Maintenance Policy Leads to the Stocking Policy
The Product of Maintenance Is Reliable Capacity
8 The Big Picture: Where the Maintenance Warehouse Fits
ISO 55000 Asset Management Programs
Purchasing MRO Spare Parts
9 Storeroom Management
Business Processes and the Storeroom
Warehouse Management Activities
Kitting
How Do We Get Accurate Records?
10 Computerization
Inventory Computer System: A Project
Bill of Materials (BOM)
Building the Parts Files in the CMMS
The Parts Catalogs
Rules of a Computer-Aided Maintenance Storeroom
11 The Physical Storeroom
Functions of the Physical Storeroom
Where to Locate the Storeroom
Sizing the Storeroom
Care and Feeding of Spare Parts
Hazardous Materials Management
Storeroom Layout Strategies
How to Conduct a Physical Inventory
5S and Your Storeroom
Hoarding and Pirating of Inventory
12 The Economic Storeroom
Accounting for Spare Parts
Types of Demand
Different Models to Accommodate Demand
Carrying Costs
Economic Analysis: Big Ticket Analysis
Obsolete Parts and Gross Overstock
Managing Inventory Turns
The Call for Lean
How Service Level Contributes to the Spare Parts Crisis
Lead Time
Cost of Stocking or Procurement (Also Known as Cost of Acquisition)
13 SIC (Statistical Inventory Control)
Calculating Safety Stock
Economic Order Quantity (EOQ)
Additional SIC Formulas
14 Dealing with the Part Itself
Evaluation of Parts the First Time Around
Parts Interchange
Machine and Part Criticality
Warranty Recovery for Parts
Know Your ABCs: Segmenting Your Inventory for Analysis
Time to Failure
Reverse Engineering
Counterfeit Spare Parts
Cost of the Failure of Failure Analysis
15 Parts as a Business : E-MRO
The Internet and Savings
Maintenance Distributors
The Law: Uniform Commercial Code (UCC)
Vendors
Other Strategies
16 Parts: Replace-Rebuild-Remanufacture-Used
Replace
Rebuild
Remanufacture
Used
Remanufacture versus Replacement of Entire Machines
17 Metrics and KPIs for the Maintenance Warehouse
Performance Metrics
The SMART Technique
Why Measure?
Warehouse Metrics
Parts Metrics
Metrics for All of Maintenance
18 Bright Future for the Spares Business
Internet-Based Sourcing
3D Printing
Glossary
Bibliography
Index
INTRODUCTION
DID YOUR MANAGEMENT TELL YOU THAT “YOU ARE ALREADY A HERO”?
You are already cutting the inventory level before you even get started. Congratulations!
If you look at inflation in prices of parts over the last decade or two, you can see that parts prices have inflated faster than wholesale prices, consumer prices, or most other inflation metrics.
What that means is that bravely holding the line on the maintenance inventory is equivalent to a 5–10% annual decrease in inventory. That might not sound like a lot, but it does accumulate over time. Therefore, a $2 million inventory today is equal to a $1 million inventory just 10 or so years ago.
THE VOCABULARY OF STORES, STOREROOMS, PARTS WAREHOUSES, AND INVENTORY
Every field has words that mean special things. Although the jargon of a field can be (quite) challenging to outsiders, it allows practitioners to speak to each other quickly and accurately. The glossary in the Appendix provides a slew of definitions for the storeroom world’s special language. Understanding this special vocabulary is essential to understanding the field.
Note that for our purposes, the terms storeroom (stockroom, parts room) and warehouse (parts warehouse) are synonymous; they will be used interchangeably in this book to describe the parts storage
