Get the solutions need to improve with critical spares

Critical spare parts are the parts within critical equipment that, should they fail, will badly reduce or stop production, or harm our business, or a person, or our community, or our world. I call such components the ‘working parts’.

 It includes everything used within an asset’s chain-of-part needed to make an item of plant work correctly—electrically, electronically, mechanically, structurally, and software. The asset chain-of-part is all the equipment components needed to make an asset operate as designed.

 Implementing a critical spares assessment

The critical spares assessment will be affected by the operational strategy for risk which is in turn affected by the contracts and penalties in force for loss of generation or production. Other factors include maintenance systems, skills within the organisation and dependency on external suppliers. The two extremes of risk strategy are conservative operations or run until it drops. Most operational strategies will fall somewhere in between.

Except for financial or IT institutions were the risk to operation is so great that duplication of the entire systems is justified. Most businesses or industries however do not have this luxury.  Assessments must be made to determine the parts of a system that are critical to operation, should a failure occur.

The critical parts assessment is to complete the following review:

1.     Facility operation, and the demands and restrictions to operation. Ideally this should have been considered during the procurement and build phases, when the known operational data for various packages can be assessed before a commitment has been made. Depending on the industry, this would look at information such as fleet data, required availability/supply network and the option to have a possible central storage of critical parts - the latter being more applicable to power generation operators who can have a significant fleet of similar units.

2.     If the build is complete and the facility operational, an assessment of the whole production system using reliability centered maintenance or risk based assessment/inspection processes should be completed. This should include the following.

a.     Review history of failed components for the individual plant and across the industry.

b.    Review OEM manuals.

c.     Interviewing the plant operational and maintenance personnel to capture and record existing institutional knowledge.

d.    Inspection of the plant’s operational and maintenance supply chain. Do you have the capability and skills to do this or is there a local network of suppliers who could hold the critical spares and deliver them within the required time frames? This requires the supply chain to be regularly audited to ensure availability of the parts is maintained.  

e.     Perform a risk assessment for the mechanical and electrical systems within the plant.

Determining the critical electrical spares

Some typical questions that could be asked to determine the likelihood of failure are:

• What is the age of the component?
• Are there damage processes and what is the likelihood of …?
• Is rapid or unpredictable failure likely?
• How good are the current inspections?
• How good is the current maintenance?
• How well is the component currently operated?

Typical questions for the assessment of consequences are:

• What would be the extent of damage to other equipment?
• What is the part availability?
• What is the length of repair time?
• What is the safety hazard to personnel?
• What is the potential loss of production?
• What is the cost to repair or replace?
• Is there potential to cause damage to the environment?

The critical part assessment is an integral part of a facilities equipment integrity management system, and as such helps the plant operators understand, develop and manage the following:  

• Identifying equipment risk through reliability based inspection.
• Identify all failure modes for each component.
• Detailed monitoring & inspection test plans specific to each component.
• The most appropriate maintenance approach for particular machines, systems, and areas.
• Suppliers, vendors, contractors, and internal personal with regard to expectations in relation to reliability and availability of critical items of plant.

To stop the risk of unexpected breakdowns each working part’s reliability must be 100% for all its operating life, or else you need to remove every opportunity for its failure during it service life. Otherwise you must carry critical spare parts in your maintenance store.

For all critical spare parts, go with the strategy that brings the highest probable business loss reduction for your company. No one can know the future, but by basing your decision on the results from the risk matrix you have arrived at the best chance your company can take to carry the right spares to minimize its operating risks.

Maintaining the electrical spares in industries

Assembling, placing and preserving the electrical spares:-

The exceedingly gifted labourer’s who install, assemble, and, as soon as necessary, dismantle the spares in factories, strength plants, and development sites. These body of workers take a seat down with engineers and managers to work out the simplest region to role a electrical spares.

Aside from assembly, they're moreover involved in principal repairs and dismantling of spares. If a producing plant must clear flooring location for brand spanking new spare elements, it will promote or cloth possession latest instrumentality.
The breaking down of a electrical spares square measure unremarkably even as hard as aggregation it; all elements be carefully taken apart, classified and pre-packaged for shipping. Machinery mechanics use technical manuals, their perception of the instrumentality, and cautious observation to discover the reason in the back of the matter.

After identification the matter, the commercial equipment mechanic could spoil the instrumentality to repair or change the obligatory elements. 

Progressively,mechanics rectangular measure expected to possess the electrical, physics, and programming competencies to repair refined instrumentality on their own. Once a restore is formed, mechanics perform assessments to make certain that the computer is running swimmingly with the spare elements.

Primary obligations of commercial equipment mechanics additionally embody preventive maintenance

 
Try and use length for maintenance. You may be able to keep away from the difficulties in co-ordinative renovation and production work if upkeep work is performed earlier than start-up or throughout conclusion periods.

Maintenance activities consists of into the subsequent classes:-

Routine protection square measure conducted whereas spare elements or instrumentality square measure in commission. These square measure the endeavour scheduled on a time-based or meter-based agenda derived from preventive or prognostic maintenance ways. Some examples rectangular measure visual inspections, cleaning, useful tests, and measure of operative quantities, lubrication, oil tests and governor maintenance. 

Maintenance testing involve by way of victimization equipment to verify condition in accomplice diploma offline state. they will be scheduled on a time or meter groundwork on the other hand is also planned to coincide with scheduled two instrumentality outages. Since these things to do rectangular measure sure, some offices assume about them “routine maintenance” or “preventive maintenance.” Some examples rectangular measure governor alignments and balanced and unbalanced gate testing.

Diagnostic checking out involve via victimization equipment to examine the situation of apparatus once unique events, like instrumentality failure/ repair/replacement or once instrumentality deterioration is suspected. These things to do don't appear to be sure and can't be scheduled as a end result of their wished as soon as a forced outage. Some examples square measure governor troubleshooting, unit equalization and vibration testing. 

 
Manage your assets earlier than extremity:-

Continuous observance of necessary assets (24x7), protection notifications and set alarms, establish threatens to the supply and excellent of electrical spares set up and reports on asset's condition.

The upkeep of recordkeeping device must be unbroken modern-day so a whole upkeep history of each and every spare elements rectangular measure on the market in the least times. 

The availability of updated drawings to administration and workforce is relatively vital.

Accurate drawings square measure indispensable to in growth maintenance, testing, and new construction, on the other hand they are fundamental throughout emergencies for troubleshooting. 

Essential components to be maintained:-

To make certain upkeep is dole out by a competent individual (someone World Health Organization has the mandatory skills, data and knowledge to maintain out the work safely).

To keep theelectrical spare elements regularly – use the manufacturer’s maintenance directions as a guide, substantially if there rectangular measure safety-critical options.

To grant the right tools for the maintenance person.

To enable the team of workers to report broken or inaccurate instrumentality.

To time table renovation to minimize the danger to choice team of workers and therefore the upkeep man or woman the place attainable.

To make positive that maintenance is accomplished safely, that machines and shifting factors square measure remoted or secured which flammable/explosive/toxic materials rectangular measure prohibited properly.

How to Deal with Surplus MRO Spare Parts

MRO spare parts selling is not easy as much as we think, as buyer can’t be paying the amount you expect all the time. So if you just expect to have high price for your products, you need to breakdown the products into categories and work on the same. Though it is a very tedious and time consuming process, this is the only to recover the expected profit value.

Selling MRO Spare Parts is almost a battling today.

Above are problems in sourcing MRO products. And many have done a research the this topic but only few spoke on surplus industrial MRO spares. So let’s see how can be sell surplus MRO spare products here..

When dealing industrial products, one need to maintain a history of what price a spare is bought, what cost needed for maintenance, how much total money involved etc.. Then only he can know the liquidation cost and earn maximum revenue.

Mostly the liquidation value is only 5 to 15% of book value and sometimes the percentage may also vary, can be up to 50 to 60% also but depends on the type of spare parts we deal with.

This may appear to be exceptionally low at first. Be that as it may, comprehend the vast share of extra parts are machine or operational parts and hence can't be effectively exchanged. When you handle this idea, the number begins to bode well.

Consider the alternative. Holding onto parts on your shelves will only lead to their continued depreciation and them taking up valuable shop space. Lastly, something to remember if you are selling equipment on a liquidation marketplace is that you are foregoing top price for the speed of sale. Valuing your items too highly is a good way of being passed on by buyers.

Excess Capacity and Excess Inventory Problems

The cement industry has now been experiencing a threat called Excess capacity where supply and demand are not in line. This problem of overcapacity has been experienced by many other industries throughout the year and yet its continuing to be tormented for many.

Fortunately India's economy relies on the housing industry and in no way deceiving the cement sector as demands for home are not going to fall, but expecting to have a tremendous growth in coming years.. Also the infrastructure industry has been on the rise, still the rate of consumption is not enough to slow down the over-built capacity.

Manufacturing units are more than 5000 today. It has been tough times for many cement top players like ACC gave negative returns of about 16 %, UltraTech gave about 7.5%, Ambuja gave about 19.6 %. Due to the political commotion, lack of export and reduced Oil prices over the last few years were one of the main reason for the cement demand in Middle East Countries.

What cause this excess capacity?

●     Demand Constraints

●     Poor Market Analysis

●     External Crisis (Environmental or financial crisis)

●     Advanced Technology

●     Industry Dependencies

●     Sharing of market demand among many firms

●     More Competition

Why it is a considerable factor?

If a product can’t be sold above its production cost, there are some challenges to be met like low profitability, wage cut down and minimum realization for a product etc... And in other case if a product can’t be sold, obviously all the production effort such as resources, time, money etc gets wasted. Either way it is going to hurt the business which in turn hurting the overall industry and economy.

Also this industry forgetting another threat of excess and idle inventory. Suppose if a plant is shutting down due to this excess capacity, all the industrialspare parts involved are remained to sit on the shelf selling for low realization and scraping it. Idle inventory is not something that already lost , but it brings more loss in future too like maintaining costs, liquidating costs etc..

Managing excess/obsolete inventory  is considered to be the great risk factor. A lot of old stock are a notice sign that industry is in absolute loss. These are all the results of poor management of products list, poor estimation, poor demand estimation, over estimating etc. 

Need to avoid your Surplus Inventory ?

• For people with lot of surplus stocks that you desire to clear right away at the earliest.
• Want to minimize the wastage in your industry.
• Imagine you have high end brands and you really want to save the brand name and the price you have incurred. 

For all the above cases, a liquidation company can help you. 

If you can’t liquidate your inventory speedy regionally, offer them on the market on line. There are so many companies concerns around you like Amazon, Grainger who can deal with industrial products online. 

If a certain technology is outdated in one part of the world, the same needn’t be outdated in every part of the world. Similarly, if one product doesn’t have demand in one part of the world, the same needn’t be the case all over the world. Both technology and demand are geography specific. Goospares uses the above concept and attempts to provide a solution to the business having excess, unused, slow moving and non-moving inventory. 

Goospares.com, an online marketplace deals with idle and slow moving inventory, liquidating by connecting buyers and sellers across the globe. We would ensure that slow moving and non-moving inventory find an avenue to move. The global presence of Goospares along with the subject matter expertise which it has got across multiple industrial verticals would ensure that it gives life to dead inventory.

Simple, yet effective ways to achieve inventory control

Inventory control can be defined as the coordination and continuous supervision of the supply, storage, distribution, and recording of inventory to maintain quantities, adequate for current needs of the customer without tying up excessive working capital in inventory. The goal of inventory control is to generate the maximum profit from the least amount of inventory investment without hindering the level of customer satisfaction. We mention below, few simple, yet effective measures to achieve inventory control.

Inventory Turnover Ratio

Inventory Turnover Ratio measures, how quickly inventory is used up or turned over in a given time period. The higher the ratio the shorter the shelf life of the inventory and typically leads to higher sales volume. Inventory turnover should be closely watched for every item in the warehouse. As the value of the ratio begins to fall for a particular item, it signifies a warning to the management. The management should think of reviewing the value addition associated with the product, its pricing or its marketing strategies. Even after employing the changes, if there is no positive trend in the value of the ratio, the management should rethink of the annual stocking policy of the item. The stocking policy of an item should not be standard, rather it needs to be tied with the Inventory Turnover Ratio


Warehouse design
The Inventory Turnover ratio should also be closely linked to the way in which the items are placed in the warehouse. The fastest moving products in the inventory should be located closest to the shipping, staging, and receiving area in the warehouse. As the demand for each product decreases over time, products should be migrated backwards to free up space for items with higher inventory turnover. This would also provide the management a quick insight on the products having a higher demand and the product that are occupying a more time in the warehouse. This sort of classification would also enable the organization to adopt different strategies for different category of items based on their position in the warehouse.Items at the front of the warehouse should have tight inventory control, more secured storage areas and better sales forecasts. Reorders should be frequent, with weekly or even daily reorder. Avoiding stock-outs on these items should be a priority.

Smart Ways to Make Money from Excess Stock

Excess stock or excess inventory is almost a tough task in business. Inventory seems to face loss in many forms like overstock, unused stocks, surplus stocks, obsolete stocks, slow moving stocks, and non-moving stocks.

Then inventory would come up with Queries like, how to dispose excess stocks? How to make much money out of this obsolete inventory? How to overcome this slow moving inventory?

Need Identification

Foremost step is to spot out the business need, discover the value of our property in other's area or businesses.

Before starting business, study the customer. Who are they? What they want?. This is very easy and helps in convincing with your products and services.

Branding

Buyers have changed recently. They are carrying out a massive research and started to check for brand credibility online before initiating a conversation with sales person. No people exist without smartphones, great medium to establish a global communication, sorting out their needs in all smart ways.

Branding, main factor in converting the obsolete inventory to cash.

Online Sale

Consumers are very pleased to remain at home and finish their purchase online since the boundaries to online shopping seems to be subverted. People hate walking in to the store, search of needy things and stand in queue for billing.

It is very common to connect commercial consumers, but when coming to B2B consumers sometimes have to strive for the trust. But one ensuring them good hope, it is quite possible to engage in your business.

Bulk Sale

Just like bulk purchase, yet another excellent thought is to bundle up products and sell off them for maximum discount. On most occasions, buyers check out for such deal, since value for money is attained. This in turn helps to liquidate excess inventory.

Goospares.com, deals with excess stock and helps in liquidating your slow/non-moving/obsolete inventory.

How to liquidate and Control Slow moving Inventory/Surplus Inventory?

Are you struck with Slow moving /Surplus Inventory? Steps to Avoid Slow moving /Surplus Inventory

How to avoid Slow moving Inventory/Surplus Inventory?

Have excess stock, unused stocks in your inventory?  Looking for ways to clear your inventory? Finding your right buyers?  Leave all your stress and turn you excess inventory into cash.

Slow moving/excess inventory are considered to be a great headache to many business. Such problems are tough barrier in expanding your business which also affect your capital/ROI. This is why a constant attention is required on an inventory all the time. Regular tracking is needed between demand and supply

Sometimes surplus inventory issues could show up by sudden change in the market and inappropriate demand forecasting. But still every problem has a solution, in that case now it is possible to manage your inventory in a right way.

Here are few tips to control and liquidate your excess stocks in many ways. 

Better Demand Forecasting

Demand forecasting is nothing but to determine when your products are in need by the consumers. Also forecasting need to be done on future maintenance and requirement too.

It also included capital investment, inventory space, material management, man power supply etc and so on.

 Stock Ordering

Limited and necessary stock ordering needed to avoid slow moving inventory.  And it also helps easing the process of liquidating excess stocks . Before posting any buy requirement, assessment must be done on every aspect in order to avoid redundancy in stock placement.

Excess stock stacking is the result of for many non-moving inventories.

Constant Attention On inventory

Avoid stacking dead stock in your inventory. This is one solution to manage your inventory in an easy way. It is better to sale every product as soon as it enters, because the more it gets older, more the chance to become a dead stock. For this purpose, a well-organized master data and structured warehouse is necessary.

Remarket: Dead to live stock

Slow moving/ Excess inventory leads to Dead stock, is something that is unused, this is not something that cannot be used again. Requirement varies based on the area, geographic, use, service, function etc. So there is more possibility to sell non-moving inventory. Identify the need of the product and audiences who are looking for an arrival of such excess stocks and remarket those surplus stocks to them.

One such way is to have an online store to meet your demands of selling our your non-moving, slow moving inventory.  Goospares, an online market place , serves as a bridge between buyers and sellers and helps you in converting your dead stock to live stock.

Dealing with slow moving and non-moving inventory

Giving life to the dead stock and moving the non-moving inventory

In any business, inventory in finished goods reflects the fusion of intellectual property, associated technical expertise and its management proficiency. Inventory in finished goods is one of the biggest assets of any business. The turning of finished goods inventory to cash is the crucial part of working capital cycle of any business. The inventory in raw materials and work in progress is equally important part of the business as it facilitates the creation of the finished goods. But, the very same inventory, be it raw materials, or work in progress or finished goods, can easily turn into a liability when it is slow moving. Slow moving inventory ties up the business capital and absorbs the resources that could have been otherwise used for the growth of the business.

Slow moving inventory reflects the merchandise that is unable to move out of the company’s business for which to has been produced or procured. They are typically defined as Stock Keeping Units that haven’t moved out in 90, 120, or 180 days.

Reasons for the accumulation of slow moving and non-moving inventory

The problem of excess, unused, slow moving and non-moving inventory (Inventory defined here as, finished goods, idle plant and equipment, raw materials & work in progress and MRO spare parts) at majority of the business can be attributed to two main reasons. 

• The financial crisis of 2008 has caused a significant economic downturn. There has been a marked shift in the demand patterns across the developed countries. The fall in demand across the developed countries has been a cause of worry for the Industries concentrating on those markets and thus has accentuated their inventory base. The unused inventory did not have the demand to move out of the Business, thus making it slow moving or non-moving

• Technology has also contributed its part in this cause. Owing to rapid changes in technology, certain industrial parts used in the initial device configuration do not find an application in the newer versions of the devices. In some cases, even the industrial device becomes obsolete due to adoption of another device. The business that has produced the old industrial parts/devices in excess has to face the issue of handling the excess unused inventory here. Similar fate rest with the business which has ordered the industrial parts/devices in excess

Dealing with excess, unused, slow moving and non-moving inventory

The world isn’t flat and the same applies to technology and demand. If a certain technology is outdated in one part of the world, the same needn’t be outdated in every part of the world. Similarly, if one product doesn’t have demand in one part of the world, the same needn’t be the case all over the world. Both technology and demand are geography specific.

Goospares uses the above concept and attempts to provide a solution to the business having excess, unused, slow moving and non-moving inventory.  Goospares is a new business which will use the web to bring the sellers and buyers of unused, slow moving and non-moving items that are held as stock for long time by the business. Since, the demand and technology is geography specific, Goospares would ensure that slow moving and non-moving inventory find an avenue to move. The global presence of Goospares along with the subject matter expertise which it has got across multiple industrial verticals would ensure that it gives life to dead inventory.

www.goospares.com would provide more insights regarding this service.