One of the peculiarities of spare parts inventory management is that, generally, the supply chain is established to operate only one way. What if you had a storeroom full of parts that you didn’t need but also had no way of managing them? No process for identification and removal. This is a situation […]
Use Our Network to Solve Your Spare Parts Inventory Problems
You Can’t Solve Today’s (Spare Parts Inventory) Problems with the Same Level of Thinking That Created Them The above quote is a derivation of one of my favourite quotes and one that is typically attributed to Albert Einstein. Over the years, I have seen this quote stated in several different ways and I have even […]
Spare Parts Inventory Optimization: A Zero-Sum Game?
Why is it that when discussions turn to spare parts inventory optimization, maintenance and procurement are cast as natural enemies? Maintenance and Procurement Characterizations In spare parts inventory optimization, we see this attitude when maintenance personnel take the position that any reduction in inventory is a short-sighted, money-grabbing, opportunistic, action undertaken by individuals only interested […]
Lubrication Management and the Storeroom
Lubrication management is one area where the storeroom and maintenance really do need to work closely together if the required results are to be achieved. Many years ago, I was tasked with reviewing a manufacturing facility to help diagnose why they were producing so many ‘seconds’. Of course, their aim was to produce ‘first quality’ […]
The Catch-22 of Spare Parts Inventory Optimization Logic
This kind of circular logic will be very expensive for this company… What stops companies from achieving all that they could with spare parts inventory optimization? Put another way, why do companies continue to waste money buying spare parts they don’t need when the course to prevent this is so well known? Perhaps the […]
7 Things That Every Senior Manager and CFO Should Know About Spare Parts Management – Part 7
The information and know-how required to effectively manage a company’s spare parts operations does not reside in just one function 7. Transforming Your Spare Parts Operations Requires C-Level Engagement, Not Just Support If you have read the preceding six parts to this series the reason why transformation requires C-level engagement (and not just support) […]
How Do You Know That Your Warehouse/Storeroom Personnel and Managers Are Qualified?
Spare Parts Management Is About Adding Value Spare parts management requires more than just understanding internal procedures and knowing how to operate the company ERP. Spare parts management requires an understanding of the interaction of people, processes, engineering, maintenance, planning and finance. It’s about providing guidance and adding value to the organization through educated […]
Corrosion Protection of Spare Parts
What happens when iron and oxygen interact? Corrosion. The most familiar form of corrosion is rust. That red-brown stain that is seen on unprotected iron-based metals everywhere. It is a major problem with many spare parts. Maritime industries such as shipping and offshore oil and gas platforms spend a lot of time and money on […]
What is a Spare Parts Numbering System?
This article discusses spare parts numbering systems and covers: What is a spare parts numbering system? Intelligent and dumb spare parts numbering Which approach to use A spare parts numbering system is a way to differentiate items within your spare parts inventory without constantly referring to long descriptions. It is short-cut for spare […]
7 Things That Every Senior Manager and CFO Should Know About Spare Parts Management – Part 6
Subject Area: Working Capital Management It is easier for individuals to spend money on more inventory than it is to change processes, examine purchases, or better define maintenance needs 6. How 36% of Working Capital Spent on Spare Parts is Wasted The Paradox of Spare Parts and Working Capital Management Of course, nobody buys […]