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The ABCs of investing in MRP II. (Manufacturing Resource Planning)(JIT/MRP II Report)(Column)
Modern Materials Handling, January, 1996
Pareto's Law helps us every day. Often called the "80/20 rule," or the "ABC classification approach," the law involves a technique for sorting through many competing issues or items to identify the few critical ones. Pareto's prediction is that by allocating time and talent to a small fraction - the "A" items - of the total, you will always gain a huge effect.
It's dangerous, of course, to ignore the "Bs" and "Cs." But they just don't deserve equal attention.
Applying Pareto's approach to manufacturing resource planning (MRP II), the ABC categories, respectively, are: adequate hardware/software, trustworthy data, and skilled people.
What's unusual, however, with this ABC categorization is how the ABCs, in terms of costs, flip flop to become CBAs...
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