what is an example of pareto analysis 
imagine a hypothetical example where a company is analyzing why its products are being shipped late it comes up with 20 various reasons for what may be causing the delay pareto analysis holds the claim that of those 20 various reasons roughly four of those items will be the primary cause of roughly 80 of the shipping delays the company undertakes an analysis to track how many instances of each reason occur pareto analysis isn t exact the company may find that five reasons are causing 75 of the company s delays still in principle the fact remains that only several items are the primary drivers for a majority of outcomes the company must focus its resources on these five reasons to make the most impactful positive change to its delivery processes the bottom line