Oniqua Intelligent MRO Blog

Why MRO Inventory Optimization Should be a Core Competency

Posted by Dan Miklovic, Principal Analyst - LNS Research

10/29/15 12:16 PM

Spare parts: sounds like a relatively simple activity, yet for many organizations that have otherwise embarked on an Asset Performance Management (APM) journey it is an area where they’re terribly inefficient.
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Topics: inventory optimization

50% of Unplanned Downtime is Due to This One Thing

Posted by Steve Herrmann

10/13/15 2:27 PM

An old joke has a man on his hands and knees, crawling around under a street light in the darkness of night. A passerby finds his actions curious, and stops to ask what he’s doing.

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Topics: inventory optimization, unplanned downtime, MRO

MRO Inventory Optimization: Some Things are Just Good APM Investments Regardless of Energy Prices

Posted by Dan Miklovic, Principal Analyst - LNS Research

9/14/15 11:08 AM

It has been a wild year in the energy sector, particularly in Oil & Gas.  Crude prices have fluctuated wildly, particularly in the third quarter of this year.  Many upstream and integrated producers are feeling the pressure and even downstream-only companies while benefiting from lower raw material costs are all wary of spending right now.  This is a dangerous situation in that as tight as revenue might be, some opportunities are just so great it doesn’t make sense not to invest, even now.  Asset performance management (APM) is one area that has such a strong influence on safety, environmental and productivity issues that even though times might be tight, skimping now is more dangerous than spending.  One particularly cost effective area within APM to invest in now is MRO inventory management AND optimization.  This is an area where relatively small investments can yield some substantial payback.  What’s worse than equipment breaking? Not having the materials to repair it when it does.  The other side of the equation is carrying such a large just-in-case spares inventory that today’s slim profits are further eroded by inventory carrying costs and out dated material disposal costs. 

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Topics: inventory optimization

Workgroup Motivators for MRO Inventory Optimization – Part 1

Posted by Matt Haunold

8/3/15 2:25 PM

To gain the best possible outcomes when undertaking Maintenance, Repair and Operations (MRO) inventory optimization, a business-wide buy-in of the process is essential. From finance to maintenance, a team approach will increase the business’s ability to gain maximum benefits.

Rightsizing of the inventory has always shown an ability, despite initial misconceptions from workgroups external to MRO supply chains, to achieve desirable outcomes of diverse stakeholders. In order to gain buy-in from these workgroups, it’s important to understand what might motivate them to be part of the MRO Inventory Optimization process in the first place. Here are several motivating factors:

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Topics: inventory optimization

MRO Inventory Optimization: Analytics & Human Emotions

Posted by SiewMun Ha

7/15/15 5:29 PM

It is relatively easy for organizations to deploy advanced MRO analytics to identify and quantify optimal inventory solutions, but human issues should also be addressed to achieve maximum solution effectiveness.

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Topics: inventory optimization

Multi-Location Inventory Optimization

Posted by SiewMun Ha

6/11/15 2:49 PM

Many asset-intensive organizations stock Maintenance, Repair and Operations (MRO) inventory at multiple locations to cater to geographically-distributed demand. Where there are common items used at the different locations, it is advantageous for them to share this common inventory for greater efficiency. In doing so, they set up a network of interacting nodes that can be optimized to obtain additional inventory savings. Achieving these savings, however, requires a network-centric analysis to optimize the stocking decisions at each of the nodes, such that the global inventory in the network as a whole is optimal with respect to defined management objectives. Such an analysis is significantly more complex than that for a stand-alone location because the analysis must consider the interactions between the nodes, the stochastic nature of MRO inventory demand and supply as well as practical operational constraints.

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Topics: inventory optimization, inventory management

Optimal Inventory Management for an Asset Retirement Event

Posted by SiewMun Ha

5/19/15 10:47 AM

A discrete step reduction in future demand occurs in MRO inventory optimization when an asset is taken off line permanently. This might happen, for example, at a utility or oil and gas company when a plant is decommissioned, or maybe a mining company when a mine is shut down. What is the optimal way to manage MRO spares and inventory in such a scenario?

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Topics: inventory optimization

Delivering value means valuing both the measurable and the intangible

Posted by Oniqua

9/29/14 3:02 PM

Measurable value keeps us focused and on track; intangible value helps drive continuous improvement

For centuries philosophers have pondered questions of why and how we humans place value on the people, ideas and objects in the world around us. There’s even a specific category to question value: Axiology. The Oxford Dictionary defines value as the importance, worth, or usefulness of something. Classical economists define the value of an object or condition as the amount of discomfort or labor saved through the consumption or use of the object or condition.

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Topics: inventory optimization, Continuous improvement, Customer Success

Boost RCM and PM effectiveness

Posted by Lindsay Clarke

6/17/14 11:26 AM

 

Optimize reliability centered maintenance (RCM) and preventive maintenance (PM) initiatives with analytics

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Topics: inventory optimization, optimize RCM, Continuous improvement, optimize PM

Overcoming five key challenges of inventory optimization

Posted by Steve Sotwick

5/16/14 1:30 PM

Optimizing MRO spares inventories is about more than MIN/MAX

Optimizing inventory is about more than MIN/MAX

On the road, listening to clients and other MRO professionals, the big topic on everyone’s mind is reducing costs while improving service levels. The point is there’s much more to optimizing inventory than min/max levels.

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Topics: MIN/MAX, inventory optimization

What is Intelligent MRO?

The smartest way to optimize MRO spares and materials

Intelligent MRO is about using advanced analytics and best practices to:

  • Minimize cost, waste and risk
  • Maximize service levels and asset performance
  • Improve resource and process efficiencies
  • Drive bottom line results

Get the latest perspective from maintenance, repair and operations professionals in oil and gas, electric utilities, mining and other asset intensive industries right here.

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