October 2017 | VehicleServicePros.com 39
Part 4. Assessment of Analysis Techniques
Used to Understand the Inventory
1. Usage records are employed to determine stocking
levels, order points and order quantities. (1 point)
2. Unit dollar values are readily available and routinely used in
planning and work order approval efforts. (1 point)
3. Maintenance, purchasing, accounting and the stockroom work
together to assure availability of necessary parts, elimination of
obsolete parts, adjustment of stocking levels, minimal lost time
by technicians, etc. (Check all that apply.)
Maintenance is regularly consulted regarding stocking parameters
generated by the system. (1 point)
Human judgment can override the system on an item-by-item basis.
(1 point)
Maintenance influences the type and quantity of repair materials to be
set up in stock. (1 point)
A system exists that flags frequently ordered non-stock parts which
must be authorized for stocking. (1 point)
Stocking levels, both minimum and maximum, reorder points and order
quantities are set up and maintained. (Check all that apply.)
― Automatically. (2 points) ― Manually. (1 point) ― Not set up. (0 points)
4. Inventory categories are defined and segregated when
analyzing inventory value and turns.
― True (1 point) ― False (0 points)
5. SIC (Standard Industrial Classification) formula parameters
for EOQ (Economic Order Quantity) calculation (carrying
cost, purchase order cost, delivery time, etc.) are current and
periodically updated.
― True (1 point) ― False (0 points)
6. There is an established insurance/critical spares program
containing review provisions. They are protected from discard
due to low usage.
― True (1 point) ― False (0 points)
7. An approved work order indicating which cost center to
charge is sufficient authorization to withdraw stock materials.
― True (1 point) ― False (0 points)
Total number of all points: ― out of 13
Part 5. The Part
1. Support systems for purchasing are effective. (Check all that apply.)
Quality performance measures have been established for materials. (1 point)
Purchase order tracking is functional. (1 point)
A vendor rating system is in place and vendors are aware of their responsibility to
provide materials of acceptable quality on time. (1 point)
Procedures are in place that alert requisitioners regarding receipt of their materials.
(1 point)
Buyers are evaluated on the performance of vendors that they select. (1 point)
There is an established interface/partnership with vendors to improve material quality,
cost, availability and standardization at minimal carrying expense. (1 point)
2. Practices and procedures between maintenance and purchasing are clear
and effective. (Check all that apply.)
Maintenance is allowed to specify individual suppliers when necessary. (1 point)
Maintenance is allowed to specify method of shipment when necessary. (1 point)
Purchasing reviews any change in original specs with maintenance and/or engineering.
Purchasing does not make material or equipment substitutions without consulting
technically knowledgeable resources. (1 point)
Purchasing routinely, and when requested, follows up on expedited purchase orders.
(1 point)
There is an effective system for tracking purchase requisitions from generation to
receipt by originator. (1 point)
The volume of emergency purchase orders is “reasonable.” (1 point)
Production is not permitted to purchase direct nor maintain duplicate inventory of unit
spares of special parts. (1 point)
Maintenance is permitted to purchase direct locally when necessary. (1 point)
When appropriate, maintenance is permitted to contract work to local shops with
purchasing cooperation. (1 point)
3. Blanket and system contracts, and blanket and system orders, are
effectively employed to minimize redundant paperwork and administrative
effort. (Check all that apply.)
Blanket contracts (e.g., repetitive service). (1 point)
System contracts (e.g., service contractors negotiated by the purchasing agent). (1 point)
Blanket orders (e.g., parts price agreement). (1 point)
System orders (e.g., parts costs negotiated by purchasing agent). (1 point)
Total number of all points: ― out of 19
Point Scores
Once you have completed the
questionnaire, you will have an
assessment of the current performance
of your spare parts inventory
operation within the fi ve key
areas noted: Material Support
and Control, Physical Stockroom,
Computerization Assessment,
Assessment of Analysis Techniques
Used to Understand the
Inventory and Th e Part.
One section at a time, add up
the points earned for each question
within the section. Compare
that number to the total number
of that section’s questions.
Th is comparison will give you
an indication of where there are
opportunities for improvement in
your parts inventory processes
and systems.
JOEL LEVITT is director of projects
for Reliabilityweb.com‚ Reliability
Leadership Institute. Reliabilityweb.
com provides the latest reliability and
uptime maintenance news and educational
information. He is also author
of Fleet Maintenance’s Management
Column.
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