Introduction
Operations teams often find themselves pulled in too many directions—chasing small fires, attending endless review meetings, or managing minor exceptions. The result? Burnout, inefficiency, and misaligned priorities.
But what if there were a simple rule to focus your time, energy, and resources where they matter most?
That’s exactly what the 80/20 Rule—also known as the Pareto Principle—can help you do.
In operations, where every minute counts and every cost matters, this principle isn’t just a theory. It’s a strategic mindset that drives real-world results.
What Is the 80/20 Rule?
The 80/20 Rule suggests that in many situations, roughly 80% of outcomes come from 20% of causes.
In operations, it might look like this:
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80% of delays are caused by 20% of the suppliers
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80% of machine downtime comes from 20% of equipment
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80% of customer complaints arise from 20% of processes
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80% of cost overruns are linked to 20% of SKUs
It’s not about the exact ratio—it’s about the imbalance between effort and impact.
Why It Matters in Operations
Operations teams are expected to optimise productivity, reduce waste, improve quality, and ensure timely delivery—all at once. But trying to do everything perfectly spreads teams too thin.
The 80/20 Rule teaches you to prioritise ruthlessly.
Not everything deserves equal attention. Could you focus on what counts?
Real-World Examples of 80/20 Thinking
Inventory Control
Instead of managing all 2,000 SKUs equally, apply ABC analysis:
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A-items (top 20%) drive 80% of value
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B and C items deserve proportionate attention
This improves accuracy in cycle counts and reduces carrying costs.
Preventive Maintenance
A plant maintenance team found that three machines out of twenty accounted for the majority of breakdowns. Focusing PM efforts on these assets cuts unplanned downtime by half. Supply Chain Risks Instead of auditing every vendor quarterly, identify the critical 20% of suppliers who affect delivery, quality, or cost the most, and build stronger relationships with them.
How to Apply the 80/20 Rule in Your Operations
1. Collect and Segment Data
Start by gathering performance, cost, and quality data across processes. Look for patterns. Identify your “vital few.”
2. Rank by Impact
Use dashboards or Pareto charts to visualise which inputs lead to the most outcomes. Focus on root causes, not symptoms.
3. Prioritise Action Plans
Not all issues need fixing immediately. Redirect your team’s energy toward high-impact fixes—machine reliability, bottlenecks, or key suppliers.
4. Reallocate Resources
Time, manpower, meetings, and budgets should follow the 80/20 rule. Eliminate wasteful reviews and meetings around low-impact items.
5. Repeat Quarterly
Operational environments change. Re-run your 80/20 assessment every quarter. What was critical last month may not be today.
The Strategic Payoff
Companies that embrace the 80/20 Rule in operations report:
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Faster decision-making
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Reduced firefighting
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Lower operational costs
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Higher team productivity
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Better alignment with strategic goals
It’s not about doing less. It’s about doing what matters.
Conclusion
In complex operations, focus is a competitive advantage. The 80/20 Rule helps operations leaders zoom in on the critical few levers that drive the majority of performance.
If you’re always busy but rarely impactful, it’s time to pause and ask:
“What’s the 20% that deserves 80% of our attention?”.
When operations adopt this mindset, they move from being reactive to strategically efficient.
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