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Purchasing and Stores Management for Reliability

Doug Plucknette | Contributing Host, RELIABILITY CONNECT

Often ignored and yet critical functions in assuring reliability, are purchasing and stores management. While Reliability begins in the design, it requires intensive support from these two areas, and few companies give sufficient attention to their role.

In this session we’ll be:

1. Discussing the concept of Total Cost of Ownership, with price being only a small fraction of that cost, and other costs, like energy, risk of production losses, maintenance costs, supplier support and spare parts, etc. being the dominant factors in evaluating those costs. We’ll also be discussing how to set up supplier alliances in helping minimize the total cost of ownership.
2. Discussing the management of the storeroom, and how to balance inventory levels (working capital) against stock outs and resulting loss of production and maintenance efficiency (hidden costs). In the ideal world most maintenance managers would like a spare plant in the storeroom to reduce the risk of downtime losses. Most storeroom managers would like nothing in the storeroom to eliminate the working capital (that’s just sitting, not working). The fundamental discussion will be around running your storeroom like a store, a business!
3. Involving Stores/Purchasing in component testing programs for selecting the most reliable components. (Pumps, Motors, Valves, Actuators, Starters, Disconnects, Solenoids, Switches, VFD’s…)
4. Works with manufactures/suppliers of reliable components to develop best price.
5. Involving Maintenance in eliminating items in the stock room that are no longer used (equipment has been eliminated)
6. Obsolescence – understanding that while inventory turns can be a good indicator for reducing inventory, nothing should be eliminated until we have verified the part is not obsolete.
7. The importance of including name plate information.

We hope you enjoy this episode!

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About the Author

Doug Plucknette Contributing Host, RELIABILITY CONNECT

Doug Plucknette has been in the Field of Asset Management, Maintenance and Reliability for 38 years. In 1999 he founded Reliability Solutions Inc. As the founder of RCM Blitz™ and author of the book Reliability Centered Maintenance using RCM Blitz™, he has provided reliability training and consulting services to numerous companies around the world, large and small, including such Fortune 500 companies as Cargill, Whirlpool, Honda, Kraft-Heinz, Schlumberger, Corning, Invista, and Newmont Mining.
Doug has made key contributions to standard reliability measures for manufacturing, and reliability training programs worldwide. He has trained numerous client RCM Facilitators and performed RCM analyses on hundreds of pieces of manufacturing equipment.
Prior to his work as a consultant, Doug worked 19 years at Eastman Kodak Company in Rochester, NY in positions as a skilled tradesperson, lead person, Maintenance Supervisor, and Reliability Engineer.
Recognized as an Industry Expert, Doug has published over 50 articles, written two books, has been a featured speaker at dozens of conferences and Key Note Speaker for two Global Reliability Conferences.