Use Pareto to Choose ABC Scope

The company has twelve overhead areas totaling $4.8M. The team can model only three in the first pilot. Leadership needs an answer before pricing season. Pareto focus: rank categories by cost and focus where the biggest decision impact sits. The trap is modeling every pool equally. That feels rigorous, but it delays learning and spends effort on costs that may not change any decision. List categories Create a list of overhead areas: engineering changes, rush fulfillment, onboarding, billing exceptions, warranty calls, compliance review, and smaller support pools. A Pareto view starts with categories that managers recognize. Measure size Subtotal annual…

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