check out abc analysis

1. ABC
ANALYSIS
BY SUJITH BR

2. ABC Classification / Analysis of
Inventory
 Pareto Analysis
 (also know as the 80/20 rule)
 by doing 20% of the work you can generate
80% of the benefit of doing the whole job.

3.  80% of customer complaints arise from 20% of your
products or services.
 80% of delays in schedule arise from 20% of the
possible causes of the delays.
 20% of your products or services account for 80% of
your profit.
 20% of your sales-force produces 80% of your
company revenues.
 20% of a systems defects cause 80% of its problems.

4. ABC
 A - outstandingly important;
 B - of average importance;
 C - relatively unimportant as a basis for a
control scheme.

5. ABC
 10-20% of the items ('A' class) account for 70-
80% of the consumption
 the next 15-25% ('B' class) account for 10-
20% of the consumption and
 the balance 65-75% ('C' class) account for 5-
10% of the consumption

6. ABC
 A items may be counted 3 times per year,
 B items 1 to 2 times, and
 C items only once, or not at all.

7. 1st step – Identify the objective
and the analysis criterion
 we are responsible for buying security
material for a plant.
 We would like to know which equipment
segment should be considered for
renegotiation efforts and resources, so that
the maximum savings are generated.

8. 2nd step – Collect data about
the analyzed population

9. 3rd step – Sort out the list by
decreasing impact

10. TABULATION

11. ABC