<P> Pareto analysis is a formal technique useful where many possible courses of action are competing for attention . In essence, the problem - solver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one . </P> <P> Pareto analysis is a creative way of looking at causes of problems because it helps stimulate thinking and organize thoughts . However, it can be limited by its exclusion of possibly important problems which may be small initially, but which grow with time . It should be combined with other analytical tools such as failure mode and effects analysis and fault tree analysis for example . </P>

Explain the principle behind a simple pareto analysis