Outsourcing MRO Finding a Better Way

About this title

Many supply chain professionals state that MRO stores management is a simple task easily performed. In practice, actual MRO processes are often maligned, esoteric, ill-defined, and complicated. The vagrancy of poor MRO supply performance has been an accepted cost of business with little effort to improve or change for the better. MRO represents the highest percentage of cost recovery opportunity for consumers of MRO products and should be a major target for reliability and profit improvement.

Having over 50 years in the MRO supply chain, George Krauter shares his expertise and experience through a collection of case studies, vignettes and memories. The goal of Outsourcing MRO: Finding a Better Way is to help future MRO practices contribute to the continuing growth of the American economy.

Acerca del Autor - George Krauter

George Krauter was the Founder, President and CEO of Industrial Systems Associates before his retirement. He currently serves as Vice President for Storeroom Solutions, Inc., Radnor, PA. Mr. Krauter is recognized as the originator of the industrial supply chain concept that became known as integrated supply. He has participated as a guest speaker at Reliability 2.0, ISM Annual Indirect Procurement Conference, International Maintenance Conference (IMC), The Conference Board’s President’s Council and events for APICS, SMRP and ISM professional chapters. Mr. Krauter is recognized as an authority on methods to optimize costs and achieve reliable, maintenance-connected MRO storerooms. He has published his experiences in Uptime Magazine, Food Manufacturing, My Purchasing Center,Industrial Maintenance & Plant Operation (IMPO) and Supply & Demand ChainExecutive. Mr. Krauter holds a B.A. and M.B.A.A. from Temple University and has conducted seminars internationally in Oslo, Abu Dhabi, Puerto Rico and Mexico, as well as sessions at Duke University, MIT, Howard University and Temple University. He lives in Bucks County, PA, with his wife Joyce; all grandkids live within eating distance.

Contents

Acknowledgments 
Introduction 
Chapter One: The MRO World

• The History
• MRO: What Is It? Where Is It?
• The Situation
• The MRO Survey Results
• The Barriers to Achieving Optimum Cost Reduction

Chapter Two: MRO Insights

• Do You Have a “Perfect Storm” Room Rather Than a Perfect Storeroom?
• Bad Descriptions, Bad Decisions, High Costs
• Critical Spares Reliability
• Why Is MRO Ignored?
• Connecting MRO Stores to Reliable Maintenance
• Maintenance and Your MRO Storeroom – Coordinated vs. Uncoordinated
• Reasons for MRO Status Quo: The Maintenance Department
• The RFQ Process
• Inherent Flaws in the Market Basket Process
• The Cost of Processing the Purchase Order Cycle

Chapter Three: Third-Party MRO, Integrated Supply, Outsourcing, Insourcing, Systems Contracting, Vendor Managed Inventory and a Who Knows What?

• Integrated Supply – What’s In a Name?
• Integrated Supply or Not? Why Outsource MRO Operations?
• Implementing MRO Change
• Assessing Value
• Insightful Questions into the MRO World
• Why Can’t We Do It Ourselves?
• Implementing Lean Initiatives; Eliminating Waste (MUDA)
• Resistance to Change – Top Five Scenarios
• The MRO Minefield: 50 Ways to Lose Your Program

Chapter Four: MRO Case Studies

• U.S. Flan: The Best Dang Flan in The World
• Whose Program Is It Anyway?
• The Consultant’s vs. the 3PMRO On-Site Provider’s View
• Aggregating MRO For Reliability and Profit

Summary
Epilogue
About the Author