The reality is that the classic inventory management theory does not provide realistic answers for determining the Reorder Point (ROP) and Reorder Quantity (ROQ) for spare parts inventory. To effectively manage spare parts inventory, it is important to understand why the classic inventory management theory doesn’t work. This will stop
Why A Critical Machine Part is NOT the Same as a Critical Spare Part
Before deciding how many of an item should be stocked, the first question to ask is: should the item stocked at all? One of the issues with managing spare parts inventory, used for operations and maintenance support is that deciding what to stock can often be an emotional rather than
Four Common Techniques to NOT Use With Spare Parts Inventory
An important part of any strategy, including your spare parts inventory management strategy, is to know what not to do. By understanding which inventory management techniques you should not apply to your spare parts management (and why) you might just save your company a bundle of money (and yourself a
Spare Parts Management Procurement: The Impact of Goal Misalignment
Subject area: Spare Parts Management Procurement Procurement plays a crucial role in spare parts inventory management, ensuring the availability of parts while minimizing costs and waste. By effectively sourcing, negotiating, and managing the supply of spare parts, procurement services contribute to streamlining inventory, enhancing decision-making, and reducing costs. However, achieving
The Long Chain of Spare Parts Management Events
Discover the 8 Proven Strategies to Achieve Your Spare Parts Inventory Management Goals
In this on-demand webinar, I’ll share with you the insights, tools, and techniques that I’ve honed over decades of experience in spare parts inventory management. As a young engineer, I faced the same
The Biases That Have the Greatest Effect on Your Spare Parts Inventory
Subject Area: spare parts inventory bias Recently, in a series of unconnected conversations, I was struck by how each speaker focused on some specific aspect of spare parts management that, to them, indicated how well (or poorly) they were doing in this area. For example, viewing a single event (such
The Top 5 Spare Parts Management Mistakes
Subject Area: spare parts management mistakes Spare parts management is a crucial aspect of any organization that relies on machinery or equipment to operate. However, many organizations make mistakes when managing their spare parts inventory, which lead to increased costs, reduced efficiency, and even unnecessary downtime. In this article, I
Is Stock Turns the OEE of Spare Parts Management?
Subject Area: Stock Turns In operations management there are many metrics that are used to measure operational performance. One of the most popular is OEE – Overall Equipment Effectiveness. OEE measures the productive operating capacity of plant and equipment, compared to the theoretical maximum capacity of that plant and equipment.
The Importance of Spare Parts Management Relationships
Subject Area: Spare Parts Management Relationships Why is it that almost all training and literature relating to spare parts management focuses on the technical and supply chain issues? You know the sort of thing: calculating stock levels, optimization, data management, dealing with excess and obsolete stocks, planning and scheduling effects.