Magical ABC(80/20 rule) classification management method in the enterprise material control of the specific application

2022-05-22 0 By

ABC classification method, also known as Pareto analysis method, is an analysis method to classify and queue things according to their main characteristics in technical or economic aspects, distinguish the key and general, so as to determine the management mode differently.It is also called ABC analysis method because it divides the objects to be analyzed into three categories: A, B and C.The core idea of this analysis method is to distinguish the primary and secondary factors among the numerous factors that determine a thing, and identify the few key factors that play a decisive role in the thing and the majority of minor factors that have little influence on the thing.Pareto first proposed the method in 1879.In 1963, management master Peter Drucker extended this method to all enterprise management, making ABC method become a widely used management method for enterprises to improve efficiency.ABC classification management method is widely applied by enterprises in the classification management of customers, suppliers, materials, quality and quantity integration of suppliers, etc., focusing the limited resources of enterprises on the direction of creating maximum value.This paper mainly discusses the specific application of ABC classification management method in enterprise material control.The principle of ABC classification for materials is to make statistics on the consumption of goods in a period (usually a year) and calculate the proportion of the variety and amount in the total variety and amount respectively.It is divided into A, B, C three categories, namely, the key, second, grasp the key, take into account B, C, so as to achieve better economic results at A smaller cost.I. ABC classification method is based on the cumulative percentage of the inventory capital of a single variety of inventory items in the total inventory capital, classification and classification management.Category: A, B, C2, amount ratio: 7:2:1 also available (65:25:10) 3, variety ratio: 1:2:7 also available (10:25:65) A, B, C Classification features: ABC Classification management features 2, ABC classification management implementation steps:(1) According to the statistical data, calculate the total value of each item in a year by multiplying the unit price by the annual usage of each item.Case: Inventory data managed by ABC classification (2) arranged according to the annual total value of each item;(3) Calculate the annual value of each item as a percentage of the total value of the whole item;(4) Categories according to the percentage of each item.Case: Proportion of inventory material amount and variety number (5) Draw Plato with percentage of variety number as horizontal axis and percentage of inventory amount as vertical axis.3. Methods of stock control for ABC materials: (1) Class A materials: 1. Class A materials have few types and high amount, and excessive inventory will produce A large amount of capital backlog.2. Class A materials can only be purchased when there is demand, and JIT procurement can be implemented.Ensure timely delivery, do not affect the production plan, at the same time, do not enter the factory too early, should try to reduce inventory, avoid wasting a lot of capital backlog in the warehouse.3. Establish strategic partnership with suppliers of Class A inventory.4. Class A inventory should be predicted more carefully and accurately than other inventory levels, and A material demand prediction mechanism should be established.(2) Class C materials: Class C materials have a large variety and a small amount, which can be ordered in large batches at a time to reduce procurement times and reduce procurement costs.(3) Class B materials: Class B materials are between Class A and C, and the proportion of type and amount is general, but can not be ignored.For class B materials, it is not necessary to adopt JIT procurement mode like class A materials. MRP procurement mode can be adopted and appropriate amount can be purchased according to batch.In order to ensure the continuity and balance of production and sales, enterprises need to keep a certain amount of inventory, but how to determine a reasonable and economic inventory under the premise of ensuring the continuity and balance of production and sales is an important topic of material control and management.Therefore, ABC classification management method for enterprise material control management provides a suitable, easy to control method.