inventory best practices

  1. Implementing and sustaining lay-up maintenance for parts in storage. A lay-up program ensures that all rotating stock is maintained under a preventive maintenance (PM) program and other items like “O” rings, belts, gaskets, and so on, that are affected by dust, dirt, and temperature or humidity changes receive special attention for their storage needs.
  2. Vendor-managed inventories that are managed effectively and have a good partnership established between the vendor and their customer can be very beneficial.
  3. Cycle-counting should be part of a daily routine for the storeroom. The ABC classification or counting by selected areas are both acceptable methods to manage an inventory cycle-counting program.
  4. Identifying obsolete parts and removing them based on a monthly budget is the best practice to keep dead inventory at an acceptable level.
  5. Effective salvage of obsolete and scrapped materials.
  6. Controls over the repair and return process are important for the storeroom to maintain.
  7. Storeroom layouts need to stress efficiency and effectiveness.
  8. Manning levels should be optimized and inventory levels controlled.
  9. Housekeeping practices meet 5S standards.
  10. A defined receiving process is in place.
  11. Stocks in stores meet the FIFO (first in, first out) guidelines for shelf administration.
  12. The workflow process for kitting is mapped and put in place for all planned work.
  13. All storerooms are closed and physically secured.
  14. A dashboard has been established to measure key performance indicators.
  15. There is an approved supplier list.
  16. There is a defined locator system for inventory and tools.

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