INCREASE PRODUCTION THROUGH IMPROVED SPARE

PARTS AVAILABILITYRobert Lamarre

Gestion Conseil Robert Lamarre & Associés (GCRL) and IMAFS Inc.

info@imafs.com

Identify product family and demand stream

Criticalor

not

Stockor

non stock

New

Inactives (no usage for X

months)

A B C DBased on Hits or

usage value

Updated Annually Monthly Manual

Reparableor

not

Obsoleteor

not

Cla

sses

1. Parts Classification - Process

Measures existing levels

Allows service goals on part’ criticality level

Allows service goals by class, by family, by warehouse

Safety stock set in line with service goals

Simulations to measure impact of service goals variations

Dashboard to track service results

Tools to take corrective actions

2. Managing Service

3. Managing Demand

Better data for accurate forecasts

4. Forecasting Demand

Good solid statistical forecasts

Forecasting methods that

account for demand

trends, seasonality and intermittence

Best fit by item

Possibility of manual

adjustments

Filters & alerts

Can integrate maintenance planning data

Better forecasts = better service + less stock

Bad lead time information result in stock outs or surplus stock

5. Managing lead times

Lead time

Dynamic calculation

By vendor and transport mode

Cleansing of extreme delays

Internal lead time managed by components

Possibility of manual control

Compare real lead time with vendor

promises

6. Optimizing Inventory Parameters$

Ordering Stocking

costs costs

DATA BASE ERP or CMMS

Calculation

SS Lead timeMin MaxForecasting

Lot sizes

Service objectives per class /

family/ warehouse

AdjustmentsSimulation

7. Roles and Responsibilities

Clarifying roles and responsibilities

Who is responsible for inventory ?

What are the roles of Supply Chain Management ?

What are the roles of Maintenance ?

Change management is very important

8. Policies and Procedures

Service goals

Policies clarify roles and responsibilities

Procedures document how to address issues

Well documented policies and procedures are essential

9. Surplus Stock

Action plan to dispose of surplus stock

Clear responsibilities

10. A Good Inventory Optimization System

Scientific and dynamic calculation of Min-Max

Results:

Increase of service level

Inventory reductions

Minimization of downtimes

Increase of profit and throughput

11. Key Performance Indicators

12. Exception Reports

Inventory analysis and exception reports should give full picture of inventory management results with pointers on necessary corrective actions with drill down possibilities

Thank you!

QUESTIONS