What are C-Parts ?

C - PARTS also known as low-value items, are inventory items that are characterized by their relatively low value but often make up a significant portion of the overall inventory in a company. These parts are typically inexpensive, non-critical, and have a relatively low impact on the production process if they are not available immediately.

 

 

We can classify A, B, and C parts based on the following criteria

  • Importance
  • Procurement & handling costs
  • Quantity
  • Value

 

C parts possess lower importance comparing to A and B parts.
Generally speaking, screws, nuts and washer are less important to various industries. However, if without these small components, it will jeopardise the ultimate assembly, which makes them essential on the other hand.

While they are generally less expensive, dealing with C parts can still result in substantial procurement costs. This is primarily due to the need to coordinate various aspects such as handling repeat orders, managing deliveries, ensuring quality assurance, handling inventory, and communicating with multiple suppliers.

C-parts represent components that manufacturing companies typically stock in the largest quantities. A single finished product may consist of numerous individual C-parts, leading factories to maintain inventories of tens of thousands of these components. Due to their cost-effectiveness and minimal space requirements, C-parts can be stored in high quantities. On the other hand, big manufacturers would find it impractical to stockpile substantial amount of A-parts such as gearboxes or chassis.

One unit cost of individual screws, for example, is relatively small, and even when acquired in substantial quantities, the overall procurement cost for C-parts remains quite economical. C-parts are typically low-cost components. They are considered the least valuable parts within the production process, while A-parts representing the most valuable and B-parts falling in between. In contrast, A-parts, like chassis, command considerably higher purchase prices for manufacturers.

 

 

Followings are the brief definitions of 3 groups -

A parts (High-value items): These items are typically the most critical and high-value components. They make up a small percentage of the total inventory but have a significant impact on the production process. A parts are closely monitored and managed to ensure a continuous supply.

B parts (Moderate-value items): B parts fall in the middle in terms of importance and value. They are moderately important for the production process and are managed with less attention than A parts but more than C parts.

C parts (Low-value items): C parts are numerous but have low individual values. They are items like screws, nuts, bolts, and washers. While they might be essential for production or maintenance tasks, they have a relatively low impact if they are not available immediately. Managing C parts effectively is still important to ensure smooth operations.

The ABC analysis is useful for inventory managers to optimize inventory levels and determine appropriate stocking and procurement strategies. For example, A parts may be closely monitored and held in higher quantities to avoid stockouts, while C parts may be ordered less frequently and in smaller quantities to reduce carrying costs. This approach allows companies to allocate resources efficiently and focus on managing items that have the most significant impact on their operations and profitability.