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Summary
Summary
Manage to save time and money
A properly managed storeroom is the difference between having parts when you need them and spending too much time and money getting them when the need becomes critical. This book shows you how to plan, equip, stock, catalog, and manage a storeroom that will benefit both your workers and the company. Discover cost-effective ways to maintain essential stock, how to conduct audits, and even ways to negotiate better prices.
* Choose the most practical site, storage system, lighting, and security
* Plan what parts you need, when they should arrive, and how best to catalog them
* Set standards and balance quality and price
* Plan an efficient physical layout and organize your storeroom to balance space limitations against shelving cost
* Establish an inventory system that works
* Learn what you need to know about purchasing laws, contracts, warranties, and ethical practices
Author Notes
Michael V. Brown is founder and President of New Standard Institute
Table of Contents
About the Author | p. xiii |
Introduction | p. xv |
Chapter 1 Maintenance Materials Management | p. 1 |
Balance Quality and Price | p. 1 |
Detailed Engineering Specifications | p. 2 |
Brand Name Specifications | p. 2 |
Commercial Standards | p. 2 |
Purchase Materials in the Proper Quantity | p. 2 |
Receive Materials at the Optimum Time | p. 3 |
MRO Control Goals | p. 4 |
Supervising Storeroom Personnel | p. 6 |
Controlled Storeroom Benefits and Justifications | p. 7 |
Knowing What's There | p. 7 |
Savings Benefits | p. 8 |
Summary | p. 10 |
Chapter 2 Storeroom Layout and Stocking Methods | p. 13 |
Choosing the Site | p. 14 |
Space and Cost | p. 14 |
Minimum Requirements of a Storeroom | p. 16 |
Planning the Storeroom | p. 17 |
Using Mezzanines | p. 21 |
Storeroom Lighting | p. 23 |
Storage Check List | p. 24 |
Pigeonhole Units or Rotary Bins | p. 24 |
Closed Shelving | p. 24 |
Bin Boxes | p. 25 |
Modular Drawer Cabinets | p. 26 |
Mixed Shelving Unit with Modular Drawers Built into a Center Section | p. 27 |
Shelving Versus Modular Drawer Units | p. 28 |
Lockable Cabinets | p. 28 |
Flammable Fluids Cabinets | p. 28 |
Bulk Racks | p. 29 |
Pallet Racks | p. 30 |
Other Storage Options | p. 30 |
Purchasing and Installing Shelving | p. 31 |
Using a Location Identification System | p. 31 |
Summary | p. 35 |
Chapter 3 Inventory and Control Procedures | p. 39 |
Inventory Control | p. 39 |
Perpetual Inventory | p. 40 |
Variations on the Perpetual Inventory Method | p. 42 |
Cycle Counts | p. 43 |
Annual Inventory | p. 44 |
Controlling the Value in the Storeroom | p. 44 |
Using a Stores Catalog | p. 44 |
Describing the Part | p. 46 |
Other Uses of the Description | p. 50 |
A Case for Descriptive Item Numbers | p. 52 |
Hierarchical Systems | p. 53 |
Using Manual Storeroom Control Systems | p. 56 |
Stock Record Cards | p. 56 |
Traveling Requisitions | p. 59 |
Using a Computer Program | p. 61 |
Minimums, Safety Stock, and Reorder Quantities | p. 61 |
Lead Time | p. 63 |
An Example | p. 66 |
Safety Stock Determination | p. 69 |
Service Level | p. 73 |
Reorder Quantity and Economic Order Quantity | p. 75 |
Cost of a Purchase Order | p. 79 |
Carrying Percentage | p. 79 |
Analyzing the EOQ | p. 81 |
Effect of Carrying Cost Changes on EOQ | p. 83 |
Effect of Purchasing Cost Changes on EOQ | p. 84 |
Price Break Quantities | p. 85 |
Order Quantity Adjustments | p. 85 |
Using a Stores Authorization Process | p. 86 |
Min/Max Systems Versus RP/RQ | p. 93 |
Inventory Value | p. 93 |
Inventory Cost Flow Assumptions | p. 95 |
Charging Out Rebuilt Items | p. 99 |
Costs to Include in a Stores Withdrawal | p. 100 |
Handling Items with No Value | p. 101 |
Summary | p. 101 |
Chapter 4 Storeroom and Inventory Control Improvements | p. 105 |
Shortening Lead Time | p. 105 |
Time to Notice the Part Is Below the Reorder Point | p. 105 |
Time Required Preparing and Distributing a Purchase Request | p. 106 |
Time for Purchasing to Place the Order | p. 106 |
Time for the Supplier to Handle the Order | p. 107 |
Delivery Time | p. 107 |
Receiving Time | p. 107 |
Time to Stock and Post the Receipt | p. 107 |
Supplier Relationships | p. 108 |
Supplier Contracts | p. 108 |
Supplier Stocking and Consignment | p. 109 |
Supplier Restocking at the Customer's Facility | p. 110 |
Reducing Stores Inventory | p. 110 |
Obsolete Items | p. 110 |
Determining Spare Part Requirements | p. 112 |
Cross-References and Standardization | p. 115 |
Planning and Scheduling | p. 116 |
Delivering Stores Items to the Job | p. 118 |
Handling an Overstock of Stores Items | p. 118 |
Handling Returns | p. 119 |
Bar Coding | p. 119 |
Bar Code Readers | p. 120 |
Bar Code Systems | p. 125 |
Bar Code Printing | p. 129 |
Moving to Bar Codes | p. 130 |
Bar Code Support Suppliers | p. 131 |
Electronic Data Interchange (EDI) | p. 131 |
Summary | p. 134 |
Chapter 5 Storeroom Measurements | p. 137 |
Gathering Data | p. 137 |
Turnover | p. 138 |
ABC Analysis | p. 141 |
XYZ Analysis | p. 144 |
Monitoring Storeroom Activity | p. 145 |
Inventory Audits | p. 146 |
Auditing Suppliers | p. 146 |
Conducting an In-House Storeroom | p. 147 |
Housekeeping | p. 148 |
Benefits of an Improved Materials Management System (Payoff) | p. 148 |
Facility Constraints and Solutions | p. 148 |
Summary | p. 149 |
Chapter 6 Computerized Inventory Management Systems | p. 153 |
Building Blocks | p. 154 |
Canned Report Generator | p. 156 |
Ad-Hoc Report Generator | p. 156 |
Data Mining Tools | p. 159 |
Report Mining Tools | p. 160 |
Summary | p. 162 |
Chapter 7 Purchasing for the Storeroom | p. 165 |
The Role of a Purchasing Agent | p. 165 |
Different Levels of Authority | p. 166 |
Defining a Contract | p. 167 |
Examining Contracts and Sales Agreements | p. 169 |
Warranties | p. 170 |
Understanding the Law | p. 171 |
Purchasing Laws | p. 171 |
Antitrust Law | p. 172 |
Conflict of Interest and Ethical Practices | p. 175 |
Confidentiality | p. 177 |
General Business Relations | p. 177 |
Shipment, Transportation, and Delivery | p. 177 |
Demurrage | p. 179 |
Saving on Freight Cost | p. 180 |
The Process of Buying | p. 180 |
Terms of Payment | p. 181 |
Buyer's Checklist | p. 182 |
The Buying Decision | p. 183 |
Negotiating a Lower Price | p. 185 |
Summary | p. 187 |
Appendix A Item Description Examples | p. 189 |
Bearings | p. 189 |
Bearing Hardware | p. 192 |
Internal Clearance | p. 192 |
AFBMA Standard Bearing Designation System | p. 193 |
Belts | p. 196 |
Timing Belts | p. 198 |
Couplings | p. 198 |
Gaskets | p. 199 |
Gasket Color Codes | p. 200 |
Seals | p. 200 |
Seal Numbering System | p. 201 |
Roller Chains and Sprockets | p. 202 |
Roller Chain | p. 202 |
Silent Chain | p. 202 |
Leaf Chain | p. 203 |
Sprocket Identification | p. 203 |
Valves | p. 204 |
Numbering a Valve | p. 204 |
Valve Size | p. 205 |
Service Ratings | p. 206 |
Valve Material Designations | p. 206 |
Valve Construction | p. 206 |
Valve Abbreviations | p. 206 |
Pressure Relief Valves | p. 213 |
Circuit Breakers | p. 214 |
Fuses | p. 214 |
Motors | p. 216 |
Appendix B Maintenance Policy and Procedures | p. 217 |
Statement of Purpose | p. 217 |
Governing Principles | p. 217 |
Classification of Items Held in Stock | p. 218 |
Stock Authorization Process | p. 220 |
Changes to the Reorder Point and Reorder Quantity | p. 222 |
Inventory Control Systems--Perpetual Inventory | p. 223 |
Inventory Control Systems--Cycle Counts | p. 225 |
Inventory Control Systems--Annual Inventory | p. 225 |
Deleting Items from Stores Control | p. 225 |
Purging Slow-Moving Items | p. 226 |
Disposal of Surplus and Scrap | p. 227 |
Inventory Analysis | p. 227 |
Storeroom Access and Security | p. 229 |
Return of Parts and Assemblies | p. 230 |
Storeroom Safety and Housekeeping | p. 232 |
Appendix C Skill Requirements for Storekeepers | p. 233 |
Appendix D Unit Abbreviations | p. 237 |
Index | p. 239 |