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MRO
1. In the spare parts and beyond, businesses are continuously trying to
do more with less. Whether an organization has a dedicated parts
storeroom or not, SKU (Store keeping unit) are becoming more
responsible for managing inventory on their own. Without the
fundamental knowledge and support to develop and maintain an
effective maintenance, repair and operations (MRO) inventory, the
result can be lost maintenance productivity, increased downtime and
inventory purchasing spend.
The key to avoiding these negative results is to develop a high-
performance work team through the "four pillars of sustainability." In a
recent webinar on sustaining effective inventory processes, let’s see the critical success factors to foster the notion
of high-performance work teams and maintain MRO inventory regardless of budget or business environment.
2. Educate
The first pillar to sustain MRO inventory is to educate your maintenance team on what success looks like for your
organization. Extend that vision to create a clear picture of best-in-class inventory processes that your organization
can begin embracing. Define and clearly identify what success looks like in ways that can be quantified, such as 98
percent inventory accuracy, 100 percent process performance and less than 3 percent downtime.
These visions of success include improvements in key performance indicators (KPIs) for their respective
organizations, e.g., 99.8 percent productivity rate for technicians, 75 percent reduction in monthly cycle count time
or 1 percent downtime reduction for an annual savings.
An important part of inventory education is conducting team training. Training on inventory process topics such as
housekeeping and cycle counting will help enforce standard operating procedures. In the same way it is important
to identify success for your organization overall. Defining the role each member of your team plays in facilitating
that success is critical to gain 100 percent team enrollment.
3.
4. Empower
Once an organization educates its team, the next pillar is empowering and establishing team ownership of MRO
inventory. Management should encourage and promote innovative inventory ideas, assign responsibility, celebrate
successes, and involve team members in the design and setup of the storeroom.
By allowing the
maintenance
team to actively
participate in
setting up the
storeroom, you
can foster the
notion of a self-
directed work
team. Members
of a high-
performance
work team value
the success of
the team over
their own
personal gain.
5. Equip
Equip your team for success by installing a world-class physical environment. This includes building rich inventory
data, applying cutting-edge tools (when appropriate) and enlisting trustworthy partners.
Physical Storeroom Setup
The physical setup of a storeroom can have a major impact on the success of MRO inventory optimization. Well-
kept spaces demand more respect. Taking the extra time to ensure a storeroom is well-lit, organized and
streamlined can make all the difference. When every spare part has its own labeled place and there are no parts
haphazardly mixed in undefined bins, mechanics will want to sustain this environment.
6. Rich Inventory Data
High-quality inventory data is just as important as a world-class physical environment. This data is the basis for
efficient item look-ups
and the item-labeling
process. Consider using
a "noun, modifier, rank
attribute" taxonomy to
build standardized item
descriptions. Other key
fields include
manufacturer name and
item number. These help
to accurately source and
replenish inventory
items from suppliers for
price quotes. Another
important benefit of
utilizing this information
within an organization's
MRO inventory is the
ability to make data-
driven decisions.
Technology & Tools
A variety of tools are available to help maintenance teams manage inventory as easily and effectively as possible.
Implementing and fully utilizing a
computerized maintenance management
system (CMMS) offers an opportunity to
help facilitate success for any
maintenance team. A CMMS is designed
to help schedule, plan, manage and track
maintenance activities as well as manage
their associated parts inventory. These
systems can also help organizations
streamline work, increase efficiency and
improve productivity.
In addition, it can be beneficial for
organizations to make use of handheld
technology and to install control-access
devices. Also, consider using other
technologies such as radio-frequency
identification (RFID) or automated
retrieval systems. These tools are
considered a reasonable investment
when you factor in improved team
productivity and downtime.
7. Enlist Partners
Establishing trusted vendor, supplier and contractor partners can help you maintain MRO inventory improvements.
Many companies purchase supplies from upward of 100 vendors or more. Spreading your purchases across so
many vendors weakens your buying power and leverage. By reducing suppliers, organizations have experienced
significant price reductions across the board as well as leverage to motivate key suppliers to work together to
develop a total inventory management solution.
Partnerships can also extend beyond suppliers. Organizations can partner with subject-matter experts for
implementation support, process development or overall training on inventory management.
8. Excel
Once you lay the groundwork of educating, empowering and equipping your team, developing effective standard
operating procedures and measuring results will help you excel in inventory management. To measure results,
establish meaningful KPIs such as user adoption, inventory accuracy, stock-outs and downtime.
It is also important within the "Excel" pillar to measure these results and celebrate the successes within these
metrics. Post results for all to see and recognize the team and individual members in a significant, meaningful way.
Building a high-performance work team is the best way to sustain MRO inventory environments. This process
takes upfront effort, but the power the team will generate will affect ongoing improvements within an
organization's MRO operation.
Thank You