I am sure that you have heard the saying, ‘what gets measured, gets managed’. Essentially this tells us that people will focus on the things that are reported. This measurement should provide the feedback loop required to know if you are on track to reach your targets and whether any adjustments are helping or hindering. […]
The Unspoken Problem with Inventory Optimization
Inventory optimization is the most sought-after outcome from spare parts inventory projects. Nobody wants to spend more than they need to or have less stock than they need. That makes sense, after all inventory optimization means that you have the right balance of availability and expense. And that’s all great in theory. The Real-World […]
Creating Effective Spare Parts Stocking Policies
Subject Area: Spare Parts Stocking Policies Here is the reality of spare parts management: success doesn’t come from just having a policy, it comes from having the right policy. An effective policy. Companies that have effective spare parts stocking policies achieve better spare parts management outcomes than those that don’t. Sounds obvious, right? Well, here’s […]
3 Steps to Take Control of Spare Parts Inventory
Here is the bottom line. You want to take control of spare parts inventory so that you can be confident that you have the parts that you need, when you need them, without excess expenditure. Right? Great. Well the good news is that achieving that goal is simple. The bad news is that it is […]
The 9 Symptoms of Poor Spare Parts Inventory Health (and How To Avoid Them)
Understanding spare parts inventory health is both simple and complex. Simple because the actions required to establish an effective spare parts management system are well documented (just read one of my books!). Complex because there are many ‘moving parts’ (pardon the pun) and that means many things can go wrong that can (and do) have […]
The Herd Behaviour of Spare Parts Inventory Metrics
Often, I am asked about spare parts inventory management metrics. This is not surprising as we all know that, in the words of William Thomson (Lord Kelvin), ‘what gets measured gets managed‘. Here is a quote, reportedly from a lecture by Lord Kelvin on ‘Electrical Units of Measurement’, delivered in May 1883: I often say […]
Spare Parts Inventory Decision Making – Separating Emotion from Logic
Engineering, maintenance, and technical people are not widely known for their emotional sides. More likely they are known for data, facts, and precision. So, it is perhaps surprising that with spare parts inventory decision making it is often the emotional response that leads. Not that this is widely acknowledged. Usually the emotional decision is […]
Five Key Financial Principles for Spare Parts Management
No review or study of spare parts inventory can be undertaken (or even commence) without having at least a basic understanding of the financial principles for spare parts management. At first, this statement may appear to be redundant; after all, don’t people understand that spare parts cost money? Of course they do. The problem is […]
Should You Mix Project and Warehouse Inventory?
As spare parts inventory management comes under increasing scrutiny at many companies they are often frustrated and maybe even surprised that their inventory levels continue to rise. Sometimes it appears that the reason for this is the unexpected inflow of items that are left over from maintenance shutdowns or projects. This raises the question: Should […]
5 (Little Thought of) Ways that Improved Spare Parts Management Benefits Maintenance
There is one great tension that comes from the different perspectives that people have on spare parts management benefits: people either focus on the potential working capital savings from reducing inventory or they focus on the perceived availability benefits of holding more inventory. However, by focussing on these important but simplistic spare parts management benefits […]