parts management best practices joyce mitchell. parts management best practices 1.determine the...
TRANSCRIPT
![Page 1: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/1.jpg)
Parts Management Best Practices
Joyce Mitchell
![Page 2: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/2.jpg)
Parts Management Best Practices
1. Determine the Correct Part #2. Locate The Part In The Store Room3. Maintain An Accurate Inventory4. Establish Effective Stocking Levels5. Institute Accountability6. Manage Vendor Relations7. Identify And Dispose Of Obsolete Parts8. Develop Written Procedures 9. Enforce Security10. Manage For Performance
![Page 3: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/3.jpg)
Part Issue Search by Equipment #
![Page 4: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/4.jpg)
Search or Query Equipment Applet
![Page 5: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/5.jpg)
Search By Part Usage Code
![Page 6: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/6.jpg)
Add Cross Reference Numbers
![Page 7: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/7.jpg)
Work Order Cross Reference Search
![Page 8: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/8.jpg)
Standard Format-Example Only
• ALWAYS USE CAPS FOR ALL ENTRIES IN FASTER. It is easier to read and insures consistency.
• Part #: First three characters should represent the manufacturer of the item, followed by the part number. Determine how to address non-alpha or numeric characters.
• Description 1: The most important thing to remember is that the format MUST be consistent! Primary Identifier, Secondary & further description. Also try to reduce space wasters, such as commas or dashes, unless necessary.
![Page 9: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/9.jpg)
Standardize Your Format **
![Page 10: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/10.jpg)
2. Locate The Part In The Store Room
• All stock parts should have a primary Location and, if needed, a secondary
• Shelves, drawers, wall and other storage areas should be labeled with a location
• How is the Store Room Organized: part number, description, category, demand, size
• Non-stock and shop supplies segregated from stock inventory and labeled as such.
• Have a defined space for Receiving, Returns, Warranty, Parts awaiting Technician
• Discourage & limit the habit of maintaining used parts or “private store rooms”
![Page 11: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/11.jpg)
Storeroom Layout Example
![Page 12: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/12.jpg)
Inventory Sorted by Location
![Page 13: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/13.jpg)
3. Maintain An Accurate Inventory
• Verify count on all incoming shipments (Barcode will print correct # of labels)
• Count inventory prior to every re-order • Daily inspection for empty shelves• Establish valid Max Issue quantities• Make an adjustment when a discrepancy is found
**• Perform a physical inventory count at regularly
defined intervals
![Page 14: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/14.jpg)
Possible Variance Reasons• Received wrong part number or quantity• Issued the wrong part or entered the wrong part #• Entered the wrong issue quantity or unit of issue• Issue not input to FASTER or input to FASTER & not
given to Tech• Counted the inventory wrong or entered wrong count • All stock not counted, were some stored elsewhere?• Package quantity inaccurate• Parts were lost. Check on the shelf behind or nearby.• Parts were stolen.• if part is frequently issued in conjunction with another
part, run a parts issued report for both parts and see if one is missing
![Page 15: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/15.jpg)
4. Establish Effective Stocking Levels
• Set the appropriate max/mins **(demand, lead time, space, packaging, price breaks)
• Run Parts Order Recommendation report (3206) daily
• Run Parts Inventory Movement Report (3222)• Investigate reason for a stock out• Establish reasonable order frequency • Review downtime reports for WO status Awaiting
Stock or Non-Stock part• Run Inventory Turns report (3229) & establish a
goal for inventory turns
![Page 16: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/16.jpg)
Establishing Max/Mins• usage history, continued future demand, availability• lead time, time to receive delivery from vendor• current in-stock quantity• Sales, price increases, product shortages• storage space or special storage requirements• cost to order, paperwork and labor, unit cost of item• how packaged, case lots, pallets, slings• seasonal usage• related items that affect usage• budgetary constraints• shelf life• shipping costs
![Page 17: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/17.jpg)
5. Institute Accountability • Receipts –Parts Received Detail report (3204)• Issues –Part Issue Report (3201) and Independent
Issues (3217) • Outstanding Orders –Orders Not Received (3205) • Transfers –Parts Transfer report (3207)• Returns to inventory –Parts Issue report (3201)
with “show returns” option• Adjustments –Parts Audit (3201) report: cost/qty
adjustment, key change, merge, order/receipt delete, part delete
• Variance – Parts Inventory Discrepancy report (3227)
![Page 18: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/18.jpg)
6. Manage Vendor Relations • Develop strong contract specifications or
agreements that establish price, delivery terms and quality.
• Comparison Shop & Document Savings• Monitor vendor performance:
– Price: System will notify when price exceeds established percentage
– Delivery: Use Order Search to monitor back orders & to insure delivery time complies with contract
– Set up a warranty for all parts except consumables
• Establish good rapport
![Page 19: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/19.jpg)
7. Identify & Dispose Of Obsolete Parts
• Run Obsolete Parts reports to identify parts with no use. Determine why.
• Run a Parts Issued to Equipment report to identify parts related to equipment you plan to dispose of
• Decide best method for disposal: return, exchange, auction, garbage
• Prevent accidentally re-ordering: change to non-stock, change status, change Store room
![Page 20: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/20.jpg)
8. Develop Written Procedures**
• Map out process flow• Detail the steps for each task• Who is responsible for each function?• How soon or how often should it be done? • Define how it should be done.• Establish limits (At what point should
management be brought in?)
![Page 21: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/21.jpg)
Adjustment Procedure Example
Store room staff
2.Review Part History to identify reason
for error. Correct Inventory variances as soon as possible. No item should continue to be incorrect for longer than two days after first identified. If investigation takes longer than two days to correct, adjust the item so that the inventory is accurate. An offsetting entry can later be made once the reason is found.
3.Determine that an adjustment is
necessary. Use adjustment only when no correctable reason for the variance can be found. (Refer to reasons for possible causes for variances.)
![Page 22: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/22.jpg)
Adjustment Procedure Example
4.Valid reasons for an Inventory Adjustment may include:
Incorrect Data InputLossSpoilage or BreakageTheft
5.If total dollar value of the adjustment is $25.00 or less, proceed with the adjustment. If the total dollar exceeds $25.00, get prior approval from management.
6.Open Parts Processing and Select INVENTORY tab.
7.Type in Part # to be corrected in both the Part # “From & To” fields.
![Page 23: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/23.jpg)
9. Enforce Security
• Maintain system security by assigning individual user ID’s and sensible permissions
• Secure the stores area, if possible. Limit access. • Publicize zero theft tolerance policy
![Page 24: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/24.jpg)
10. Manage For Performance • Require strict adherence to all procedures. • Require all safety and regulatory guidelines are
followed • Outline behavioral expectations for employees
(punctuality, attendance, phone & internet use, etc.)• Develop a code of ethics to alleviate even the
perception of unethical activities• Know how much it costs to operate (salaries,
expenses, overhead, parts loss) • Promote proactive communication with customers. • Discourage shop vs. stores attitude• Share your accomplishments and successes
![Page 25: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/25.jpg)
Parts Management Best Practices
How to get started . . .• Customize These Practices For Your Operation• Prioritize & Plan How To Best Implement• Establish Timelines For Accomplishing• Improve And Revise
![Page 26: Parts Management Best Practices Joyce Mitchell. Parts Management Best Practices 1.Determine the Correct Part # 2.Locate The Part In The Store Room 3.Maintain](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649da35503460f94a8fc9d/html5/thumbnails/26.jpg)
Parts Management Best Practices
• Other Suggestions?• Questions?• Comments?