in the book as connectors, mavens, and salesman. Connectors are individuals who have bonds in many different areas and work as channels; they help to stimulate connections and relationships that otherwise may not...
Words: 1327 - Pages: 6
...free 0 Most 100 free 89.9 This economy is not graded freedom H ong Kong’s economic the 2012 Iscore. is 89.9, making its economy the freest in ndex Its overall score is 0.2 point higher than last year, with improvements in free- Freedom Trend 92 dom from corruption and the control of government spending partially offset by a small decline in monetary freedom. Hong Kong is ranked 1st out of 41 countries in the Asia–Pacific region. Hong Kong has demonstrated a high degree of resilience during the ongoing global turmoil and remains one of the world’s most competitive financial and business centers. The highquality legal framework, which provides effective protection of property rights and strong support for the rule of law, continues to be the cornerstone of strength for the dynamic city economy. There is little tolerance for corruption. Regulatory efficiency and openness to global commerce strongly support entrepreneurial dynamism, while overall macroeconomic stability minimizes uncertainty. Economic interaction with China has become more intense and sophisticated, chiefly through strengthened financial linkages, and financial markets are extremely well capitalized. Although Hong Kong maintains its ranking as the world’s freest economy, policies proposed or implemented since the second half of 2010, particularly the establishment of a minimum wage, have moved the economy modestly in the direction of greater regulation. BaCkGroUnD: The Special...
Words: 859 - Pages: 4
...INDONESIA Economic Freedom Score 25 50 75 100 free Most Least free 0 World Rank: 108 Regional Rank: 20 56.9 economic freedom score is making its econI ndonesia’slast year, withthe 2013 Index.56.9,score is 0.5finanomy the 108th freest in Its point better than significant improvements in Freedom Trend 58 57 56 55 54 53 52 cial freedom and freedom from corruption that more than offset declines in business freedom and the management of public finance. Indonesia is ranked 20th out of 41 countries in the Asia–Pacific region, and its overall score is below the world average. Indonesia, Southeast Asia’s biggest economy, has undertaken wide-ranging reforms to address various structural weaknesses and improve competitiveness. Recent reform measures have put greater emphasis on improving regulatory efficiency, enhancing regional competitiveness, and creating a more vibrant private sector through modernization of the financial sector. Despite some progress, Indonesia’s growth potential remains fragile and hampered by inefficient legal and investment regimes. Political interference in the private economy discourages dynamic economic expansion, and pervasive corruption, exacerbated by a weak judicial system, adds business risk. During the first half of 2012, the government reintroduced trade and investment barriers that include limits on ownership of banks and mines and export taxes. backgRound: Indonesia is the world’s most populous Muslim-majority democracy. In...
Words: 820 - Pages: 4
...longevity of any business (especially where repeat consumption is part of the business model), it would be beneficial to the business to have tools by which quality could be measured. Many of these tools already exist and are called “quality-control” tools. Pareto Analysis, which will be discussed in this paper, is one such tool. It can be described as the 80/20 rule applied to quality-control. The 80/20 rule was originally formalized by Vilifredo Pareto, after studying the distribution of wealth. He noticed that about 80% of wealth was held by about 20% of the population. Several years later, Joseph Juran applied the principle to quality-control, and Pareto Analysis was born. Pareto Analysis essentially states that 80% of quality problems in the end product or service are caused by 20% of the problems in the production or service processes. In practice, then, it is beneficial to separate “the vital few” problems from “the trivial many,” and thereby identify the individual problems that can be fixed and most drastically benefit the end product or service. Once these problems are identified, the 20% that are causing 80% of the problems can be addressed and remedied, thus efficiently obtaining quality. Practical Pareto: How to Use It In conducting a Pareto Analysis, the first phase is concerned with identifying possible causes of inferior quality. This can be done through brainstorming, focus groups, surveys, or any other method appropriate to the given business. The...
Words: 1399 - Pages: 6
...students | 0 >20 | 5 | 20 > 40 | 18 | 40 > 60 | 30 | 60 >80 | 20 | 80 > 100 | 4 | Total | 77 | 1 (a) Chart 1: Histogram of the Managerial Statistics marks obtained (b) Percentage Achieved | No of students | Less Cumulative | More cumulative | 0 >20 | 5 | 5 | 77 | 20 > 40 | 18 | 235 | 72 | 40 > 60 | 30 | 53 | 54 | 60 >80 | 20 | 73 | 24 | 80 > 100 | 4 | 77 | 4 | Total | 77 | | | (c) Percentage Achieved | No of students (f) | Mid (x) | fx | Cum <(f) | 0 >20 | 5 | 10 | 50 | 5 | 20 > 40 | 18 | 30 | 540 | 23 | 40 > 60 | 30 | 50 | 1500 | 53 | 60 >80 | 20 | 70 | 1400 | 73 | 80 > 100 | 4 | 90 | 360 | 77 | Total | 77 | | 3850 | | Arithmetic mean = ΣfX/Σf In this case the Arithmetic mean = 3850/77 = 50% average achievement ( mean). (d) Value of the median using grouped data Median = n/2 = Σf/2 = 77/2 = 38.5 The position of the median is : L + I [n/2 – c] F L=40 I = UL –LL = 60-40= 20 n = 77/2 =38.5 c = 23 F= 30 = 40+ 20 [38.5- 23]/30 = 40 +20 [15.5]/30 = 50,3% is the median score for Managerial Statistics. (e) M0 = L+I [ d ] d1+ d2 L = 40 I = 60-40 =20 d1 = 30-18 =12 d2= 30-20 = 10 Therefore Mo = 40 + 20 [ 12 ]/12+10 = 40+ 20 (12/22) ...
Words: 1599 - Pages: 7
