MAINTENANCE, REPAIR & OPERATING

SUPPLIES (MRO)

+971 2 449 6000 +971 50 412 3294 info@boostuae.com

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Duration:

Five Days

Location:

TBD

Date:

TBD

This 5-day program focuses on building an inventory management system that will lead to better

control through optimization of inventory quantities, organization of inventory and access to

inventory.

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ABOUT THE COURSE

Duration:

Five Days

Location:

TBD

Date:

TBD

Maintenance, repair, operating supplies (mro) items are products and materials purchased by a company that

are not directly employed in its manufacturing process. These products are mostly used to keep the business’

operations running.

Mro purchases are an important part of most manufacturing and service businesses. Even though these

items are not a direct part of the product being assembled they contribute to maintain adequate operational

standards, guaranteeing that all the different areas of the business have what they need to function properly.

Some of these elements are machinery and vehicle spare parts, lubricants, office materials, industrial

equipment, consumables, computers or work gear such as boots, uniforms, vests and helmets.

Depending on the nature of the business these elements normally constitute a considerable part of the

company’s purchase budget and the process through which they are acquired, handled and stored should

guarantee that they are being productively employed in order to get the most out of these purchases.

Enterprise resource planning (erp) systems normally include a section of mro management that will help

companies to increase the efficiency of this crucial business process.

Effective mro strategies are essential for reducing costs and enhancing productivity and efficiency. Good

practice in implementing mro strategies and various types of strengths and weaknesses are explained and

case studies of companies that have used mro strategies successfully are provided.

Maintenance, repair and operating (mro) supplies refer to non-strategic commodity supplies, including

general industrial merchandise, standard machine tools, and spare parts required for maintenance of the

capital equipment (schneider, 2010).

Maintenance, repairs, and operating (mro) parts supplies represent a major component of the annual budget

of a typical process. A significant portion of these costs ends up in inventory. Given the remote location of

most place and the possible consequences of "stock-outs", it is nature to think in terms of having such

inventories available; but according to davis (1993) "inventory exists more or less as simple insurance against

uncertainty". The internet and other recent developments in information technology have made it possible to

reduce the uncertainty and therefore the need of large inventories with these technologies, it is now possible t

conceive a major change in process mro supply chain, one in which physical assets (e.g. Inventories) are

exchanged for information but in significantly lower costs.

ABOUT THE COURSE

Duration:

Five Days

Location:

TBD

Date:

TBD

Inventory Control for Maintenance means having the right product and materials when you need it and where you

need it. Having too much material, not enough material or having to search for the material leads to higher costs and

can mean longer downtimes, not to mention the frustration!

MRO (maintenance, repair and operating supply) items are supplies utilized in the production process, that is not

ultimately seen in the end products themselves. MRO items may include:

✓ Gloves

✓ Safety equipment

✓ Computers

✓ Industrial equipment (valves, compressors, pumps)

✓ Consumables (cleaning, laboratory, and office supplies)

✓ Plant upkeep supplies (lubricants, gaskets, repair tools)

Many people don't fully appreciate the vital role MRO items play in keeping supply chains running smoothly. But

failure to routinely maintain, repair, and overhaul systems, can cripple a business. Contrarily: businesses that

diligently maintain MRO inventory and optimize supply chains, can better supply products to customers in a timely

and economical manner.

A supply chain professional can strategically manage MRO supplies, by learning where to economically source

materials. This may require cultivating multiple relationships, depending on the nature of the MRO supplies--be they

for regulatory, engineering, safety, or other purposes. Certain suppliers focus in some areas, but not others.

This 5-day program focuses on building an inventory management system that will lead to better control through

optimization of inventory quantities, organization of inventory and access to inventory. Having the right data and

implementing procedural controls for your inventory will help maximize the value of every dollar spent on

maintenance and reduce the time it takes to have the right part on hand when you need it.

COURSE OBJECTIVES

Duration:

Five Days

Location:

TBD

Date:

TBD

AT THE END OF THE COURSE PARTICIPANTS WILL BE ABLE TO:

✓ Provides a framework for improving ROI and reducing inventory investment

✓ Establishes the best methods for inventory analysis and improvement actions

✓ Demonstrates the use of spares inventory segmentation for demand planning

✓ Highlights the problems found in most spares warehouse environments

✓ Reveals the best approach to improve inventory record accuracy

✓ Outlines the fundamentals of warehouse organization and management

✓ Identifies the correct supporting roles for the purchasing function and suppliers

✓ Suggests the key weaknesses of CMMS tools that must be addressed

✓ Improves the coordination of inventory management with maintenance management

✓ Provides opportunity to practice course concepts and create a personalized plan for action

WHAT YOU WILL GAIN

ON COMPLETION OF THIS COURSE YOU SHOULD BE ABLE TO:

✓ The different types of inventories and importance of inventory to organizations.

✓ The principles and purpose on inventory management and control.

✓ The costs associated with inventory management.

✓ Inventory verification and valuation methods.

✓ Different approaches for effective management of dependent demand and independent demand

inventories and when to apply them.

✓ The fundamentals of warehousing and stock handling.

✓ Organizational structure and functional responsibilities in inventory and warehousing.

✓ How to measure and improve inventory management performance.

TARGET PARTICIPANTS

Duration:

Five Days

Location:

TBD

Date:

TBD

✓ Those new to managing inventory

✓ Those non inventory people who need to gain an awareness of the issues and key drivers of stock

control operations

✓ Inventory, Stock, Supply Chain, Logistics, Warehouse and Distribution Supervisors/Managers

✓ Owners, operators and Directors of companies who hold sock and inventory

✓ Engineers, supervisors and managers involved with industrial maintenance inventory control, planning,

scheduling, purchasing, reliability and maintenance engineering, support, quality, production and

warehouse management.

TRAINING METHODOLOGY

Throughout this course, the attendees will have the opportunity to practice their skills through a variety

of hands-on exercises. These exercises focus on the skills introduced in each lesson. The following

are our tools for course conduction:

✓ Pre-Assessment Questionnaire for use before the Course

✓ Post-Assessment Questionnaire for use after the Course

✓ Lectures, Demonstrations, Group Exercises & Case Studies

✓ Visual aid (Video Simulation) to increase the efficiency of the information

✓ Evaluation Questionnaires (Course, Instructor, & Administration) filled by Attendees

✓ Evaluation Questionnaires for Attendees filled by Instructor

Course Outline

Duration:

Five Days

Location:

TBD

Date:

TBD

THE ROLE OF THE WAREHOUSE

✓ Why we need a warehouse?

✓ What functions they cover?

✓ How do they fit into the supply chain?

✓ The Balance between Sorting and Storing

✓ The Location and Capacity of Warehouses

OVERVIEW OF MAINTENANCE, REPAIR & OPERATING FOR INVENTORY

MANAGEMENT

✓ Role of Maintenance in Organizations

✓ Importance and Impacts of Maintenance Inventory Management

- How inventory impacts profits

- How inventory impacts uptime / downtime

✓ Methods and Concepts of Inventory Management

WORLD CLASS INVENTORY MANAGEMENT

✓ World Class Management Defined

✓ How do You Compare to World Class?

✓ Understanding World Class Management

✓ Common Problems in Inventory Management

PRODUCT CLASSIFICATION

✓ Supply / Demand Variables

✓ ABC Analysis or the 80/20 Rule

✓ Determining Product Handling Groups

✓ Throughputs and Product Formats

METHODS AND EQUIPMENT

Course Outline

Duration:

Five Days

Location:

TBD

Date:

TBD

EQUIPMENT REQUIRED FOR LIFTING, STORING AND MOVING EQUIPMENT

AVAILABLE FOR SPECIFIC LAYOUT OPTIONS, INCLUDING:

✓ Loading Bays

✓ Selecting Fork Lift Trucks

✓ Selecting Racking

✓ Implications for Warehouse Layouts

✓ Operational Timings and Planning

✓ The Use of IT within the Warehouse

KEY COMPONENTS TO UNDERSTANDING EFFECTIVE INVENTORY CONTROL

✓ End-User Demand Analysis

✓ Forecasting for Operations and Maintenance

✓ Understanding Supply Lead Time

✓ Cost & Benefits Analysis

✓ Developing Inventory Policies

✓ The Need for Inventory in Organizations

INVENTORY MECHANICS, METHODS AND SYSTEMS

✓ Basic Mechanics of Inventory Systems

✓ Establishing Order Quantity

✓ Implications of Free Stock in Inventory

✓ Simple Replenishment Methods, for example, Min / Max

✓ Replenishment Methods, Reorder Point and Reorder Level (ROP / ROL)

✓ Requirements Planning Systems, Bills of Material and Inventory Planning

✓ Class Assignment Inventory Control Methods

Course Outline

Duration:

Five Days

Location:

TBD

Date:

TBD

ESTABLISHING STOCK CONTROL

✓ Establishing Stock Checking

✓ Developing Stock Accuracy

✓ Stock Tolerances and Approvals

✓ Stock Reconciliations / Discrepancies

✓ Identifying Surplus and Obsolescent Stock

✓ Identifying Different Storage Conditions

✓ Understanding Stock Coding

✓ Stock Variety Reductions

INVENTORY MANAGEMENT TEAM CONCEPTS

✓ Roles and Responsibilities in Inventory Management

✓ Building an “Inventory Team” throughout the Organization

- Committees

- Setting Goals

- Measuring Success

- Rewards

- Problem Solving

✓ Building an “Inventory Team” with Vendors

- What is a Good Vendor?

- What can a Vendor Do for Me?

- Selling the Vendor Your Program

- Maximizing Your Vendor’s Value

✓ Working with Management on the Program

✓ Accountability and Ownership

-

Course Outline

Duration:

Five Days

Location:

TBD

Date:

TBD

STOREROOM REQUIREMENTS

✓ Physical

✓ Environmental / Climate Control

✓ Receiving Doors and Locations

✓ Documentation of Movement of Inventory

✓ Housekeeping

✓ Keeping Storerooms Clean

STOREROOM LAYOUTS

✓ Physical Layout - ABC Analysis

✓ Ideal Locations for Parts

✓ Bins, Drawers, or Carousels

✓ Item Location Systems

✓ Security Systems

✓ Stopping the Open Door Inventory Dilemma

✓ Storeroom Process & Procedures

STOREROOM SECURITY

✓ Types, Levels, and Options

✓ Why you Need a Secure Environment

✓ Different Security Types

✓ Who is Part of the Security Team?

STOREROOM PROCEDURES

✓ Primary ID

✓ Stores Stock Catalog

✓ Part Descriptions

✓ Getting Information on Every Potential Item

✓ Store Stock Numbering

Course Outline

Duration:

Five Days

Location:

TBD

Date:

TBD

✓ Identification of all Parts & Materials

✓ Order Quantity EOQ

✓ Order Point - Lead Time Usage, Safety Stock

✓ Stock Index for ID

✓ Inventory Classification

✓ Location Codes

✓ Stock Number or Bin Location

✓ Bill of Materials (BOMs)

✓ Consignment Inventory

✓ Inventory Accuracy - Cyclical Count

✓ Used Parts

✓ Rebuilt Parts

✓ Planning & Inventory Control

✓ Insurance Items

✓ Parts vs Kits vs Materials

✓ Obsolete Items

✓ Optimization of Inventory

✓ Return Policies

✓ Pre-Picking / Pre-Staging

STOREROOM CONTENTS

✓ What Do You Need?

✓ How Much Do You Need?

✓ Open Stock vs. Free Issue

✓ Controlling Additions and Deletions

Course Outline

Duration:

Five Days

Location:

TBD

Date:

TBD

ISO STANDARDS AND WAREHOUSE ACTIVITIES

✓ Introduction to ISO standards

✓ The importance of ISO standards

✓ Registration for ISO certification

✓ Warehouse activities and quality assurance

✓ Stores division activities in conformance to ISO 9001

WORKING WITH A CMMS (COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM)

✓ Bar Coding and Micro-Chip Technology

✓ Connecting with your CMMS

METRICS & DECISION MAKING TOOLS

✓ Practical Measurements & Accounting Systems

✓ Measuring Inventory Turns

✓ Minimum / Maximum Levels

✓ Service Levels

✓ Analysis of Storeroom Measures Procedure

✓ Measuring Vendors

IMPLEMENTING A WORLD CLASS STOREROOM

✓ Designing an Plan

✓ Implementing a Plan

OPEN DISCUSSION

COURSE SUMMARY & CONCLUSION

T H A N K Y O U

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Phone: + 971 2 449 6000 / +971 50 412 3294 Email: info@boostuae.com

Course Name MAINTENANCE, REPAIR & OPERATING SUPPLIES (MRO)