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Part-management software cuts maintenance costs, downtime for manufacturer

By Paul Dvorak | June 10, 2014

Editor’s note: Although the application of this software is not in the wind industry, the supply chain challenges of the subject are much the same.

A large pulp and paper plant located in the Midwest was experiencing long, frequent machine downtime delays related to parts. They had about $2 million worth of spare parts inventory, but never seemed to have the parts needed at the right time. The client imported their inventory data into the MaxUp Advantage system using EXCEL.

A paper manufacturer has part supply problems similar to those of O&M crews.

A paper manufacturer has part supply problems similar to those of O&M crews, hence, its example.

During the first phase, they imported 8,000 line items. In less than one minute a report was generated that identified thousands of potentially critical spare parts and insufficiently stocked parts. The second phase was more in-depth and required the client to input data so the MaxUp Advantage system could analytically identify critical, semi-critical, and non critical parts. The plant updated their SAP system with this data, and so far they have identified obsolete items and are in process of isolating or disposing of them to make room for needed parts. After implementing the part management software, the client reports:

  • $675,000 worth of excess and inactive inventory
  • Decreased spot buys by over 44%
  • Decreased downtime by over 38%
  • Increased inventory activity up to 80%

The software developer says a few features of this system include:

  • Appropriate replenishment level algorithms specifically DESIGNED for spare parts inventory.
  • Criticality levels of parts to determine what needs to be stocked.
  • Association of parts to equipment and identification of machine criticality levels.
  • Probability of part failure to proactively schedule predictive maintenance.
  • Specialized spare parts suppliers many of which provide OEM equivalent parts.
  • The ability to upload existing inventory to identify potentially critical parts, excess and insufficient stock levels.
  • Better management controls for repair and warranty parts

MaxUp Advantage http://www.maxupadvantage.com/


Filed Under: News, O&M
Tagged With: maxupadvantage
 

About The Author

Paul Dvorak

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