Space plant equipment and spare parts for the food industry
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- 7 Things to Consider for Successful Spare Parts Management
- Using KPIs to Measure & Manage Your Spare Parts Inventory
- 5 tips for managing spare parts
- How to Account for Spare Parts under IFRS
- Chemical plant
- What is MRO and What Does it Stand For? A Brief Guide to Maintenance, Repair, and Operations
- Leasing or buying plant, equipment and vehicles
7 Things to Consider for Successful Spare Parts Management
Many companies, large and small, have storerooms or warehouses containing inventory ready to ship directly to customers. Production departments typically report the number of units produced per man-hour worked, or the number of units produced per kilowatt hour. Measuring KPIs such as these allows companies to manage production of those units, thereby controlling cost.
Maintenance departments, however, measure different parameters such as the number of Work Orders in backlog. They may also compare the amount of Preventive Maintenance Work Orders performed versus the number of Emergency Work Orders generated and completed over a given period of time. Inventory used to support MRO programs is managed by maintenance departments. This in most cases is not the responsibility of inventory departments.
Failure to properly manage inventory can lead to a significant waste of company dollars. Funds otherwise allocated to important business endeavors may end up being spent on unnecessary spare parts. Overstocking leads to parts simply sitting on shelves for extended periods of time. Ordering the wrong or insufficient parts can result in excessive equipment downtime and a lag in production.
Many inventory departments aim to keep just enough MRO items to support maintenance without overstocking parts. Departments may attempt Just in Time JIT ordering, a strategy used to decrease waste by receiving items only as they are needed.
This method can lead to drastic effects on maintenance and overall production since departments rely on identifying the correct Reorder Point to sustain production lines. Finding the magical point to reorder the correct quantity of low stock items at the correct time so as not to be STOCK OUT during a critical moment is possible, however it can be challenging.
There are many KPIs to consider for inventory management, with more and more developing as time goes on. Selecting five meaningful KPIs for your organization is an ideal starting point. The process of establishing KPIs should be done collectively, with support from all departments before instituting. Most importantly, KPIs should be relevant, measurable and reportable. Most computerized maintenance management software CMMS programs on the market today allow users to interface with Work Orders and Purchasing.
This simplifies the process by performing calculations for Economic Order Quantity EOQ , or offering a realistic reorder point level based on various factors such as lead time and turnover quantities of an individual part. A successful CMMS program can provide much, if not all, of the data required to calculate meaningful KPIs and subsequent graphing of those performance indicators over a period of time.
Robert Brieck Many companies, large and small, have storerooms or warehouses containing inventory ready to ship directly to customers. Roll of the Dice Many inventory departments aim to keep just enough MRO items to support maintenance without overstocking parts. Acceptable range is greater than 95 percent.
Calculate weekly. Acceptable range is less than 2 percent. Calculate monthly. Acceptable range is less than 1 percent. Acceptable range is less than 30 days on hand. Acceptable range is less than 5 percent of total stock units. Acceptable range is 98 percent. Image credit: DPSI. A part form displaying example reordering options. Eric Dynowski. Dee-Ann Durbin.
Supplier Helps Combat Hunger, Food Waste How a seven-month capital equipment project is helping produce 42M pouches of food annually for those in need. Alex Shanahan. Joyce M. Shuttered Louisiana Steel Mill Purchased It plans to upgrade and modernize the mill in LaPlace and hopes to resume recycling in the second half of and steel making by Associated Press. Jelly Belly. Xylem Inc. Helen Zoe Veit. Manufacturing 3 Major Predictions The technologies and strategies that will have the greatest impact on U.
Antony Bourne. Tim Booth. Danone Waters. Max Halt Will Hit Suppliers Suppliers could be forced to cut employees, and some might even get pushed out of business. Tom Krisher.
Using KPIs to Measure & Manage Your Spare Parts Inventory
Principles The determination of plant efficiency at all essential points of the process is the first step in creating a preventive maintenance system which is fundamental to achieving optimal performance in any milk plant. According to Newcomer 1 preventive maintenance in developing countries is a procedure involving:. These benefits are the objectives of preventive maintenance.
Worldwide compound feed production is approximately million metric tons. Almost million tons are used in the poultry industry, tons for pigs and tons for ruminants. The rest is divided among fish feed 40 million tons , dog and cat food 20 million tons and horse feed 12 million tons. Key topics in the industry are the increasing sensitivity of consumers and manufacturers alike regarding topics like animal husbandry, resource efficiency and "Carbon Food Print".
5 tips for managing spare parts
Access the best thinking, right here. Have a question you don't see an answer to? Enquire now. Deon McHatton , 31 August 5 min read. Having spare parts on hand is a crucial aspect of manufacturing maintenance, as every plant needs to carry a certain amount of spares to be able to recover in the event of a failure. Spares holding represents capital expenditure on products that return no bottom line contribution. Multiple spares also require additional real estate to store. A standardised spare parts regime is the best way to ensure downtime is reduced, while also optimising inventory control. If you have non-standard equipment on-site, you need to carry a lot more spares, because they're all different brands, models and vintages.
How to Account for Spare Parts under IFRS
With every purchase of a physical asset, give consideration to the spare parts and tools needed to maintain it throughout its life. Input comes from the OEM, experience with the same or similar assets, benchmarking other organizations with comparable equipment, detailed analysis of the asset and its components, or simple trial and error. However, keeping a well-stocked spare parts inventory can be expensive.
The plant cell has many different parts. This maximises the ability to absorb nutrients and water leading to faster growth. It is well established that as CO 2 in the atmosphere. Welcome to Tropic Air, the Airline of Belize.
All parts managers struggle with the question of what and how much inventory to keep in stock. Too much inventory ties up capital and increases the cost of doing business, while too little inventory means otherwise-avoidable instances of downtime become regular drags on productivity and revenue. The ramifications of dollars lost for each hour of downtime, shortfalls in meeting customer expectations and reputation risk can cost the company thousands in sales profits. Interest costs associated with carrying inventory and the dollars that are wasted on obsolete parts can cause an otherwise profitable department to lose money. What is a company's single biggest obstacle to spare parts management success?
What is MRO and What Does it Stand For? A Brief Guide to Maintenance, Repair, and Operations
One of the biggest issues related to property, plant and equipment is accounting for spare parts, servicing equipment, stand-by equipment and similar items. IFRS standards are pretty silent about this topic, the guidance is very limited and as a result, companies need to rely on careful assessment of the situation and their judgment. The standard IAS 16 , paragraph 8 specifically says that spare parts are recognised in accordance with this IFRS when they meet the definition of property, plant and equipment thus they need to meet the definition of PPE. If not, then spare parts might be considered PPE. Time aspect Do you need spare parts to operate some other asset during more than one period? Do you plan to use these items during more than 1 period? If not, then they are inventories.
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Leasing or buying plant, equipment and vehicles
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A chemical plant is an industrial process plant that manufactures or otherwise processes chemicals , usually on a large scale. Other kinds of plants, such as polymer, pharmaceutical, food, and some beverage production facilities, power plants , oil refineries or other refineries , natural gas processing and biochemical plants, water and wastewater treatment, and pollution control equipment use many technologies that have similarities to chemical plant technology such as fluid systems and chemical reactor systems. Some would consider an oil refinery or a pharmaceutical or polymer manufacturer to be effectively a chemical plant. Petrochemical plants plants using chemicals from petroleum as a raw material or feedstock are usually located adjacent to an oil refinery to minimize transportation costs for the feedstocks produced by the refinery.
Most organizations have a significant financial investment in spare parts maintenance, repair and operations MRO storeroom inventory. The remaining share of the inventory consists of critical spares and slow-moving, excess, or obsolete parts. Critical spare parts are items that have an excessively long order lead time, are one of a kind, or have an immediate effect on safety, the environment, or production. When a critical spare is put into service and the on-hand inventory level falls to zero, the risk factor rises very high.
Helen Carey. The MRO acronym is used to refer to the maintenance, repair, and operations used by a company to create an end product. MRO may include spare parts, equipment such as pumps and valves, consumables such as cleaning supplies, plant upkeep supplies such as lubricants, and activities completed to restore or maintain the functioning of needed equipment. Anything used in the manufacturing of, but not employed in, a final product may be considered MRO. For instance, keeping an on-site inventory of the most commonly used items can reduce downtime, extra expenditures, and the general stress of restocking. Streamlining MRO management offers many benefits, but MRO, in general, is often overlooked in facility management and organization.
Practical spare part management is the foundation for reliable plant operation and is crucial to a plant managers success. As plant manager, you need to know how to determine which spare parts are needed to make up an effective and comprehensive inventory system. Taking these factors into account can help minimize performance disruption, promote efficiency, and reduce carrying cost.