ABC analysis is a method that allows you to classify resources according to their degree of importance in the functioning of a company. It is based on the Pareto principle, which states that managing 20% of the most important goods allows you to control up to 80% of the entire system. You can find out which categories should be monitored by performing an ABC analysis.
It is necessary
Calculator, computer
Instructions
Step 1
Determine the purpose of the analysis. Without a clear goal, you won't be able to get accurate data. Most often, as a result of research, they want to get a classification of available goods according to their degree of importance to the company.
Step 2
Indicate the actions that will be performed based on the analysis results. Determine the strategy for using the obtained data. For example, you can reallocate resources or put more emphasis on producing meaningful goods that generate the most income.
Step 3
Select the object of study and analysis parameters. Answer the question what exactly and on what basis you will research. The objects of ABC analysis can be suppliers, customers, product groups and categories, item units. As parameters, you can select sales volume, number of orders, average inventory, etc.
Step 4
Make a rating list of categories to reduce the presence of an essential feature in them. Calculate the proportion of the parameter to the total result. Each heading should have its own share. Then determine the grand total of the parameters with a cumulative total. To do this, add the sum of the previous parameters to the parameter.
Step 5
Highlight groups A, B and C. There are several ways to do this. The most popular is the empirical method. It assumes division into groups in a ratio of 80/15/5. These numbers are not accidental. It is estimated that 20% of significant products account for 80% of sales, 30% of intermediate products account for 15% of sales, and the remaining 50% accounts for only 5%.
Step 6
Try not to move the boundaries of the definition of groups A, B and C. This can lead to the fact that the customer does not receive the expected results, because he will initially count on dividing the groups exactly in a standard percentage ratio.
