understanding the principle of factor sparsity with examples
Understanding the Principle of Factor Sparsity with Examples
Used for optimizing the efforts put in by an entity and accomplishing more in shorter periods of time, the principle of factor sparsity is important in every facet of human life and occupation management. In this article, we will look at what this principle means, and some examples to see the various instances in which it can be used.
- Distribution of wealth and resources on planet Earth, where a small percentage of the population controls a large chunk is a definite case of the Pareto principle.
- Only a small number of people are able to rise above the masses and reach the peak of their profession.
- 80% of the global market is controlled by 20% of businesses.
- 80% of crimes in the world are committed by 20% of all criminals.
- 80% of the resources involved in healthcare are consumed by 20% of the population.
- 20% of healthcare equipment is used in 80% of healthcare procedures.
- 80% of healthcare procedures are conducted by 20% of the doctors/hospitals.
- 20% of health procedures are the cause of 80% of the complications.
- 20% of health hazards will be responsible for 80% of injuries.
- 80% of all finances are put into 20% of all medical research.
- Approximately 20% of the employees in a company are responsible for 80% of the company's production.
- Only a small number of entrepreneurs are able to successfully start and run their business in a sustainable manner for a long time to come.
- 80% of a company's inventory is tied up in 20% of the items.
- 80% of production problems come from 20% of production factors.
- 20% of an employee's work time is responsible for 80% of his production.
- The Pareto principle (80-20 rule) is seen to be quite important in marketing and sales. Approximately 80% of a company's revenue comes from 20% of the company's customers.
- In case of software, a minority of the bugs in the program cause most of the problems.
- 20% of the investment that a company makes is what leads to 80% of its profits.
- Of all the products created by a company, 20% is responsible for 80% of the sales.
- 80% of complaints come from 20% of consumers.
- On an average, most of the telephone calls a person makes is to a small group of people from the entire number list stored in his phone.
- Majority of the expenses made by a person are concentrated on a few select things, such as house rent/mortgage, food, transport, etc.
- When socializing, a person spends most of his time with a select group of people amongst all the persons he knows.
- Investigating which of the 20% of appliances and devices consume 80% of the overall energy will help increase potential savings.
- Choose 20% of the clothes which are used more frequently, and arrange the wardrobe to make these clothes more easily accessible.
- Ideally, 80% of a person's time should be utilized in 20% of activities which are most productive towards achieving his life goals. For example, focus on those activities which produce most money, increase most savings, reduce most stress, and help you live a happier life overall, and cut out the clutter.