Among others, these measurements refer to transportation, warehouse and supply chain aspects. Top warehouse performance kpis legacy supply chain. The goal of this study was to carry out single and multiaspect abc analyses in spare parts warehouse. This paper presents a framework for planning and control of the spare parts supply chain in organizations that use and maintain highvalue capital assets. Spare parts logistics making every single part count. Also discussed are a criticality matrix, benchmarking activities, and expected outcomes when implementing key performance measurements. This study has reached its purpose to develop a performance measurement system based on scor. Maintenance spares inventory management performance.
Spare parts are essential in ensuring proper operation of this system of maintenance by replacing parts, and so they also a ect daily services provided by equipment such as public transportation rolling stock, aircraft health care mri scanners, and military operations military equipment and weapon systems. Als advanced logistic systems abc analysis in spare parts warehouse katarzyna grondys czestochowa university of technology, poland abstract. Spare parts inventory management shares many traits with standard inventory management, but requires an extra layer of cost consideration. Figure 1 control pyramid of business objectives figure 2 cascaded objectives to achieve the business purpose. Whether a maintenance and repair organization mro is internal to a larger business, or providing maintenance services to an external customer, efficient spare parts inventory management plays a critical. As plant manager, you need to know how to determine which spare parts are needed to make up an effective and comprehensive inventory system. Exploring lean principles in automotive aftermarket for. Upgrade spare parts supply chain deloitte china auto industry spare parts management benchmark survey white paper 3 market trend. Pdf file log26 warehouse sample warehouse management policy and procedures guidelines outline. Master of science thesis in supply chain management. Thats where your key performance indicators kpis come in. Many companies, large and small, have storerooms or warehouses containing inventory ready to ship directly to customers. In other cases this inventory is, hopefully, dedicated to support companies maintenance, repair and operations. Below, ive outlined the four most important kpis for the parts and inventory department in the heavy equipment industry.
Trying to get your mower, snow plow, salt spreader or snowblower back in action. Whatever your motivation, we invite you to read this ebook and raise the level of operational excellence in the inventory and warehouse management innovation communities. All these activities implemented successively allow to reduce the level of excess and obsolete stock while, at the same time, optimizing the entire spare parts inventory maintained in a warehouse. Warehouse performance metrics in todays hightech environment, warehouse managers have an overwhelming abundance of data to analyze and use to determine how to improve their warehouse operations. Spare parts management is about, how spare parts handling must be systematized and structured to enable efficient inventory management that leads to improved availability and reduces the amount of capital expenditure. To ensure employees have the skills to quantify impact, and provide timely direction for an individuals contribution at all. A process model that focuses on the operational tasks within warehousing was designed. Here is the complete list of the most important logistics kpis and metrics, that we will discuss in this. Performance measurement system for warehouse activities. Through optimisation of spare parts management, the accenture team has helped its client achieve improvements of various kpis. When it comes to your parts and inventory department, there are really only four key metrics that you need to focus on to make more informed decisions.
Without metrics, there really is no way to know what is and isnt working in a warehouse. It is possible to establish analogies for the kpis to the offshore wind sector. They help you answer difficult questions so you can measure the health of your retail store and determine the steps you need to take. Smartturn is committed to fostering a selfsustaining community of inventory and warehouse experts through knowledge sharing and learning. In this scenario, the cost of goods is the cost for a company to deliver parts to customers, excluding administrative expenses. Key performance indicators for maintenance are selected ensuring a direct correlation between the maintenance activity and the key performance indicator measuring it.
Many warehousing kpi s tend to be focused on external performance, such as ontime shipments that directly impact customers. Accordingly, its advisable to stock selected spare parts to avoid unnecessary production downtime caused by long lead times. When defining a key performance indicator for maintenance a good test of the. Dealership parts department, kpi, benchmark, ratio, stock policy, supply, target, sales, motor dealer, manufacturer, oem, backorder.
Update inventory control system and parts catalogue. A logistics kpi or metric is a performance measurement that is used by logistics managers to track, visualize and optimize all relevant logistic processes in an efficient way. Warehouse kpis key performance indicators are the answer. Hence, before defining a kpi, relevant parameters need to be measured for a. Kpis are the most important metrics in your business. It describes the processes to ensure that kpis have targets and owners. Practical spare part management is the foundation for reliable plant operation and is crucial to a plant managers success.
Spare parts logistics at a glance integrated global contract logistics services, including all aspects of logistics planning, control and implementation scalable standard components. Exploring lean principles in automotive aftermarket for spare parts distribution. Extending the life of equipment is the sole focus of our dedicated parts staff. The problem of excess and obsolete inventory management. In other cases this inventory is, hopefully, dedicated to support companies maintenance, repair and. Maintenance, repair, and operations mro in asset intensive industries.
Spare parts planning and control for maintenance operations. A team of experts is available night and day to assist our customers with all of their parts needs. The information was then analyzed and a performance measurement system for warehouse activities was developed. A key performance indicator kpi is defined as a method to measure quantifying objectives to enable the measurement of performance. Warehousing kpis what to measure and what to improve. Similarly, a fg warehouse s kpis will be quite different from that of a rm warehouse. Efficient spare parts management 8 rules preventive maintenance processes without problems segment your sp portfolio assess the criticality good forecasting special methods for intermittent demand items asset life cycle good information system. Spare parts management maintenance manual, maintmaster. Lean practices help identify errors or inaccuracies before orders leave the warehouse. Spares management system belongs to the nonqualified category, which can be viewed as the ceiling in the homm spares. Good information system for spare parts management quantitative methods common sense. They allow you to set a benchmark for monthonmonth improvements. A measure of the efficient utilisation of current investment in inventory. Spare parts inventory management training, resources, and coaching for individuals and teams.
Piles of trash and debris are a potential fire hazard and hinder evacuation. For example, kpis for 2pl warehouse will be different from that of a 3pl warehouse. Best kpis for heavy equipment parts and inventory departments. Pdf a strategic framework for spare parts logistics.
The focus of our parts and logistics organization is to provide on time, accurate and convenient service. A replacement part is then automatically, if desired, ordered and delivered to your location. Edu present prime examples however, some of the case study firms fit. Make sure that garbage and debris bins are available throughout the warehouse. A strategic framework for spare parts logistics 86 university of california, berkeley vol. However, if your spare parts are for use on equipment that your company owns or controls then this probably is the site for you. Table 1 outlines the comparable kpis explored in the following case study. Spare parts business will become the key competition area as chinas automotive market matures, the potential of the aftersales market has started to be gradually realized. The higher the figure for the kpi, the better return a dealership is getting from holding stock. Decisions in the framework are decomposed hierarchically and interfaces are described. The average aggregate inventory value is the cost of all items on inventory.
A perfect order rate can be improved by strict adherence to warehouse and. Learn the formulas and the priority for each kpi for mro and stores. And help identify areas that when combined with a solid procedure and warehouse management system will have a direct effect on both overall business costs and customer satisfaction. When we put together the increasing strategic importance of spare part business with th. This is perhaps the most important kpi for parts and inventory because it reflects the overall efficiency of the entire supply chain. Developing meaningful kpis the following methodology provides a guide through the process of developing clear objectives and key performance indicators kpis to support a strategy. Maintenance activities often entail the need for replacement part availability in the warehouse. Key performance indicators kpi s are frequently used in general business to evaluate the success of everything from a specific department to an entire enterprise. A high value for this kpi may lead to reduced gross profit margins but too low a value could indicate unrealised market opportunity. The warehouse must always have sufficient stocks to cover the leadtime for replacement stocks to avoid stockouts. Notify service personnel when special parts or backordered parts are. The contents of such system should cover the spares whole life, including spare parts selection, purchasing, installation, operation, maintenance, quality tracking, spares obsolete, and the like. Recommend related parts and accessories, which may be required for a job. How to measure warehouse key performance indicators.
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