The Pareto priority index (PPI)
is an index used to prioritize several (quality improvement) projects. It is named for its connection with the
Pareto principle named after the economist
Vilfredo Pareto
Vilfredo Federico Damaso Pareto ( , , , ; born Wilfried Fritz Pareto; 15 July 1848 – 19 August 1923) was an Italian polymath (civil engineer, sociologist, economist, political scientist, and philosopher). He made several important contrib ...
. It is especially used in the surroundings of
Six Sigma projects. It was first established by
AT&T
AT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world's largest telecommunications company by revenue and the third largest provider of mobile tel ...
.
The PPI is calculated as follows:
:
A high PPI suggests a high project priority.
References
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Secondary sector of the economy
Vilfredo Pareto