ApplicationsΒΆ
- Supply Chain Management
- Which elements consume the majority of the constraint capacity yet constitute only the minority of results? Removing them increases revenue manifold. The net income increases more because an increase in revenue is not accompanied by any increase of cost at all. [1]
- Project Management
Which projects consume minority of cost or resources yet promise majority of results?
- Research and Development
- See Supply Chain Management.
- Customer Relationship Management
- Which customers bring in the majority of revenue and constitute only a minority of cost?
- Quality Management
Which things provoke the majority of defects?
For example: A small number of files / lines of code is responsible for most defects / bugs. [2]
- Asset Management
- Which assets bring in the majority of revenue and constitute only a minority of cost?
- Marketing
- Which potential customers require the minority of effort yet promise the majority of revenue (marketing cost per potential revenue)?
| [1] | To the contrary: If things are removed from an overloaded constraint, the available throughput capacity increases (which in turn can be used by things requiring less capacity to effect more results). |
| [2] | Illes-Seifert, Timea; Paech, Barbara. The vital few and trivial many: An empirical analysis of the Pareto Distribution of defects |