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ABC Analysis .

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14 views16 pages

ABC Analysis .

Uploaded by

syedhafza4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ABC

ANALYSIS

GROUP MEMBERS
M A R I YA M
M A R Y A M FA T I M A
SHEEZA AFSAR
INVENTORY
All the raw materials, work in progress and
goods available for sale that company owns.

INVENTORY MANAGEMENT
It refers to process of ordering, storing, using and
selling of company’s raw materials , components
and finished goods.
TYPES OF INVENTORY

1. RAW MATERIAL INVENTORY


Materials that are usually purchased but have yet to
enter the manufacturing process.

2. WORK IN PROCESS (WIP) INVENTORY


Products or components that are no longer raw materials
but have yet to become finished products.
3. MRO INVENTORY
Maintenance, repair and operating
materials.

4. FINISHED GOODS INVENTORY


An end item ready to be sold out but still an
asset on the company’s books.
ABC ANALYSIS
What is ABC Analysis

ABC analysis is a management technique


used to categorize and prioritize inventory,
customers, or other business elements based
on their value or importance.

ABC Analysis Used to classify the inventory


interm of costing
ABC Analysis is based on

Pareto law

States that

There are “significant few” and


“Insignificant many”
CATEGORIES

A B C

Include all
those items
which are most Include all Include all
important and those items those items
having high which are less which are least
value. Accurate important.
important
record and Average level of
compared to
record and
strong the category A controlling Can
controlling items be applicable
Require for a
category item
A B C

% of number
of inventory 10 20 70
item

% of value of 20 10
70
item
Advantage

l. Strict Control
inventory:
2. Save inventory cost
3. Increase profit.
4. Reduced storage
cost.
5. Improved services.
APPLICATION
OF
ABC ANALYSIS
INVENTORY
CLASSIFICATION
OF ENAR
PETROLEUM
REFINERY
RAW MAINTENAN PRODUCTIO
MATERIAL CE/ N
INVENTORY EQUIPMENTS INVENTORY

• Crude oil • Gaskets • Gasoline


• Ovhd dosing • Valves • Diesel
chemicals • Packings • Jet fuel
• Cooling water • Spare parts
• Furnace
dosing • Flanges
chemicals • Pipes oil
• Liquid • Motors
nitrogen • Pumps
• Lubricating oil • Other
for pump equipments
sealings
• Oxygen
scavengers
for BFD
A B C
CATAGORY CATAGORY CATAGORY

• Crude oil • Dosing • Steam


• Diesel Chemicals trappers
• Motor • Gasoline • Small
• Pump impeller • Furnace oil
valves
• Packings
• Fire
• Jet fuel
• Heat extinguish
exchanger er
tubes • Safety
inventory
(goggles,
gloves
etc)

ABC
ANALYSIS

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