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The ABC&Ved Analysis Example

This document presents two analyses: the ABC analysis and the VED analysis. The ABC analysis divides inventory items into categories A, B and C based on their total value, with category A items accounting for 65.14% of total value. The VED analysis categorizes spare parts as vital, essential or desirable based on their importance for production. Vital items are critical spares kept as backups. Essential items can be tolerated for a few hours if missing. Desirable items cause stoppage if missing for a week. The table shows 1 vital item costing Rs. 9000, 5 essential items costing Rs. 4500 total, and 11 desirable items costing Rs. 1150 total.

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90 views7 pages

The ABC&Ved Analysis Example

This document presents two analyses: the ABC analysis and the VED analysis. The ABC analysis divides inventory items into categories A, B and C based on their total value, with category A items accounting for 65.14% of total value. The VED analysis categorizes spare parts as vital, essential or desirable based on their importance for production. Vital items are critical spares kept as backups. Essential items can be tolerated for a few hours if missing. Desirable items cause stoppage if missing for a week. The table shows 1 vital item costing Rs. 9000, 5 essential items costing Rs. 4500 total, and 11 desirable items costing Rs. 1150 total.

Uploaded by

amuthaamba
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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THE ABC ANALYSIS

This table contains three at factor category & no. of item & cumulative no
of items in respective total valve
TABLE NO: 4.1
THE ABC ANALYSIS
CATEGORY % OF NO.OF ITEMS
% OF CUMULATIVE NO.OF
ITEMS
% OF TOTAL
VALUE
A 40.91 40.91 65.14
B 1.!" #".# "5.#6
$ "#."# 100 9.09#
INTERPRETATION:
The percentage of value category A is at high at 65.14 %& the
percentage of value of category B is focus at "5.#6% an' the percentage of
value category $ is lo( at9.09#. The cumulative of percentage of total
items of A& B an' $ is 40.91%& #".#% an' 100% respectively.
CHART 4.1
THE ABC ANAYSIS
4.2 VED ANALYSIS
)*+ , vital& essential an' 'esirable , analysis is use' primarily for
control of spare parts& spares can be 'ivi'e' into categories , vital
essential or 'esirable , -eeping in vie( the critically to pro'uction. )ital
items are important items (hich are to be -ept as stan' by to avoi' brea-.
'o(n. These items are very costly in nature. */ample overhauling. -it.
*ssential items are those (hose absence tolerate' for more than a fe(
hours or a 'ay. The e/penses on lost pro'uction 'ue to the absence of
such items are usually high. +esirable items are those spares (hich are
nee'e' but their absence for even a (ee- or so (ill lea' to stoppage of
pro'uction.
Vital E!"tial D!i#a$l!
0et Blac-
Blac- gala/y
1s Blac-
)1 Blac-
12) Blac- )"
12) Blac- )
31 Blac-
143 Blac-
5o/ Bro(n
6asi yello(
1ashmir (hite
1ashmir gol'
7mperial (hite
8a'ura gol'
$olombo gol'
TABLE NO: 4.2
VED ANALYSIS
CATEGORY NO .OF
ITEM
PRICE %IN
RS .CR&
PERCENTAGE
) ! 9000 5%
* 5 "500 %
+ " 1150 14%
INTERPRETATION:
5rom the above table it sho(s that ! item 9000 94a-h: is un'er
vital& 5 items cost 3s. "500 94a-h: is un'er essential an' " items of 3s.
1150 94a-h: is given as 'esirable.
CHART NO: 4.2
THE VED ANAYSIS

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