types 3.) Usage of VED Analysis. In materials management, ABC analysis is an inventory categorization technique. The annual consumption and expenditure incurred on each item of pharmacy for the year 2007-08 was analyzed and inventory control techniques, i.e. The non-moving items (usually, not consumed over a period of two years) are of great importance. KEYWORDS: Total Quality Management, SAP, ABC Analysis, VED Analysis INTRODUCTION There are three basic types of inventory: raw materials, work-in-progress and finished goods. 2013 ... To conclude, scientific inventory management tools are needed to be applied in routine for efficient management of the pharmacy stores as it contributes to not only in improvement in patient care but also judicious use of resources as well. H-M-L analysis is similar to ABC analysis except the difference that instead of “Annual Inventory Turnover”, cost per unit criterion is used. It is also known as the Pareto principle 10, 11. This analysis relates to the classification of maintenance spare parts and denotes the essentiality of stocking spares. Sonu Singh - PPT wale 98,419 views ABC analysis divides an inventory into three categories—\"A items\" with very tight control and accurate records, \"B items\" with less tightly controlled and good records, and \"C items\" with the simplest controls possible and minimal records.VED analysis is an inventory categorization method that attempts to classify the items used into three broad categories, namely Vital, Essential, and Desirable. N = Non-moving. There are three groups in VED Hacer GünerGören et al. Figure 1: ABC analysis cumulative curve. Consumption value is the total value of an item consumed over a specified time period, for example a year. Here the items are classified into fast-moving (F), slow-moving (S) and Non-moving (N) items on the basis of quantity and rate of consumption. This method is grounded in the empirical observation that a small fraction of the items or SKUs typically account for a large portion of the business. It categorizes stock under three heads based on its importance and necessity for an organization for production or any of its other activities. H-M-L analysis is similar to ABC analysis except the difference that instead of “Annual Inventory Turnover”, cost per unit criterion is used.The items under this analysis are classified based on their unit prices. It enhances the inventory value of the products. 20 Proper standardization & codification of inventory items needed. ABC, VED, ABC-VED Matrix Analysis, Pharmacy Inventory Management 1. fsn analysis 6.) Better Forecasting. The spares are split into three categories in order of importance. FSN Analysis (Fast, Slow moving and Non-moving) 4. ABC Analysis In order to exercise effective control over materials, A.B.C. Once the cost of the products is set strategically, it becomes relatively easier to align them based on different categories. 4,35,847.85. ABC Analysis is a method of tiered inventory or supplier valuation that divides inventory/suppliers into categories based on cost per unit and quantity held in stock or turned over a period of time. Material Requirements Planning 5. ABC Analysis Definition ABC analysis (or ABC classification) is used by inventory management teams to help identify the most important products in their portfolio and ensure they prioritize managing them above those less valuable. ABC classification is based on the premise that not all inventory is of equal value. A matrix based on coupling of cost (always, better and control) analysis and criticality (vital, essential and desirable) analysis was employed for drug inventory containing 129 items of drug store in the Department of Community Medicine of a Medical College in Delhi. So two items with similarly high consumption values but very different patterns of demand may be subject to the same inventory management policies and process, which may not be appropriate. This method is also known as ‘stock control according to value method’, ‘selective value approach’ and ‘proportional parts value approach’. Here’s how it works. Fortunately, ABC analysis provides an answer. In the last category i.e. The spares are split into three categories in order of importance. 1,184 2 minutes read. This is an analysis whose classification is dependent on the user’s experience and perception. ABC analysis is an approach for classifying inventory items based on the items’ consumption values. ABC Analysis (Always Better Control) VED Analysis (Vital, Essential, Desirable) HML Analysis (High, Medium, Low) FSN Analysis (Fast, Slow moving and Non-moving) SDE Analysis (Scarce, Difficult, Easy) ABC Analysis. 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