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Glossary

Pareto Analysis

The Pareto Analysis is a decision-making framework to prioritise the issues that need urgent attention to achieve the maximum project improvement.

Topic: 
Construction Project Management
Date posted: 
July 26, 2023
Date updated: 
June 23, 2025

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What is the Pareto Analysis?

Based on the 80/20 Pareto principle, Pareto Analysis is a decision-making framework to prioritise the issues that need urgent attention to achieve the maximum project improvement.

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The Pareto principle posits that 80% of effects arise from 20% of the causes. By successfully identifying these critical few causes, project managers and owners can concentrate their efforts where they'll have the most substantial impact.

Let's illustrate this with a practical example. On a construction infrastructure project, you're experiencing project delays. Employing Pareto Analysis, you discover that 80% of construction delays root from just 20% of activities, primarily related to equipment breakdowns.

Concentrating efforts on enhancing equipment maintenance could notably reduce these delays, ensuring a more on-schedule and cost-efficient project.

Our software integrates Pareto Analysis by enabling:

  • Focused Problem-Solving: Identify the critical challenges that have the most significant impact on your project.
  • Maximized Efficiency: Direct your resources towards addressing key problem areas.
  • Enhanced Decision-Making: Navigate the project lifecycle with confidence fueled by data-driven insights.

Embrace the power of Pareto Analysis with our cutting-edge software.

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