Frank Murphy, CPMM Greenville, SC

MRO Parts Storeroom Design, Setup, Organizing and Inventory

Clean, Lean and Reliable The New Standard for MRO Parts Storerooms

Clean, Lean and Reliable 1. The Emerging Standard 2. The Excellence Required 3. The Efficient Setup 4. The Effective Results

Storeroom Observations • Storerooms are not organized, are inefficient, and are costly to operate. • Few companies know what parts or tools they have on hand, or where they are. • Parts databases are inaccurate, not up-to-date, and contain duplications.

• Parts-related production downtime is very costly and contributes directly to higher maintenance costs. • Parts storage areas represent a major source of corporate maintenance savings.

• Organized storerooms correct the costly inefficiencies generated by unorganized and cluttered storerooms.

Are these storerooms Clean, Lean and Reliable ?

$ Deal $ or No Deal

Clean, Lean and Reliable

NO Deal !

Becomes

Jeopardy !

Clean, Lean and Reliable

The Emerging Standard

Clean, Lean and Reliable

1. The Emerging Standard

If permanent change is to be Implemented and practiced, there must be:

Commitment to that change.

Comprehension about the change.

Consistency in its application.

1. The Emerging Standard A.

Lean and Reliable standards are being implemented throughout the manufacturing industry.

1. The Emerging Standard

B. Parts storerooms become a cost-savings center.

1. The Emerging Standard Improved Purchasing Practices  CMMS – Automatic PR/PO Generation  EDI – Electronic Data Interchange  Blanket PO’s  Consignment Purchasing

1. The Emerging Standard  Part duplications eliminated through consolidation.

Fafnir 210PP, BCA 210CC, KDH 299510, KBC 6210 and General 62102RS are all the same bearing.

Source: International Source Index

1. The Emerging Standard C. Storeroom continually evolves to keep pace with emerging maintenance practices, technologies and demands.

Clean, Lean and Reliable

The Excellence Required

2. The Excellence Required

A Clean, Lean and Reliable Storeroom

MUST

A. Provide required support for all maintenance programs: PM, PDM, TPM, RCM.

Vibration Analysis

Ultrasonic Testing

Thermography

2. The Excellence Required T otal Productive Maintenance Operators perform daily, routine maintenance .

2. The Excellence Required HINT Audit the equipment for parts while it is not operating during PM’s, shutdowns or outages.

Refer to the manufacturer’s equipment manual for internal or “hidden” parts.

2. The Excellence Required A Clean, Lean and Reliable Storeroom

MUST

B. Require permanent security and cleanliness of the storeroom.

2. The Excellence Required

2. The Excellence Required A Clean, Lean and Reliable Storeroom

MUST

C. Stock and issue parts when needed through good storeroom management.

2. The Excellence Required  CMMS is an excellent storeroom management tool.

• Removes the manual burden.

• No clipboards, chits or checkout sheets.

• Bar coding enhances speed and accuracy.

2. The Excellence Required

2. The Excellence Required

2. The Excellence Required  Parts scheduled for outages arrive before they are needed.

 Parts are reserved for outages.

 Parts database is continually updated.

 Manpower is used efficiently

Clean, Lean and Reliable

The Efficient Setup

3. The Efficient Setup A. Location Location Location (The

Where

and

How

to store parts.)

P r e r o o m a r e a i c t u r e o f s t o 3. The Efficient Setup

3. The Efficient Setup

3. The Efficient Setup

3. The Efficient Setup B. Consolidating and standardizing:      Reduces the number of parts to store.

Reduces the overall inventory value.

Eliminates database duplications.

Uses up overstock while reducing parts spending.

Combines like parts in one place.

3. The Efficient Setup C. Organizing sorts parts generically and by machine or process.

 Maximizes use of available space.

 Increases part storage density.

 Expedites part location and retrieval.

 Enables rapid and accurate cycle counts and physical inventories.

3. The Efficient Setup D. Bar coding technology:  Increases speed and accuracy of parts checkout.

 Eliminates hand-written mistakes.

 Adjusts inventory levels automatically.

 Enhances part reordering/receiving process.

Bar Coding Benefits

• Precise and accurate • Saves time and man-hours • Handles several functions simultaneously – Date and Time stamp – Part Number & Location – Part Destination – WO, CC, Equip.

– Who checked part out • Easy to use • Eliminates paper forms • ROI is generally less than a year

3. The Efficient Setup E. Removes these parts from the storeroom and the parts inventory database.

Obsolete parts - Cannibalized parts - Junk.

Questionable parts that:  Age has dried out,  Moisture has rusted,   A hostile environment has corroded, and Call into question their usability.

3. The Efficient Setup HINT In your CMMS, enter the date when the next complete physical inventory is conducted. A “

Date Last Used or Counted

” report becomes the baseline to determine how long a part has been in stores.

Clean, Lean and Reliable

The Effective Result

4. The Effective Result A. A

LEAN

MRO Storeroom 1. Maintains a lower, on-hand parts dollar value.

 Purchasing, freight, and carrying costs are reduced.

 Overnight and air freight are practically eliminated.

This cost can be practically Eliminated !!

4. The Effective Result A

LEAN

MRO Storeroom 2. Reduces the number of parts requiring on-hand storage.

   Consolidation uses up overstock.

The Min/Max levels are adjusted.

The parts database is accurate and up-to date.

4. The Effective Result A

LEAN

MRO Storeroom Is this one part, or are these different parts ?

62062RS1 6206-2RS1 6206.2RS1

62062RS-1 6206/2RS1 6206.2rs1

4. The Effective Result A

LEAN

MRO Storeroom They are all the same bearing, a 30MM roller bearing with 2 rubber seals.

In one plant, IMS found this same bearing entered 10 different ways resulting in a total of 160 bearings being stored in different locations !!

4. The Effective Result A

LEAN

MRO Storeroom 3. Maintains a minimum, yet sufficient, number of parts on hand.

How is this determined ?

4. The Effective Result A

LEAN

MRO Storeroom  Historical data analysis.

 Storeroom knowledge and experience.

 Input from the Maintenance Department.

4. The Effective Result B. A

RELIABLE

Storeroom 1. Parts are located quickly .

4. The Effective Result A

RELIABLE

Storeroom 2. Parts are on-hand, issued to, and reserved for Work Orders.

 Pick Lists are utilized for PM’s, outages and shutdowns.

 Parts are reserved in CMMS inventory database.

4. The Effective Result A

RELIABLE

Storeroom 3. Parts are issued, ordered, received, checked, cross referenced and stored in a timely and orderly manner.

4. The Effective Result A

RELIABLE

Storeroom 4. Parts are available when needed.

  Maintenance efficiency is increased.

Downtime is reduced or eliminated.

4. The Effective Result What are the Key Performance Indicators ?

Having the:  Right part  At the right time  In the right quantity

What Is The Ultimate Outcome ?

A

LEAN

and

RELIABLE

Storeroom Contributes directly to the financial well-being of the company and enhances its ability to compete in the world marketplace.

What Is The Ultimate Outcome ?

$$$$ Good Deal $$$$

No Jeopardy

I need one of those square things with the pipe on the side, a little pluggy doodad, and a hole in the middle where the skinny part goes.

Sure, what color ?

Questions?