ABCparetoanalyses
ABC Pareto analysis is a method used for categorizing items into three distinct groups, A, B, and C, based on their value or importance. This technique is a direct application of the Pareto principle, also known as the 80/20 rule, which suggests that roughly 80% of effects come from 20% of causes. In the context of ABC Pareto analysis, this translates to a small percentage of items contributing a large percentage of the total value or impact.
Group A items are the most valuable and represent a small number of items that account for
Group B items are of moderate value and represent a larger number of items than group A,
Group C items are the least valuable and constitute the largest number of items, but contribute the
The primary purpose of ABC Pareto analysis is to help prioritize efforts and resources. By identifying and