## VED Analysis (Vital, Essential, Desirable)
VED analysis classifies materials — particularly spare parts — by their criticality to production rather than by value. It guides how tightly each item should be controlled.
| Category | Meaning | Impact & Action |
|---|---|---|
| Vital | Essential for production | Unavailability stops production. Strictly controlled with re-order levels |
| Essential | Important but not critical | Shortage reduces efficiency. Reviewed periodically |
| Desirable | Optional or substitutable | No impact on production. Controlled with least priority |
Key idea: the more vital an item is to keeping production running, the tighter the inventory control applied to it.