2011
New England Supply Chain Conference & Exhibition

Keeping the Shop Running: Two Methods for MRO Point of Use Replenishment!
David L. Rivers, CFPIM, CIRM, CSCP, APICS Int’l Board of Directors NE District Director

This presentation will address the replenishment of independent demand items without the benefit of an MRP/ERP system. Two examples are provided. The first solution is a high tech, internet based, automated solution implemented for Maintenance Repair and Operating (MRO) supplies. The low tech, manual solution is used for service and repair parts. The presentation will demonstrate the similarities and differences between both solutions. The take away is that you will be educated to alternatives for point-of-use parts control methodologies and be a step closer to choosing the process needed at your facility.

Both MRO items and parts required for service and repair experience independent demand. Independent demand items require a forecast at some level and frequency. What’s really needed however is not the most accurate forecast, but a process that ensures that we don’t run out and we don’t have excess.

This discussion will contrast a successful low tech manual Kanban process with a high tech internet based process. The manual process is used to control a good number of the independent demand service and repair parts in a very large service organization. The internet based high tech solution is used to replenish MRO parts such as drills, end mills, gloves and other tools needed in a 45 thousand square foot job shop. Both groups of items experience independent demand, both become critical if stockouts occur.