Spare Parts Know How

Spare Parts Inventory Management Training

  • Log-In
  • Online Training
    • Spare Parts Training Academy
    • Pro Level Membership
    • Advanced Spare Parts Management Course
    • Team Boot Camp
  • Resources
    • Resource Library
    • Connect with Experts
    • Online Training Support
    • Blog Posts
    • Management Guides
    • Policy Templates
    • ROP Calculator
    • Online Forum
    • Webinars and Events
    • Reports & Books
    • Glossary
  • Connect with Experts
  • Contact
  • About
    • Clients
    • Testimonials
    • FAQs
    • Phillip Slater
  • Instructor-led Training
  • Consulting
  • Reliability Certification

Work on Your Spare Parts Management Policies

January 12 Phillip Slater

Subject Area: Spare Parts Management Policies

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 framework within which all spare parts inventory management decisions are made.

They are not only the guidelines for spare parts inventory management but the mechanism through which the company communicates its intent, expectations, and requirements across the organization and over time.

A policy, developed and implemented today, will inform today’s personnel AND it will inform future staff when they join the company.

Correctly formulated, your spare parts inventory management policies will guide your organization for years to come, ensuring that your spare parts inventory is maintained at a level appropriate for both operational needs and financial constraints.
 

Welcome! As a guest you can read select articles such as this one.To unlock full access to all of our content and training CLICK HERE

 
 


Why Are Policies Important?

 
There are three key reasons why policies are important:

1. By communicating the requirements of management, policies free up people to get on with their jobs.

That is, by advising on what to do and how to do it, team members no longer need to spend their time working this out, thus freeing their time to do the job expected of them.

2. Policies provide the basis for consistent decision making.

One of the drivers of both efficiencies and effectiveness in an organization is consistency. When tasks are completed in a consistent manner, the results can be expected to be repeatable and to fall within a desired range.

Assuming that the approach is appropriate, then effectiveness is achieved. When there are many decisions to make on a regular basis, deferring these to senior management is inefficient, so communicating the approach and expectations drives organizational efficiency.

3. Policies provide a basis for continuous improvement.

Only by documenting the desired approach can the process be subject to continuous improvement. This can be through examination of results or through auditing application.

Spare parts inventory management policies are vital to any company seeking to achieve an effective and efficient approach to spare parts inventory expenditure.
 


Implementing Policies Requires a Commitment to Training

 
A policy is a statement of intent that provides a guide of acceptable business practice.

This tells us that a policy provides the principles or rules to guide decision making.

In practical terms, the distinction between a policy and procedure is often blurred.

This is because a document that informs on what needs to be done but provides no guidance on how to do it can be of little practical use.

For example, a stocking policy that had the intent of providing guidance on stock-level decision making is of little use if all it says is “In determining the required stock holding the user must take into account the usage history, lead time, and expected future demand” without advising how to use the information.

Experience has shown that not including specific how-to details results in ad hoc decision making and effectively renders the policy pointless.

There are two major impediments to developing and implementing effective policies:

1. Knowing what to include
2. Training people on the content

If companies don’t train the key staff members on how to develop the right policies AND THEN also train everyone else on the content of the policies, then they will not rise to the level of their goals. They will fall to the level of their training*.
 


Your Polices are Your Systems

 
What we really know is that companies often expect people to perform at a level that is beyond what they have been trained to do. And to do things that their systems are not capable of doing.

To transform your spare parts inventory management and achieve results that you did not think were possible you MUST work on your policies – be clear about spare parts criticality, develop clear ROP and ROQ guidelines, eliminate squirrel stores, define your metrics, identify accountabilities, document the processes for obsolescence and disposal.

 
It is precisely because the issues are many and the nuances subtle that here at SparePartsKnowHow.com we have developed as a platform to access a wide range of resources relating to spare parts inventory management and optimization.

CLICK HERE TO LEARN MORE
 
 


 
 
 
Author: Phillip Slater
 
 

*Footnote:
There is another (very) old quote like the one at the beginning of this article:

We don’t rise to the level of our expectations; we fall to the level of our training.
This attributed to Archilochus, a Greek poet who lived from 680 – 645 BC (I said that it was old).

Filed Under: Inventory Management

Click here for our FREE 30 Days to Better Spare Parts Management Program

Live Online Boot Camp

This team training course applies a live, interactive format to teach participants the fundamentals of spare parts inventory management in 4 sessions.
Read more...

The Advanced Spare Parts Management Course

The Advanced Spare Parts Management Course covers all the issues faced during the spare parts inventory management lifecycle.
Click here to read more and to join

Pro Level Membership

Our Pro Level Membership will equip you with the know-how and skills to effectively optimize and manage all aspects of your spare parts inventory.
Click here to read more and to join

Connect with Experts

Let us introduce you to someone that can solve your spare parts problems.

Contact us for a confidential discussion and a possible introduction to one of our Trusted Network.
Read more...

Latest Blog Posts

  • Introducing the Spare Parts Training Academy
  • Spare Parts Training Cost
  • Spare Parts Training Support
  • Spare Parts Training Time
  • Spare Parts Training Convenience

Learn more

About
Contact Us
FAQs
How to join
Resellers

User Login

You are not currently logged in.








» Lost your Password?
  • Email
  • LinkedIn
  • Twitter
  • YouTube
Copyright © 2023 IPIAIGHT PTY LTD.