Subject Area: Spare Parts Management Policies You do not rise to the level of your goals. You fall to the level of your systems James Clear, Atomic Habits The cornerstone of a functional spare parts inventory management system is the development of an appropriate suite of policies. These spare parts inventory management policies provide the […]
Why Spare Parts Management is a Team Activity
Subject Area: Spare Parts Management Silos One feature of the modern corporation is the departmentalization of functions. Companies do this to both create operational efficiencies and manage the span of management control. Thus, most organizations will have, among others, an operations group, maintenance department, storeroom and logistics, purchasing and procurement, and finance. But what happens […]
Artificial Intelligence Problems
Subject Area: Artificial Intelligence Problems In part one of this series on artificial intelligence I raised the idea that artificial intelligence will not solve your spare parts management problems. In this article I discuss three main artificial intelligence problems. Artificial Intelligence Problem 1 First, how can we be sure about how to […]
Artificial Intelligence Will Not Solve Your Spare Parts Problems
Subject area: Artificial Intelligence Part 1 What do chat bots, self-driving cars, and predictive maintenance have in common? They each involve the application of artificial intelligence (AI). In recent years the development of AI has become a hot topic. It seems that AI is being talked up everywhere. At every conference, online event, and even […]
Options for Excess and Obsolete Spare Parts
What are your options for dealing with excess or obsolete spare parts inventory? Typically there are four: 1. Do nothing 2. Write off and dump 3. Utilize at another site/location 4. Sell Option 1 achieves nothing, except setting a poor example on what the company expects of management. This approach says, ‘if […]
Inventory Reduction Metric – A Warning
Subject Area: Inventory reduction metric Goodhart’s Law When thinking about the measurement of actions and outcomes relating to spare parts inventory reduction it is worth considering the work of a British economist, Charles Goodhart. In 1975, Goodhart wrote what became known as ‘Goodhart’s Law’. The simplified version states: When a measure becomes a target, it […]
Transform Your Team with the Spare Parts Management Online Boot Camp
Topic Area: Online Boot Camp Spare parts management is a ‘team sport’. That is, it takes a team of people to produce effective results in terms of stock holding levels, availability, accuracy, and cost. You can either assist them in working together or force them to work it out on their own.”
Why Your Spare Parts Metrics Must Tell a Story
Subject Area: Spare Parts Metrics Everyone reading this will have no doubt heard the expression, “what gets measured, gets managed” – or something similar. The original quote is usually attributed to Peter Drucker’s 1954 book ‘The Practice of Management’. Perhaps more interesting is the somewhat lesser-known full quote: What gets measured […]
Spare Parts Inventory Team Training
Subject Area: Spare Parts Inventory Training Why is it, that despite the best efforts of management teams, most spare parts inventories remain bloated with excess, surplus, and obsolete items, while also not providing the level of service expected by the users? The simple answer is spare parts inventory training – or rather, a lack of, […]
AI Generated Spare Parts Inventory Policy
The following content was generated using Perplexity AI and is posted here as an exhibit for the main article discussing AI and spare parts management. Click here to go to the main article. My query was, ‘write a spare parts inventory policy‘ Here’s is what was produced. A spare parts inventory policy […]