Modify ABC Class

Explanation

Use this activity to maintain existing ABC class codes. The information you enter on the ABC Classes page is used for ABC analysis. The system is installed with three classes with the following default settings: A80%, B15%, and C5%. The task of modifying default values is to be performed by a system administrator or equivalent person. The Accumulated % column cannot exceed 100 %, so you will have to decrease one or more of the other percentages by the amount you entered for the new class.

In ABC analysis, the values of the parts are calculated in terms of volume and the parts are sorted in value order. ABC classes enable tighter control over high-volume value parts to keep the inventory level as low as possible. After the ABC analysis has been completed, the parts are classified by code letter according to how much of the total volume value each class represents. Class A indicates high-volume value parts and class C indicates low-volume value parts. The cumulative value of all classes must total 100%, or the information cannot be saved. This calculation is not carried out for configured parts.

Prerequisites

There are no specific prerequisites.

System Effects

As a result of this activity: