» »
Reducing Costs through Spares Optimization and Rationalisation » MA12

Reducing Costs through Spares Optimization and Rationalisation

Did you know you can also choose your own preferred dates & location? Customise Schedule
DateFormatDurationFees
12 May - 16 May, 2024Live Online5 Days$2250Register
12 Aug - 16 Aug, 2024Live Online5 Days$2250Register
11 Nov - 15 Nov, 2024Live Online5 Days$2250Register
DateVenueDurationFees
01 Apr - 05 Apr, 2024Dubai5 Days$4750Register
20 May - 24 May, 2024Dubai5 Days$4750Register
26 May - 30 May, 2024Riyadh5 Days$4950Register
24 Jun - 28 Jun, 2024Dubai5 Days$4750Register
15 Jul - 19 Jul, 2024Dubai5 Days$4750Register
26 Aug - 30 Aug, 2024Dubai5 Days$4750Register
23 Sep - 27 Sep, 2024Dubai5 Days$4750Register
07 Oct - 11 Oct, 2024Dubai5 Days$4750Register
18 Nov - 22 Nov, 2024Dubai5 Days$4750Register
25 Nov - 29 Nov, 2024Cairo5 Days$4950Register
16 Dec - 20 Dec, 2024Dubai5 Days$4750Register

Book Classes Now


Book Online Class

Course Overview

What is Cost Rationalization?

In many manufacturing and support facilities, the budget for spare parts can be a significant percentage of the total maintenance budget. This level may be justified because the non-availability of spare parts could substantially increase the cost of taking care of failures. It is inconceivable and impractical for a maintenance department to carry all the required spares in stock. This is prohibitively expensive. Therefore, managing the inventory of spare parts, supplies, and tools is a very important function in maintenance and reliability. Usually, quantitative decision techniques for determining when and what to buy are used.

How to Reduce Spare Cost?

An overview of quantitative techniques available for reducing inventory costs is presented in this course from Zoe Talent Solutions.

In practice, applications of these techniques have produced the following results:

  • 20% reduction in the workload of maintenance planners
  • 30% reduction in the number of purchase orders for replenishment parts
  • 40% reduction in manually-prepared direct-purchase requisitions
  • 30% reduction in maintenance storeroom inventories
  • 20% reduction in total maintenance costs

The storeroom or warehouse is responsible for the following functions:

  • Provide the right spare parts, supplies, and tools
  • Deliver the needed items to the right location at the right time.

These major responsibilities of a maintenance storeroom may be met with good advanced planning based on best practices. However, for certain parts, these expectations could be unrealistic due to cost, unexpected high failure rates, and high lead time. Maintenance, engineering, purchasing, and management must work together in developing a plan to determine the most economical stocking levels for the critical items. Some items have small or negligible lead times and can be bought with very little loss of time; as such, these items probably do not have to be stocked.

Course Objectives

The main objective of this training program is to empower professionals with details to understand the following main topics:

  • Maintenance store operations
  • Types of inventories
  • Tools and techniques to optimize inventory
  • How to ensure availability of parts and materials on time
  • Key performance measures

Training Methodology

This collaborative course on Reducing Costs through Spares Optimization and Rationalisation will comprise the following training methods:

  • Lectures
  • Seminars & Presentations
  • Group Discussions
  • Assignments
  • Case Studies & Functional Exercises

Like all our acclaimed courses, this program also follows the ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

By professionals undertaking this course, their respective organisations will derive the following benefits:

  • Better management of spares and materials that optimize maintenance cost and directly affect productivity
  • Align spare management with a maintenance planning program to ensure that the maintenance task will be executed on the due date to prevent equipment failure
  • Utilize best practices in spare management and warrant inventory accuracy
  • Improve the performance of your asset management by practising a sound framework for spare management
  • Obtain better reliability results by selecting the right parts at the right time to do the maintenance jobs
  • Establish KPI to measure and track warehouse and stock performance

Personal Benefits

Professionals undertaking this training course will derive the following benefits:

  • In-depth understanding and knowledge of spare parts management
  • Enhanced analytical skills to effectively and efficiently manage stock
  • Professionally utilize metrics and KPI as a control tool in spare management
  • Generate value by using best practices to optimize the spares stocking process
  • Delve deeper into the concepts and sharpen your inventory management game

Who Should Attend?

Course Outline

The course covers the following areas important to understanding spares management:

Module 1: Introduction

  • The role of maintenance in organization productivity
  • Maintenance and Profitability
  • Maintenance organization “Classification of Roles in Maintenance”
  • Elements of asset management
  • Benefits of good stores and Impact on maintenance

Activity: Evaluate your stockroom

Module 2: Inventory Management: A Deeper Dive

  • What’s inventory management?
  • Inventory management Vs Warehouse management
  • Kinds of inventory
  • Manage vendor and supplier relationships
  • How do I calculate my safety stock?
  • What’s my reorder point?
  • How can I calculate my inventory turnover?
  • Understand economic order quantity (EOQ (and minimum order quantity (MOQ)

Module 3: Basics of Cost Management

  • Elements of cost
  • Cost classification
  • Direct & indirect
  • Variable & fixed
  • CAPEX & OPEX
  • Cost estimation and analysis
  • Major influences on pricing decisions
  • Pricing and vendor selection

Module 4: Types of Inventories

  • Safety stock
  • Active inventory
  • Infrequently used inventory
  • Rarely used inventory
  • ABC Analysis (Inventory Stratification)

Module 5: Physical Layout and Storage Equipment

  • Warehouse and Storeroom design
  • Storage Equipment

Module 6: Optimizing Tools and Techniques

  • Computerized Inventory Control System
  • “Shelf Life” Management and PM Plan for Stored Items
  • Inventory Accuracy
  • Parts Kitting Process
  • Lead time
  • Total Inventory Costs
  • Carrying cost
  • Ordering cost
  • Stock-out cost
  • Economic Order Quantity (EOQ)

Module 7: Store Room and Warehouse Performance Measures and Indicators

  • Metrics and KPIs – Preface and introduction
  • Why measure performance?
  • Performance evaluation and control
  • KPIs; Business context
  • The value added by KPIs
  • Stock control KPIs
  • Stock level
  • Service level
  • Jobs waiting
  • Other measures

Generate Invoice For This Course

Click here to auto generate invoice for this course

Generate Invoice
Want this Course for your Organisation?

Get a free proposal to conduct this course in your organisation as an in-house basis

Get In-house Quote
Information Request

If you've any questions, Let us know by clicking the button below.

Quick Enquiry
Free Courses offer
Note

Customized Schedule is available for all courses irrespective of dates on the Calendar. Please get in touch with us for details.