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The Rule of 80/20 is not Sustainable
From:
Arthur Koch -- Management Consultant Arthur Koch -- Management Consultant
For Immediate Release:
Dateline: Miami , FL
Monday, September 14, 2020

 

Entropy Busters® Video Series

September 14, 2020

The 80/20 Rule is not sustainable for problem resolution. We need to think about 80/15/4/1. Where the last 1% of demand typically represents 50% of business complexity.

The last 1% of demand or purchases create 50% of the customers, suppliers, or product numbers.

Look at eliminating the last 1% by;

  1. Eliminating and stop offering these part numbers.

  2. If must keep the products, use 3D or additive manufacturing to supply them.

  3. Use 3PLs is to manage low volume and cost purchases.

Envision how much complexity can be eliminated without the last 1%!

Entropy Busters®

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© 2020 Arthur Koch Management Consulting, LLC, all rights reserved.

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Entropy Busters®

Stop letting the process manage you! Become the champion of your game plan and achieve sustainable profits.

 

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Assessing the health of enterprise inventory and procurement practices. 

 

Inventory Is Evil!™

Inventory delays problem resolution. Delays cost money.

Art Koch's Profit Chain® and Entropy Busters® are the registered trademarks of Arthur Koch Management Consulting, LLC.

© 2020 Arthur Koch Management Consulting, LLC, all rights reserved.

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Name: Arthur Koch
Group: Arthur Koch Management Consulting Inc.
Dateline: Miami, FL United States
Direct Phone: 336-260-9441
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