How to Use the 80:20 Rule to Focus on the Business Innovation Process - Guest Blog

by Steve Allen, VP Marketing and Innovation, ACL Staticide
 
Our guest blogger, Steve Allen from ACL, looks at how to apply the Pareto Principle’s 80:20 rule in your business practices

"There is nothing quite so useless, as doing with great efficiency, something that should not be done at all."—Peter Drucker

Italian Economist Vilfredo Pareto

The Pareto Principle (also known as the 80:20 rule), irrespective of the nature of your business, holds that 80% of the consequences of any action come from 20% of the causes. This principle can actually be applied to everything you do. At ACL, we implement 80:20 simplification and rationalization disciplines into everything we do, including new product development and commercialization.

The original 80:20 observation is attributed to Italian economist Vilfredo Pareto who, in 1906, noticed that 80% of Italy's land was owned by 20% of the population. He then carried out surveys on a variety of other countries and found to his surprise that a similar distribution applied. He and others later discovered that this principle is proven in many other areas of interest:

• 80% of results come from 20% of effort
• 20% of your customers will account for 80% of your profit
• 80% of your sales come from only 20% of your total product line

Apply the 80:20 rule to the information you receive: 20% is useful, whereas 80% is not. The key is to identify and focus on that 20% and ignore or remove the rest completely.

The same is true of time expended for results achieved. Think of the benefits of applying the Pareto Principle to your time management and personal and business productivity!

Which one of these statements rings true for your business?

• 80% of your business comes from 20% of your customers
• 20% of your product or service range contributes 80% of your sales and likely 90% of profits
• 80% of customer complaints originate from 20% of the causes
• 80% of your business productivity loss results from 20% of the causes
• 80% of the value in the business is generated by 20% of the processes

The common approach to business is to squeeze every last drop out of each opportunity, to go "100% all-out," without consideration of the impact on time, productivity, and waste. Simple, time-efficient businesses recognize that it is fundamentally inefficient to go for the "whole pie" when you can get the majority of results for the minority of effort. With knowledge of the 80:20 lean simplification principles, you can concentrate on what wins you customers and successes in the most efficient manner and in the shortest amount of time. Look at your business and concentrate on the 20% that produces the 80% of benefit. Spend 80% of your time doing the 20% that really gets you results.

It’s not just about working smarter—it's about working smarter on the right things that will get you the best results. Pareto rules allow us to launch the products we know our customers need (such as the industry top-selling items offered in our new PCB Electronics Rework/Repair Production Chemicals line), and that our key distributor partners and sales teams can effectively sell. 80:20 gives us insight into developing value-added products that solve real problems for our customers.

Q Source, once again, thanks ACL Staticide’s Steve Allen for his Guest Blog contributions to The Q Source Resource.

For information about ACL Staticide products, please visit our ACL Staticide Department at QSource.com. You may also contact us via email or phone at 800-966-6020 and one of our associates will be happy to answer your questions or assist you with an order.

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If there's a product or topic you'd like to see The Q Source Resource write about please let us know. We'd also appreciate if you share this blog post with your friends and colleagues via the social media links below. If you have questions or comments about the 80:20 rule or about ACL Staticide products please leave us a message in the comments section.

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Steve Allen's Previous Guest Blogs

• Volatile Organic Compounds & Evolving Regulations – Guest Blog
• Use Proper Balance to Create an Efficient, Cost-Effective PCB Cleaning Process - Guest Blog
• Why Clean "No Cleans?" Printed Circuit Board Flux Removal – Guest Blog

Dazor J203HHM Mini Hand-Held Portable Magnifier on Flickr

The Dazor J203HHM Mini Hand-Held Portable Magnifier is a fast and easy inspection tool that provides hands-free operation and distortion-free viewing. This magnifier features LED lights, 50,000 hours of service, a built-in stand, and a carrying case. Check out our Flickr photo set to get a closer look at Dazor’s J203HHM.

To purchase this Dazor Mini Hand-Held Portable Magnifier please visit QSource.com.

Weller WD1M WD Series Micro Digital Rework Station on Flickr

The Weller WD1M WD Series Micro Digital Rework Station is ESD safe and features an extensive special functions menu, large, high-contrast LCD display; and three "radio buttons" for pre-setting frequently used temperatures. Check out our Flickr photo set to get a closer look at this Weller Rework Station.

To purchase the Weller WD1M WD Series Micro Digital Rework Station please visit QSource.com.

Steinel 34750 HB 1750 Heat Blower w/5 Temperature Keys on Flickr

The Steinel 34750 HB 1750 Heat Blower w/5 Temperature Keys is an ergonomic, ultra-quiet, advanced high-output blower. This high-quality heat blower features a powerful turbine blower, maintenance-free factory sealed motor, soft grip handle with convenient slide switch, and color-coded temperature keys. Check out our Flickr photo set to get a closer look at the Steinel HB 1750 Heat Blower.

To purchase this item please visit our Web site.

Hakko's New FM-2032 Micro Soldering Iron, T-30 Tips Now at QSource.com

American Hakko (Hakko) has released their new FM-2032 Micro Soldering Iron. In addition, a related conversion kit and several new T-30 Series tips are also now available at QSource.com.

The Hakko FM-2032 is a thin, lightweight handpiece that provides a precision micro soldering option to a variety of Hakko Soldering and Rework Systems. The ESD-safe FM-2032 was created for working with 0201 components or smaller and features an optimized tip-to-grip distance for operator dexterity and control under microscopes and magnifiers. The grip stays cool even when running at 450° C for extended periods of time and the thin iron cord is burn resistant.

Let's take a look at the FM-2032 Micro Soldering Iron's specifications:

• Power consumption: 48W / 24V
• Temperature range: 400° - 840°F (200° - 450°C)
• Tip-to-Ground resistance: < 2 ohms
• Tip-to-Ground potential: < 2mV
• Temperature accuracy: Meets or Exceeds IPC J-STD-001 with Offset
• Temperature stability: ±5.5°F (±3°C)
• ESD properties: ESD-safe
• Reach: 3.9' (1.2 m)
• Handpiece length: 6.7" (170 mm) w/T30-D1 tip
• Weight of handpiece: 0.49 oz (14 g) w/T30-D1 tip
• Tip-to-ground distance: ~1.97" (50 mm)
• Grip diameter: 0.45" (11.6 mm)
• Acceptable tips: T-30 Series (not included)
• Tip diameter: 0.130" (3.3 mm)

NEW IRON, NEW TIPS

The FM-2032 uses Hakko's new T-30 Series Composite Micro Tips. These quick-change tips feature geometries engineered for optimal heat transfer and can reach into many of the tightest spots on a board. These T-30 Tips incorporate Hakko’s well-known tip life and performance characteristics. Please Note: The FM-2032 does not include any soldering tips or accessories.

The following T-30 Series Tips are now available at QSource.com:

• T30-D06 T-30 Series Micro Soldering Tip - Chisel - 6 x 0.6 mm
• T30-D1 T-30 Series Micro Soldering Tip - Chisel - 6.5 x 1 mm
• T30-I T-30 Series Micro Soldering Tip - Conical - 6 mm
• T30-J T-30 Series Micro Soldering Tip - Bent - 40° - 6 mm
• T30-KN T-30 Series Micro Soldering Tip - Knife - 45° - 8.5 x 1.4 mm
• T30-KU T-30 Series Micro Soldering Tip - Knife - 45° - 6 x 1.8 mm

VERSATILITY IN A KIT

Hakko has also released a Micro Soldering Iron Conversion Kit (FM2032-52), which allows the FM-2032 to be used with Hakko's FX-951 Soldering Station, FM-203 Dual Port Soldering System w/FM2027-03 Handpiece, and FM-206 3-Port Rework Station. The kit contains the FM-2032 Micro Soldering Iron, the Iron Holder, a Heat-Resistant Pad, and a Connecting Cable.

To place an order for the Hakko FM-2032 Micro Soldering Iron, T-30 Tips, or FM2032-52 Conversion Kit please visit our FM2032 Micro Soldering Iron Page at QSource.com or contact us via phone (800-966-6020) or email. Please check back soon for information about other new Hakko products.

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If there's a product or topic you'd like to see The Q Source Resource write about please let us know. We'd also appreciate if you share this blog post with your friends and colleagues via the social media links below. If you have questions or comments about anything on The Q Source Resource or QSource.com please leave us a message in the comments section.

For additional Q Source product information, reviews, how-to articles, and special offers please subscribe to our email newsletter.

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