Diaries from the War on Waste

Chapter 10 - Tribal Knowledge Paradigm Tools (Part 1)


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In Chapter 10, we go over a number of tools that we used. Many of them, we developed. In this podcast, we discuss 2 of the tools: the 120/20 Rule of Profits and the 5/67 Rule. The 120/20 Rule of Profits tells us that 120% of the profits come from 20% of the Customers, Salesmen or Products. We discuss how this works. We also discovered a subcategory of the famous 20/80 rule that we call the 5/67 Rule. It tells us that 5% of effort (or cost) generates 67% of the benefit. It is really a major discovery and we discuss this in some detail. We'll discuss some other tools in the 2nd part.
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Diaries from the War on WasteBy Dr. Len Bertain