ABC analysis is popularly known as "Always Better Control" is a very useful approach to material management based on Pareto&;s principle of "Vital few and tril many" based on the capital investment of the item. According to Pareto&;s theory O10% items consume about 70 % of the budget (Group A). OThe next 20% consume 20 % of financial resources (Group B) andOremaining 70 % items account for just 10% of the budget (Group C).