Up Time Magazine- August/September 2008

Identify Storage Issues and/or Locations It may be that your storeroom is organized in a way that separates the inventory categories. It may be that some of your spares require special treatment for their own care and to improve their longevity. In either case, it is worthwhile setting out your expectations so that people will not have to guess! when inventory is to be ordered and how it is to be stored. The Spares Stocking Policy is different than your inventory management procedures, as these procedures usually relate to the administration of the inventory, that is who does the ordering, how items are booked out, and so on. Many organizations have good and robust inventory management procedures and, as such, are good inventory administrators. It is, however, only by the adoption of an appropriate Spares Stocking Policy that companies become good inventory managers. Previously in this article it was stated that a Spares Stocking Policy saves money through reduced expenditure and improves reliability through reduced downtime. This alone makes a Spares Stocking Policy the one policy that you may not have, but that you really do need. Spares Stocking Policy Checklist Categories Defined Categories are MECE Simple and Defined Process for Calculating Stock Holding Based on Category Type Guidance on Timing of Purchase Identified Storage Issues Purchasing/Pricing Information Involvement of All Key Personnel Policy Communicated Compare Current Holdings to New Policy Provide Purchasing and/or Price Information Similarly to number 4, your policy may include guidance on procurement and/or pricing. For example, some items may need to go through a central contract arrangement and others may be purchased locally. Making these requirements clear will help ensure that the right price is paid for the items that are purchased. Sources 1. Source: Wikipedia 2. When is Critical Really Critical? Phillip Slater, Uptime Magazine Apr/May 2008 A Checklist for Development Figure 2 shows a checklist that you can use to review your progress in developing your Spares Stocking Policy. This is a quick and easy tool to see whether you have all the issues covered. In addition, here are a few other thoughts on setting your Spares Stocking Policy. • Your Spares Stocking Policy does not have to be a highly detailed and complex document. As a starting point, try setting a few simple guidelines. • The best time to determine your policy is when you are establishing your storeroom or inventory. If you already have these in place, then the best time to determine your policy is now! • The responsibility for establishing a Spares Stocking Policy lies with the Inventory Manager or whoever controls the inventory management processes. However, it is recommended that you involve all of the key people that influence your inventory. This includes: storeroom personnel, maintenance, engineering, procurement, finance, and inventory management. • Any policy is worthless if it is not followed, so you must be prepared to communicate the new expectations and follow up on its use. • Once your policy is developed, compare your current holdings to your policy in order to identify gaps and opportunities. Phillip Slater is an Inventory Process Optimization Specialist and the author of the books Smart Inventory Solutions (Industrial Press 2007) and The Optimization Trap. Phillip is also the developer of the Inventory Cash Release Process and Inventory Process Optimization. For more information contact Phillip at pslater@InitiateAction.com. Figure 2 - Spares Stocking Policy Checklist You Need To Be More Than a Good Administrator The key reason to develop a Spares Stocking Policy is that it sets the expectation of how and www.uptimemagazine.com 53 http://www.sdtnorthamerica.com http://www.sdtnorthamerica.com http://www.uptimemagazine.com

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Up Time Magazine- August/September 2008 Contents Upfront Upclose Information Technology Lubrication Infrared Maintenance Management Motor Testing Precision Maintenance Reliability Ultrasound Vibration Upgrade

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