Hannah Draper, Revere Inc., Birmingham, Ala.

Picture this scenario: the main feed water pump is down--another emergency repair. Production has halted. The mechanic has the work order, the tools, the time ... but no parts. He calls the stores clerk, who now is searching frantically. Each minute costs the company thousands of dollars in lost production. Tempers flare; the production manager yells at the foreman; the foreman screams at the mechanic; the mechanic shouts at the stores clerk; the stores clerk mumbles that it's not his fault that someone grabbed the wrong part--it was here just yesterday!

And somewhere in this flurry of tension, tempers, and irritation, the plant manager has time for only one thought: "We are wasting hundreds of thousands of dollars because one strategic part can't be found. There must be another way." Indeed there is!

Just as many managers realize the value of implementing a computerized maintenance management system to track maintenance work and equipment data, they also are realizing that there is more to a smoothly running maintenance organization than tracking the equipment and maintenance work. Other areas of plant operations impact maintenance's effectiveness. Spare parts are as critical to work order completion as are proper labor resources, tools, and scheduling. Integrating a computerized parts and inventory tracking system is the solution--a solution with direct benefits across multiple departments.

Who benefits? Maintenance, inventory, purchasing, the bottom line, and the consumer all benefit.

The benefits become clear as you learn the scope and functionality of a parts and inventory component in a computerized maintenance management system application.

Vast amounts of capital are tied to inventory. Any stores manager can attest to the fact that a fine line exists between storing sufficient inventory and storing a costly surplus. When inventory falls short of demand, maintenance work cannot be performed, often to the detriment of production. When too many parts are on-hand, or the wrong parts are stocked, potential investment capital is frozen.

A parts and inventory system allows you to track detailed parts information thoroughly, including preferred vendors, average costs, part number cross references, warehouse and bin locations, physical inventory counts, reorder parameters, safety stock quantities, and more.

A basic parts and inventory system promotes the antithesis of the chaos described in the first scenario. The inventory is tracked in the computer automatically; reorder quantities and lead times are calculated; costs are monitored; and above all else, the parts are available when the requests come in and maintenance work can continue on schedule.

The basic system is only the beginning
Picture another scenario: the main feed water pump is down--another emergency repair. Production has halted. The mechanic has the work order, the tools, and the time ...then he goes to the touch-screen computer to order the parts critical to this repair. One touch of the screen and he sends a request to the inventory department. The mechanic doesn't know the part number. The mechanic doesn't know the warehouse. The mechanic knows that the pump seals are needed, and they need to be issued now.

No fancy computer jargon. No complicated search algorithms. Surprisingly, not even a phone call to the inventory personnel. A touch of the screen and the inventory system interfaces with a robot in the warehouse. Because the parts data is stored electronically, the robot knows which aisle, tier, bay, and bin the part is stored in; it knows how many parts are available and where the overflow locations are. With no human interaction, the robot moves down the aisle, selects the drawer, places the drawer on the table where a stores clerk grabs the parts from the bin and sends the robot on the next request.

The inventory clerk places the seals in a plastic cylinder, enters the location of the main feed water pump, inserts the cylinder in a pneumatic tube, and pushes a button. The parts are automatically rushed to the equipment location. A few minutes later, the mechanic has the parts in hand and can start the emergency work. Behind the scenes, the computerized maintenance management system updated the inventory quantities, tracked the parts usage information for the equipment location, and stored associated costs. In addition, the pump seals inventory has now fallen below the reorder quantity so a purchase order is generated automatically then transmitted electronically to the vendor.

No aggravation, no significant labor involvement. Just timely work completion. Most of all, minimal impact on production. The computerized system has effectively streamlined an otherwise chaotic and costly process to create an efficient, cost-effective, inter-departmental flow of activities.

Now isn't that what every manufacturing facility strives to accomplish?
 

So who benefits?
Maintenance. Their essential job cannot begin without the right parts. A mechanic only cares that the right parts in the right quantities are available easily when needed. No question that maintenance and spare parts inventory are joined--for better or worse--in a reciprocal and dependent relationship. The computerized system ensures a synergetic and mutually beneficial alliance.

Inventory benefits. They know which parts are located where and how many of each is available, on inspection, on order, in transit, issued, and so on. They can analyze parts data and determine realistic reorder quantities. They can compare physical counts with system data to reveal discrepancies and potential weaknesses in the inventory management that might go undetected in a manual process. Additionally, they can provide higher quality and timely service to the maintenance department.

Purchasing benefits. With the parts, inventory, and vendor information stored in the database, generating purchase orders, submitting them to the proper vendor, and tracking part receipts becomes an uncomplicated and expedient operation.

The bottom line benefits. The reality is that with every labor hour saved, with every prudent inventory decision implemented, with every work order completed on time, and with every production hour used to its maximum potential, the company profits. Not in nebulous, theoretical reports,but in real dollars resulting from real savings.
 

The customer benefits. The company is concerned with customer satisfaction; this means the quality and the cost of the product. Every time-saving, resource-saving mechanism an operations manager implements benefits the customer ultimately, directly and indirectly. Streamlining maintenance and improving inventory control foster quality and value in the end product.

Technology is advancing quickly and touching every aspect of business. Wherever possible, it behooves business to implement the technology that gives rise to efficiency, lower operating costs, and higher production rates.

Spare parts inventory is an expensive and important element of every manufacturing facility. As such, it can be an area of much savings and improvement also.

As you consider your inventory system--manual or computerized--ask yourself, "Do we know what parts are in stock and in which location? Do we know how much capital is invested in the inventory and how much inventory is truly required? How many times are parts unavailable when they are needed? How much time and money does this cost the company? Do the maintenance and stores departments interact in a cooperative manner? Do we know the reorder points and quantities for our critical parts?"

Think in terms of streamlining the process, ensuring effectiveness, generating useful data, and saving money.