MRO 6-Step Inventory Improvement Process

Under ISO55000, a company must demonstrate that it is managing its assets from the project phase to end of life.

For the assets, e.g. spare parts, a company must:

  • Demonstrate that it is managing its data (cataloguing, issue, returns, receipts, etc)
  • Have procedures in place (cataloguing, initial spares purchasing, inventory man)
  • Demonstrate risk-based decisions
  • Demonstrate continuous improvement

In our experience the creation of MRO Spare Parts Master Data is typically done very badly at the project phase and continues into the asset ownership phase.
Take a look at several case studies illustrating this.

Poor cataloguing leads to duplicate stock, loss of time trying to find spare parts, emergency purchases, excess stocking and hence excess costs.

Depending how bad you currently are, there is a potential for significant savings.

Ramsoft UK have been conducting workshops to help companies optimise and reduce their inventory for several years.

Ramsoft UK have developed several tools to support reductions in inventory.

  • MRO-OPT, a tool to optimise stock levels and to show % cost savings
  • MRO-BOM, a tool to support BOM building
  • MRO-Auditor, for conducting MRO Spare Parts Master Data Audits very effectively
  • MRO-CleanIT, to cleanse the spare part master data with standardised part descriptions and part numbers

Ramsoft UK have developed an inventory reduction process based on the following 6 phases:

  • Audit
    • Audit may cover Master Data, Documentation, Best Practices and a sample of Inventory Parameters
  • Define Process & Guides
    • Update or develop procedures and guides for inventory management
  • Cleanse
    • Master Data Cleansing including identify and remove duplicates
  • Rationalise
    • Seek reduction opportunities through standardisation
    • Identifying OPMs & APMs
    • Obsolete management
    • Assign cost classes
  • Optimise
    • Assign part criticality and service levels
    • Optimisation of stock levels
    • Selecting the right replenishment strategy
  • Measure Effectiveness
    • Measure performance