CHAPTER 2Product quantity analysis
Product-quantity, or (P-Q), analysis groups products in volume categories, to which production resources are then allocated. Typically, a few high-volume “A” items account for 50% to 60% of total production, and each one deserves a dedicated line. ‘Then come “B” items that do not individually warrant dedicated lines but can be grouped into product families that do. Finally, the vast majority of the items in the company’s catalog are “C” items, to be made on request using generic resources.
P-Q analysis is based on numbers of units, not revenue, since the highest volume products (that is those that occupy most if assembly’s time) may not be the highest revenue generators. The approach differs from group technology ...
