In every industry, spare parts are crucial to equipment reliability. That sometimes leads purchasing managers to overstock items that are frequently used. This approach is OK (if not great) as part of a cohesive inventory management plan to use those parts efficiently, but most of the time, it is not. In a modern, well-run facility, there simply is no room for excess spare parts. This article explains why overstocking is so detrimental.

MRO purchasing is often overlooked by procurement professionals, and opportunities are masked by the transactions themselves which are high-volume but low-dollar. Resources are often allocated to other areas, and responsibilities for the purchasing function are transferred to maintenance or the storeroom where procurement capabilities are limited. In addition, the imperative for rapid repairs drives immediate, reflexive action and prevents the development of long-term strategic initiatives.

The Maintenance, Reliability and Operations (MRO) spare parts storeroom is an indispensable appendage of the Maintenance and Facilities departments. Yet, despite the clear value of a well-run MRO spare parts storeroom to ensure operating efficiency, it is rarely managed to function at optimal levels. The result is reduced productivity, excessive MRO spare parts expenses and unnecessary waste and downtime.

PCA hosted a booth at MARCON 2019, staffed by our MRO experts. They had discussions with a continual stream of attendees, all of whom were eager to hear our advice on topics ranging from ensuring availability of critical spare parts to controlling inventory spend. The hottest topic, by far, was the importance of having a robust set of work management processes in place — and the challenge of achieving that goal.

Equipment operation is, at its core, a business activity, and proactive maintenance is an investment in that activity. Unlike reactive, or break-fix maintenance, proactive maintenance involves vigilant asset management and a dedicated strategy that plans not only for component replacement on a recommended schedule (e.g. preventive maintenance) but also equipment analysis to identify root failure origins—excessive vibrations, part contamination, and other issues—and take action to avoid impending part and machinery failures (predictive maintenance).

Computerized Maintenance Management Systems, or CMMS, are designed to streamline maintenance and extend the life of equipment. For many facilities, however CMMS never achieve management’s stated goals. Vast sums of money is spent on these advanced information processing and analytics platforms (also known as Preventive Maintenance Systems or Preventive Maintenance Software), only to have them be underutilized and even ignored or abandoned.