The ABC analysis method was first created by the Italian economist, Ma need to be the first, in 1879, Bareto in the study of the distribution of the state of the individual, found that a small number of people accounted for most of the income of the entire population, while the majority of people by the income of only a small portion of the relationship between the figure, is the famous Bareto figure, the core idea of the analytical method is to determine the many factors in a thing, and to differentiate the primary and secondary factors. factors that determine a thing. The core idea of this analytical method is to separate the primary and secondary factors among the many factors that determine a thing, and to identify the few key factors that are decisive for the thing and the many secondary factors that have less influence on the thing. Later on, Baretto method was continuously applied to all aspects of management, in 1951, the management scientist Dyck applied it to inventory management and named it ABC method. 1951-1956, Juran introduced ABC method into quality management and used it to analyze the quality problems, which was called the arrangement chart. 1963, Drucker extended this method to all social phenomena, which made ABC method become a universal management method for enterprises to improve their efficiency. of the universally applied management methods.
The ABC method can be roughly divided into five steps.
(1) Data collection. For different objects and analysis content, collect relevant data.
(2) Statistical summarization.
(3) Preparation of ABC analysis table.
(4) ABC analysis chart.
(5) Determine the key management style.
We take inventory management as an example to illustrate the specific application of the ABC method, if we intend to analyze the annual sales of inventory items, then:
First, collect data on the annual sales of each item of merchandise, the unit price of goods.
Secondly, the original data are organized and calculated as required, such as calculating sales, number of items, cumulative number of items, cumulative percentage of items, cumulative sales, cumulative percentage of sales beacon.
Third, make ABC classification table. In the case of the total number of items is not too much, you can use a large queuing method to list all the items one by one. According to the size of sales, from high to low on the order of all items; the necessary raw data and after the statistical summary of the data, such as sales, sales, sales percent fill in, calculate the cumulative number of items, the cumulative number of percent of items, cumulative sales, cumulative sales percentage; the cumulative sales of 60 ~ 80% of the first number of items designated as Category A; sales of 20 ~ 30% of a number of The first few items with cumulative sales of 60~80% are designated as Category A; the items with sales of about 20~30% are designated as Category B; and the remaining items are designated as Category C. If the number of Lv items is very large, can not be all arranged in the table or there is no need to arrange all of them, you can use the stratification method, that is, the first stratification according to the sales, in order to reduce the number of items in the item column, and then according to the results of the stratification will be the key of the A class items listed out one by one to focus on management.
Table 1 ABC analysis of stratification table Stratification range by sales (thousand dollars) Number of items Cumulative number of items Cumulative percentage of items (%) Sales (thousand dollars) Cumulative sales (thousand dollars) Cumulative percentage of sales (%) Classification results ≥ 6 280 260 7.5 5800 5800 69 A 5 - 6 86 346 9.9 500 6300 75 A 4 - 5 55 401 11.7 250 6550 78 B 3 - 4 95 496 14.4 340 6890 82 B 2 - 3 170 666 19.4 420 7310 87 B 1 - 2 352 1018 29.6 410 7720 92 B ≤ 1 2421 3439 100 670 8390 100 C Fourthly, using the cumulative percent of items as the horizontal coordinate and the cumulative sales percent as the vertical coordinate, according to the relevant data in the ABC analysis table, draw the ABC analysis chart.
Table 2 ABC Classification Management Strategies A B C Management Points Invest more efforts in careful management to compress the inventory to the lowest level Adjust the inventory level according to the management policy Concentrate on ordering large quantities of goods to reduce the cost of ordering with a higher inventory Ordering Method Calculate the ordering quantity of each product, and order the quantity according to the optimal batch quantity, and adopt the regular ordering method Adopt the fixed quantity ordering method, and when the inventory is reduced to the minimum, issue the order, and order the snail. Adopting the quantitative ordering method, when the inventory is reduced to the lowest point, the ordering snail is the economic lot Adopting the double-stacking method, using two storage spaces to store, when one space is finished, the other space is used to send, and replenish the inventory of the first space Level of quota Controlling according to varieties and even specifications Controlling according to varieties and big categories Controlling according to the total amount of money Inspection method Regular inspection General inspection Inspection according to the year or quarterly inspection Statistical method Detailed statistics, according to varieties and specifications to stipulate the statistical items General statistics. Statistical items by major categories Statistical items by amount
Fifth, according to the results of the ABC analysis, the three types of ABC goods to take different management strategies.
The ABC classification can also be applied to various aspects of management such as quality management, cost management and marketing management.
In quality management, we can use ABC analysis to analyze the main factors affecting product quality, and take corresponding countermeasures. For example, we list the factors affecting product quality, including the quality of purchased parts, the condition of the equipment, process design, changes in the production plan, the skill level of the workers, and the implementation of workers on the operating procedures. We use the vertical axis to indicate the cumulative percentage of unqualified products in the total number of unqualified products caused by the previous factors, and the horizontal axis according to the number of unqualified caused by the number of factors affecting product quality in descending order. In this way, we can easily classify the factors affecting product quality into A, B and C factors. Assuming that the analysis found that the quality of purchased parts and equipment maintenance status of the product quality problems caused by the A factors, then we should take appropriate measures to purchase parts of the procurement process of strict control, and strengthen the maintenance of the equipment, to solve the two problems, you can reduce the number of unqualified products by 80%.
ABC analysis can also be applied in marketing management, for example, enterprises in the analysis and management of a product's customers, can be based on the number of users to purchase the user will be divided into class A users, class B users and class C users. Since the number of class A users is small. Purchase volume but accounted for 80% of the company's product sales, companies will generally establish a special file for the A class of users, assign a special sales staff is responsible for the A class of users in charge of the sales business, to provide sales discounts, regularly sent to visit the user, the use of direct sales channels, while a large number of people, but very small purchases, the distribution of sub-use of the C class of users can be taken to take advantage of the intermediary, the use of indirect sales channel way.
It should be noted that the application of ABC analysis, generally analyzing the object is divided into A, B, C three categories. But we can also analyze the object according to the characteristics of the distribution of the importance of the object and the size of the number of objects into two categories, or more than three categories