Surviving the Spare Parts Crisis. Joel Levitt

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from work sites.(1 point)2. A two-bin system is utilized by Stores to facilitate issue while maintaining control on high-volume, low-cost items.(1 point)3. Storeroom layout and procedures maximize order fulfillment service and functional efficiency:
img Parts are identified with stock (computer ID) numbers.(2 points)
img Stock storage is environmentally controlled as needed.(1 point)
img If needed, shafts of rotating equipment in stock is regularly rotated to avoid development of bearing flat spots. This activity is controlled by a PM-type revolving file.(1 point)
img ABC analysis has been applied to the arrangement of stock storage to optimize efficiency of stock retrieval.(1 point)
img Stock pick lists are arranged to facilitate picking.(1 point)
img Computer control will accept no more than two storage locations for any one item in any given storeroom. The impact of this policy is to keep inventory from becoming too spread out and impossible to control. (Note: MP2 allows more than two storage locations; therefore, award no points).(1 point)
img QA (quality assurance) inspection is required, in varying degrees, based on criticality, for all materials received for stock or special orders.(1 point)
img Barcoding (or RFID technology) is utilized to facilitate tracking of Purchase Orders, Stock Requisitions, parts, and progress through the receipt/inspection/stocking/issue process.(1 point)
4. In central stores, parts are stored randomly to maximize storage density.(1 point)
img In satellite stores, parts are stored by equipment to facilitate retrieval.(1 point)
img Cannibalization from a serviceable unit (generally not installed) to another serviceable unit (generally installed) is against established policy. When necessary in an emergency situation, the necessary work orders, stores requisitions, and/or purchase orders are initiated to restore the cannibalized unit to a serviceable state.(1 point)
5. An intelligent part numbering system is utilized.(1 point)

       # of points__________of 15

       Computerization Assessment

1. A computerized inventory control system automatically reorders (or issues a requisition that is acted upon in a timely way) when on-hand quantity drops to or below the reorder point.(1 point)
2. Maintenance has ready access to up-to-date material and stock information, including part numbers, stock numbers, bin locations, economic order quantities, and reorder points.
• Computerized(2 points)
• Cataloged(1 point)
• No ready access(0 points)
3. Bill of Material information is cross-referenced by point-of-use.(1 point)
4. Attribute scanning on key words of the description (both short and long) is available to help find the desired item.(1 point)

       # of points_______of 6

       Assessment of Analysis Techniques Used to Understand the Inventory

1. Usage records are employed to determine stocking levels, order points, and order quantities.(1 point)
2. Unit dollar values are readily available and routinely used in planning and Work Order approval efforts.(1 point)
3. Maintenance, Purchasing, Accounting, and the Supply Room work together to assure availability of necessary parts, elimination of obsolete parts, adjustment of stocking levels, minimal lost time by craftsmen, etc.(1 point)
img Maintenance is regularly consulted regarding stocking parameters generated by the system.(1 point)
img Human judgment can override the system on an item-by-item basis.(1 point)
img Maintenance influences the type and quantity of repair materials to be set up in stock.(1 point)
img A system exists that flags frequently ordered parts non-stock, which must be authorized for stocking.(1 point)
img Stocking levels (min/max), reorder points, and order quantities are set up and maintained:
• Automatically(2 points)
• Manually(1 point)
• Not set up(0 points)
4. Inventory categories are defined and segregated when analyzing inventory value and turns.(1 point)
5. SIC formula parameters for EOQ calculation (carrying cost, purchase order cost, delivery time, etc.) are current and periodically updated.(1 point)
6. There is an established insurance / critical spares program containing review provisions. They are protected from discard due to low usage.(1 point)
7. An approved Work Order indicating which cost center to charge is sufficient authorization to withdraw stock materials.(1 point)

       # of points______________of 14

       The Part Itself

1. Support systems for purchasing are effective:
img Quality performance measures have been established for materials.(1 point)
img Purchase Order tracking is functional.(1 point)
img A vendor rating system is in place and vendors are aware of their responsibility to provide materials of acceptable quality on time.(1 point)
img Procedures are in place that alert requisitioners regarding receipt of their materials.(1 point)
img Buyers are evaluated on the performance of vendors that they select.(1 point)
img There is an established interface/partnership with vendors to improve material quality, cost, availability, and standardization at minimal carrying expense.
2. Practices and procedures between Maintenance and Purchasing are clear and effective.(1 point)
img Maintenance is allowed to specify individual suppliers when necessary.(1 point)
img Maintenance is allowed

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