New Workshop developed due to high number of company's inventory systems with poor data leading to high number of duplicates, lack of focus on cost reduction, excess downtime
2. 2
New Workshop
New for the second half of 2018
This new 3 day workshop has been developed from the
delegate’s feedback and from many MRO Spare Part Master
Data Audits
It is a sister workshop to our popular 3 day MRO Spare Part
Optimisation and Inventory Reduction over 40 workshops
conducted
3. 3
Workshop Objectives
To highlight a 6-phase inventory optimisation and cost reduction
process
To show how to build an MS Access applications to audit and
cleanse delegate’s spare parts master data
To explain why good cataloguing is essential to the inventory
reduction process
To show examples from numerous audits we have carried out
4. 4
6-Phase Improvement Process
Our 6-phase improvement process is show below. We have
developed software tools to support this process
This workshop covers the first 4 phases
Audit
Define Processes & Guides
Cleanse
Rationalise
Monitor & Action
Optimise
5. 5
After Phases 1-4: 60% Reduction in
Spiral Wound Gasket
Initial Findings - 119 SWG line items
Multiple searches to identify all the gaskets
POs raised for items with Nil stock, yet stock was available
in duplicate bins
Standardisation of norms developed, after discussions with
engineering
Action & Benefit 60% Reduction through:
Removing Duplicates
Combining SS304 & 316
Standardising from 5 to only one supplier
6. 6
After Phase 5: Stock Optimisation
This example show that the optimum ROP policy is not valid as the EOQ is too
low. As the current OQ is very high, we can propose a higher OQ than the
EOQ and we save $14,400 based on current practice. NB Optimisation is
covered in our MRO Optimisation & Inventory Reduction Workshop
7. 7
Workshop Topics
01 Overview MROM Inventory Management Auditing
02 MROM Master Data Auditing
03 Building an Effective Spares Cataloguing
04 Developing Procedures and Guides
05 MS Access – The Basics
06 MS Access – Intermediate Functions
07 Auditing Your Inventory Data Download
08 Approaches to Master Data Cleansing
09 MS Access – Working with Forms
10 Cleansing Your Master Data
11 Rationalisation
8. 8
Workshop Topics
12 MS Access – Advanced Functions (e.g. Assigning ABC)
13 Improving Vendor’s Recommended Spares Data
14 MS Access - Create BOM Files
Course Review and Delegates Action Plan
9. 9
The 6-Phase Improvement Process
# Phase Tactics
1 Audit Audit may cover Master Data,
Documentation, Best Practices & and a
sample of Inventory Parameters
2 Define Processes &
Guides
Update or develop procedures and guides
for inventory management
3 Cleanse Master Data Cleansing incl. identify and
remove duplicates
4 Rationalise Seek reduction opportunities through
standardisation
Identifying OPMs & APMs
Obsolete management
Assign cost classes
10. 10
The Phases
# Phase Description
5 Optimise Assign part criticality and service levels
Optimisation of stock levels
Selecting the right replenishment strategy
6 Measure Measure performance
Note not all tactics are listed in these two slides
12. 12
Auditing Master Data
We focus on auditing of master date in this Phase 1
Too many companies have poor cataloguing, this issue results in:
Too many duplicates
Excessive time lost looking for spares
Excess downtime
Inability to focus on standardisation & rationalisation
Causes of this issue are:
Lack of guidelines for the team
Lack of experience and training
No or poor initial spares planning procedures
Do not challenge recommended spare parts from vendors
13. 13
Auditing & Cleansing
MS Access is the software of choice for this activity
We show and provide step by step procedures how to build
tables, queries for various analysis techniques including:
Select & parametric queries
Append and update queries
Find duplicate queries
Assign ABC
Analyse number of manufacturers by noun
etc
15. 15
Master Data Auditing
The screen shot below shows an example of saved queries to
find Spiral Wound Gaskets and O-Rings.
The queries filter for the items that have been entered in different
formats
Wild cards = * and ?
16. 16
Spare Part Master Data Auditing
Example of what we frequently find;
Bearing population is a mix of bearings, Ball Bearing, Bearings, Ball,
Mix of Vendor P/Ns, MPNs, Drawing Ref Nos
No type single or double row,
No sizes or seal information
Stock Nos include the Equipment Tag Nos (this practice is quite
rare)
17. 17
Identifying Duplicates
The screen shot shows this company had duplicate and triplicate
line items
It is quite common to find a company with 12-15% duplicate line
items
18. 18
Here is an example, from a well known food and drink
manufacturing company
Inconsistent Attribute Sequence
20. 20
ISO55000
ISO55000 states a company must manage it’s assets from cradle
to grave
ISO55000 also states data (e.g. master data), is an asset of the
company
Therefore, we need to demonstrate that data is created and
managed in a consistent manner
We recommend a structured set of documents to ensure
consistency covering cataloguing standards including
abbreviations, type guides and documented strategies
22. 22
Cleanse Master Data
The main options are to:
Option 1 Update the descriptions directly in the inventory
module (not recommended) or
Download the data, migrate to MS Excel or an MS Access
based tool and then:
o Option 2 Cleanse each line item
o Option 3 Develop standardised template descriptions and
assign a template id to each line item (recommended)
o Option 4 Populate a noun & qualifier template with the
respective attributes and then create short and long
descriptions from the attribute template automatically
(most expensive approach)
25. 25
Rationalisation
Rationalisation is about standardising material, manufacturers,
etc.
There are significant savings
Removing duplicates
Removing unwanted items (obsolete, items not fit for purpose,
beyond shelf life, etc)
Identifying OPM and APM (Alternative Part Manufacturers).
26. 26
Reviewing Manufacturers
The screen shot from a UK car manufacturer shows
This company stocked
bearings by 31 manufacturers
Detailed analysis of the bearing
manufacturers
27. 27
Creating BOMs
This is the MS Access query that links the 3 tables to create a
BOM Bulk upload file
30. 30
Summary
We briefly outlined a new workshop that we feel is missing from
the training market
We teach you how to do what some consultants do badly.
Remember, the cost of this 3 day workshop is less than 1 day
charged by a consultant.
The cost of the course may be recovered many times over from
identifying poor performance in managing just one line item
This workshop is available as an in-house workshop or attend the
scheduled course in UK in October or the one in Malaysia in
November 2018
Contact dave@ramsoftuk.com for more information