ABC analysis: method of product segmentation applicable through a series of criteria established to control inventory.
ABC analysis requires that items (activities, customers, documents, events, inventory products, etc.) be classified into three groups based on their importance in the process. These three categories are as follows:
- A: especially important items
- B: articles of medium importance
- C: minimally important items
There is no fixed threshold for each class, different ratios can be applied based on the objective and criteria set in the process. Items A will typically represent a large proportion of the total value, but a small percentage of the number of total items.
Paret diagram: is a simple bar chart that is used to rank related measures in decreasing order of occurrence.
It is one of the basic tools in continuous improvement, and therefore, in the Lean Manufacturing method.
Its main objective is to separate the significant aspects of an issue or problem, so that in this way, the team knows where to direct its improvement efforts.
The few significant things represent eighty percent of the total, giving way to the trivial that will constitute about twenty percent.