ABC analysis method was put forward in 1879. Presenter: Italian mathematical economist and sociologist Verdaud Paré. Background: 1879, when studying the distribution of individuals, barreto found that the income of a few people accounted for most of the total population income, while the income of most people only accounted for a small part. He showed this relationship with a chart, which is the famous barreto chart, the core of this analysis method. Identify several key factors that play a decisive role in things and many secondary factors that have little influence on things. Later, barreto method was continuously applied to all aspects of management. 195 1 year, which was applied to inventory management by management scientist Dyke and named ABC method. 195 1 year-1956, Zhu Lan introduced ABC method into quality management to analyze quality problems, which was called pareto chart. 1963, Drucker extended this method to all social phenomena, making activity-based costing a widely used management method for enterprises to improve efficiency. The main contents are as follows:1.the definition of ABC analysis. ABC analysis method is also called Paré analysis method, ABC classification management method and key management method. An analytical method of sorting things according to their main technical or economic characteristics, distinguishing between key and general, and distinguishing between implementation and management. Because it divides the objects of analysis into three categories: A, B and C, the basic principle of ABC analysis method is called ABC analysis method, which can be summarized as "distinguishing priorities and classifying management". It divides the management objects into three categories: A, B and C, among which Class A is the key management object. The key is to distinguish between the general majority and the extremely important minority. The basic program of ABC analysis is 1. For analysis. This is a process of "prioritizing". Comprises the following steps: 1) collecting data. That is, determine the factors that constitute management problems and collect corresponding characteristic data. Take various materials involved in inventory control as an example. If you want to analyze the sales volume of inventory items, you need to collect the annual sales volume and unit price of the items. 2) calculation and sorting. That is, the collected data is processed and calculated as required, including calculating the eigenvalue, the percentage of the eigenvalue to the total eigenvalue and the cumulative percentage; The number of factors and their percentage in the total number of factors, cumulative percentage 3) According to certain classification standards, ABC is classified and ABC analysis table is listed. There are no strict standards for the division of various factors. Traditionally, some factors whose cumulative percentage of principal eigenvalues is 70% ~ 80% are called Class A, some factors whose cumulative percentage is in the range of 10% ~ 20% are called Class B, and some factors whose cumulative percentage is 10% are called Class C. 4) Draw ABC analysis diagram. Taking the percentage of cumulative factor as the abscissa and the percentage of cumulative principal eigenvalue as the ordinate, according to the corresponding relationship listed in the ABC analysis table, take points on the coordinate map and connect the points into curves, that is, draw the ABC analysis diagram. In addition to drawing a graph with rectangular coordinates, it can also be drawn as a histogram. 2. Implement countermeasures. This is the process of classified management. According to the results of ABC classification, the management intensity and economic effect are weighed, and the ABC classification management standard table is formulated to manage the three types of objects differently. II. Specific steps of ABC analysis The specific steps of ABC analysis are as follows: 1. Collect data. Collect relevant data according to the analysis object and content. For example, if you plan to analyze the product cost, you should collect data on product cost factors, product cost components and so on. If you plan to analyze a system and engage in value engineering, you should collect data such as local functions and local costs in the system. 2. Processing data. Sort out the collected data, and calculate and summarize as needed. 3. Make ABC analysis table. The columns of ABC analysis table are as follows: the first column is the name of the article; The second column is the cumulative number of items, that is, each item is the number of items, and the cumulative number of items is actually the serial number; The cumulative percentage of the items in the third column, that is, the cumulative percentage of the total items; Unit price of the fourth column project; Average inventory in the fifth column; The sixth column is the unit price of the fourth column multiplied by the average inventory of the fifth column, which is the average capital occupation of various items; The seventh column is the accumulation of average capital occupation; Cumulative percentage of average capital occupation in the eighth column; The ninth column is the classification result. The tabulation is made according to the following steps: Fill the average capital occupation calculated in step 2 in the sixth column of the table from high to low. Subject to this column, fill in the name of equivalent goods in the first column, fill in the unit price of goods in the fourth column, and fill in the average inventory in the fifth column, numbered 1, 2,3,4 ... In the second column, the items will be accumulated. After that, calculate the cumulative percentage of the project and fill it in the third column; Calculate the cumulative average capital occupation and fill in the seventh column; Calculate the cumulative percentage of average capital occupation and fill in the eighth column. 4. Determine the classification according to ABC analysis table. According to the ABC analysis table, observe the cumulative percentage of projects in the third column and the cumulative percentage of average capital occupation in the eighth column, and determine the first few items with the cumulative percentage of projects of 5- 15% and the cumulative percentage of average capital occupation of 60-80% as Class A; The cumulative projects account for 20-30%, and the projects with an average capital occupation of 20-30% are determined as Class B; The rest are all Class C. The situation of Class C is just the opposite of Class A. The cumulative proportion of projects is 60-80%, while the cumulative proportion of average capital occupation is only 5- 15%. 5. Draw ABC analysis diagram. Taking the cumulative project percentage as the abscissa and the cumulative capital occupation percentage as the ordinate, according to the data provided by the third and eighth columns of ABC analysis table, take points on the coordinate map, connect the curves of each point, and draw ABC curve. According to the data corresponding to the ABC analysis curve, three categories of A, B and C are determined according to the ABC analysis table, and the method of marking the three categories of A, B and C on the diagram is used. ABC analysis Figure 3. Analysis and evaluation ABC analysis method is a common analysis method in warehouse management and a basic work and cognitive method in economic work. The application of ABC analysis in warehouse management can easily achieve the following effects: (1) reducing the total inventory; Liberated the occupied funds; Rationalize the inventory structure; Save management power.