●ABC analysis
An “ABC analysis” is a method for clarifying the importance or priority
of multiple elements (products, etc). This is useful in numerous aspects of
business administration, including sales strategy and management, inventory control, etc. It uses the Pareto chart, with elements arranged in decreasing order of priority, and divided into three categories: A, B, C.
In general, the top 70% group is group A, the 70–90% group is group B,
and the remainder is group C.
For example, in the example chart, personal computers and air conditioners combined make up 70% of sales, so those two products compose
Group A, suggesting that product management should give greater weight
to them.
Unit sales
Total units sold=130
100%
120
90%
80%
100
70% A (Important) 70%
80
60%
50%
60
40%
40
30%
20%
20
10%
0
0%
Personal
Air Telephone
Refrigerator Washing
Television
computer conditioner
machine
Group A
Group B
Group C
Personal computer Telephone
Refrigerator
Air conditioner
Television Washing machine
Reference
Critical path
A “critical path” in schedule planning, is
the path down the middle of the schedule that takes the greatest number of
days. Because any critical-path activity
falling behind will cause the entire
schedule to fall behind as well, those
activities demand special management
attention.
●Arrow diagram
An “arrow diagram” is a method for preparing better activity plans. It organizes the sequential relationships between tasks and the days required
indicated by arrows. It is also used as a PERT chart.
For example, the diagram here shows that task E can begin once both tasks
C and D are complete.
3
Task B
Reference
PERT
Abbreviation for “Program Evaluation
and Review Technique.”
27
Task D
3 days 4 days
1
Task A
5 days
2
Task C
5 days
4
Task E
2 days
5