MRO Spares are spare parts used by maintenance teams to repair broken equipment.\u00a0 By holding onto spare parts for critical assets, they are able to drastically reduce the downtime of equipment, by immediately starting repairs and not waiting for new parts to be shipped.<\/p>\n
This process, however, comes at a cost.\u00a0 \u00a0Insurance premiums often run at 5% of total inventory value, and taking into account embedded costs like salaries and wages, buildings and utilities to manage the spare parts inventory, the total administrative exposure for carrying cost can add up to as much as 20% or more.\u00a0\u00a0\u00a0These are not one-and-done expenses; they occur every year, year after year, for as long as you carry storeroom inventory for an asset.<\/p>\n
Most leading ERP solutions have modules or customizations that address MRO inventory procurement and inventory management. However, there are various holes in their systems that leave businesses at a difficult crossroads: Do you invest the resources needed to identify unnecessary MRO Spares or do you absorb the cost of these Spares and invest resources elsewhere?<\/p>\n
For example, a client of ours recently came to us with this issue.\u00a0 They had just decommissioned an old machine which was backfilled by a substantial amount of MRO Spares in their warehouse.\u00a0 They were unable to sell or remove the spares used for this machine\u00a0because some parts were also used by other critical assets – they just didn’t know which ones.\u00a0 After hiring an SAP Analyst, they learned how rigorous the process of identifying which<\/strong> parts were used on other machines.\u00a0 The Analyst had to either go through every work order to track down parts\u00a0or create a custom “Where Used” script in SAP for\u00a0every\u00a0<\/strong>part on the machine.<\/p>\n Asset Information Center (AIC) knows every part used in every machine<\/strong>, and correlates that information with the Bill of Materials.\u00a0 This allows businesses to see where\u00a0any\u00a0<\/strong>part is being used with the click of a button and, in turn, quickly identify their useful or unnecessary spares.<\/p>\n Our client, who initially used AIC to quickly find parts needed for repairs and optimize their work order process, was able to use this additional feature to reduce their total MRO Spares by 10%<\/strong>.\u00a0 Not only did it work for the asset they had just decommissioned, but they were able to do this retroactively with other legacy equipment.\u00a0 They found thousands of spares in their\u00a0warehouse and were able to re-sell them; turning a potential loss into profit.<\/p>","protected":false},"excerpt":{"rendered":" The Cost of MRO Spares MRO Spares are spare parts used by maintenance teams to repair broken equipment.\u00a0 By holding onto spare parts for critical assets, they are able to drastically reduce the downtime of equipment, by immediately starting repairs and not waiting for new parts to be shipped. This process, however, comes at a…<\/p>","protected":false},"author":121,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"Reduce MRO Spares by 10% with \"Where Used\" reports","_seopress_titles_desc":"AIC tracks MRO Spare parts used across every asset and provides a \"Where Used\" tool to quickly identify critical or useless spares when decommissioning a machine","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[16],"tags":[62,64,63,30,60,59,31,33,61],"class_list":["post-1101","post","type-post","status-publish","format-standard","hentry","category-learning","tag-decommissioned-machine-spares","tag-interactive-parts-catalogs","tag-inventory-management","tag-maintenance","tag-mro-reduction","tag-mro-spares","tag-reliability","tag-sap","tag-where-used-reports"],"_links":{"self":[{"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/posts\/1101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/comments?post=1101"}],"version-history":[{"count":0,"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/posts\/1101\/revisions"}],"wp:attachment":[{"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/media?parent=1101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/categories?post=1101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/metanoiacorp.com\/es\/wp-json\/wp\/v2\/tags?post=1101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The Cure for Spares Abundance<\/h3>\n