ABC Inventory Analysis
ABC inventory analysis classifies stock items into groups according to annual consumption value or another selected importance measure.
What this term means in maintenance
ABC inventory analysis classifies stock items into groups according to annual consumption value or another selected importance measure.
Traditional ABC classes
A common approach is:
- A items: small number of items representing high annual value
- B items: moderate value
- C items: large number of low-value items
Practical example
High-cost motors and electronic modules may be A items, while low-cost fasteners may be C items.
Maintenance limitation
Value does not equal criticality. A low-cost fuse or sensor can stop a critical production line.
Better classification
Maintenance stores often combine ABC value with criticality, lead time, usage, and stockout consequence.
Uses
ABC analysis can influence approval, cycle-count frequency, review, and inventory control.
Common mistake
Using ABC class alone to set spare-parts policy can underprotect low-value critical items.
Related concepts
Related maintenance terms
Keep exploring connected CMMS, reliability, and maintenance planning terms.
Inventory Turnover
Inventory turnover measures how often inventory value is used or replaced during a defined period.
Critical Spare
A critical spare is a replacement part whose unavailability could cause unacceptable equipment downtime, safety exposure, quality risk, or business interruption.
Inventory Cycle Counting
Inventory cycle counting is the regular verification of selected stock items so inventory accuracy can be maintained without waiting for a full annual count.
Glossary FAQs
- What is ABC inventory analysis?
A classification of items by annual consumption value or another selected measure.
- Are A items always critical?
No. High value and operational criticality are different concepts.
- How should maintenance use ABC?
Combine it with criticality, lead time, usage, and stockout consequence.