Optimizing Critical Maintenance Spares and Material Inventories for Manufacturing
Because the process for slashing MRO inventory bloat, reducing costs and improving service levels shouldn’t be discreet
An Oxford Economics survey of executives of the largest global manufacturing organizations shows 68% expect their companies to undergo significant business process transformation over the next 3 years. The study finds that leveraging production centric strategies is now common and considered “price of entry” in a viable manufacturing business. The next true competitive advantage will come from optimizing the effectiveness of the production assets.
Oniqua Intelligent MRO supports the optimization of production assets by guiding the dynamic business environment. While the organization has high production requirements or it shifts to a cost reduction phase, continuous MRO optimization aligns the business strategy with the MRO practice.
Manufacturing businesses also face risk in almost every aspect of their operation. Safety, environmental, waste, delivery, and many other elements of the business must be considered dynamically to minimize risk. How does MRO factor into the risk equation?
Aberdeen Group found that 50% of unscheduled downtime can be attributed to poor spare part management. Ensuring the right parts are available at the right time reduces corrective repair time to keep the asset functioning as designed. In addition, stocking the appropriate item levels reduces the risk of tying up cash flow that could be better applied in other parts of the business.
Process Manufacturing has specific needs based on continuous manufacturing processes. Downtime is extremely costly. Planned shutdowns must be executed efficiently. There is a very high dependency on effective asset management to ensure continuous production. The challenge is to balance the need for production continuity and the cost to sustain the production.
Criticality and business environments are important factors in determining the balance between minimizing physical asset and MRO inventory levels; and the risk of losing millions of dollars in lost asset availability.
Oniqua Intelligent MRO is helping process manufacturers to improved service levels to operations and maintenance, while also reducing inventory-related costs by continuously optimizing their MRO spare parts and materials inventories
Discrete Manufacturing emphasizes Lean / Six Sigma core concepts that concentrate on reduction of waste, defects and process variance. In discrete manufacturing, operations where scheduled maintenance, repair and sanitation / change-over routines are tightly scheduled around production requirements,
Oniqua Intelligent MRO will optimize the fluctuating demand for spare parts for descrete manufacturers. Tremendous value can be recognized by optimizing MRO inventory levels and procurement transactions to find the ideal buying practice for each item to ensure service levels are achieved.
Join our webinar “Discover the 12 Best Practices of MRO Inventory Optimization”
Wednesday, October 18, 2017