Spare Parts Inventory Management

OverviewNo previous works have focused on the topic of inventory reduction and optimization to the extent that this one does. Spare Parts Inventory Management: A Complete Guide to Sparesology™ by Philip Slater covers the whole part’s life cycle, from initial purchase to final disposal, and addresses issues throughout, including maintenance, repair, and overhaul (MRO). The author, Phillip Slater, was described in a recent podcast as “truly one of the leaders in the MRO information segment. ”Sparesology is a term coined by Slater to describe the discipline of optimizing the physical, financial, and human resource management processes of spare parts inventory management. Sparesology is much more than just inventory optimization. It involves an understanding of the complete “ecosystem,” within which the spare parts inventory is managed, and seeks to ensure that all of the factors influencing this management work together to achieve an organization’s goals. “Spare Parts Inventory Management: A Complete Guide to Sparesology® combines content you might find in several different texts into a well-organized and easy to use reference. This is a fantastic guide for anyone interested in having a successful spare parts inventory management system. Right from the beginning, I knew this would be a good read. Every aspect of spare parts management, cradle-to-grave is addressed. Innovative concepts, such as inventory 'prevention' and 'timing,' are introduced, and matrices translate complex concepts into easily understood visual references. To clear the path for success, the author starts the journey by identifying potential landmines that can sink a spare parts inventory management system at its onset. I found the section, 'Five common supply chain techniques that you should not use for spare parts management' particularly insightful. A useful discussion addresses perceptions of the financial impact of spare parts. It explores the delicate balance of the key players and their own 'silo' perspectives and agendas, and helps the reader understand the ever-ongoing battle between the thought that spare parts 'cost money' and the idea that downtime is a deadly cost that must be avoided. Examples and simple calculations provide some great guidelines for decision making. As a bonus, the difference between policies and procedures, as well as valuable and specific guidelines for writing both, are included. This easy to read guide to understanding the human factors (trust) offers no-nonsense techniques for applying data-based decision making in the establishment of a robust spare parts inventory management system. It combines content you might find in several different texts into a well-organized and easy to use reference that deals with everything from clean sheet design of a system to best practices and continual improvement for mature systems. Spare Parts Inventory Management: A Complete Guide to Sparesology® is a fantastic guide for anyone interested in having a successful spare parts inventory management system. " —Marnie Schmidt, Author of Tribal Knowledge: The Practical Use of ISO, Lean and Six Sigma Together. www. marnieschmidt. com“It’s like Phillip is coaching you one-on-one. He addresses the full life cycle of spares, clearly shows the unique nature of spare parts management, and provides practical guidance on critical policies and best practices. Spare Parts Inventory Management: A Complete Guide to Sparesology® belongs on the shelf of every spare parts organization. I definitely would recommend it to my clients and students. Phillip Slater’s latest book continues his unique and engaging writing style. He draws on his decades of experience in spare parts management and delivers a book that is pleasantly conversational, as if I am sitting across the table from him, and he is coaching me one-on-one. This book is also unique as it addresses the full life cycle of spares, from initial requirements forecasting through to use and final disposal. The author clearly shows the unique nature of spare parts management versus other types of inventory — distinctions that require different considerations in planning and control. In easy to understand terms, he dispels the myths associated with spares and provides practical guidance on critical spare parts policies and best practices that favorably impact the bottom line. Spare Parts Inventory Management: A Complete Guide to Sparesology® is practitioner oriented and belongs on the shelf in every spare parts organization. I definitely would recommend it to my clients and students. " —Dr. A. Patricia Murrin, A. P. Murrin and Associates; Supply Chain Management Department Chair, The National Graduate School of Quality Management; Adjunct Faculty, Walden University; Adjunct Faculty, Northwood University. You can find her on LinkedIn. “Slater sticks with proven systems and best practices born out of real-world experience. As timely as it is useful, Spare Parts Inventory Management: A Complete Guide to Sparesology® is a ‘dirt under the nails’ guide that translates just as well in the boardroom as in the parts storage cribs. Many organizations don’t understand the need to manage spare parts until something affects the bottom line, then it is 'all hands on deck. ' That is where Phillip Slater’s new book comes in. As timely as it is useful, Spare Parts Inventory Management: A Complete Guide to Sparesology® is the natural addition to the author’s earlier publications. Slater has a gift for making unfamiliar subjects seem less intimidating. He sticks with proven systems and best practices born out of real-world experience. Such is the case with this latest book, wherein he lays out the need for properly addressing industrial spare parts and the steps to thoughtfully controlling the processes and procedures to manage them. He outlines four key-aspects to his approach. Each one is equally important and applicable to any size organization in any industry. You will find, as I did, that Slater tackles the big problems with attention to detail, without getting into the mind-numbing minutia of how things could be done. Along with the high-level concepts, he gives specific guidance for addressing each aspect of spare parts management. He effectively empowers the reader to dismiss the perception of the need for 'just in case' spare parts. Without glossing over anything, he brings the reader to an understanding of not only what to do, but also 'why' we do these things. Leaving buzzwords and ethereal concepts aside, this is a 'dirt under the nails' guide that translates just as well in the boardroom as in the parts storage cribs. "—Russ Thompson, M3 ERP Functional Consultant, Avaap USA (www. avaap. com). You can find him on LinkedIn. “With a clear, easy to read style, this book provides a whole vision for the spare parts management problem, applying engineering questioning and avoiding the most widely accepted methods to obtain the best solution, measured financially, for every spare parts inventory situation. Spare Parts Inventory Management: A Complete Guide to Sparesology® is a great follow up to Slater's previous books. With a clear, easy to read, style, Spare Parts Inventory Management: A Complete Guide to Sparesology® charts the key lessons and synthesizes the key ideas to consider for every part of a spare parts optimization process. The book provides best practices, plus charts and matrices that are valuable aids and transform the book into a road map. The author insists that the lack of a consistent spare parts policy is a major problem in most companies and proposes a practical approach, including financial considerations, and how to use a language that your CEO will understand. This book covers all phases of the spare parts management life cycle, from the creation of the stock to the disposal of non-used parts. It provides a whole vision for the spare parts management problem to help analyze pros and cons, and understand the consequences of every decision. A highlight is the part about obsolescence and disposal, a phase that is not usually analyzed. Based on my experience, the main problem with most spare parts management is the use of ad hoc and emotional principles that are unable to ensure the right results. Slater proposes applying engineering questioning and avoiding the most widely accepted methods to obtain the best solution, measured financially, for every spare parts inventory situation. This is a great follow up to his previous books. "—Jorge Asiain, Senior Consultant AlterEvo (www. alterevo. es); Lecturer of Mechanical Engineering, Universidad Europea. You can find him on LinkedIn. “Phillip Slater is a true expert who brings the issues involved in spare parts inventory management to the public attention constantly. A complete, clear, well supported, and practically applicable guide, Spare Parts Inventory Management: A Complete Guide to Sparesology® is a must-read for those who decide on spare parts inventories. The general problem with spare parts inventory management is that it is regarded and thus approached as just another 'general' inventory challenge. And while the market is full of inventory management professionals, training, courses, and so on, only a few address the complexities that make spare parts inventory management a totally different reality. Among these, Phillip Slater is a true expert who brings the issues involved in spare parts inventory management to the public attention constantly. His newest book is a complete, clear, well supported, and practically applicable guide. Spanning the different disciplines in a company, including engineering, planning, procurement, and finance, it focuses on minimizing downtime and cost. I really like the numerous lists of questions that help practitioners decide which and how many spare parts to stock. For instance, the chapter on inventory optimization presents five questions for examining the requirements for spare parts, the consequences of non-availability, and the predictability of demand. The answers help in determining stock-holding requirements as well as contingency needs. Another useful section, 'The Seven Actions for Inventory Reduction,' provides solutions for reducing inventories without compromising parts availability. Spare Parts Inventory Management: A Complete Guide to Sparesology® is a must-read for those who decide on spare parts inventories. " —Jürgen Donders, Partner, Gordian Logistic Experts, www. gordian. nl. “Spare Parts Inventory Management: A Complete Guide to Sparesology® should be your ‘go to’ book for spare parts management success. Thanks to this book, my job Is now made easier. Phillip Slater has put together one of the best guides to inventory management you will find. Spare Parts Inventory Management: A Complete Guide to Sparesolgy® is a systematic compilation that has everything you need for success in inventory management. Having identified common mistakes and misconceptions about inventory management, Slater carefully takes his time itemizing the avoidable traps and discussing inventory management policies, results of applicable research, and best practices. He guides you through the foundation of inventory management, including the requirements for stocking, how to decided what to stock, and when and how. He also addresses the dreaded and most hated word in spare parts management: obsolescence. To all inventory managers, business owners, inventory management consultants, maintenance managers, engineering managers, and CFOs: This should be your 'go to' book for spare parts management success. Thanks to this book, my job is now made easier. " —Ilyas Ateiza, Stores Manager—Engineering, APM Terminals. You can find him on LinkedIn. Phillip Slater has more than 22 years of business improvement experience. While the last 12 of these have been spent in operations and management consulting, the first 10 were spent ‘hands on’ in industry learning by direct experience. It was during this time, and by learning from both his successes and failures, that Phillip developed many of the approaches that his company, Initiate Action, applies today. Based on his experience, Phillip has authored a number of management books including A New Strategy for Continuous Improvement and Smart Inventory Solutions. Over the course of his career Phillip has worked in at least a dozen countries and across most industries. He presents training courses for APICS, is a member of the Australian Institute of Company Directors and The National Speaker’s Association of Australia. Selected operational improvement achievements include:As a manager, taking an underperforming manufacturer to be the profit leader in its group of companies. Assisting a client to achieve more than 20% in operational cost reduction. Assisting other clients to achieve tens of millions of dollars of operational improvements. Assisting a client to achieve a 42% reduction in inventory. Assisting other clients to release millions of dollars in cash from excess inventory. For the past five years Phillip has donated his time as a Non Executive Director for Yooralla, one of Australia’s leading disability service providers. In addition to his operations improvement consulting work, Phillip is also available for corporate speaking and training. Ch 1: Establishing Your Spare Parts Management System: What is MRO and Spare Parts. ; The #1 Problem with Spare Parts Management; The Big Picture - Putting Spare Parts in Context; Why Spare Parts are Different (than other inventory types); Standard Supply Chain Tools that Don’t Work with (Most) Spare Parts; Financial Considerations; Inventory Prevention; Inventory Management Policies. Ch 2: Best Practice Spare Parts Management: Best Practice Research; The Five Best Practices that Make a Real Difference. Ch 3: The Spare Parts Management Life Cycle: Creation; Operation; Obsolescence and Disposal. Ch 4: Implementing Your Spare Parts Management System: How to Go From a Pilot Program to Productive Execution.