{"id":3273,"date":"2021-01-19T01:00:53","date_gmt":"2021-01-19T08:00:53","guid":{"rendered":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/?p=3273"},"modified":"2021-06-21T10:02:28","modified_gmt":"2021-06-21T16:02:28","slug":"arthurs-4-50-rule-the-secret-to-breakthrough-improvement","status":"publish","type":"post","link":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/arthurs-4-50-rule-the-secret-to-breakthrough-improvement\/","title":{"rendered":"Arthur&#8217;s 4-50 Rule &#8211; The Secret to Breakthrough Improvement"},"content":{"rendered":"\r\n<p>We&#8217;re all familiar with Pareto&#8217;s rule: 20% of causes produce 80% of the results. But are you familiar with Arthur&#8217;s 4-50 rule? Typically, 4% of any process &#8211; one step out of 35 &#8211; is the cause of more than 50% of waste, rework and lost profit.<\/p>\r\n\r\n\r\n\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/player.vimeo.com\/video\/491742828?title=0&amp;byline=0&amp;portrait=0\" width=\"720\" height=\"405\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/p>\r\n\r\n\r\n\r\n<p>&#8220;Hi, I&#8217;m Jay Arthur, author of <a href=\"https:\/\/www.amazon.com\/Lean-Six-Sigma-Hospitals-Improving\/dp\/1259641082\/\">\u201cLean Six Sigma for Hospitals\u201d<\/a> and QI Macros [software].<\/p>\r\n<p>&#8220;Now I\u2019ve probably talked to you about this before, but we&#8217;re all familiar with Pareto&#8217;s rule that 20% of what you do produces 80% of the mistakes, errors, waste, rework, lost profit. 20% of your customers produce 80% of your revenue. 20% of your customers produce 80% of the hassles and headaches\u2026 You get the idea, right? So that&#8217;s really that there&#8217;s a big bar, and that&#8217;s 80% but only 20% of what you&#8217;re doing produces all of that issue. Then there&#8217;s miscellaneous other stuff, and we should only focus on the big bar.<\/p>\r\n<p>&#8220;But the other thing that I have found is what I call Arthur&#8217;s 4-50 rule. If we take this big bar, Pareto&#8217;s rule applies inside of here, so I take this and expand it out. It turns out that about 4% of what you&#8217;re doing&#8230; (there&#8217;s a bunch of other little things in our 20% here) But 4% of what you&#8217;re doing produces over 50% of the mistakes, errors, waste, rework and lost profit. 4% of your customers may be producing over half of your total revenue. 4% of Americans have over half the wealth. 4% of the knowledge about any subject will give you over 50% of the bang for the buck. That&#8217;s why you don&#8217;t have to know everything about Lean and Six Sigma to start getting results, you only need to know 4%; maybe seven tools in the right order and get it done.<\/p>\r\n<p>&#8220;So literally what we see here is that if we take it to high level, go down to the 80\/20 part and then split that down, drill down into it, which is what our Improvement Project Wizard will do. You can go find that 4% that&#8217;s producing over half the errors, mistakes, rework, and lost profit. 4% is four steps out of a hundred; one step out of every 25. I call that the Million Dollar Misstep.<\/p>\r\n<p>&#8220;So if we can start to do this and drill down into the lower level and find that 4%, WOW! Can we make progress! Can we make dramatic improvements across the board in any industry! It&#8217;s just that easy, but you need to use some tools to drill down and figure that out.<\/p>\r\n<p>&#8220;So that&#8217;s my Improvement Insight for this week. Maybe you only need 4% of the knowledge about Lean and Six Sigma to get over half the results. Maybe you only need 4% of the knowledge about wealth creation\u2026 maybe you only need 4% of the knowledge about anything to get over half the total benefit out of it. I know this sounds radical, but if you think on it in your own life you may know a whole lot about something but most of the time you only use a little bit of it. You know it, and you know that within your own organization just a little bit of what you do causes most of the errors, waste and rework. If you fix that, the world will smooth out and I think every business can do this.<\/p>\r\n<p>&#8220;So that&#8217;s my Improvement Insight for this week. Start using the 4-50 rule. Let&#8217;s go out and improve something this week.&#8221;<\/p>\r\n\r\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>We&rsquo;re all familiar with Pareto&rsquo;s rule: 20% of causes produce 80% of the results. But are you familiar with Arthur&rsquo;s 4-50 rule? Typically, 4% of any process &ndash; one step out of 35 &ndash; is the cause of more than 50% of waste, rework and lost profit. &#65279; &ldquo;Hi, I&rsquo;m Jay Arthur, author of &ldquo;Lean [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[290,3,5,7,162],"tags":[365,166,118,70,168,140,82,170],"class_list":["post-3273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-improvement-insights","category-lean","category-qi-macros","category-six-sigma","category-statistics","tag-4-50-rule","tag-lean","tag-lean-six-sigma","tag-pareto-chart","tag-qi-macros","tag-quality-improvement","tag-root-cause-analysis","tag-six-sigma"],"_links":{"self":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts\/3273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/comments?post=3273"}],"version-history":[{"count":9,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts\/3273\/revisions"}],"predecessor-version":[{"id":3301,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts\/3273\/revisions\/3301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/media\/4052"}],"wp:attachment":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/media?parent=3273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/categories?post=3273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/tags?post=3273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}