Candidates will be provided with an Excel spreadsheet that includes data from a small Canadian company's annual spend. There are two components to this exercise.
business
Description
Candidates will be provided with an Excel spreadsheet that includes data from a small Canadian company's annual spend. There are two components to this exercise.
1. Spend Analysis
a. Based on the data provided, find all of the opportunities to re-name categories for a
simplified spend analysis.
b. Identify where and how money may be saved for the next year.
c. Sort the categories by highest to lowest dollar spend.
2. Pareto Analysis
a. Based on the data provided, do a pareto analysis using standard ABC categories to
classify the suppliers.
Wilfredo Pareto (1848-1923) studied sociology, engineering, economics and philosophy, among other disciplines. He discovered that 80% of the land in Italy was owned by 20% of the population. It was Joseph Juran, a business consultant, who named the 80/20 rule after Pareto – the Pareto principle. This same distribution has been accurately applied to multiple areas: 80% of your sales come from 20% of your customers, etc.
For the purpose of this exercise, please use 3 categories for the Pareto analysis
A = 80%; B=15%; C=5%
