Inventory: Base Decisions on Real-Life Data
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This is Chris Matt, Managing Editor of Print & E-Media with Maintenance Solutions magazine. Today's tip is inventory-management strategies
Managers will have a greater chance of successfully managing inventory if they can minimize decisions based on emotion and make more decisions based on real-life data. Much of the data they need exists in the database for the computerized maintenance management system, or CMMS, and it can provide answers to several questions:
What is the right part? Managers can answer this question by looking at the equipment bill of materials, the original equipment manufacturer list, nameplate information, work-order history, or the contractor-work history. They can document all of this information in the CMMS item-master registry to ensure the department procures the correct materials.
What is the right quantity or stocking level? A number of modifiers determine the correct stocking levels. Most organizations use minimum and maximum levels or calculate economic order quantities. These figures should relate to historical use, consumption rate and lead times.
What is the right time? Departments that operate in a reactive-maintenance mode tend to have high levels of inventory because of this firefighting mentality. Moving toward a planned work environment reduces the chances of stockouts, and it allows managers to bring materials in at the lowest cost of acquisition.
Finally, what is the right cost? The supply chain can be the heart of the maintenance organization, or it can be the heart attack. The way departments manage this process is a key component of their success. The best departments have 25 percent of their total inventory on some type of stocking program.
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