The globalization and modernization always asks for optimizing processes and details to get a higher quantity of products or services with a low expenditure of money, resources and time. This is needed to be competitive as a company in the ongoing capitalistic economy where the continuous growth is fundamentally wanted and needed to have a stable working system.
A division where optimizing analysis seems unnoticed from time to time, is the Maintenance/Repair/Operation (MRO) and specially the inventory.
Especially companies who work for the industry have a big chance to streamline to unleash capital which can be reinvested in expansion-processes.
The MRO optimization contains various aspects. The basic understanding of the term means the “indirect requirement” which are needed for the production of various items. To picture this easier: The MRO of an industry is the section of the tools and machines which are needed for the production of the goods. Those tools have to be stored, in case repaired or replaced and in corrective maintenance. If this process is not managed well or just works in a very inefficient way, the whole goods production loses effectiveness and furthermore stability.
The same applies to the inventory of a business. The stock of a company tries to fulfill all standards. The inventory management tries to keep the balance between the stock minimum, a stable delivery capacity and reliability. The worst case of an inventory is having a huge store with soiled items (dead articles) which take a lot of space, expenses and have a very low possible use.
Even if the MRO and the inventory don’t have the highest priority, it has a big impact on the company’s production quality, efficiency and reliability which definitely influences the competitive ability. Straightforward it means that all the background processes (machines tool-MRO etc.) which are needed for producing should be effectively and managed on a high-quality level.
The steps to optimize the MRO begins with an analyze of the production processes and MRO processes. Based on this, optimization potentials can be identified. The mere identification is not enough. Problems have to be analyzed as well and their solution needs to be planed and implemented with alternative processes. The general security of supply of the indirect requirements needs to be guaranteed and conservation of recourses, time and costs should be performed. The plant should be used ideally and failures have to be prevented.
To reach this status the company should have a permanent condition monitoring and continuously check possibilities to save energy.
In the way MRO and inventory optimization correlate with each other, the inventory and its impact should not be underrated. The inventory, even it is “just” a store, has running costs and maybe creates more expenses because of inefficiency.
First there should be a detailed requirement planning and then an inventory draft. Not to forget about the acquisition details and methods. The potential of the inventory optimization is eclectic. Unused and less used materials should be replaced. The diversity should be minimalized to reduce expenditure and production processes should be optimized, as already mentioned before. Prognoses of demands have to be improved to not have miscalculations and losses.
By optimizing MRO and the inventory the company will lower the capital requirements and the stock risk. Capital will be unleashed and can be invested in a more effective optimized production again. This will increase the worth and power in the open economic competition.