Reduce Parts Cost While Boosting Maintenance Performance and Production
Inventory & Storeroom Optimization

Spare parts, materials, and supplies for MRO (maintenance, repair, and operations) often represent millions of dollars in inventory―yet the majority sits unused, locking up working capital year after year. Often, personnel cannot locate items, creating production delays and encouraging stocking of duplicate parts. Under these conditions, MRO expenses soar, tying up more working capital and resulting in measurable profitability losses. 

That’s just the tip of the iceberg. Without adequate spare parts management, deferred maintenance becomes the norm and breakdowns increase. As a result, overall equipment effectiveness (OEE) is drastically reduced, and operations and maintenance personnel must constantly hunt down parts to make emergency repairs.  

To help companies increase materials efficiency and optimize costs, Performance Consulting Associates (PCA) has developed a five-part, intensive approach to Inventory Optimization that leverages physical, procedural, and technological enhancements to achieve meaningful change. In sum, this approach provides organizations with the control and visibility they require to optimize inventory, reap significant service improvements, virtually eliminate stock-outs, reduce working capital requirements, and secure rapid ROI. 

Plants that adopt all these solutions can reduce overall MRO inventory costs by 20 to 30%.

• Stores Best Practice Playbook: This deliverable, built from Performance Consulting Associates’ Performance Plus MRO Materials Management Reliability Model, equips enterprises with global-standard best practices proven effective in all industries. The collection of processes, policies, and procedures can be carried across all sites and provides the basis not only for current operations but also for training and continuous improvement initiatives. PCA’s Stores Best Practice Playbook details the linkage formed by planning and scheduling between maintenance work management and the storeroom. 
• Storeroom Optimization: Working with organizational stakeholders and team members, PCA inspects, analyzes, and reconfigures for optimal use the facility’s physical MRO inventory storeroom and equipment.
• Integration with Planning: The Performance Plus methodology helps to ensure that work order execution is optimized by ensuring that spares are on hand and kitted before jobs are scheduled, eliminating idle craftspeople, wasted overtime, and extended downtime.
• Spares Catalog Standardization: PCA works with the best catalog data improvement organizations to help ensure that your catalog does not have duplicate and obsolete parts, and each record includes the information needed to identify the right parts for each job plan. 
• BOM Development: PCA can help your organization develop planner bills of materials that streamline the process of finding spares for each job.
• Physical optimization of the storeroom space and equipment
• Policies and procedures to optimize internal operations and improve customer service
• Optimization of order points, order quantities, and lead times
• Standardization of part nomenclature
• Development of work process accelerators, like bills of material
• Accurate key performance indicators (KPIs) 

Inventory Optimization is just one component of PCA’s end-to-end asset management and performance optimization solution. To ensure superior asset longevity and availability and achieve the highest ROI possible, we recommend enterprises engage in the full Performance Plus methodology. The methodology integrates spare parts inventory management strategies into company culture to improve OEE and simplify operations and maintenance processes.