18 Best Practices of MRO Inventory Optimization

      18 Best Practices of MRO Inventory Optimization

      

 

MRO Spares Cost Control Technique :

• Analysis of Lead time.

• Control over the consumption of spares.

• Control by way of restricting budget allocation.

• Use codification f spares to avoid duplication and overstocking.

• Standardization of spares so that the variety and overall quantity can be reduced.

• Simplification of procedure for indent. A sanction, tendering, ordering, inspection, etc.

• Applications of value engineering to decide which spares are superfluous.

• Disposing of the obsolete item lying in the store and seeing that new obsolete items are not generated.

• Creating and using spares bank to store insurance spares(This is a new concept in India and can be used by large but similar industries like cement, fertilizer, steel, power plant).

• Use inventory control technique like the minimum-maximum level.

• Use economic order quantity technique to decide the optimum order quantity and minimize cost.

• Use selective control on high value of spares by an experienced person in the store.

• Use negotiating skills to get the best deals. The technique of learning curve should be used to decide the best price.

• Use preventive maintenance program to reduced overall maintenance cost, which also includes spare parts cost.

• Try to repair the spares either in-house or from an outside agency and use them again.

• Condition monitoring of equipment will prevent major failure of equipment which will save damage to adjoining spares and ultimately spare part costs.

• Use of computer in recording, sorting, reproducing the vast data available regarding the supplier, spares parts, code number etc.