This 2-Minute Tutorial explains the calculation of stock turns and presents 4 common problems with both calculation and interpreting the stock turn ratio. For information on our Pro Level membership please visit our Pro Level page. Posted by: Phillip Slater
Why You MUST Also Review Critical Spare Parts
Maintenance and reliability engineers will happily (well, not happily) undertake a review of spare parts that are not classified as critical, yet they will shy away from reviewing items that are classified as critical spare parts. Why? Why should you choose to avoid reviewing spare parts that are classified as critical? […]
Spare Parts Inventory is Like a Loan From the Bank
What would you do if you had the chance to save $2M per year with no capital expense and a payback period measured in weeks? Nothing? Have you ever noticed how much time we all spend considering the costs of taking action and how little time we spend considering the cost of inaction? That is, […]
Eliminating Spare Parts Stock Outs
One of the main fears of most reliability and maintenance engineers is that, at the time of actual need, the required spare part will not be available. This is commonly referred to as a stock out. Thus the goal of many reliability and maintenance engineers is to eliminate spare parts stock outs and remove this […]
18 Tips for a More Efficient and Effective Stock Take
A stock take can be an administrative nightmare or they can be efficient and effective. It all depends on how they are set up and organized. For access to this post, and all of our content, join using the button below. If you are already registered then you need to log-in. […]
Some Cold, Hard Facts About Stock Takes
One of the key functions that must be carried out with all inventory management is a periodic reconciliation between actual stock holdings and the holdings according to the accounting system. For complimentary access to this article and our entire blog archive, register using the button below. We will also keep you up-to-date […]
More Truth About Inventory Management Theory
In a previous post we demonstrated that the classic ‘saw tooth’ diagram associated with inventory management and control is sometimes not at all representative of reality for engineering materials and spare parts. In this post, I am going to expand on this to show just how much it can cost your company if you fall […]
The Truth About Inventory Management Theory
Subject Area: Spare Parts Inventory Management Theory The Real Spare Parts Inventory Management Situation The problem is, of course, that reality almost never looks like the theoretical model. The truth is that for engineering and spare parts, the chart in Figure 2 is far more likely to be representative. This graph has four characteristics that […]
The Spare Parts Storeroom – More Than Just Transactions
Many people view the spare parts storeroom as being a purely transactional environment. That the function of the storeroom is to administer the transactions associated with receiving and issuing materials and spare parts. But if we really want the spare parts to be maintained so that they will perform as we expect, when they are […]
The Stock Out Metric
The stock out metric is one of the most popular ways to monitor spare parts inventory. A ‘stock out’ occurs when there is demand for an inventory item but there is no stock available. The Stock Out metric is a curious measure and as with all metrics one needs to be careful about what it […]