1. MAIN 220 Purchasing
Chris Miller
11/15/2018

2. Material Planning Objectives How to control inventory
3 methods to order and Calculate quantity
How to order parts using ENCO
Why reducing inventory is good
Part IV from Maintenance Manager Standard
11/15/2018

3. 8 Basic Inventory Decisions
What should you store?
Can you get it as fast as a vendor?
How much
Lead time
Number of machines using the goods
FOR MORE INFO...
TCP TRAINING Preparing The Site (319)
11/15/2018

4. 8 Basic Inventory Decisions
What should you Store
How Much
How low can the Supply Go
How High can the Supply Go
Where should it be kept
Who should you buy from
When should you buy it and How much should you Buy
What Price Should You Pay
11/15/2018

5. ABC Inventory Control
Pareto’s Law 20% of the inventory items account for 80% of the cost
A Most Frequent
B Less Frequent
C Least Frequent
FOR MORE INFO...
Maintenance Manager’s Standard Guide P
11/15/2018

6. Formulas for Cost Analysis
Optimum Number Formula
Optimum Number Units per Order
Optimum number of Day’s Supply per Order
Numeric value determining number of units
11/15/2018

7. 4 Factors Affecting # of units
Volume Price Breaks
Standing Orders
Inventory Reductions
Alternative Purchases or Substitutions
11/15/2018

8. How to Reduce Inventory
Centralize in 1 location
Redundancy
Excess or Lack of Parts
Material Coordinator
11/15/2018

9. Maintaining Stores Control
Assigning Responsibility for Stores Control
Establishing procedures
Computerized Store Controls
Role of bar Codes
11/15/2018

10. Establishing Procedures for Store Controls
Acquisition –PO, Price Controls, Vendor, Quantity, Delivery ECT.
Receipt – Verification
Disbursement – Current quantity on hand
Return – Flow of devices returned
11/15/2018

11. Setting Up a Parts Classification
Stores Classification
Major units of purchase
Sub classifications
Two-Bin system
Allows for “C” organization
Perpetual Inventory Record
Either High Cost or High Turn over rate
Need to actively monitor these goods
11/15/2018

12. Computerized Systems and Bar Codes
Computerized tracking eliminates human eorroees!
Flags inventory, databases locations and quantity issues
Bar Code and ID badge control
11/15/2018

13. Controlling Maintenance Tools
Tool Room
Supervisor
Tracking Tool Withdrawals
Tracking Damaged Tool Returns
Tool Tag List
Tool Withdrawal Slip
11/15/2018