Certified Production & Operations Manager (POM) Practice Exam 2026 – Your All-in-One Guide to Exam Success!

Pareto Analysis is a technique that leverages the 80/20 rule, which suggests that roughly 80% of effects come from 20% of the causes. This principle is applied in various fields, particularly in quality control and problem-solving, to help prioritize issues based on their impact. By identifying the "critical few" problems that lead to the majority of issues, organizations can focus their efforts on resolving the most significant problems first. This prioritization is vital for efficient resource allocation and effective problem-solving.

Fishbone analysis, while useful for identifying potential causes of a problem, does not specifically prioritize these causes based on their impact. Root cause analysis aims to determine the underlying reasons for an issue rather than focusing on the most critical ones. SWOT analysis evaluates strengths, weaknesses, opportunities, and threats but does not directly address problem prioritization. Thus, Pareto Analysis stands out as the most effective technique for identifying the key issues that significantly affect performance or quality.