By George E. Krauter
Conflicting goals within the silos of the ERP/EAM process are disrupting overall MRO productivity. To address the issue, the problem first needs to be acknowledged and then solutions must be introduced in order to drive more productivity within the MRO supply chain process. Below are listed some of these silos and the individual (and conflicting) goals of each:
With respect to the MRO supply chain, the divergent goals of each of these organizations are not coordinated. Although these silos generate activities that impact the MRO supply chain, the MRO stores management process does not align with the goals of each department. To exacerbate the situation, members of each silo have opinions as to how MRO should be operated (based upon their own individual needs) with little consistency as to who is in charge of procedures.
Manufacturers spend more than 40% of their budgets on maintenance related costs to make sure supplies are available to keep the plant’s assets running safely and at optimum levels. However, companies still continue to allow process duplication, inefficiency, and risky practices to negatively impact plant performance. In many cases, the longer a company exists, the longer it will rely on catalog data comprised of inconsistent and inefficient information. Add to this the lack of re-engineering expertise applied to MRO SKU’s and CMMS underutilization, and you reap significant deterrents to asset management incentives.
All of this points to a need changing MRO procedures in order to achieve efficiencies equal to the operational expertise companies apply to their manufacturing processes. The divergent silos must be coordinated to satisfy the goals of each while benefiting the whole.
Navigating the silos
MRO operational expertise should be centered on the need to employ four basic MRO management components. These include Supply Chain Services, Master Data Leadership, Engineering Asset Management, and Computer Maintenance Management Systems (CMMS). Each of these areas has an important role to play.
Supply Chain Services include sourcing and procurement, storeroom design, storeroom management, and logistic/inventory management. Some of these functions can be performed off site efficiently; however, proper management must have an on-site presence.
Master Data Leadership (MDL) requires the following components:
The Engineering Asset Management function requires the services of reliability engineers who will achieve dramatic cost savings that benefit each silo. These include:
Computer Maintenance Management Systems (CMMS), when properly implemented, will benefit all silos by allowing stakeholders to have the necessary MRO communication when needed. Functions include scheduling, planning, preventive maintenance, work orders, safety management, purchase history, inventory levels, P.O. data, and information to control budgets. Maintenance has the proper procedure to manage the reliability process; procurement has the information to optimize the total cost of ownership (TCO) for MRO.
To achieve optimum return on investment of time and money, an agreement with a single provider with on-site MRO expertise is essential. The provider must have a history of success, a top to bottom dedication to provide the actions necessary for success, and a commitment to sustain all stated goals on a year after year basis.
George Krauter, former founder and president of Industrial Systems Assoc. [I.S.A.] has retired as vice president of Synovos.
Currently, he has initiated, "George Krauter Consulting [GKC]" for effective reliability and cost recovery for consumers of MRO materials. George is a recognized authority on the management of the MRO supply chain and support for maintenance reliability programs. His book, "OUTSOURCING MRO...FINDING A BETTER WAY" is available from Amazon and from Reliability Web.com.
He is published in Uptime, Modern Distribution Management, and Supply and Demand Chain Executive. George has conducted seminars across North America, in Europe, and in the U.A.R. as well as a guest speaker at Temple U., Howard U., Duke, and MIT.
George is a graduate of Temple University; he lives with his wife, Joyce, in Bucks County, PA. All grand kids live within eating distance. He can be reached anytime: email@example.com.
George E. Krauter
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