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Ved Analysis

The document discusses VED analysis, which classifies inventory items based on criticality into three categories: vital, essential, and desirable. Vital items are most critical and must always be available. Essential items can be unavailable for 2-3 days. Desirable items can be unavailable for longer periods. The document also discusses combining VED analysis with ABC analysis to create a matrix for classifying items based on both criticality and cost. This combined analysis is most relevant for hospitals to effectively control their most important and expensive inventory items.

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Anusha Verghese
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2K views

Ved Analysis

The document discusses VED analysis, which classifies inventory items based on criticality into three categories: vital, essential, and desirable. Vital items are most critical and must always be available. Essential items can be unavailable for 2-3 days. Desirable items can be unavailable for longer periods. The document also discusses combining VED analysis with ABC analysis to create a matrix for classifying items based on both criticality and cost. This combined analysis is most relevant for hospitals to effectively control their most important and expensive inventory items.

Uploaded by

Anusha Verghese
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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VED ANALYSIS: ABC analysis does not tell anything about the criticality of the items.

This is an important variant in patient care services. Based on the estimation of the time length for which non availability can be tolerated, there are three categories. The stores when subjected to analysis based on their criticality can be classified into vital, essential and desirable stores. This analysis is termed as VED analysis. In VED analysis, the inventory is classified as per the functional importance under the following three categories: Vital (V) Essential (E) Desirable (D) Vital: items without which treatment comes to standstill: i.e. non- availability cannot be tolerated. The vital items are stocked in abundance. Essential: items whose non availability can be tolerated for 2-3 days, because similar or alternative items are available. Essential items are stocked in medium amounts. Desirable: items whose non availability can be tolerated for a long period. Desirable items we stocked in small amounts. Although the proportion of vital, essential and desirable items varies from hospital to hospital depending on the type and quantity of workload, on an average vital items are 10%, essential items are 40% and desirable items make 50% of total items available. Purpose: In a manufacturing organization, there are number of items which are very vital or critical in production. Their availability must be ensured at all times for smooth production, so need to be strictly controlled. Essential items follow vital items in their hierarchy of importance. Desirable items are least importance in terms of functional considerations, which are loosely controlled at the lower level.

Matrix of ABC/VED analysis: There can be combination of these two categories like a matrix combining ABC and VED categories. This matrix is more relevant in the hospitals. The AV category becomes the most important for inventory control because the items are very much cost consuming being a category and also vital for uses. These items can be controlled by the top-level management. The CD category items are not very costly and at same time of desirable category. These items can be controlled at the lower level.

V A B C AV BV CV

E AE BE CE

D AD BD CD

Control of VED items: a. Category I items: these items are the most important ones and require control by the administrator himself. b. Category II items: these items are of intermediate importance and should be under control of the officer in charge of the stores. c. Category III items: these items are of least importance which can be left under the control of the store keeper. d. The grouping will essentially depend upon the strategy of management and the environment of functioning. However these simple techniques can be effective in material management system. e. Items with high criticality (V), but required in small quantity (A) should receive highest priority. Items with low criticality (D) and which are required in big quantity should receive least priority.

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