There are few if any KPIs to measure the efficiency and effectiveness of the MRO Storeroom processes. If turnover rate is calculated, it is probably well under 2.0 turns per year, most likely less than 0.4 turns typically seen during assessments.
Your storeroom is not fully secured and store issues are based on an “honor system” for documentation of item removal, most probably the cycle counts demonstrate high count variances to storeroom records which must be reconciled.
A walk through the storeroom shows that many locations don’t have shelf labels or bin location, causing mechanics to roam the storeroom aisles in search of parts for waiting machinery.
The service level of the storeroom is well below requirements; tradesmen complain parts are always out of stock, parts are missing when the computer stated availability, and many parts are damaged from poor storage practices.
The bins are heavy with obsolete parts, choking the allotted space and causing poor storage practices. We’ve seen cases of nearly 50% obsolescence in older operations. Many machines had been removed from operation but the spares remained on the shelves, taking up valuable real estate.
Kitting, staging and delivery of parts and materials for planned work is poorly managed or not done.
There is no “PM” program to care for major spares such as motors.
There are no documented MRO business processes (Flow charts, RACI diagrams, and work instruction documents) for the MRO storeroom and materials management activities. Every day is a new day.
These are just a few of the indicators of poor MRO foundation processes. Any of these can be adding significant expense dollars to your operation due to inadequate support for the conversion of your end products due to operational downtime caused by MRO deficiencies.
MRO deficiencies appear in two areas of impact: lost operating time ultimately causing reduced revenues, and excessive MRO inventory costs impacting shareholder value. The balance between improving throughput and reducing bottom line costs is a tricky area in which to maneuver and only sound inventory management processes and methods based on best practices will help you to achieve this balance.
