abc analysis training presentation

8/19/2019 ABC Analysis Training Presentation

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Define ABC Compile na&iation'' In&entory Superuser ABC Co(esABC Compiles Press C)MPI*E in t%e

en(.


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Info A+out ABC Compile, Enter a unique name for t%e ABC compile.

, Determine t%e scope of the analysis +y selectin t%e content le&el for items to inclu(e in t%e compile.

- If you use t%e entire oraniation/ )racle In&entory inclu(es all items (efine( for your current oraniation in t%e ABC compile/ e&ent%ose 0it% ero cost or ero quantity.

- If you use a particular su+in&entory/ )racle In&entory inclu(es all items for 0%ic% you %a&e (efine( an itemsu+in&entory relations%ip.

, Select t%e valuation scope for (eterminin t%e ranin of items. 3anin must +e (one at t%e )raniation le&el if you (i( not select asu+in&entory in t%e Content Scope fiel(.

- If you only 0ant to inclu(e items in a su+in&entory +ut you 0ant t%e ranin to +e (one +ase( on t%e oraniation 0i(e ranin/select)raniation.

, Select t%e compile criterion or met%o( of ranin items in t%e ABC compile. )racle In&entory uses t%e compile criterion to &alue t%e itemsyou inclu(e in your ABC compile. After (eterminin eac% item4s compile &alue/ )racle In&entory rans all t%e items in your ABC compile.

T%e Compile Criterion fiel( is foun( in t%e Define ABC Compile 0in(o0. 5or eac% (istinct compile/ you can c%oose one of t%e follo0in criteria to

&alue an( ran eac% item inclu(e( in t%e ABC compile. T%is criterion (efines 0%at t%e ran of a particular item 0ill +e in t%e ABC compile.5or e6ample/ if you use Current on–hand quantity as your compile criterion/ an item 0it% an on-%an( quantity of 17 units is of %i%er ran t%ananot%er item 0it% a quantity of # units.

If you use t%e Current on–hand value criterion/ an( t%e first item from a+o&e %as a cost of 817 per unit an( t%e secon( item from a+o&e %as a cost of82# per unit/ t%e secon( item %as a %i%er &alue t%an t%e first item since )racle In&entory compares 8177 9817 17 units: to 812# 982# # units:.

Current on–handquantity

;se t%e current on-%an( quantity of in&entory. Assin t%e sequence num+er +y (escen(in quantity.

Current on–hand value

;se t%e current on-%an( quantity of in&entory times t%e cost for t%e cost type. Assin t%e

sequence num+er +y (escen(in &alue. Historical usage value

;se t%e %istorical usae &alue 9transaction %istory:. T%is is t%e sum of t%e transaction quantities times t%e unit cost of t%e transactions for t%e time perio( you specify. Assin t%e sequence num+er +y (escen(in &alue.

Historical usage quantity

;se t%e %istorical usae quantity 9transaction %istory: for t%e time perio( you specify. Assin t%e sequence num+er +y (escen(in quantity.

Historical number of transactions

;se t%e %istorical num+er of transactions 9transaction %istory: for t%e time perio( you specify. Assin t%e sequence num+er +y (escen(in num+er of

transactions.


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Valuation Scope for Ranking Items

, In t%e Define ABC Compile 0in(o0 you select a &aluation scope for (eterminint%e ranin of items. If you c%oose to restrict your ABC compile to items 0it%in a particular su+in&entory/ you %a&e t%e option of &aluin your items across allsu+in&entories in t%e oraniation or o0e&er/t%e &alue to use is (etermine( +y 0%at you c%oose in t%e ?aluation Scope fiel( on t%eDefine ABC Compile 0in(o0. If you c%oose to restrict &aluation to t%e su+in&entory/)racle In&entory uses # units for 3E*A=1/ 17 units for

- 3E*A=2/ an( rans 3E*A=2 %i%er t%an 3E*A=1. >o0e&er/ if you c%oose to &alue t%esame items across t%e oraniation/ )racle In&entory uses !7 units for 3E*A=1/ 27 unitsfor 3E*A=2/ an( rans 3E*A=1 %i%er t%an 3E*A=2.


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C)MPI*E C3ITE3I)NT%e Compile Criterion fiel( is foun( in t%e Define ABC Compile 0in(o0. 5or eac% (istinct compile/ you can c%oose one

of t%e follo0in criteria to &alue an( ran eac% item inclu(e( in t%e ABC compile. T%is criterion (efines 0%at t%e ran

of a particular item 0ill +e in t%e ABC compile.

5or e6ample/ if you use Current on–hand quantity as your compile criterion/ an item 0it% an on-%an( quantity of 17 units is

of %i%er ran t%an anot%er item 0it% a quantity of # units.

If you use t%e Current on–hand value criterion/ an( t%e first item from a+o&e %as a cost of 3s 17 per unit an( t%e secon(

item from a+o&e %as a cost of 3s 2# per unit/ t%e secon( item %as a %i%er &alue t%an t%e first item since )racle

In&entory compares 3s 177 93s 17 17 units: to 3s 12# 93s 2# * # units:.

Current on–handquantity

;se t%e current on-%an( quantity of in&entory. Assin t%e sequence num+er +y (escen(in quantity.Current on–hand value

;se t%e current on-%an( quantity of in&entory times t%e cost for t%e cost type. Assin t%e

sequence num+er +y (escen(in &alue.

Historical usage value

;se t%e %istorical usae &alue 9transaction %istory:. T%is is t%e sum of t%e transaction quantities times t%e unit cost of t%e

transactions for t%e time perio( you specify. Assin t%e sequence num+er +y (escen(in &alue.

Historical usage quantity

;se t%e %istorical usae quantity 9transaction %istory: for t%e time perio( you specify. Assin t%e sequence num+er +y

(escen(in quantity.

Historical number of transactions

;se t%e %istorical num+er of transactions 9transaction %istory: for t%e time perio( you specify. Assin t%e sequence num+er

+y (escen(in num+er of transactions.


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?IE@ C)MPI*E 3ES;*TS


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Define ABC Classes


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Define ABC Group


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Assin Classes To roups


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ss gn e ems rom e comp e o

the Classes


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pdating ABC Item AssignmentsIf you are not satisfie( 0it% t%e class into 0%ic% an item falls as a result of t%e automatic ABC assinment process/ you can c%ane it. 5or

e6ample/ assume you compile( your ABC analysis +ase( on %istorical usae &alue. =ou %a&e a relati&ely ne0 item in your in&entory t%at 0as

rane( to0ar( t%e +ottom of your ABC Descen(in ?alue 3eport since it %as &ery little transaction %istory on recor(. T%erefore/ after t%e

assinment process/ t%is item 0as assine( to a class of lo0 ran. >o0e&er/ you no0 t%at in t%e future/ t%is item 0ill %a&e a %i% usae

&alue an( s%oul( really +e classifie( as a %i% ran item. =ou use t%e ;p(ate ABC Assinments form to reclassify t%is item to no0 +e a %i%

ran item.

Attention: @%ene&er you recompile an ABC analysis or c%ane t%e met%o( +y 0%ic% you assin your ABC classifications/ you lose any c%anes

you mi%t %a&e ma(e to your item assinments. All items are reclassifie( +ase( on t%eir ne0 rans in t%e ABC Descen(in ?alue 3eport an(

t%e met%o( you c%oose to (etermine cutoff points. =ou can also up(ate an ABC roup to inclu(e t%ose items t%at 0ere not a part of t%e initial

ABC compile. T%is allo0s you to e6pan( t%e scope of your e6istin ABC compiles 0it%out %a&in to rerun any processes. 5or e6ample/ if

you start stocin a ne0 item in your in&entory/ you

can mae it a part of your e6istin ABC roupins t%rou% t%e up(ate process. )t%er0ise/ you 0oul( %a&e to start all o&er +y recompilin

your ABC analysis an( reassinin your items to ABC classes. @it% t%e 0%ole process startin from t%e &ery +einnin/ you also run t%e

ris of losin any c%anes you mi%t %a&e ma(e to your item assinments.

To update an ABC item assignment:

1. Na&iate to t%e ;p(ate ABC Item Assinments 0in(o0/ or na&iate to t%e ABC Assinment roups 0in(o0 an( c%oose

;p(ate Items.

2. Enter an ABC roup 0%ose items you 0ant to up(ate. If you na&iate from t%e ABC Assinment roups 0in(o0 t%is

fiel( is alrea(y entere(

!. Enter an in&entory item an( a &ali( ABC class. =ou can use t%e 5in( +utton to (isplay items currently assine( to

t%e ABC roup you entere(.

". Sa&e your 0or.


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?IE@ ITEM C*ASS ASSINMENT

abc analysis training presentation

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