SURVIVING
THE
SPARE PARTS
CRISIS:
MAINTENANCE STOREROOM
AND INVENTORY CONTROL
JOEL LEVITT
Industrial Press, Inc.
Industrial Press, Inc.
32 Haviland Street, Suite 3
South Norwalk, Connecticut 06854
Tel: 203-956-5593, Toll-Free: 888-528-7852; Fax: 203-354-9391
E-mail: [email protected]
Author: Levitt, Joel
Title: Surviving the Spare Parts Crisis: Maintenance Storeroom and Inventory Control, First Edition
Library of Congress Control Number: 2016954131
ISBN print: 978-0-8311-3604-8
ISBN ePDF: 978-0-8311-9414-7
ISBN ePUB: 978-0-8311-9415-4
ISBN eMOBI: 978-0-8311-9416-1
Copyright ©2017 by Industrial Press, Inc.
All rights reserved.
This book, or any parts thereof, with the exception of those figures in the public domain, may not be reproduced, stored in a retrieval system, or transmitted in any form without the permission of the copyright holders.
Sponsoring Editor: Judy Bass
Managing Editor: Laura Brengelman
Developmental Editor: Robert Weinstein
Interior Text and Cover Designer: Janet Romano-Murray
Although the author and publisher have made every effort to ensure the information in this textbook is correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.
Dedication
This book is dedicated to my three sons Andrew, Leo, and Michael. There comes a time in every father's life when you learn more from your kids than you teach them. I've definitely reached that point. If I ever want to learn something, I can just ask one of my boys. It is a great relief not to have to make all that stuff up!
Joel Levitt
TABLE OF CONTENTS
Introduction
Preface
Acknowledgments
About the Author
1 What Are We Really Doing?
Mission
Parts Are the Pointer to the Maintenance Problems
Management of Change in the Stores Organization
Service Agreement from the Warehouse to the Maintenance Department or “What Maintenance Expects from Material Control”
Why Bother Managing the Storeroom?
Reality Check on the Nature of OEMs and Their Parts Businesses
The Dimensions of the Spare Parts Crisis
Why Do Parts Stock Out Anyway?
2 Models of Inventory
Retail and Resale Inventory Model (Finished Goods, Too)
Finished Goods
Orphan Inventory: Companies with Physical Assets that Wear Out
Maintenance Inventory Usages
Another View Based on the Consumption Rate of the Part
3 Modern Production Gives Us the Tools for Maintenance Planning
The Miracle of Modern Production
Timing and Trust Are Everything
Where Did This All Come From? Let's Revisit Ford and His Model T
What It Takes Day In and Day Out
Same Logic But Different Application
Reactive Versus Proactive Parts Requirements
Buffer Stock
4 Perspectives on Storerooms
POV (Point of View) Impacts How People View the Storeroom
Misalignment of Accountability and Realignment of Accountability
Common Comments about Good and Bad Storerooms
5 How Well Do You Know Your Current Stores Operation?
How to Evaluate Your Storeroom in an Hour (or Two)
Storeroom Management Questionaire
6 Spare Parts Inventory and Risk Management
Risk Management Functions
Risk Management Options
What Is the Risk in Risk Management?
Risk Management Process in Depth
Think of Your Inventory Items as Insurance Policies
Investment Versus Risk Management
Eliminate the Condition and You Eliminate the Risk
Emotionally Driven Inventory is Not the Solution
7 What the Storeroom Needs to Know about Maintenance
Machines
