What is the Pareto Principle - The 80 20 Rule? PM in Under 5

The Perito Principle, also known as the 8020 rule, suggests that a small number of causes often account for a large portion of the effects. Originating from Vilfredo Perito's study of wealth distribution in Italy, it has been applied in various fields, notably in business by Joseph Duran. The principle is useful for project managers in prioritizing tasks, focusing on the vital few to achieve significant results. Examples include wealth distribution, business profits, and healthcare costs, where a minority accounts for the majority of outcomes.

What is another name for the Perito Principle?

• The 80/20 rule

• The 70/30 rule

• The 60/40 rule

• The 90/10 rule

Who was the economist that first identified the Perito Principle?

• Vilfredo Perito

• John Maynard Keynes

• Adam Smith

• Joseph Duran

In which company did Joseph Duran apply the Perito Principle?

• Tesla

• Toyota

• General Motors

• Ford

What percentage of production line faults did Joseph Duran find could be attributed to a small number of causes?

• 50%

• 60%

• 70%

• 80%

What is another term for the Perito Principle mentioned in the video?

• The rule of the majority

• The rule of thirds

• The law of the vital few

• The principle of equality

Which field is NOT mentioned as an example of the Perito Principle?

• Geography

• Healthcare

• Education

• Criminology

How can project managers benefit from the Perito Principle?

• By focusing on the vital few issues

• By increasing the number of tasks

• By reducing stakeholder engagement

• By ignoring minor risks