Smart Inventory Solutions: Improving the Management of Engineering Materials and Spare Parts

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Industrial Press Inc., 2010 - 257 pages

Engineers and reliability professionals are increasingly being held accountable for materials and spare parts inventory management and in response they need to gain a better understanding of materials and spare parts inventory management principles and practices. This practical book delivers just that.

This new edition will help you get the right parts, in the right place, at the right time, for the right reason. Fully revised, it provides specific coverage of the issues faced in, and requirements for, managing engineering materials and spare parts and what to do to improve your results. It includes 29 exclusive examples and real life case studies to demonstrate the application of the concepts and ideas so that you will easy and quickly understand how to implement them. What's more it will show you: What to do to truly optimize your inventory holdings, Why inventory levels are almost always too high, How to identifying the factors that have greatest impact on your inventory levels, When to apply the 7 Actions for Inventory Reduction, Where to focus your efforts for greatest effect, and Who to involve in taking action. The concepts, ideas, tools, and processes in this book have helped many companies achieve and sustain results that other inventory tools and approaches just could not match. And it is sure to help you achieve true inventory optimization as well!

The second edition includes...

  • A new chapter on The Mechanics of Inventory Management, a pragmatic review of the management of inventory including... Introducing the Materials and Inventory Management Cycle, Comparing theoretical and actual inventory outcomes, Discussion on normal and Poisson distribution models, How to determine the re order point, How to determine the re order quantity, and Commentary on Monte Carlo simulation.
  • An expanded chapter on the financial impact of inventory, including a discussion of the key reports that need to be understood.
  • Chapters on the influence of policies, procedures, and people.
  • Additional discussion on issues faced and how to address them.
  • An expansion of the central process discussed in the first edition to a more comprehensive review process...Inventory Process(TM) Optimization.
  • An expanded section on executing an inventory review program.
  • A closing 'where to from here' chapter.
  • 57 figures and diagrams - 30 of them new and the others all revised and updated and six new tables (with 8 in total).
  • Eight new checklists - specifically included as a new tool for the reader and is the result of direct reader requests.
  • An expanded glossary.
  • Introduction to Smart Inventory Solutions
  • The Mechanics of Inventory Management
  • The Financial Impact of Inventory
  • People and Processes. Policies & Procedures
  • Issues, Myths and a Few Home Truths
  • The Spare Parts Storeroom
  • The 7 Actions for Inventory Reduction
  • Inventory Process Optimization
  • Executions: Taking Action to Achieve Results
  • Case Studies
  • Where to From Here?
  • Bibliography
  • Appendix A: Materials and Inventory Management Glossary
  • Appendix B: Data Collection Questions
  • Index


Introduction to Smart Inventory Solutions
The Mechanics of Inventory Management
The Normal or Gaussian Distribution
The Financial Impact of Inventory
People and Processes
Policies Procedures
Issues Myths and a Few Home Truths
The Spare Parts Storeroom
Inventory Process Optimization
Execution Taking Action to Achieve Results
Taking Action to Achieve Results
Case Studies
Where To From Here?
Data Collection Questions

The 7 Actions for Inventory Reduction

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About the author (2010)

Phillip Slater has more than 22 years of business improvement experience. While the last 12 of these have been spent in operations and management consulting, the first 10 were spent 'hands on' in industry learning by direct experience. It was during this time, and by learning from both his successes and failures, that Phillip developed many of the approaches that his company, Initiate Action, applies today. Based on his experience, Phillip has authored a number of management books including A New Strategy for Continuous Improvement and Smart Inventory Solutions. Over the course of his career Phillip has worked in at least a dozen countries and across most industries. He presents training courses for APICS, is a member of the Australian Institute of Company Directors and The National Speaker's Association of Australia. Selected operational improvement achievements include: As a manager, taking an underperforming manufacturer to be the profit leader in its group of companiesAssisting a client to achieve more than 20% in operational cost reductionAssisting other clients to achieve tens of millions of dollars of operational improvementsAssisting a client to achieve a 42% reduction in inventoryAssisting other clients to release millions of dollars in cash from excess inventoryFor the past five years Phillip has donated his time as a Non Executive Director for Yooralla, one of Australia's leading disability service providers.In addition to his operations improvement consulting work, Phillip is also available for corporate speaking and training.

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