1. THINKING BEYOND THE OBVIOUS
MRO Spares Optimization
Effectively managing spares inventory levels for efficient
maintenance planning and equipment reliability improvement
27 - 28 November 2012
Global Prospectus Training Centre,
366 Pretoria Avenue, Randburg
“The art of progress is to preserve order amid change and to preserve change amid order”
Alfred North Whitehead
SETA Accreditation No. 2502

2. OVERVIEW
Satisfactory uptime in a plant or service environment is necessary but not sufficient. Reducing the costs of ordering, storing and
maintaining spare parts is critical in reducing the cost of maintenance. Optimal spares control will not be possible without a clear
understanding of the various events, actions and hurdles faced when planning, requesting, purchasing and receipting of spare
parts. Inefficiencies in the spare parts supply chain are often the cause for the correct spare part not being supplied at the right time
and in the right quantity.
Stock accuracy is a critical KPI in the service and maintenance environment, and even though internal audits are conducted in
preparation for an external audit, these audits, if not performed correctly, are not an accurate reflection of your stock count and
value. How accurate is your spares audit really? Are you achieving 90 % accuracy in terms of the quantities that have been recorded
in your system, and the stock quantities that really are there? And what is the value of this stock that hasn’t been accounted for?
The replenishment of spares in inventory maintains the reliability level in your service or plant, if this is not followed it will result in
overstocking and deficiency.
BENEFITS OF ATTENDING
• Reducing the costs of ordering, storing and maintaining spare parts is critical in reducing the cost of maintenance
• Analysing equipment trends and predicting essential spares requirements
• Addressing risk management maintenance and equipment analysis
• Anaylsing the numerous pitfall in cataloguing spares
• Recognising common problems in conducting internal spares audits
• Addressing elements that influence the decision to repair an item rather than replace it
• Capitilising on the effective use of a maintenance management system
• Improving interconnectivity between the business processes in the spare parts supply chain
WHO SHOULD ATTEND
• Purchasing / Procurement • Maintenance
• Stores Managers • Operations
• Warehouse / Inventory • Engineering
• Spares Management • Quality Control
• Service Planning Personnel • Finance
• Material Planning
EXPERT FACILITATOR
Jeff Hollingdale Associate, ESCM
Jeff Hollingdale is an Associate of Contract Technical Services (CTS), a division of ESCM, a company focused primarily on the Supply
Chain and Logistics sector. CTS specialises in maintenance and manufacturing related projects, with a particular focus on Lean
Manufacturing, TPM and Quality Practice (related to ISO 9000).
Jeff is a certified Production and Inventory specialist (CPIM – APICS) and has consulted to a wide range of organizations to assist
them in projects ranging from defining Best Operating Practices, ‘waste’ reduction opportunities, Kanban / “Pull” manufacturing
methods, inventory/warehouse operations management, TPM, ‘lean’ maintenance practices and productivity improvement. Jeff has
published a number of technical articles for industry related periodicals and presents as a speaker at a number of the conventions
in South Africa relating to Maintenance, Quality and the Supply Chain.
GLOBAL PROSPECTUS TRAINING (PTY) LTD. Chief Executive O er - Dhevaraj Pillay
Johannesburg - Tel: +27 11 781 6222 Fax: +27 11 781 6044 Marketing - m2@globalprospectus.co.za Auditors - Russell Bedford SA (Jhb) Inc.
Pietermaritzburg - Tel: +27 33 391 4229 Fax: +27 33 391 5722 Design - www.designmaster.co.za (071 018 8355) Legal - DA Morris & Associates

3. DAY 1
Session One
Establishing an effective strategy for cost and usage control in managing spare parts
• Conceding the uptime in a plant or service environment is necessary but not sufficient
• Reducing the costs of ordering, storing and maintaining spare parts is critical in reducing the cost of maintenance
• Achieving optimal spares control will not be possible without reducing the cost of maintenance
• Realising that the inefficiencies in the spare parts supply chain are often the cause for the incorrect spare part
being supplied
Session Two
Questioning how accurate is your maintenance /service history
Evaluating maintenance planning methods for effective spares replenishment
• Implementing an effective maintenance strategy
• Analysing equipment trends and predicting essential spares requirements
• Analysing you equipment history by:
- Failures
- Downtime
- Maintenance requirements
Session Three
Focusing on proven planned maintenance strategies
• Reassessing maintenance approaches:
- Addressing risk management maintenance and equipment analysis
- Highlighting maintenance methods for critical spares determination
• Investigating the accuracy of your maintenance history
Practical Exercise: This hands on session will facilitate the knowledge exchange were delegates will work through an
exercise on maintenance planning methods for effective spares replenishment after which your trainer will discuss potential
problems and solutions along with input from the group
Session Four
Developing accurate cataloguing strategies
• Deciding whether your maintenance EBOM (equipment bill of materials) is providing you with concise
spares information
• Anaylsing the numerous pitfall in cataloguing spares
• Dissecting essential elements of an accurate EBOM
• Defining and catagorising spare parts
• Standardising spares descriptions
• Eliminating spares exclusions and duplicate entries
Session Five
Performing an effective spares audit for increased stock accuracy
• Utilising the ABCD analysis to accurately categorise spare parts
• Developing effective cycle counting techniques
• Recognising common problems in conducting internal spares audits
• Tagging and disposing of obsolescent and redundant spares
Practical case study session: In this practical exercise your training thus far will be enhanced by this case study session in
which your trainer will refer to real-life examples of effective spares audit to illustrate, support and reinforce the concepts
discussed so far.
GLOBAL PROSPECTUS TRAINING (PTY) LTD. Chief Executive O er - Dhevaraj Pillay
Johannesburg - Tel: +27 11 781 6222 Fax: +27 11 781 6044 Marketing - m2@globalprospectus.co.za Auditors - Russell Bedford SA (Jhb) Inc.
Pietermaritzburg - Tel: +27 33 391 4229 Fax: +27 33 391 5722 Design - www.designmaster.co.za (071 018 8355) Legal - DA Morris & Associates

4. DAY 2
Session Six
Managing critical, frequently used and safety spares effectively
There is mounting pressure on inventory and spares managers to hold the absolute optimal level of spares in their stores –
financial managers will demand immediate answers to even the slightest increase in stock count. However, critical spares are
crucial to ensure uninterrupted maintenance operations – a spare that is out of stock can result in a serious downtime situation.
Frequently used, everyday spares need to be managed for minimum effort in accessing these spares, yet these spares still
need to be accounted for in terms of consumption. In addition, the quantity required in safety spares is not easy to predict,
which results in excessive costs tied up in safety spares. During this session you’ll establish how to identify, evaluate and make
provision for critical, frequently used and safety spares.
• Defining a ‘critical’ spare
• Optimally applying maintenance history and usage patterns for critical spares
• differentiating critical spares from safety/ security spares
• Setting-up and controlling Point-of Use (POUS) spares and locations for standard frequently used items
• Determining quantities of safety stock
Round table discussion: Delegates will be given the platform to share their personal and organizational challenges faced in
Managing critical, frequently used and safety spares
Session Seven
Dealing with rotables/repairable spares
Rotable parts come with a unique set of challenges. The decision to repair a part involves more complex decisions than just that
of slashing costs. Rotable parts must be carefully managed in order to ensure that maintenance really benefits from the process.
A short-sighted approach to rotables may well increase production costs and escalate spares inventory levels. This session will
look at the issue of rotables and how to manage them effectively.
• Defining a rotable spare rather than a consumable spare
• Addressing elements that influence the decision to repair an item rather than replace it
• Investigating the business case for repairable spares (rotables)
• Weighing up maintenance costs vs replacement costs
• Elements to consider when managing repairable spares
• Implementing methods to manage repairable spares
Session Eight
Taking control over your spare parts inventory; working with service/ asset management
software, extracting information / reports to more effectively manage and plan service and
maintenance spares. How to address service delivery in the maintenance supply chain.
Any supply chain’s efficiency largely depends on the interconnectivity of the interrelated business processes. Yet, the different
supply chain entities rarely operate in the synchronized manner that one would expect is necessary for optimal operational
benefit. In this session, you will explore the spare parts supply chain and how to bring about a more coordinated effort for
optimal spares control.
• How to get the most out of the Materials Usage report
• Achieving accurate data input
• Assessing tried and tested data analysis methods using your inventory management system
• Highlighting basic fundamentals that need to be in place in order to optimally manage maintenance spares
• Assessing the efficiencies of the maintenance supply chain – where are the bottlenecks?
• How to improve interconnectivity between the business processes in the spare parts supply chain
• Improving service delivery between materials and maintenance management
• Assessing the real effects of direct purchasing: the costs of single order items and non-stock items
• Analyzing the pros and cons of maintenance outsourcing: what are the benefits and risk areas of outsourcing
the supply of spare parts?
Review of case studies of problems and solutions adopted : This highly interactive and concluding practical session, chaired
by the trainer will expose attendees to real life case studies in managing MRO.
GLOBAL PROSPECTUS TRAINING (PTY) LTD. Chief Executive O er - Dhevaraj Pillay
Johannesburg - Tel: +27 11 781 6222 Fax: +27 11 781 6044 Marketing - m2@globalprospectus.co.za Auditors - Russell Bedford SA (Jhb) Inc.
Pietermaritzburg - Tel: +27 33 391 4229 Fax: +27 33 391 5722 Design - www.designmaster.co.za (071 018 8355) Legal - DA Morris & Associates

5. MRO Spares Optimization
ONLY
R749
27 - 28 November 2012 Per D
eleg
0
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T.
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GPW Marketing
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GLOBAL PROSPECTUS TRAINING (PTY) LTD. Chief Executive O er - Dhevaraj Pillay
Johannesburg - Tel: +27 11 781 6222 Fax: +27 11 781 6044 Marketing - m2@globalprospectus.co.za Auditors - Russell Bedford SA (Jhb) Inc.
Pietermaritzburg - Tel: +27 33 391 4229 Fax: +27 33 391 5722 Design - www.designmaster.co.za (071 018 8355) Legal - DA Morris & Associates