Surviving the Spare Parts Crisis. Joel Levitt

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      SURVIVING

      THE

      SPARE PARTS

      CRISIS:

      MAINTENANCE STOREROOM

      AND INVENTORY CONTROL

      JOEL LEVITT

      Industrial Press, Inc.

       Industrial Press, Inc.

      32 Haviland Street, Suite 3

      South Norwalk, Connecticut 06854

      Tel: 203-956-5593, Toll-Free: 888-528-7852; Fax: 203-354-9391

      E-mail: [email protected]

      Author: Levitt, Joel

      Title: Surviving the Spare Parts Crisis: Maintenance Storeroom and Inventory Control, First Edition

      Library of Congress Control Number: 2016954131

      ISBN print: 978-0-8311-3604-8

      ISBN ePDF: 978-0-8311-9414-7

      ISBN ePUB: 978-0-8311-9415-4

      ISBN eMOBI: 978-0-8311-9416-1

      Copyright ©2017 by Industrial Press, Inc.

      All rights reserved.

      This book, or any parts thereof, with the exception of those figures in the public domain, may not be reproduced, stored in a retrieval system, or transmitted in any form without the permission of the copyright holders.

      Sponsoring Editor: Judy Bass

      Managing Editor: Laura Brengelman

      Developmental Editor: Robert Weinstein

      Interior Text and Cover Designer: Janet Romano-Murray

      Although the author and publisher have made every effort to ensure the information in this textbook is correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

       industrialpress.com

       ebooks.industrialpress.com

       Dedication

       This book is dedicated to my three sons Andrew, Leo, and Michael. There comes a time in every father's life when you learn more from your kids than you teach them. I've definitely reached that point. If I ever want to learn something, I can just ask one of my boys. It is a great relief not to have to make all that stuff up!

      Joel Levitt

      TABLE OF CONTENTS

       Introduction

       Preface

       Acknowledgments

       About the Author

       1 What Are We Really Doing?

      Mission

      Parts Are the Pointer to the Maintenance Problems

      Management of Change in the Stores Organization

      Service Agreement from the Warehouse to the Maintenance Department or “What Maintenance Expects from Material Control”

      Why Bother Managing the Storeroom?

      Reality Check on the Nature of OEMs and Their Parts Businesses

      The Dimensions of the Spare Parts Crisis

      Why Do Parts Stock Out Anyway?

       2 Models of Inventory

      Retail and Resale Inventory Model (Finished Goods, Too)

      Finished Goods

      Orphan Inventory: Companies with Physical Assets that Wear Out

      Maintenance Inventory Usages

      Another View Based on the Consumption Rate of the Part

       3 Modern Production Gives Us the Tools for Maintenance Planning

      The Miracle of Modern Production

      Timing and Trust Are Everything

      Where Did This All Come From? Let's Revisit Ford and His Model T

      What It Takes Day In and Day Out

      Same Logic But Different Application

      Reactive Versus Proactive Parts Requirements

      Buffer Stock

       4 Perspectives on Storerooms

      POV (Point of View) Impacts How People View the Storeroom

      Misalignment of Accountability and Realignment of Accountability

      Common Comments about Good and Bad Storerooms

       5 How Well Do You Know Your Current Stores Operation?

      How to Evaluate Your Storeroom in an Hour (or Two)

      Storeroom Management Questionaire

       6 Spare Parts Inventory and Risk Management

      Risk Management Functions

      Risk Management Options

      What Is the Risk in Risk Management?

      Risk Management Process in Depth

      Think of Your Inventory Items as Insurance Policies

      Investment Versus Risk Management

      Eliminate the Condition and You Eliminate the Risk

      Emotionally Driven Inventory is Not the Solution

       7 What the Storeroom Needs to Know about Maintenance

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