What should be the primary determinant of the amount of effort and resources going into the making of any particular decision? Be sure to defend your response with specific examples.
The Pareto Principle has often been described as the 80/20 Rule. Write out an example (a single sentence will do) indicating your understanding of the 80/20 Rule and in effect, the Pareto Principle. How would you apply the Pareto Principle in a real life situation?
“80% of an equipment budget comes from 20% of the items”, ( Hafner, Ph.D.,). 80% of money spent in an organization on equipment comes from 20% of the items used in that organization. Because most of the equipment budget is spent on 205 of the equipment it is important to know how important that 20% of equipment is to the organization.
In the physical therapy office 20 percent of the equipment may be used most often. Knowing that, it is important to make sure there is a constant supply of that equipment, making sure it is well maintained and serviced and replaced as needed. The other 80 percent must also be maintained because it is important to have them working and available when needed, but because they are used as much they do not require as much maintenance and upkeep. The 20% equipment is most important to serve the clients and without them business will be lost. It is important to focus on the 20% of equipment with more money budgeted for it and if times get rough, the 80% of equipment not used as much can be sacrificed and the business and patient satisfaction could still run successfully.
Hafner, Ph.D., A. W. (, April 2003). [Pareto's Principle: The 80-20 Rule]. Message posted to Ball State University Library website.
List three decision-making analysis tools. What are some examples of decisions that might require the use of each tool?
All of the tools seem to offer good advice for a variety of situations. The first tool chosen is the Considered Opinion and Devil’s...