Statistics for Inventory Control Management

Introduction

Many organizations today have mastered the basics of inventory management for production raw materials, but do not realize that inventory control for maintenance supplies and equipment spare parts requires very different procedures and objectives. Inventory decisions can impact equipment uptime. Poor warehouse controls can derail the best-laid plans of the maintenance and engineering function.

This course will discuss all the specifics to:

• Provide better inventory support for Computerized Maintenance Management Systems (CMMS)
• Maximize the return on inventory investment
• Significantly elevate the effective planning and control of spares inventory
• Leave you with critical techniques and tools used by world-class companies

Objectives

• Provides a framework for improving ROI and reducing inventory investment
• Establishes the best methods for inventory analysis and improvement actions
• Demonstrates the use of spares inventory segmentation for demand planning
• Highlights the problems found in most spares warehouse environments
• Reveals the best approach to improving inventory record accuracy
• Outlines the fundamentals of warehouse organization and management Identifies the correct supporting roles for the purchasing function and suppliers
• Suggests the key weaknesses of CMMS tools that must be addressed
• Improves the coordination of inventory management with maintenance management
• Provides the opportunity to practice course concepts and create a personalized plan for action

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This course is designed for managers, supervisors and professionals responsible for the design, control and use of spares inventory management systems, with or without a Computerized Maintenance Management System (CMMS). It is also beneficial for managers in finance, operations, purchasing, maintenance and warehousing who have day-to-day responsibility for proper control, availability and accuracy of spares inventory

Course Outline

DAY 1: Maintenance Systems Overview and Role of Inventory

• Fundamentals of Work Control, Planning and Scheduling
• Evaluating Computerized Maintenance Management Systems (CMMS)
• Understanding spares Inventory as a Risk Management Tool
• New Rules for Effective Inventory Control
• Integrating Inventory Plans with Maintenance System Plans
• Measuring Customer Service Effectiveness
• Improving Warehouse Effectiveness
• Determining Your Inventory Return on Investment (IROI)

DAY 2: New Paradigm for Spares Inventory Control: Using Historical Demand Data

• Understanding the Limitations of Min/Max Inventory Control Systems
• Using a Hybrid Inventory Management System
• Principles of Forecast Simulation
• Setting Up a System for Every Scenario
• Integrating Demand Data with Inventory Planning
• Alternative Methods for New Item Management
• Establishing the Right Controls and Measurements
• How Marketing Intelligence is Used in Spares Inventory Systems

DAY 3: Spares Inventory Segmentation for Improved ROI

• The Problem with Traditional ABC Approaches
• A New ABC Inventory Segmentation Approach That Works
• Improving Warehouse Utilization and Record Keeping
• Planning Total Inventory Levels
• Aggregate and Item Financial Data
• Projections for Warehouse Capacity & Load Planning
• Aligning System Settings With Inventory Projections
• Monitoring Inventory Flow and Creating a Forecast

DAY 4: Case Study, Group Assessment, and an Improvement Plan Template

• Spares Inventory Improvement at a Large Nitrogen Complex
• Establishing an Opportunity Assessment Plan
• Using Excel to Analyze Inventory and Usage Data
• Demonstration of Inventory Control Concepts & Principals
• Key Reports For Inventory Analysis
• Developing an Action Plan for ROI Improvement
• Creating Forecasts for Suppliers

DAY 5: New Roles for Maximizing Spares Inventory Investment

• Using Safety time Instead of Safety Stock
• The New Concepts of EOQ
• Maintenance Personnel Responsibilities for Improved Inventory Management
• Automating Replenishment Orders
• New Approaches For Supplier Support Agreements
• The Sales Role of the Procurement Function
• A New Emphasis on Supplier Response Times
• Summary of Learning and Takeaways