A common rule of thumb in the business world states that 20% of your customers are responsible for 80% of your profits, and that about 80% of the complaints comes from 20% of the customers. Is that also true for your products utilization? In a simplified way, if we look at 80% of the business generated, are you only using about 20% of your products? If yes, this is not only mathematically expected, but a good thing. Let me explain why and how D-Tools can help.
The Pareto principle (commonly known as the 80/20 rule or the law of the vital few, or the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. How does that benefits you as an user, and how can D-Tools help?
You may want to improve:
- Database management (i.e. price updates)
- Negotiate better pricing (higher quantity can lead to cost reduction)
- Increase the installation and programming efficiency by working with fewer (similar) parts.
In D-Tools SI 2017, the Dashboards feature enables the a quick snapshot of products utilization and provide means for data analyzes and more complex graphical construction. Let’s run through an example:
You are looking to review the products utilized on projects under the following criteria:
- Last 6 Months
- Projects that are “Approved” and “Engineering” Progresses
Here are the steps to perform in D-Tools SI 2017
1- Click on Start -> Projects -> Manage Dashboards
2- Under Product and Labor Insights, click on Products, then double click on “By Product” as shown below:
3- A Table chart with the products will be generated. Make the “Last 6 Months” selection and then the “Approved” and “Engineering” selections under the Filter section, then click on “Apply Filter” as shown below:
4- You can modify the Chart Type to a Column, Bar or Pie, as shown below
5- The results can now be saved or exported to PDF or Excel. On this example, let’s export to Excel to
6- An Excel file will automatically open. We can now run additional analyzes on the data including a detailed graph construction, as shown below:
7- Looking at this data, it helps focusing our efforts on the items we sell the most. This will help with product and data management, negotiating better pricing during the procurement stage, and improve the efficiency of the technicians as new processes and/or training techniques can be applied.