The 80ᚼ Pareto principle is based on Pareto's theory that 80% of the results one gets in a particular endeavour will be mainly due to 20% of areas to which one has applied efforts. In business this principle has been found to be true. Your data, properly converted into appropriate performance indicators, will show you where your largest margins come from. You can then channel more time and effort in that direction.
Variable Costs Control/Reduction was a strategy that worked extremely well for the company. Most memorable for me as a brewer, was the manner in which huge monetary savings/profit gains were made by successfully implementing variable cost reduction initiatives. For instance, a brewing ingredient switch was made to a more readily available local alternative which was many times cheaper, resulting in phenomenal savings and progressively increasing profit earnings even though the price of beer produced was not raised. This practice was routinely applied across the brewing and packaging processes in line with a well thought out plan.
To experience the type of automation I refer to, you can email FREE demos of sample automated Excel VB driven spreadsheet applications like Ƒ) a Training Tracking Database(TM), ƒ) a Fiveƕ) Year Income & Expense Monitor(TM) or Ɠ) an Export Packing List & Invoice Generator(TM) to yourself using the file mailer on my website.
From this point on, I will refer to only one of the above mentioned applications, because it is my preferred work environment. That is Microsoft Excel. I believe users of other spreadsheet applications will be able to adapt whatever I say from here for use in their own peculiar environments.
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