Inventory Managment

Brief.  On average in U.S. industry, 40% of all reactive maintenance jobs are delayed due to lack of spare parts.  AF Benchmarking Assessments validate this.  Lack of spare parts (when needed) is costing U.S. industry billions of dollars both in craft inefficiencies and lost production.  This is a double-edged sword.  First, it is necessary that the planning and scheduling processes be enhanced so that the majority of spare parts are identified prior to their intended use.  Second, the warehouse function needs to be enhanced to ensure that key parts are properly identified, stored, issued and re-ordered to maintain efficiency.  AF recently performed a full-blown inventory management project for a major chemical plant.  The project included:

• A complete inventory followed by the removal of thousands of parts that would never be used.
• The identification of hundreds of parts that were needed and on-hand but nobody knew where the parts were.
• Complete restocking of all bins and reconciling all parts with part numbers and asset tag numbers from the CMMS
• Establishing a Receiving Area with guidelines for how to manage it.
• Establishing a “Kitting” process to ensure all parts needed for planned jobs were kitted together and stored for immediate use.  AF has developed a powerful “Kitting” process that we can implement at your plant to significantly reduce the delays incurred while waiting for spare parts.

Benefits.  In summary, delays encountered due to lack of spare parts may be costing you an estimated 5-15% in maintenance costs and lost production.  The savings for the above project were estimated at $450,000 short term and over 1 million long term for an ROI of 20:1.  Let AF show you how to resolve this important issue.