Inventory Control Management | Trending Topic
Last time, I shared a story from Cathy, an MPulse customer whose organization continues to improve its maintenance strategy based on hard data from their MPulse Software, Inc. We’ve talk about the surprises her company found after it first implemented CMMS software and the discovery that inventory control is a key part of their larger goal—controlling the cost of maintenance. In this post, Cathy tells us how MPulse CMMS software eased the process of inventory counts and, as a part of that process, the ability to identify surplus parts. Identifying Surplus Parts Like many organizations, Cathy’s company was storing surplus parts—parts the company has not used in a given period of time. Those parts were just sitting on the shelves, forgotten, but still costing the organization money. Cathy’s team knew they were storing unneeded parts. But it was an easy thing to ignore… until Cathy reviewed their MPulse CMMS data and saw the numbers on the report. [related-content] “Once we identified how much of our inventory was either overstocked or outdated, we knew we were missing an opportunity to save some cold, hard cash,” Cathy said. It wasn’t easy. “It was a bigger job than any of us first realized,” she continued. “But eventually we all benefited from the extra room in the storage area and reductions in manpower to count them. In addition, it freed up capital to use for parts we actually needed.” Cyclical Inventory Counts Cathy’s company began thinking about inventory differently. For example, Cathy’s company used to do an annual inventory for tax and financial accounting purposes. But Cathy found a different way that worked better. Now the organization does cyclical inventory counts, where her team inventories 1/12 of the stockroom on a monthly basis. That new procedure, coupled with the removal of the surplus parts, cut down the time the team spent on counting inventory by 20 percent. Cathy’s company is a great example of how organizations can use CMMS data to improve their maintenance strategy. You might be shaking your head right now. That’s because you and I both know that one of the most frustrating issues in maintenance is inventory control. But like Cathy’s company, inventory control can help you find real savings for your organization. As I’ve said before, it’s important not to ignore it. How does your organization control inventory? What’s been your experience? Leave a comment or contact me.
Do You Know What’s Sitting on Your Stockroom’s Shelves?
While I’ve long advocated for the benefits of inventory control, it’s not a simple topic for maintenance managers. I’ve seen systems where techs just order parts on an as-needed basis, and I’ve helped companies develop sophisticated inventory control systems using CMMS inventory control software. Wherever your organization falls on this spectrum, it’s likely you can benefit from the inventory control features within your CMMS software. And the benefits might surprise you. Remember Cathy, whose company began asking different questions about their maintenance strategy after implementing MPulse Software, Inc? Those questions led her company to implement advanced inventory control features, and the results were very interesting. “When we decided to improve our parts tracking, we needed five things from our MPulse CMMS software,” Cathy said. These were… Purchase price and date Vendor information Physical location Past usage rates (to calculate appropriate stock levels and reorder points) Notifications when parts or inventory levels fall below minimum stock levels Inventory Turnover Once the new stockroom inventory software system was set up, Cathy’s managers first looked at inventory turnover—a measure of the number of times inventory is sold or used in a time period, such as a year. “In our industry, our goal is an annual inventory turnover of 3 or 4,” Cathy explained. “But when we looked at our CMMS data, we saw our inventory turnover rate was just under 1. That’s not good.” Cathy’s organization was spending a lot of money storing and managing parts they didn’t need. That means they were wasting money spent on… Increased square footage to store parts Unused or underused parts Inventory carrying costs Staff time to manage parts Staff time to perform annual or cyclical inventory audits Lack of correct parts on hand for staff when they are needed Inventory Lead Times To tackle this problem, Cathy was tasked with improving the inventory turnover rate. She used MPulse stockroom inventory software to help employees manage the inventory based on need, availability, and order time. “We have some critical assets that need parts with a long lead time. They come from Europe, and sometimes it takes several weeks to get them,” Cathy explained. “With MPulse, we adjusted our stocking levels by calculating average usage rates by the part’s lead time in days. It helped prevent both having too many and not enough of key items.” Inventory turnover and lead times just two of the important parts of inventory control. Next time, we’ll discuss other inventory control issues that Cathy’s company found. How does your organization manage stockroom inventory? What would you like to do better? Leave a comment or contact me.
Does Your Preventive Maintenance Plan Cost Too Much?
Maintenance managers know that the backbone of any maintenance program is a preventive maintenance plan. Generally, we assume that preventive maintenance is a good thing and it will prevent downtime. But there are certain circumstances where it’s more complicated. That’s what MPulse customer Angie discovered. As a team supervisor for a government agency, Angie re-examined her team’s maintenance strategy after she reviewed her organization’s CMMS data. Angie’s department maintains radio equipment, which can be located in remote areas that are physically challenging to access. In Angie’s case, mountainous terrain made it particularly difficult. Historically her radio technicians would schedule preventive maintenance twice a year (in spring and autumn) when the weather made access easier. After reviewing work order data and equipment readings in her MPulse Software, Inc, Angie wondered if it was more efficient to only do those tasks once a year by using remote site monitoring technology. The Value of CMMS Data for Preventive Maintenance Angie knew she needed more than just a hunch when she proposed her idea to her department head. She did some research and tested her theory. “Most of our assets in these locations are classified as critical equipment,” she said. “It wasn’t enough to tell my managers that I thought this would work. I had to prove it. Equipment failure was a serious concern.” Her tests showed that with a few tweaks to their preventive maintenance plan, the technicians could reduce their remote area visits to once a year. That change would reduce the preventive maintenance tasks for those assets by half, which would save… Parts and material costs Labor costs Transportation costs Environmental impact Plus, those funds could be reallocated to other areas. Data-Driven Maintenance Management Although Angie’s plan seems like a no-brainer, not everyone was on board at first. “I ran into some resistance—the ‘we’ve always done it this way’ attitude,” she said. But with MPulse, she could track failure rates and equipment measurements. Historical data backed up her theory. “I eventually convinced them to allow a 1-year trial,” she said. “Without that data, it would have been more challenging.” The result? Angie’s department has experienced no additional emergency shutdowns since the change three years ago. Advantages of Condition-Based Maintenance Time-based preventive maintenance programs are a standard in our field. But condition-based maintenance can reveal different—and sometimes better—ways to do things. Angie’s team plans to expand on her idea. “We’ll use MPulse’s Condition-Based Maintenance feature to keep tabs on our critical assets by recording temperatures and other performance indicators,” she said. “That’ll make it easier to identify problems before they happen. And preventing outages is always a good thing in this profession.” Interestingly, Angie’s managers are more receptive this time. She credits the success of her first proposal as the reason her other ideas have gained support faster. Is it time to re-examine your preventive maintenance plan? Learn more about how MPulse CMMS software and condition-based maintenance can help.
The Maintenance Management Task You Need to Add to Your “To Do” List
Last week I attended a retirement party for two employees of an MPulse customer. After offering my congratulations (and admitting a little envy), I stopped to talk to Judy, who oversees the maintenance staff. Our conversation left me with the maintenance management task that every maintenance manager must add to their to do list. Judy looked a little melancholy for someone surrounded by that much cake. When I asked her why, she said: “Steve, there’s 62 years of experience walking out the door today. It’s going to be hard to replace that kind of expertise.” Her comment struck a chord. There’s a lot of inherent knowledge in maintenance, and I bet your maintenance workers carry a lot of information in their heads. When they walk out the door, that experience goes with them. Everyone moves on at some point, and I don’t have to tell you that finding good maintenance employees is challenging. That’s why you need a succession plan. How to Create a Maintenance Succession Plan Now, it’s likely your organization doesn’t have a formal program for succession planning. Not that many do. But don’t let that hold you back. It’s in your best interest to create a plan now that will make your life easier during staff transitions. There’s tons of information about creating succession plans out there, but I want to focus on two of the most important things in the maintenance department—skills and experience. I asked Judy about her organization’s succession plan for maintenance employees. “We don’t have a formal process,” she said. “But I know it’s a problem. So I’ve focused on capturing information and documenting procedures in our CMMS software that can be easily passed down from person to person.” I think that’s a great start. Judy is creating a historical record that stays with the company long after the tasks are done and the employees have moved on. But there’s more to it. Experience matters, so it’s important newer employees get hands-on training too. I recommend a four-step process: Identify the skills—including specialized ones—needed to perform maintenance duties. Document any related procedures, resources, or training information in your CMMS software. Create a plan to get employees the experience and training needed to develop those skills. Put that plan into action. Why You Need a Maintenance Succession Plan I know maintenance managers are busy, and succession planning may sound like just another thing to do. But think about the payoff. Maintenance employees are responsible for… Preventing equipment failures Reducing maintenance costs Documenting regulatory compliance Maintaining a safe work environment Extending asset life cycles. In other words, not taking action is simply too expensive. We don’t talk about succession planning much in our field. But we should. Our aging workforce coupled with the increasing responsibilities of the maintenance team means the right person for the right job makes all the difference. Have questions on how to plan for employee transitions? Contact us.
How to Get Management Support for Your Maintenance Projects
I’ve never met a maintenance worker who didn’t know how to build or repair something in a more streamlined way. With detailed knowledge about equipment and assets, they’ll tell you exactly how to make things run smoother or more efficiently on the production line or in a facility. That’s valuable knowledge. And too often it’s overlooked by the executive team and other department managers. Management support on maintenance projects is essential. Such was the case with Tom, a relatively new MPulse customer who felt his team’s good ideas were not getting the support they deserved. “I kept trying to explain to my boss why we needed to invest in some of these plans,” he told me. “But I wasn’t getting through to him.” Tom’s problem wasn’t the ideas. His problem was translating those ideas into the language of management—dollars. Learn to Speak the Language For maintenance workers, getting the job done means checking things off the list. The value of the work is a job completed. Executive managers, however, think about costs versus benefits. The value of the work is the return on investment (ROI) for the organization. So while Tom sees his maintenance strategy as tasks completed in a timely manner, his boss sees dollars. Think in Dollars I told Tom what I know to be true in any business or organization: “If you aren’t thinking of your work in terms of dollars, someone else is.” To convince his managers to support these projects, Tom needs to show them how they can save more money than they cost. He needs to prove the ROI of these investments. ROI is a simple mathematical equation: ROI = (gain from investment – cost of investment) / cost of investment So, how does Tom do that? He can use his MPulse CMMS data to calculate how these proposed projects will positively impact his company’s balance sheet. To get you started, Phil Beelendorf shares his ideas on calculating ROI in “How Effective is Your Maintenance Strategy” from Plant Services. The first step is a shift in your approach. “Teach yourself to always think like an accountant instead of a maintenance professional,” he writes. There’s more to this story, however. Tom’s real goal is autonomy—the ability to make decisions that he thinks will improve how his maintenance team—and his company—performs. I’ll share more of Tom’s story in another post. In the meantime, contact MPulse with any questions about proving maintenance ROI.
What Maintenance Teams Need to Know about the Internet of Things (IoT)
Guest blog from Better Buys The Internet of Things (IoT) is changing the way maintenance professionals collect asset information and exchange data with other systems. As things all around us are outfitted with sensors to communicate what’s happening within and around them, this valuable data has the potential to shape your maintenance team’s productivity and efficiency. Gartner reports that by 2020, approximately 26 billion of these connected devices will be in place. This rapid integration is partially driven by the affordability of the IoT. “By 2020, component costs will have come down to the point that connectivity will become a standard feature, even for processors costing less than $1. This opens up the possibility of connecting just about anything, from the very simple to the very complex, to offer remote control, monitoring, and sensing,” said Peter Middleton, research director at Gartner. What Maintenance Teams Should Know Computerized maintenance management system (CMMS) software supports data collection from IoT devices by analyzing real-time readings so maintenance teams can react faster. The combination of the IoT and CMMS helps maintenance technicians spot issues and prevent more serious breakdowns and repairs. Data from the IoT helps with… Improved scheduling and less unplanned overtime Accurate tracking of spare parts and inventory More accessible information on asset conditions Clearly defined benchmarks The IoT will become increasingly important to maintenance teams as younger employees, who are very comfortable with technology, enter the field. CMMS software can take the IoT a step farther by enabling the maintenance team to use mobile devices to check on the status of assets in real time, rather than running between a computer and the shop floor. What Maintenance Managers Should Know From a manager’s or supervisor’s perspective, the IoT offers benefits that can translate into operational improvements. Asset data collected by the IoT devices and analyzed by CMMS software can help managers cut costs and find the best way to manage workloads and prevent emergency breakdowns. These benefits include: A greater return on investment (ROI) for high-capital assets Fewer sudden and costly emergency expenses Minimal unscheduled downtime Opportunities to offer employees performance incentives A more holistic view for strategic planning The combination of the IoT and CMMS software can help bridge data communication, so the maintenance team can make a positive impact on their organization. The IoT is coming, whether you are ready or not. It’s time to get ready. Author Bio: Julia Scavicchio is a writer with Better Buys, a trusted source on enterprise software news and research. Follow her @JuliaScavicchio for more updates on how our workforce is changing.
How Tablets Can Improve Your Maintenance Team’s Productivity
Mobile technology has improved my productivity—specifically my smartphone has made it easier to work while I’m away from my desk. But another type of mobile technology also has made a huge impact on my work life—the tablet. I’m not alone. Maintenance technicians have discovered the value of tablets for maintenance work, with more adopting this technology every day. A recent Software Advice study found 44 percent of those surveyed report using a tablet, versus 34 percent who use a smartphone. Another 21 percent use both. Ease of Use These findings parallel my own experience. I don’t go anywhere without my smartphone. But my tablet’s larger screen size is much easier on my eyes when I need to access documents or other detailed text. It’s also much easier for my fingers to work with buttons and drop-down menus on a tablet. A sturdy, waterproof case protects my tablet when I’m in dirty environments or inclement weather. Improved WiFi access and cellular service means I can use our mobile maintenance software almost anywhere. Plus, security features safely control access to my data, even when I’m not in the office. All my work is synced between my tablet, my smartphone, and the computer network at the office—thanks to cloud computing. Best of all, it took me no time at all to learn to use my tablet. Standardized application interfaces meant that I knew how it worked as soon as I picked it up. All in One The combination of mobile devices with mobile maintenance software makes a powerful tool to help you get the job done. A tablet replaces a lot of equipment that maintenance managers used to need, including… Video conference system Desktop or laptop computer (for many functions) GPS device Camera Pager Video camera And much more. Mobile technology is a natural fit for maintainers. With smartphones and tablets, you can capture information on the spot—instead of jotting it down on paper to input later. Mobile devices allow you to access critical information easily without calling back to the office or getting “plugged in.” The potential to improve your maintenance team’s productivity is huge. Don’t get left behind. Have questions about mobile maintenance software? Need advice? Call us. We’re here to help.
How to Improve Productivity with Custom Software Development Services
Guest Blog by Amarnath Raja, InApp, Inc. It’s very common for companies to choose software solutions for a specific purpose, like QuickBooks for accounting, Google for email, or MPulse for maintenance. In the industry, we call these “best-of-breed” applications—which simply means the software is the best solution of its type for the purpose. Sometimes, however, no best-of-breed application is available or you discover technology gaps that are hindering your organization’s efficiency. Your best-of-breed application has become an island of automation. When your best-of-breed applications don’t interact with each other, what should you do? You could buy standard off-the-shelf software that is sort of what you want, but would require customization to make it work. Oftentimes, however, customization is expensive and the costs outweigh the benefits. Another option is to use internal resources to develop custom software. However, this kind of project takes your IT team’s focus away from other important tasks, or it may take longer than expected because of the different skill sets needed to do the project. So what’s the solution? Consider custom software development. Custom software development is an application design service to address specific needs. Typically this type of software is created for a specific client by a contract developer and is not packaged for resale. Contract software developers design software to provide features that can enhance off-the-shelf software. While that may sound expensive, a custom software program specifically designed to increase your organization’s efficiency or productivity can pay big dividends in the long run and often has a quick payback. For example, our long-time client, MPulse Software, Inc, recently launched a new website using the Drupal web platform, a best-of-breed application for this purpose. They also invested in Salesforce, another best-in-breed CRM application used by both their sales and support teams. MPulse needed to fill in a technology gap to make the process of adding customer leads from the Drupal website to the Salesforce database faster and more efficient. So they turned to their trusted partner, InApp. InApp created a custom application, using MPulse design specifications, to automate the data transfer between their website and Salesforce. As a result, MPulse personnel now can access the information faster, provide better customer service, reduce data input errors, and focus on more important—and profitable—tasks. Custom software is a bridge that connects islands of special purpose software. If your organization needs technology to fill in the gaps of your operations, consider custom application development. It’s an investment with the potential to improve your organization’s productivity—and its bottom line. Since 2000, InApp has been delivering full cycle software development services to customers worldwide. InApp has offices in the United States, India, and Japan as well as a 200+ team of software engineers. Their software engineering services include application services, product engineering, mobility solutions, programming services, testing service, UI design services, and games & multimedia. Amarnath Raja is the CEO of InApp. Mr. Raja worked for IBM before founding InApp. He lead the IBM technical team at JP Morgan, Tokyo. He is also the recipient of the 2015 IEEE MGA Larry K. Wilson Transnational Award for his contributions to global IEEE humanitarian activities.
How to Decide Whether to Repair or Replace an Asset
Recently I toured a customer’s manufacturing facility—one of my favorite things to do. Seeing MPulse users working with our CMMS software for real-world maintenance tasks always gives me a clearer perspective on our work and why it’s so valuable. Our tour guide, Dan, was proud of his maintenance team’s achievements. I had to ask, of course: “What’s the biggest benefit you’ve experienced from your MPulse Software, Inc so far?” Dan didn’t hesitate. “Now we know when it’s better to repair or replace an asset,” he said. “Our CMMS data helps us make good decisions, and we’re more efficient as a result.” Data-Driven Management I’ve heard similar responses a lot lately. Maintenance managers have discovered the importance of data-driven management, where their decisions are backed by reliable data. It’s easy for upper management and other departments to see the value and efficiency of your team and their work when they can see the data—and the dollars—right in front of their eyes. And nothing is better at gathering and analyzing maintenance data than CMMS software. With each purchase and every work order, Dan’s maintenance team uses their MPulse Software, Inc to document: Labor costs Parts costs Energy costs Purchase price and date Life expectancy Warranty information Replacement costs Other custom data So when it’s time to decide whether to repair or replace an asset, Dan isn’t just guessing. He’s using his MPulse CMMS data to make a decision based on hard numbers. By running a few simple reports, Dan knows which assets cost the least amount of money to maintain and repair. He also can calculate when the increased efficiencies of newer models will pay off in the long run. Asset Life Cycle These decisions affect more than the replacement budget. Analyzing the life cycle of assets also helps Dan reduce downtime and prevent unexpected repairs. And when he does decide it’s time for new equipment, he also can estimate any training costs as employees get up to speed on the technology. When you have the hard data about the age of the equipment and the miles, hours, life-to-date repair dollars, and other metrics—it easier to decide when it’s time to replace an asset instead of repair it. CMMS data changes the way you make decisions because you have all the information at your fingertips to determine the total cost of ownership. If you are interested in learning more about how our asset management systems can help you with data-driven management, we are here to help. Contact us today.
Three Common Applications for Condition-Based Maintenance
Guest blog from Better Buys Condition-based maintenance (CBM) is a CMMS software add-on that keeps tabs on the actual state of your critical assets by recording the output of any meters and gauges on that asset, making it easier to diagnose problems and prevent asset failure. Today’s maintenance teams are using CBM to improve their efficiency and their organization’s bottom line. The three most common applications of condition-based maintenance measure temperature, pressure, and oil viscosity. Common Applications for Condition-Based Maintenance 1. Temperature Readings Temperature readings help monitor and control an asset’s environment. Many assets can or do include sensors to gather temperature data, including infrared readings and thermal imaging. Also organizations are using “smart” technology to help facility managers measure and control building temperature. Who depends on temperature readings? Many universities, hotels, and hospitals are upgrading HVAC units to better monitor temperature. Windows and doors also can be outfitted with sensors. With these real-time readings, the HVAC can adjust for humidity and temperature, and alert staff to any issues. Machinery also can overheat, and computers must be continually cooled. Monitoring the temperature of these assets allows staff to prevent emergency shutdowns or even fire damage. 2. Pressure States Sensors can monitor pressure on equipment with piping or water systems. Monitoring pressure over time allows maintenance staff to predict when a pipe could fail and replace it beforehand. Instead of tracking down a leak after it happens, monitoring pressure indicates when and where a leak will likely happen before it does. Who depends on pressure states? Machinery in food and beverage production as well as product manufacturing rely on pipe or liquid systems. As competitive businesses are pushed to increase production while maintaining reliable operations, tracking pressure saves time on diagnosing problems. Maintenance staff also can keep parts at proper inventory levels for scheduled fixes. 3. Oil Viscosity A classic example of preventive maintenance (PM) is changing the oil in your car, either based on a calendar schedule (e.g., every three months) or based on mileage (e.g., every 5,000 miles). By adding condition-based maintenance to your preventive maintenance schedule, your maintenance team can monitor the oil particles to tell when to change the oil. Instead of 5,000 miles, the oil could last 8,000 miles. Who depends on oil viscosity? For construction or fleet vehicles, using CBM allows staff to schedule equipment maintenance and work more efficiently. In the long term, it also saves on oil and other parts. The Impact of Condition-Based Maintenance Condition-based maintenance offers organizations a competitive edge. Instead of performing failure-based maintenance, you can use CBM data to prevent problems before they happen and minimize overtime for technicians, cutting down on labor costs. Make your preventive strategies more accurate and reliable with CMMS and CBM. Contact MPulse with questions about how CBM can help your maintenance operations. Author Bio: Julia Scavicchio is a writer with Better Buys, a trusted source on enterprise software news and research.