DOI link for A-B-C Stratification/Applications
A-B-C Stratification/Applications book
“A-B-C Stratification” is a derivative of the Pareto Principle, which originates from the economic analysis by Vilfredo Pareto in Italy during the early 1900s. He made an observation that 80% of the land in Italy was owned by about 20% of the population, and this later was referred to as the Pareto Distribution. In 1937, Dr. Joseph Juran ultimately conceptualized the Pareto Principle based on Vilfredo Pareto’s earlier works, and Juran used this as a management principle to get folks to separate the “vital few” from the trivial many.” The basis of the Pareto Chart is that it’s a type of chart that contains columns and a line graph, where the columns of individual values are represented in descending order by bars, and the cumulative total is represented by the line. The purpose of the Pareto Chart is to highlight the most important among a set of factors.