Audel managing maintenance storerooms

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

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

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Summary

Author Notes

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