TABLE OF CONTENTS Maintenance materials is the largest maintenance support function contributing to low maintenance efficiency and effectiveness; it subsequently becomes one of the largest root causes of equipment downtime and capacity losses. MRO (Maintenance, Repair and Overhaul) spare parts account for an average of 50% of the maintenance budget It is the second most important function in maintenance (first being preventive maintenance) management. Therefore, it is essential to examine performance indicators that will insure proper management of the stores and procurement functions for maintenance
This indicator is used to find spare parts that are no longer needed. These items may have been purchased as spare parts for equipment that is no longer in the plant. Occasionally items were purchased in large quantities on a onetime basis, possibly for construction or a project, but were not used and have no further use at the plant or facility. Eliminating these items reduces the inventory value and the subsequent holding cost the company must pay.
As seen by the formula, this indicator measures the number of line items that are inactive divided by the total number of line items carried in the inventory. The percentage shows the opportunity for improvement by eliminating line items from the store inventory.
A second way the indicator can be used is to divide the dollar value of the inactive stock items by the total inventory valuation. This percentage would give the percentage of value that it would...
