PM Element 7. INDICATORS

As in other activities the indicators are important to drive the activities in the Supply Room (Store Room).

Some example of these indicators are:

  • Inventory Value
  • Number of Items
  • Lack of Spare Parts
  • Usage per Month
  • Biggest Groups

INVENTORY REDUCTION

The objective of the Supply Room is to provided spare parts when needed, mainly for emergency repairs. At the same time, it is important to have the inventory level as low as possible.

For this it is important develop a systematic approach to reduce the inventory level.

Some points to be analyzed are:

  • Obsolete items
  • Reduce quantity in Inventory
  • Implement Kanban
  • Manufacture nationally
  • Standardize Item

The following Flowchart helps to understand this process.

KANBAN

The KANBAN methodology was applied at Production Factory for some spare parts with a short lead time for delivery.To implement the Kanban Methodology the following steps were followed.

1) Define the consumption for each item.

2) Define delivery lead time for the item.

3) Purchase agreement to reduce lead time where needed.

4) Define Purchase Point and Purchasing Amount for each item. The Purchase Point needs to be enough to supply spare parts during the delivery process and it needs to be defined according item criticality and consumption.

5) Implement Visual Management for items.

The next flow chart explains the visual management for the bearing group.

Kanban – Bearing Board

Kanban – Bearing Stocking

INVENTORY REVIEW

The Inventory Review is different from the Cost Review because this is focused on actions to:

  • Reduce spare parts costs
  • Reduce Inventory level
  • Inventory Accuracy

Supply Room Attendants, Stock keepers, Maintenance Managers, Maintenance Planners, Tradesmen and other people responsible for using and controlling spare parts need to attend to this meeting.

Questions to be answered during these meetings would be:

1) What were the biggest costs?

2) What caused these costs?

2) Was it a natural or forced deterioration?

3) Was the problem solved?

4) Is it possible to make some improvements to reduce this expense?

5) Which actions will be taken to reduce this cost in the future?

6) Which is the biggest group?

7) Who will be responsible to apply the Inventory Reduction flowchart for this group?

8) How can tradesmen help the reduction of spare parts inventory?

Down below there is an example of a board to help the discussions.

Activity Board

2 Comments

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