may2021 - 41

MANAGEMENT

Example 2

Figure 1

A shipping company owned thousands of old
shipping containers, and they repaired a large
number each year in their shop. One of the
most common repairs was the replacement of
the corner posts.
They used 400 corner posts a year, and the
OEM cost (as a spare part) was $396 each, for
a total of $158,400 per year.
They hired a fabricating shop to reverse
engineer the corner posts with particular
attention to the grade of steel (muffler grade
stainless) and the fit into the welding fixtures.
The fabricating shop came up with a price of
$199 each or $79,600 per year with a minimum purchase requirement of 100 pieces.
Since there was no investment, the ROI is off
the chart.

Big-ticket analysis

Part Number

Description

Value

Notes

Questions and potential actions

01

Mechanical seal

$7,350

Critical part: We keep a
dozen of these seals to make
sure we do not run out.

Do the math to see if 12 is too
few, too many, or just right

02

Main controller
circuit board

$12,213

These are not critical
because we have adequate
redundancy in this equipment

Should these be in stock at all?
Can these boards be repaired
to " like new " quality?

" What engineering action can be
taken to reduce the need for the
part (again, to zero if possible)? "
Joel Levitt

If a fleet needs to reduce the amount of mainÜ	The maintenance strategy changes (i.e. the
tenance, repair, and operation (MRO) inventoÜ	Highlight any parts where the asset has been
fleet hires a vendor for full service)
ry, the simplest way is to attack the big-ticket
retired (and there is no other asset that uses
Ü	The asset is improved by engineering
items. These are items with a value greater
the part)
Ü	Send the list to operations and maintethan $500, $1,000, or even $5,000. In later iterchanges initiated by the fleet or the OEM
Ü	Field reengineering to solve a particular
ations of this exercise, it is possible to lower
nance personnel
the ticket amount.
Ü	Have them identify items they would like to
problem
Ü	The asset moves on to a different duty cycle,
List all the items in stock with a value greater
keep (document why)
Ü	Lay out the remaining parts on the list and do
than your target. These represent most of the
so the failures change
The process to deal with obsolete items:
dollars on the shelf. Start with the costliest
a walk-through to ensure none are still needed
Ü	Print out a list of items with no activity for
spare you stock and make a list in a spreadÜ	The remaining parts are obsolete and can
the last two years
sheet like the example in Figure 1.
be removed
Ü	Cross off items that are for critical assets
Note the stocking policy for each part -
In most storerooms, about 10 percent of
Ü	Cross off items which do not belong on the
whether it is a capital spare or a critical spare.
the parts account for 80 percent of the value.
If it is a critical spare, skip the analysis for now.
list for another reason (document the reason)
Ensuring parts are being used, inventoried,
What action can be taken to reduce the
Ü	Using the system's data, determine where
and managed properly is crucial to the fleet's
success.
inventory level (to zero, if possible)? Consider
every item on the " no activity " list was used
consignment, accepting the risk of an
outage, sharing parts, etc.
What engineering action can be taken
HEAVY DUTY INDUSTRIAL/HYDRAULIC SHOCKIT CROWS FOOT SETS
to reduce the need for the part (again, to
AIR HAMMER POWERED SHOCKIT CROWS FOOT SETS FOR EASY ACCESS
zero if possible)?
* Must be used with Shockit Punches for maximum performance & warranty coverage
Some ways to reduce inventory levels:
* Uses the force and vibration of an air hammer
Ü	Standardize equipment
* Air hammer powered angled punch allows for use in tight places
LT1910-24 in use with LT1910PS
* Indexed holes designed to keep Shockit Punches from slipping off crows foot
Ü	Standardize supplies and suppliers
* Sets packaged in custom red display tray with clear cover
Ü	Develop a spare parts interchange list
* 30% more steel, 30% stronger
Ü	Consider what parts can be fabricated
* Built to precise ISO 1174-2 DIN tolerances
* Patent #7,677,143 and other patents pending
rather than purchased
Scan QR code
NEW T
C
* Punches sold separately - see below
or search LT1900
PRODU
Ü	Reduce obsolete parts
on YouTube
to see tool work!
Ü	Use only one location per part (even
LT1900 shown
with different numbers)
LT1900 10 Piece SAE Shockit Crows Foot Set
LT1910 10 Piece Metric Shockit Crows Foot Set
Ü	Reduce spoilage and shrinkage
* Must be used with Shockit Punches for maximum performance &
* Must be used with Shockit Punches for maximum performance &
warranty coverage
warranty coverage
Ü	Control the items subject to pilferage
NEW T
C
* AIR HAMMER POWERED
* AIR HAMMER POWERED
PRODU
Ü	Require the vendor to stock the fleet's
* Loosens hydraulic fittings on tractors, forklifts & heavy equipment
* Loosens hydraulic fittings on tractors, forklifts & heavy equipment
requirements
* Fits into small spaces between hydraulic lines
* Fits into small spaces between hydraulic lines
* 3/4 " , 13/16 " , 7/8 " , 15/16 " , 1 " , 1-1/16 " , 1-1/8 " , 1-3/16 " , 1-1/4 " , 1-5/16 "
* 14mm, 15mm, 16mm, 17mm, 18mm, 19mm, 20mm, 21mm, 22mm, 24mm
Ü	Automate various functions
Ü	Investigate stocking options
LT1910PK Shockit Punch Kit
Ü	Limit what is stored

Obsolete parts

It is not uncommon for parts to become
obsolete for a fleet's requirements. The
stock room has to face the fact that
parts become outdated for a variety of
reasons. Some of these reasons include:
Ü	The asset is retired

Kit includes:
LT1910PS - 5.5 " Short Punch
LT1910P - 11 " Standard Punch
LT1910PL - 22 " Long Punch

* 8mm Shockit Punch tips are designed to fit
precisely into indexed holes on all Shockit tools
for maximum performance & warranty coverage
* Offset design for greater access
* Non-turning slots
* Individual punches also sold separately
* Patent pending

NEW T
C
PRODU

FleetMaintenance.com/Inquire

May 2021 | FleetMaintenance.com

41


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may2021

Table of Contents for the Digital Edition of may2021

Uptime: ADAS service strategies
Editor's Note: Vocational vehicle VMRS
Equipment: Vehicle complexity and its impact on maintenance
In the Bay: Why fleets should bypass the urge to bypass aftertreatment systems
Shop Operations: Considerations for optimal shop efficiency
Under Vehicle: Retreading done right
Body & Cab: Latest developments in electric APUs
Management: The business of parts
Training: Bolstering your technicians
Fleet Part & Components
Tools & Equipment
Classifieds
Guest Editorial: Keeping the lights on
may2021 - 1
may2021 - 2
may2021 - 3
may2021 - 4
may2021 - 5
may2021 - 6
may2021 - 7
may2021 - Uptime: ADAS service strategies
may2021 - 9
may2021 - Editor's Note: Vocational vehicle VMRS
may2021 - B1
may2021 - B2
may2021 - B3
may2021 - B4
may2021 - 11
may2021 - Equipment: Vehicle complexity and its impact on maintenance
may2021 - 13
may2021 - 14
may2021 - 15
may2021 - 16
may2021 - 17
may2021 - In the Bay: Why fleets should bypass the urge to bypass aftertreatment systems
may2021 - 19
may2021 - 20
may2021 - 21
may2021 - 22
may2021 - 23
may2021 - Shop Operations: Considerations for optimal shop efficiency
may2021 - 25
may2021 - 26
may2021 - 27
may2021 - 28
may2021 - 29
may2021 - 30
may2021 - 31
may2021 - Under Vehicle: Retreading done right
may2021 - 33
may2021 - 34
may2021 - 35
may2021 - Body & Cab: Latest developments in electric APUs
may2021 - 37
may2021 - 38
may2021 - 39
may2021 - Management: The business of parts
may2021 - 41
may2021 - Training: Bolstering your technicians
may2021 - Fleet Part & Components
may2021 - Tools & Equipment
may2021 - 45
may2021 - 46
may2021 - 47
may2021 - 48
may2021 - Classifieds
may2021 - Guest Editorial: Keeping the lights on
may2021 - 51
may2021 - 52
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https://www.nxtbook.com/endeavor/fleetmaintenance/december2021
https://www.nxtbook.com/endeavor/fleetmaintenance/october2021
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https://www.nxtbook.com/endeavor/fleetmaintenance/august2021
https://www.nxtbook.com/endeavor/fleetmaintenance/july_2021
https://www.nxtbook.com/endeavor/fleetmaintenance/june2021
https://www.nxtbook.com/endeavor/fleetmaintenance/may2021
https://www.nxtbook.com/endeavor/fleetmaintenance/toolsandequipmentsupplement-april2021
https://www.nxtbook.com/endeavor/fleetmaintenance/april2021
https://www.nxtbook.com/endeavor/fleetmaintenance/march2021
https://www.nxtbook.com/endeavor/fleetmaintenance/february2021
https://www.nxtbook.com/endeavor/fleetmaintenance/December2020
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https://www.nxtbook.com/endeavor/fleetmaintenance/June_2020
https://www.nxtbook.com/endeavor/fleetmaintenance/may2020
https://www.nxtbook.com/endeavor/fleetmaintenance/toolsandshopequipmentsupplement
https://www.nxtbook.com/endeavor/fleetmaintenance/april2020
https://www.nxtbook.com/endeavor/fleetmaintenance/march2020
https://www.nxtbook.com/endeavor/fleetmaintenance/february2020
https://www.nxtbook.com/endeavor/fleetmaintenance/december2019
https://www.nxtbook.com/endeavor/fleetmaintenance/october2019
https://www.nxtbook.com/endeavor/fleetmaintenance/september2019
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https://www.nxtbook.com/endeavor/fleetmaintenance/july2019
https://www.nxtbook.com/endeavor/fleetmaintenance/june2019
https://www.nxtbook.com/endeavor/fleetmaintenance/may2019
https://www.nxtbook.com/endeavor/fleetmaintenance/april2019
https://www.nxtbook.com/endeavor/fleetmaintenance/industryinnovations-March2019
https://www.nxtbook.com/endeavor/fleetmaintenance/toolsandshopequipment
https://www.nxtbook.com/endeavor/fleetmaintenance/march2019
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