Maintenance Storerooms and MRO - Made Simple

About this title

The maintenance storeroom is a key department in a facility. It is a profit center and supports Preventive Maintenance (PM) and Predictive Maintenance (PdM) efforts. It supplies parts for emergencies and unexpected breakdowns. It contributes to improving reliability for maintenance by the purchase and storage of quality parts. Equipment Bills of Materials are kept up to date and maintained, so that the right parts, right quantities, with the right specifications are able to be determined by the buyer, and by the maintenance crew. The storeroom is an integral piece of the maintenance strategy.

Excellence of a maintenance strategy begins with the forecast. MRO Buyers are brought into the buying decisions when the capital plan is originally developed. The MRO Buyer may be involved in the actual purchase of capital equipment; but if not, involved in the selection and purchase of the initial replacement parts for the equipment. All of these efforts are based on a budget, with all variances investigated with the purpose of holding costs down and following the plan.

There are five strong pillars needed to develop a program of MRO (Maintenance parts, repair parts, and operating supplies) and the maintenance storeroom. The pillars are:

1. Storeroom Management
2. MRO Buying and Purchasing Management
3. Inventory Management
4. Supplier Management
5. Work Processes

The roof that holds the pillars together is the Computer System. Recommended is an Enterprise Resource Planning (ERP) system which includes all plants and common part numbers. The base consists of three things—management commitment, the establishment of links among departments and facilities, and the management emphasis on continuous improvement, quality assurance, and team involvement. All of these together create a solid base to move forward and become a reliability excellent storeroom that is responsive to the needs of maintenance, the plant, and the enterprise.

Acerca del Autor - Daniel DeWald

Daniel M. DeWald, CMRP, CPIM, CPM, CPMM, has over thirty-five years of experience in operational and leadership positions. His operational experience includes extensive involvement in logistics; materials management; purchasing from capital buying and operations to MRO; systems integration and implementation; personnel training and staff development; production control; inventory control; lean techniques in manufacturing; and supplier development.

Daniel has held numerous positions within operational organizations from shop floor to the executive level. Daniel has worked in many industries, including, automotive, heavy truck, appliance, metal stamping, gray-iron foundry, machining, injection molding, free brass rod, warehousing and distribution, and others in both consulting and full-time positions.

Daniel interacts well with people from all levels of the organization, which has been instrumental in the successful projects he has led. Daniel’s involvement in the value stream includes all facets, among them business strategic plan development, managing startups, developing lean plant layouts, establishing kitting for maintenance work orders, conducting management and employee training, plan implementation, production control, establishing key performance measurements, and sustaining ongoing operations. Daniel is an enthusiastic leader that gets results by involving and teaching the people he works with in order to ensure success both during the implementation and after his engagement is complete.

Daniel’s educational background includes a BS degree from Indiana University in Bloomington, Indiana, and holds an MBA from Xavier University in Cincinnati, Ohio. Daniel is APICS certified at the CPIM level. He also has a CMRP (Certificate in Maintenance Reliability Professional), a CPM (Certificate in Purchasing Management) and a CPMM (Certificate in Plant Maintenance Manager). Daniel is currently a member of Who’s Who International and is a published author in the field of materials management. He has served numerous positions in APICS, including three years as President of the Fort Wayne, Indiana APICS chapter. He is also a certified instructor for CPIM courses.

Contents

• Introduction
• Chapter One — MRO Model
• Chapter Two — Critical Success Factors
  • Planning
  • Cash Flow
  • Computer System Integration
  • Risk and Its Management
  • Customer Satisfaction
• Chapter Three — Setting Up and Managing the Storeroom
  • Supervisor and Manager Roles
  • Responsibilities of the Storeroom Superviso
  • Key Performance Indicators
  • Staffing
  • Storeroom Layout and Design
  • Layout and Design Attributes
  • Visible Storeroom
  • Storeroom Locators
  • Hazardous Materials
  • Satellite Stores
  • Preventive Maintenance in the Storeroom
  • Housekeeping and 5S
• Chapter Four — The Material Flow
• Chapter Five — Workflow Processes and Standard Operating Procedures
  • Requisitioning
  • MRO Buyer Purchasing Workflow
  • Supplier Ranking and Certification
  • Receiving
  • Receiving Workflow Process
  • Alternate Receiving Location or Secondary Receiving Location
  • Receiving Floor Organization
  • Material Handling Equipment in Receiving
  • Stock Putaway
  • Order Filling Cycle
  • Filling Requisitions (Non-Kitting)
  • Kitting in Maintenance
  • Visible Methods Used in Kitting
  • Delivery Methods
  • Return to Stock
  • Repair and Salvage
  • The Repair Work Process Flow
  • The Salvage Process
  • Sourcing and Selection of a Repair Center
  • Purchasing Equipment on the Secondhand Market
• Chapter Six — Inventory Management
  • Managing by ABC
  • Cycle Inventory Managed Through ABC Analysis
  • Storage Areas Managed
  • Obsolescence Budgeting
  • Storeroom Reorganization
  • Lot-Sizing Consideration
  • Shelf Life
  • Two Bin Kanban
  • Shelf Life Scrap Program
  • Spare Parts Utilization and Control
  • Equipment Bill of Material
  • Equipment Bill of Material Rules
  • Cycle Counting
  • Carrying Costs
  • Changing Storerooms from Expense Inventories to Asset Inventory 63
  • Maintaining an Adequate Supply of Inventory
  • Vendor Managed Inventory
  • Methods to Reduce Storeroom Inventories
• Chapter Seven — Other Key Concepts in Storerooms and MRO
  • Min/Max Levels
  • Parts Standardization
  • Obsolete Inventory
  • Economic Order Quantity
  • Carrying Costs
  • Replacement Asset Value
  • Safety Stock
  • Consignment
• Chapter Eight — Conclusion
  • Expectations
  • Benefit Tracking Table
• References
• About the Author