Surviving the Spare Parts Crisis. Joel Levitt

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5

      HOW WELL DO YOU KNOW YOUR CURRENT STORES OPERATION?

      There are a lot of interesting facts about maintenance and your storeroom that you should know in order to evaluate current performance and opportunities for improvement. Table 5.1 lists many of these facts.

RAV (replacement asset value) of all assets in plant that the storeroom supports, including buildings and rolling stock
Inventory Value / RAV
Number of Work Orders completed per day
Average number of window visits per day
Number of SKUs (line items in inventory)
Value of inventory to support maintenance
Annual turns: Annual consumption / Value of inventory
Number of shipments the storeroom receives each month
Service level each month = Number of requests satisfied / Number of parts requests that month
Work Order service level each month = Number of Work Orders with all parts / Number of Work Orders with parts that month

       HOW TO EVALUATE YOUR STOREROOM IN AN HOUR (OR TWO)

      • Look closely at a bunch of bins in the storeroom.

      image See if any have more than one type of part.

      image Randomly sample four or five bins. Compare the count to your ERP or CMMS inventory record.

      image Write down a few bins that are empty.

      image Check the system see if any are showing a positive QOH (quantity on hand).

      image Check to see they are on reorder and are expected soon.

      • Look at the number of stock outs per month and especially the number of stock outs of important parts causing downtime.

      • Take a random sample of waiting time (at the parts window), reporting the average and standard deviation.

      • Do you have a storage area for urgent parts? If so, note the dates they arrived. Subtract the arrival dates from the current date to see the number of days the packages have been there.

      • How many parts did not move at all in the last year? Of these parts, which ones are not on the critical or insurance policy parts lists?

      • Are the basics numbers of the warehouse (well) known: value of stock (by category), number of SKUs, turnover, accuracy, etc.?

      • Finally, talk to a few employees (e.g., planner, maintenance worker) and ask them their opinions about parts and inventory.

      • Choose a couple of parts; then ask:

      image Is the part starting to deteriorate or is the dust thick?

       STOREROOM MANAGEMENT QUESTIONAIRE

      The following questionnaire is adapted from the work of Don Nyman (in Maintenance Planning and Scheduling by Don Nyman and Joel Levitt) and expanded by Life Cycle Engineering. It is likely that you will not know the answers to all of these question; nevertheless, we suggest you try your best and learn more afterwards about the areas where you were unsure of the answer.

       Material Support and Control

      1. Purchasing, inventory, and stores procedures covering stock, spare parts, special purchases, and items manufactured in-house are well documented by written instructions that have been effectively distributed.

      _____True (1 point) ________False (0 points)

      2. The supply room is sufficiently stocked to meet day-to-day needs as determined by the following service levels:

img Insurance spares (100%)(1 point)
img Standard replacement parts (95%)(1 point)
img Fasteners and fittings (90%)(1 point)
img Small tools (90%)(1 point)
img M&R supplies (85%)(1 point)

      3. There is a perpetual inventory system in place with activity systematically recorded and reported to maintenance, purchasing, and accounting for use in the management of inventory.

img Computerized(2 points)
img Manual(1 point)
img No system(0 points)

      4. Inventory control practices are effective:

img Cycle counting is used to preserve reliability of inventory records.(1 point)
img Control increases with inventory value using ABC categorization.(1 point)
img Free issue of low-value items, such as fasteners, is effectively integrated(1 point)

      5. Procedures exist for reserving and kiting stock parts for planned jobs:

img Reservation / Allocation(1 point)
img De-allocation(1 point)
img Kitting or pre-staging(1 point)
img Secured staging to avoid “borrowing” from one job for another(1 point)
img Critical spare part lists exist for all-important equipment.(1 point)

       # of points__________________of 17

       The Physical Storeroom

      Where does storeroom management fit into the organization? Is this the best location for the parts for the good of the organization?

1. Adequate material handling resources are available to

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