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Value Captured from Applying World Class MRO Inventory Strategies in a Petroleum Refinery

Andres Roberto Cincotta - Anibal Suarez SchmitzTo improve the management of MRO spare parts into competitive advantages, the current situation was qualitatively and quantitatively diagnosed, and a strategy was defined to capture value, mainly through the balance of stock-out risks, and the optimization of tied up capital expenditures.16 main recommendations were defined, and a new calculation method was established to segregate the MRO spare parts according to their criticality, and to uniquely determine the stock parameters.The results obtained for a sample of 6,222 SKUs, showed opportunities for improve data collection. In addition, a capture of MUSD 2.3 in obsolete spare parts was identified. The new method reveals a redistribution of criticalities for 43% of the MRO materials analyzed, while 94.5% require an update in the quantities of their stock parameters. This update implies an investment of MUSD 1.6, but with a combined potential capture of value of MUSD 850, due to mitigation of multiple independent risk scenarios.

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