tag:blogger.com,1999:blog-66601842012-02-10T15:46:24.963+11:00Materials and Spare Parts Management SpecialistPhillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comBlogger931100tag:blogger.com,1999:blog-6660184.post-27182300074189665062012-02-10T15:46:00.002+11:002012-02-10T15:46:24.974+11:00

Recently I was ask about the difference between Order Fill Rate, First Fill Rate, & Service Fill Rate and which one should be most important for spare parts invenntory management. A: In my experience there is no universal definition of the terms Order Fill Rate, First Fill Rate, and Service Fill Rate.  In many companies they can mean the same thing or even slightly different things!  In

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-20054244618517202912012-02-08T11:49:00.000+11:002012-02-08T11:52:35.984+11:00

Are there times when you wish that you could get an answer to that one key inventory management question that is stopping you making the progress you would like with your spare parts inventory management?  You might be wondering if your KPIs are set correctly, or how to interpret some data, or you just want an independent opinion on some inventory optimization technique or process. Providing

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-815483650161767822012-01-31T08:56:00.000+11:002012-01-31T08:59:02.570+11:00

With 2012 now well underway by now you should have your goals for the year well defined.  (If you still haven't worked out your goals then refer back to our December item: Questions To Focus Your Inventory Optimization.) Assuming that you have worked on your goals, then there is just one more question to ask: Are you serious? Are you serious about making a real difference to your

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-45199356606367165512012-01-12T09:43:00.001+11:002012-01-31T08:59:35.914+11:00

During a recent vacation break at the Surf Coast of Victoria, Australia, Phillip Slater discusses how taking a step back from day-to-day operations can give you the perspective to identify improvements in your inventory management. For more resources on inventory management please visit http://www.SparePartsKnowHow.com

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-54387051878311178452012-01-09T14:27:00.001+11:002012-01-09T14:27:17.420+11:00

During a recent trip to KL, Phillip Slater visited the Petronas Towers and here discusses the need to monitor and adjust settings for the holding levels of spare parts based on market rather than demand constraints. For more resources on inventory management please visit http://www.SparePartsKnowHow.com

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-32271477621024398322012-01-09T14:25:00.001+11:002012-01-09T14:25:37.180+11:00

During a recent trip to Scotland, Phillip Slater participated in a three day asset management course and was confronted with the dilemma of one participant that lamented 're-inventing the wheel' every five years. For more resources on inventory management please visit http://www.SparePartsKnowHow.com

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-19869329277220838632012-01-09T14:23:00.001+11:002012-01-09T14:23:54.304+11:00

During a recent trip to Houston, Phillip Slater visited a materials centre that had been used as a dumping ground for obsolete and excess inventory. For more resources on inventory management please visit http://www.SparePartsKnowHow.com

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-5689553734136690612012-01-09T14:21:00.000+11:002012-01-10T17:32:59.441+11:00

During a recent trip to Mumbai, India, Phillip Slater commenced an Inventory Review Program with a company that included their Site Manager and Chief Engineer in the training. This leadership involvement had a hugely positive impact on results. For more resources on inventory management please visit http://www.SparePartsKnowHow.com

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-51764982346353287662011-12-16T17:32:00.001+11:002011-12-16T17:32:31.428+11:00

Before I wrap up for the year I just want to say thank you to everyone that has provided their input and support this year.  It’s been a particularly busy year for me so here goes: * This year I worked with clients in 14 countries – thank you all for your support and patience with time zones! * Thank you to the editors of the magazines that have published my articles throughout the

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-949660643896997042011-12-09T02:00:00.000+11:002012-01-31T08:53:59.585+11:00

Usually I use this forum to provide answers but this month I have decided to pose some questions.  It’s up to you to determine the answers that will work best for you!  As we approach the end of 2011 (can you believe that another year has gone by!) many people will be thinking about their tasks and goals for 2012.  Even if you haven’t yet started thinking about next year, and let’s face it, most

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-23094997226655262712011-12-05T17:11:00.001+11:002011-12-05T18:28:05.895+11:00

Identifying the spare parts that are critical to your ongoing operations is perhaps one of the most important and yet least understood aspects of spare parts management.  Many companies have a definition of criticality but apply it too broadly to be of real value.  Others set parameters that don’t really reflect the critical nature of the part.  And some companies seem to have a ‘wait and see

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-15242406442549393402011-11-12T17:43:00.001+11:002011-11-12T17:47:25.145+11:00

When I review inventory holding levels with people and I ask ‘why is the maximum setting so high?’, almost invariably the reply is, ‘because that item is critical to our operation’.  However, this response, while well meaning, highlights one of the major problems (in my opinion) of spare parts inventory management:  the misconception that setting a high maximum holding level for an inventory item

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-30740635023363240122011-10-19T10:25:00.000+11:002011-10-19T10:25:29.748+11:00

Most people who are involved in materials and spare parts management have come across the situation where there is a need to justify expenditure on a specific spare part.  Typically the logic goes like this: Maintenance is concerned that they need the spare part – just in case (let’s assume that the part costs $1,000). They justify the purchase by pointing out that downtime without the part

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-57878588745231795172011-10-11T16:01:00.001+11:002011-10-11T16:01:55.675+11:00

Are you interested in improving your materials and spare parts management? If so, then you might be interested in my new website SparePartsKnowHow.com. SparePartsKnowHow.com gives you 24/7 access to an invaluable resource center plus regular online training, specifically targeted at spare parts management issues. Key topics covered include: * Inventory Management and Optimization * Policies

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-77396969040781391562011-09-18T15:32:00.000+10:002011-09-21T08:17:52.394+10:00

A couple of weeks ago I was running a three-day inventory management and review training course in Singapore when one of the attendees made a familiar statement.  He said ‘if we left this all up to maintenance they would want to stock everything like they are at Wal-Mart’. As I said, this is a familiar comment. It doesn’t matter where I go in the world I hear this concern.  It’s just the name of

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-86612622141454838642011-08-08T09:20:00.000+10:002011-08-08T09:20:59.946+10:00

Everybody loves hard data.  We measure and report  all sorts of things: sales, costs, profit, loss, headcounts, inventory values, production volumes, expenses, vacation time, sick leave, stock turns, purchase volumes, operating effectiveness, debtors, creditors, weeks of stock on hand, asset values, revenue, equity, cash on hand, plant utilization, downtime, uptime, scrap generated, environmental

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-70160382728260677442011-07-21T19:26:00.000+10:002011-07-21T19:26:35.338+10:00

How do you validate what you hear or read in relation to products, services, and information? When trying to research information, if you are anything like me you go straight to Google.  The online world provides us with a fantastic resource.  But how do you know if what you see online is valid?  Unfortunately you can’t always tell. Recently I have seen two examples of information that was

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-72280648803948672932011-07-12T14:07:00.001+10:002011-07-12T14:07:48.511+10:00

In an interview with Business Essentials Phillip Slater describes how many companies can use continuous improvement techniques to find the hidden profit within their business. MP3 File

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-17907219954649262532011-06-07T17:32:00.000+10:002011-06-07T17:32:58.141+10:00

A couple of weeks ago I ran a workshop on spare parts management for reliability and maintenance personnel. The attendees were a mix of tradesmen, engineers, and managers, covering both mechanical and electrical disciplines, from a large paper mill.  If you have ever worked in the area of maintenance you will know that some of these guys (and they are mostly guys) do not take too kindly to

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-24732668657050447842011-05-24T08:39:00.005+10:002011-05-31T11:47:38.399+10:00

In this latest 2Minute Tutorial Phillip Slater shows you how to use Microsoft Excel to create a Pareto curve of your spare parts inventory. This curve demonstrates the concentration of your inventory and from that shows you exactly where to start when working on an a program of inventory optimization. If the above window doesn't work for you then follow this link to my YouTube Channel http://

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-24433928492518209642011-05-03T11:11:00.000+10:002011-05-03T11:11:13.850+10:00

One of the things that people ask me about most often is the issue of criticality.  It seems that criticality is often seen as a single dimension issue, that is, an item either is, or isn’t, critical.  But I don’t think that is right.  I think spare parts criticality is a multi-dimensional issue. What do I mean by multi-dimensional?  Not that criticality exists in some science fiction space-time

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-79869965809064616852011-04-28T14:01:00.000+10:002011-04-28T14:01:37.475+10:00

Here is a great ebook full of tips to help you make a difference to your operational results in 2011. The team at ReliabilityWeb.com has recently released the 2011 version of their popular ebook Things to Think About (and Do).   Each year Reliabilityweb.com and Uptime Magazine, invite thought leaders in the maintenance and reliability community to contribute a single tip to help motivate

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-89474371408007121852011-04-18T10:07:00.000+10:002011-04-18T10:07:37.565+10:00

What do you think is the biggest problem in engineering spare parts management?  In my view it’s guesswork!  That is, identifying the problem is not guesswork, the problem itself is guesswork.  In fact, it’s even worse than that because it is actually guesswork cloaked in the disguise of management science.   How often have you heard someone justify a position on inventory levels by saying: It’s

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-24962472974921590942011-04-11T10:54:00.000+10:002011-04-11T10:54:15.263+10:00

Establishing appropriate accountability is one of the key actions required for achieving lasting success in any management activity. This is especially the case in activities aimed at creating lasting change in the way things are done - like in an inventory optimization project.  To achieve lasting and sustainable inventory optimization you need to establish the appropriate accountability for

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-19715848771496489632011-04-05T15:07:00.000+10:002011-04-05T15:07:10.574+10:00

If you have ever read a book on selling or marketing, you will know that one of the key tenants of those disciplines is to describe the major benefits for the buyer.  From the buyer’s perspective this is literally translated into ‘what’s in it for me?’.  Similarly, ask any consultant involved in ‘change management’ about the requirements for generating lasting change and they will say something

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-90454892174121901272011-03-10T14:58:00.000+11:002011-03-10T14:58:32.184+11:00

OK, I admit it, I am a James Bond fan. You know James Bond, British Secret Service, 007, license to kill, and all that. How much of a fan am I? Well I have all 22 movies on DVD! Recently it occurred to me that what we need to do in inventory optimization is to follow the example of James Bond. No, I don’t mean that you should blow up the warehouse or exercise a license to kill (although killing

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-29111987168264396052011-02-21T11:37:00.000+11:002011-02-21T11:37:56.134+11:00

Have you ever thought about the mind numbing array of statistics that sports commentators go through during just about any sports telecast? It seems that for every position or every action there is a raft of different stats that someone, somewhere seems to think matters. I guess that the commentators have to fill time in the breaks and slow parts somehow. These stats also help with the illusion

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-64982370006809513092010-12-16T14:45:00.000+11:002010-12-16T14:45:00.803+11:00

Wow, where did 2010 go? We are well into December and it seems like just yesterday that I was writing the January edition of Inventory insights. In case you missed any of this year’s newsletters, here is a summary. January – Put the spare into tranSPAREncy (get it?). More correctly, put some transparency into your spare parts management program. February: Materials and spare parts rarely follow

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-87344648762929734422010-12-07T09:07:00.000+11:002010-12-07T09:07:40.604+11:00

A couple of weeks ago I attended the International Maintenance Conference in Bonita Springs, Florida. If maintenance and reliability are your concern then you should seriously consider attending this conference in 2011. It is run professionally and they are selective about the speakers they present, plus they have a whole stream devoted to coaching on specific subjects. Having said that, at the

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-30533272083344947232010-11-16T09:49:00.000+11:002010-11-16T09:49:42.581+11:00

Over the past two weeks I have visited both the SEMA trade show and the International Maintenance Conference. While very different events, they do have a common theme. SEMA is the world’s largest automotive aftermarket tradeshow and is put on by the Specialty Equipment Market Association (SEMA). The focus is parts and equipment for the automotive aftermarket (that is for after you have bought

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-38200088531514708182010-10-27T13:25:00.000+11:002011-11-21T09:05:27.289+11:00

One of the key problems faced by any organization that utilizes complex equipment and machinery is the management of rotable and repairable inventory items. Rotable items are generally thought of as items of plant or assets that periodically are changed out for repair or overhaul. They most probably are tracked and maintained as assets in the CMMS. Repairable items are basically spare parts that

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-73322631588641052602010-10-18T19:04:00.000+11:002010-10-18T19:04:29.000+11:00

A couple of weeks ago I spoke at the Gearing Up Maintenance Malaysia Conference in Kuala Lumpur, Malaysia.  The conference was established and very well managed by the team at CWorks. This was a great event and I highly recommend it to anyone in the region (look out for the 2011 event!).  The speakers were a really good blend of experts covering the requirements for world class maintenance in a

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-18740383748587714992010-09-28T09:48:00.001+10:002010-10-05T08:42:35.270+11:00

Many companies are fully aware of the importance of maintaining security around their spare parts inventories. They secure their spares in lock-up areas, ensure staff are on hand to manage the high levels of spares requests during the day shift period of highest maintenance activity, and provide a rock solid approach for identifying storeroom entrants during the afternoon and night shifts. Then

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-58427132129426184572010-09-03T14:19:00.000+10:002010-09-03T14:19:31.711+10:00

The impact of not holding a required spare part can be massive. Downtime costs often far outweigh the purchase and holding costs of spares and this can lead to holding far more of some spares than is really required. As a result accountants will often target this as an area of easy cost savings. If you want to keep the accountants off your back and maintain control of your spares holdings it is

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-39240887700420708162010-08-18T08:41:00.000+10:002010-08-18T08:41:41.261+10:00

One of the main short comings that I see in the approach to indirect materials and spare parts management is that many people don’t think past the key decision as to whether to stock or not to stock an item. After they reach the decision to acquire a spare part often little thought goes into working through the best way to acquire that part. Here is a story about one company that decided to take

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-18277890873032643842010-07-28T09:02:00.000+10:002010-07-28T09:02:55.091+10:00

Last month I wrote about the cost of delaying action when improvement opportunities are identified. My point was that many people only consider the accrual of benefits AFTER they have taken action and not the opportunity cost of not taking or delaying action (e.g. if I can be $100 better off by doing X then it is effectively costing me $100 if I don’t do X). And by the way, if you delay action

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-34079908179970346892010-07-21T15:29:00.000+10:002010-07-21T15:29:49.732+10:00

Ever had problems locating an inventory item that you just knew was being held somewhere in your system but weren’t sure where? Yesterday I was with a company that had this very problem with a large, engineered component. The maintenance team needed this particular component and they knew that it was being stored at another site but the stores and warehouse management team at that site couldn’t

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-17198922157726411582010-07-09T11:15:00.000+10:002010-07-09T11:15:41.625+10:00

This 2Minute Tutorial explains the calculation of stock turns and presents 4 common problems with both calculation and interpreting the stock turn ratio.

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-9490981808085784442010-07-05T15:24:00.000+10:002010-07-05T15:24:48.954+10:00

Maintenance and reliability engineers will happily (well, not happily) undertake a review of spare parts that are not classified as critical, yet they will shy away from reviewing items that are classified as critical. The argument is: ‘the item is critical and so we must stock it’. Thus the classification drives the review action rather than a cost benefit or stocking analysis. But what if the

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-58679745079742797792010-06-23T08:59:00.000+10:002010-06-23T08:59:30.932+10:00

What would you do if you had the chance to save $2M per year with no capital expense and a payback period measured in weeks? Nothing? Have you ever noticed how much time we all spend considering the costs of taking action and how little time we spend considering the cost of inaction? That is, the cost of delayed action. Recently I helped a company identify an $11.4M improvement opportunity.

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-47208699693861897622010-06-16T10:20:00.000+10:002010-06-16T10:20:25.097+10:00

This 2 Minute Tutorial uses both theoretical and real life examples to expose the truth about inventory management theory. Can you handle the truth? Watch the 2 Minute Tutorial video at http://www.youtube.com/watch?v=yV265x1gqyo

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-13659602556990937402010-06-09T09:09:00.000+10:002010-06-09T09:09:36.492+10:00

One of the main fears of most reliability and maintenance engineers is that, at the time of actual need, the required spare part will not be available. This is commonly referred to as a stock out. Thus the goal of many reliability and maintenance engineers is to eliminate spare parts stock outs and remove this influence on total downtime. So how do you eliminate all stock outs? The short answer

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-50642405471925570112010-05-26T09:45:00.000+10:002010-05-26T09:45:50.727+10:00

In my view there are three key steps for a stocktake and they must each be given an appropriate degree of attention. For each of these steps the following are my observations of some points that can be easily overlooked but which can have a significant impact on your stocktake efficiency and effectiveness.  Here are 18 tips for a more effiicent and effective stocktake. Step 1: Preparation and

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-34578504059472246172010-05-14T09:49:00.000+10:002010-05-14T09:49:50.784+10:00

Do we hold the right levels of spare parts? Have we done the right analysis? These are two questions that keep maintenance and reliability engineers awake at night. Determining which approach to use for calculating reorder points and reorder quantities is the easy part of this dilemma. The hard part is clarifying the assumptions behind the calculations and ensuring that the data is ‘clean’. For

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-30880562130522009652010-05-12T09:11:00.000+10:002010-05-12T09:11:32.757+10:00

At which point in the inventory management life cycle do you have greatest influence on your inventory outcomes? How does that point align with the approach taken by most inventory managers? These two questions are answered in a new two minute video that I just loaded onto YouTube. In response to recent requests I am today launching a new series of tutorials on materials and spares management.

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-15925775434424649352010-04-29T15:23:00.000+10:002010-04-29T15:23:12.439+10:00

One of the key functions that must be carried out with all inventory management is a periodic reconciliation between actual stock holdings and the holdings according to the accounting system. This reconciliation is a requirement of financial management and accounting standards and the primary intent is to ensure that the organization correctly reports its financial position. It may surprise some

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-90744734673606381702010-04-16T09:10:00.000+10:002010-04-16T09:10:53.905+10:00

To stock or not to stock, that is the question. One of the major flaws in most spare parts management systems is the absence of clear criteria on when to stock an item and when not to stock an item. The absence of any guidelines forces your team into a process of ad hoc and inconsistent decision making. The result of this is that you stock items that don’t require stocking and don’t stock items (

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-47832684449899480992010-04-12T13:59:00.000+10:002010-04-12T13:59:07.592+10:00

The survey, conducted with the involvement of Monash University’s Department of Maintenance and Reliability Engineering, is your opportunity to obtain a FREE report on your spare parts management practices. By participating you get the chance to discover and understand the strengths and weaknesses in your company's approach to materials and spare parts management. The survey is simple. We have

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-46135289098385462852010-04-06T11:20:00.000+10:002010-04-06T11:20:46.134+10:00

The new, updated edition of my book Smart Inventory Solutions is now available. Subtitled Improving the Management of Engineering Materials and Spare Parts, this is virtually a brand new book.  This new and much larger edition features a tighter focus on engineering materials and maintenance spares inventory, while providing broader coverage of the issues faced in managing this inventory. This

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-18721698194139102492010-03-23T09:31:00.001+11:002010-03-23T10:56:27.801+11:00

Last month I demonstrated that the classic ‘saw tooth’ diagram associated with inventory management and control is sometimes not at all representative of reality for engineering materials and spare parts. Today, I am going to expand on this to show just how much it can cost your company if you fall into the trap of classic inventory management theory. You will recall the diagram from last time

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-14141756440841464132010-03-01T14:49:00.000+11:002010-03-01T14:49:13.536+11:00

The classic ‘saw tooth’ diagram demonstrates the theory associated with inventory management and control. The saw tooth diagram shows the available quantity of an SKU over time. Figure 1 is an example of this diagram. Here the x-axis represents elapsed time and the y-axis represents the quantity on hand. This figure also includes reference to some of the common terms and definitions as they

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-31874472080285063142010-02-23T17:20:00.000+11:002010-02-23T17:20:51.548+11:00

The 2009 Materials and Spare Parts Management Survey identified five factors that are critical to achieving materials and spare parts management success. To find out what the five factors are watch the video at my YouTube channel http://www.youtube.com/phillipslater1

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-46799147984961606152010-02-19T09:14:00.000+11:002010-02-19T09:14:22.047+11:00

Last night I attended the Asset Management Council meeting in Melbourne, Australia. At the meeting I made a presentation titled Materials Management, The Missing Link in Reliability. During the presentation I show some photos of storerooms where it is clear that the spares being stored either are not properly maintained or could not be maintained due to the way they are stored. In some cases the

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-19752101479202495372010-02-08T14:27:00.001+11:002010-02-08T14:28:54.516+11:00

January is the time when we traditionally set goals for the rest of the calendar year. At a personal level these might be New Year’s Resolutions to give up smoking, lose weight, or get fit. Recently I read an article that claimed that by January 31st 90% of New Year’s Resolutions have been given up.In inventory management our goal setting might be more formal than a New Year’s Resolution but I

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-42436429722849910782009-11-30T10:03:00.001+11:002009-11-30T10:06:50.341+11:00

Many people view the spare parts storeroom as being a purely transactional environment. That the function of the storeroom is to administer the transactions associated with receiving and issuing materials and spare parts. But if we really want the spare parts to be maintained so that they will perform as we expect, when they are required, then surely the role of the storeroom is much more that

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-42326518782157554252009-11-20T09:54:00.001+11:002009-11-20T09:55:10.728+11:00

Solutions 2.0 Conference Day 4 video - great keynote presentation! http://www.youtube.com/watch?v=YFv2v69xsGY

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1777268336356675512009-11-19T14:21:00.000+11:002009-11-19T14:22:39.641+11:00

Solutions 2.0 Conference Day 3 video - watch out for the casino night!http://www.youtube.com/watch?v=OEHWjIKwmmU

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-33057040744117950232009-11-18T12:34:00.002+11:002009-11-18T12:44:57.550+11:00

Just posted a new video blog on Day 2 of the Solutions 2.0 Conference at Daytona Beach Florida. See it at http://www.youtube.com/watch?v=nMqIrS5OpBE

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-75962539857232783422009-11-17T11:16:00.002+11:002009-11-17T11:18:05.297+11:00

Just posted a new video blog on the Solutions 2.0 Conference at Daytona Beach Florida.See it at http://www.youtube.com/watch?v=JRCSshmVIdE

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-73659029691690538562009-10-27T15:39:00.001+11:002009-10-27T15:42:38.209+11:00

There are a number of measures that get used for tracking inventory performance. One of the most popular is ‘stock outs’. A ‘stock out’ occurs when there is demand for an inventory item but there is no stock. The Out of Stock metric is a curious measure and as with all metrics one needs to be careful about what it is really telling us.It is essential to measure the availability of stock, after

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-37327367261574546322009-10-05T11:41:00.002+11:002009-10-05T11:47:43.017+11:00

You Are Invited to Participate in the 2009 Materials & Spares Management SurveyThe survey is conducted by Phillip Slater with the involvement of Monash University's Department of Maintenance and Reliability Engineering. All participants will receive a custom report on thier performance in several categories of management. You can use this to identify actions to improve your own materials and

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-65035495984491165542009-09-28T17:45:00.002+10:002009-09-28T17:50:52.097+10:00

Slow moving inventory is often seen as an easy target for people undertaking an inventory review. Rather than undertake a structured review process (such as the Inventory Cash Release process) many people will target slow moving inventory as if it is some kind of silver bullet for inventory optimization. This is usually based on a belief that the characteristic of being slow moving is proof

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-17219575357641070162009-08-26T09:47:00.002+10:002009-08-26T09:54:36.378+10:00

Does it really matter if you do or do not understand all the formulae that are used in inventory management? Does it matter if you know or don’t know how to calculate the Reorder Point or the Reorder Quantity for individual SKUs? How many people do you know that don’t bother to learn these formulae when they use software to manage inventory? Or they don’t even seek to understand what algorithm

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-90539017338074449192009-08-13T09:53:00.003+10:002009-08-13T10:37:52.318+10:00

There is no doubt that the current economic times are not ‘business as usual’ but is that what we really want? Is ‘business as usual’ a good thing?In the past month or so I have been running workshops, based on my book Smart Inventory Solutions, for the Production and Inventory Control Society in Australia (apics). The workshop attendees have been from many different industries and it is always

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-32232592239900420072008-04-10T09:20:00.000+10:002008-04-10T09:22:13.472+10:00

What we mostly don’t realize, is that many constraints are assumed rather than real. These constraints are imposed or assumed based on the needs of the problem solver, not the needs of the problem. Think about that, the problem solver assumes constraints that suit them in trying to solve the problem. These Are not necessarily the true constraints of the problem.Constraints can be used to simplify

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1504446033194068962008-03-31T11:56:00.001+11:002008-03-31T11:58:51.005+11:00

Last week I attended the RCM/EAM conferences in Las Vegas and I want to thank all those that came up and said ‘Hello’. It was great to meet some readers of this tip sheet and understand your situations better.As you would expect at a conference many different solutions to many different problems were presented and discussed. Some of the solutions were quite simple in their requirements and

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-14938680075004925932008-03-03T20:34:00.000+11:002008-03-03T20:36:27.138+11:00

For some time now I have advocated that it is the role of management to change the way a business is managed, not to manage it day-to-day. Think about that for a moment, change the way a business is managed. That means improving systems, processes and skills on an ongoing basis.The activity of changing the way a business is managed, of course, involves optimization. Optimization is what managers

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-42615806233482869052008-02-18T18:03:00.000+11:002008-02-18T18:07:15.376+11:00

In recent times there has been significant volatility in the world’s share markets. Company stock prices have been both falling and then rising (but mostly falling) for no apparent reason. A company whose stock was worth $30 yesterday is suddenly worth $25 today – even though the company performance has not changed. To most of us this seems totally irrational.Why am I writing about stock price

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-33571759106857181522008-02-14T12:38:00.000+11:002008-02-14T12:43:07.608+11:00

Recently I posted a blog relating to mynew book The Optimization Trap. Sinc ethen I had revcieved many enquiries about the idea of teh optimization and so willpost a serie sof blogs that describe teh trap, what is it is and hwo to avoid it. Here goes.Have you ever been involved in one of these situations?A reduction in spare parts has left you without the ones that you actually need.Reduced

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-16667436248958339812008-01-22T08:49:00.000+11:002008-01-22T09:01:58.844+11:00

A number of years ago I was asked to provide advice to a company that was experiencing financial difficulties. This company operated under significant competitive pressure and had been going down a dangerous path of continuous cost reduction. Without a model of good operational practice to follow they continually reduced their personnel numbers and other costs, until they reached a point where

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-26623202537393549002008-01-09T15:50:00.000+11:002008-01-09T15:52:20.120+11:00

Happy New Year to you!Yes, January is a great time of year. For some it is the start of a new fiscal period with all the promise (and headache) that that might involve. For others it is a check point on progress against their fiscal year plan. No matter which it is for you almost one thing is certain – January is a time for reviewing or setting goals.Most articles that you read at this time of

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-75841656332461643872007-12-17T17:36:00.000+11:002007-12-17T17:38:59.541+11:00

Last week I visited the Kennedy Space Center (KSC) at Cape Canaveral, Florida USA. To many this is better known as the place from which the Space Shuttle is launched. Actually the Space Shuttle Atlantis was due to launch when I was there, however, technical problems have delayed that launch until the New Year.As you might expect, the space center features many exhibits that detail the history of

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-47507240694635520672007-10-24T09:07:00.000+10:002007-10-24T09:08:58.174+10:00

Performance measurement is the cornerstone of all improvements efforts. If you don’t or can’t measure where you are now versus where you were before, then how do you know if you have improved?Just as importantly, however, is knowing if your measure actually reflects your current position or the issue that you are trying to highlight or control. I don’t mean knowing whether the metric you use is

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-47446402917102013712007-09-19T15:37:00.000+10:002007-09-19T15:39:58.782+10:00

In the past few days the news has been full of pictures of people queuing up outside the branches of the Northern Rock Bank in England. These people are all trying to withdraw their money because they fear that the bank will collapse and the money will be lost. This has been driven by the sub prime mortgage problems in the USA.While I understand the motivation of the people queuing, the irony is

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-71984499794698769992007-09-11T17:19:00.000+10:002007-09-11T17:41:21.326+10:00

Ever worked in a place where everything is urgent? Where everything must be completed by yesterday? Where deadlines are always looming or past?I am sure that many of us have but what is it that separates those with a sense of urgency and those that work with a culture of emergency?According to my dictionary, urgency can be defined as calling for immediate action, decision or attention. Emergency

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-27621978121021651722007-09-03T14:51:00.000+10:002007-09-03T14:52:29.784+10:00

Have you ever attended a sporting event or theatrical performance? Most of us have. At some time have you been sitting there when someone else starts applauding or gets up to give a standing ovation? Ever noticed what happens when people do this?The people around them start to join in. Often reluctantly at first, unsure whether they will look foolish or out of place. One person gets up, then

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-13496699962706991422007-08-28T13:39:00.000+10:002007-08-28T14:08:30.915+10:00

In almost all businesses we spend much of our time planning. We develop strategic plans, we develop business plans, we develop annual budgets, we develop sales plans and we develop plans for specific projects. Sometimes, we develop plans 'in case of emergency'. For example, evacuation plans. In these latter plans we know that we need to test the plan and so we hold fire and evacuation

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-68873557771108329512007-08-20T18:00:00.000+10:002007-08-20T18:16:40.571+10:00

In any program of cost reduction or continuous improvement there are three things that the leadership team need to understand for success. Put simply these are capability, courage and culture.Capability: In almost very situation the changes that you need to make, the processes you are seeking to improve or the operational best practice you are seeking to implement have already been made, improved

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-13191738349518325452007-08-03T10:23:00.000+10:002007-08-03T10:27:37.602+10:00

We have probably all heard the old saying ‘what’s measured, matters’ or a derivation of that saying. What this means is that we pay attention to the things that are measured and that it is these measures that drive our behavior… or more importantly, the behavior of our team.What do I mean by behavior? No, I don’t mean that they behave themselves (as in have good manners), I mean that the measures

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-79517185026211186282007-07-26T13:40:00.000+10:002007-07-26T13:53:14.916+10:00

One of the major hurdles that is faced in any business improvement initiative is the loyalty that is felt towards the existing way of doing things. How often have you heard someone say 'We've being doing it like this for years'!We all know that, as a rule, people hate change and when it is as extreme and obvious as the 'we've been doing it this way' comment it is easy to recognize this resistance

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-76490045123303105332007-07-18T17:56:00.000+10:002007-07-18T17:56:32.761+10:00

Inventory and Cost Reduction Specialist: Will Today's Success Be Tomorrow's Failure?

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-58390223830929383782007-07-17T08:29:00.000+10:002007-07-17T08:32:12.743+10:00

Many Australian businesses are experiencing unprecedented prosperity and have been for some years. Profits are at record highs, as are share prices. This has been great for investors, business owners and managers alike but during this period of extended prosperity are the companies that have become ‘fat and happy’ also becoming lazy?The emergence of China, the growth in resources, rising domestic

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-79340685865299658432007-07-12T15:11:00.000+10:002007-07-12T15:13:16.395+10:00

Would you like to have unlimited access to a whole community that is interested in inventory and cost reduction? Well now you can!We have now set up an online forum where you can:Post questionsProvide answersJoin in discussionsOr just read what everyone else is doing and sayingYou can now join this new online community forum at http://forum.InitiateAction.com or just follow the link on this page!

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-69494193125407111342007-07-10T13:34:00.000+10:002007-07-11T08:46:10.329+10:00

In professional sport these days it is not unusual to hear players and coaches talking about process. They talk about focusing on the process and following the process. Rarely do they talk about scoring a goal, a touchdown, a home run, a point or achieving a good shot. It's all about process.So what do they mean by this? What they mean by focusing on the process is that they focus on the actions

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1147935887184276552006-05-18T16:58:00.000+10:002006-05-18T17:04:47.380+10:00

Myth #5 Putting Items Into Inventory Saves MoneyAdding an item to inventory is sometimes seen as way of spreading the cost of the item so that the original purchaser can get a lower charge to their budget. This is particularly the case with project and engineering items that have a minimum order quantity.This is similar to Myth#1: Economic Quantities Save Money, except that the focus here is not

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1146817409231851502006-05-05T18:15:00.000+10:002006-05-05T18:37:06.416+10:00

Wow, it seems like only yesterday when I last updated this blog!Time flies when you are flat out!Since the last blog entry I have:Updated the Sustainable Inventory Reduction book - visit my web www.InitiateAction.comProduced a new corporate training system - visit my websiteProduced an inventory reduction e-learning program - follow the link on the rightRun, I don't know how many workshopsHelped

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1091486313755860622004-08-03T08:37:00.000+10:002004-08-03T09:00:43.223+10:00

So far we have dealt with three myths of inventory reduction and they each relate to beliefs that drive behavior. Myth #4 is about a myth surrounding the use of tools such as software. Almost everybody realizes that software alone does not provide a solution to problems. Yet many companies, when faced with an inventory issue, see the need for a new software solution as being a key requisite.

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1089339036404617752004-07-09T12:06:00.000+10:002004-07-09T14:12:45.360+10:00

This myth probably adds more to the investment in inventory than any other. The opportunities for consignment stocking are many and are largely ignored because of the belief that it costs more. Firstly, arranging to pay for items only at the time they are used, issued or sold is referred to as consignment stocking. In this case the supplier still owns the item until you need it. As the supplier

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1087533668218265922004-06-18T14:39:00.000+10:002004-06-18T14:56:48.610+10:00

Reducing holding quantities in inventory is often seen as requiring a corresponding increase in risk. This might be the risk of extended downtime in manufacturing or the risk of lost sales in wholesale/retail. However, for this to be true you must believe that the existing holdings are as lean as they can be in the current economic dynamic. While it is possible that this is true, experience shows

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1086915639724382992004-06-11T10:50:00.000+10:002004-06-11T11:01:24.976+10:00

In inventory management items often get ordered in an 'economic' quantity so that the cost per item is at a minimum. This is seen to be economic because the subsequent issue cost of the item is reduced and the business, operational or project budget therefore records a lower cost. The term 'economic order quantity' is often used. This approach is not economic however in situations where the

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1083279615999341422004-04-30T08:43:00.000+10:002004-04-30T09:04:33.750+10:00

This week I am going to introduce the 5 Myths of Inventory Reduction. Inventory reduction has been a major focus of supply chain improvement initiatives for many years and success requires the application of fundamentals and good practice. However, it is the encouragement of appropriate behaviors that delivers sustainable results. It is the area of appropriate behaviors in which there is

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1081398815315839622004-04-08T14:19:00.000+10:002004-04-08T14:44:48.793+10:00

Ok I know that I failed at the first attempt to get a weekly blog out but there were good reasons for this. I have actually had an interesting experience with a client that I thought that I should share. This client has been through our inventory reduction training using the Less Is More Inventory Reduction Program but was not making progress at a rate which satisfied me or the senior

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.comtag:blogger.com,1999:blog-6660184.post-1080013497699269042004-03-23T14:40:00.000+11:002004-03-23T14:52:16.860+11:00

This is the first posting on a new weblog devoted to inventory reduction. The intent of this weblog is to share updates and real life anectdotes relating to our work in the area of inventory reduction. I hope to be able to post weekly and provide recent examples of the applciation (or non application!) of the Less Is More inventory reduction technique based on the activities that we are

Phillip Slaterhttp://www.blogger.com/profile/16152712814867773920noreply@blogger.com