Free Spares Health Check


Many companies fail to effectively manage their inventory; there are many reasons for this. But it usually starts with poor initial spares data from vendors, poor cataloging and not challenging the recommended quantities using reliability and operational parameters.

Ramsoft have developed over several years, a data analysis process and training to support companies optimise spares and reduce inventory.

Our experience tells us that all companies have issues with their spares parts management whatever the industry e.g. course delegates have been from oil and gas, power, mining, steel making, F&B, semi-conductor,
manufacturing, etc.

These issues are compounded, if a company has recently undergone a CMMS upgrade.
For a selected few companies, we are offering a free spares health check.

The Offer

We will analyse a selection of your inventory, e.g. bearings, provide a brief report of our findings. A full technical evaluation can only be conducted if you have determined the following key parameters:
  • Desired Service Level expressed as a %
  • Holding Costs expressed as a fraction
  • Replenishment or Buying Cost expressed as a cost per line item
Few companies have the above data, therefore our FREE analysis will only include by line item:
  • Review the quality of the short descriptions for standardised format
  • Review both Vendor’s and Manufacturer’s Part Numbers
  • Calculate the ABC classification based on the Annual Issue Value
  • Determine other classifications based on Unit Cost, Stock Holding Value
  • Determine the part’s demand class
  • Evaluate the “time since last issue”
  • Determine current or actual % Service Levels, this will highlight excess or under stocking issues
  • Determine No of Years of Stock; based on current quantity on hand

Your Responsibilities

Provide a download in MS Excel from your CMMS/EAM system. This is best done in two phases as follows:
Phase 1 Short Description field, vendor P/N and Mfg’s P/N. This data is easy to provide and we can then start the analysis
Phase 2 (asap) requires a little work from your side and should include:.
  • Average issues per year (if you can provide the last 4 -5 year’s issues, this would be ideal)
  • CMMS Max, ROP, Min (if only Min-Max is provided we require a definition what is Min as the Min for many companies is the ROP
  • Unit Price or Latest Price
  • True Lead Time the time from deciding stock replenishment is required until it is on the shelf ready for issue, i.e. it’s both the company’s and the vendor’s lead time.
  • Date of the last Issue of the part
  • Quantity on hand
  • Date of the data download
The audit is completely FREE. However, depending on the findings, if requested we will provide a customised proposal to support your spares optimisation and stock reduction programme

Additional Analysis And Training (CHARGEABLE)

We offer a complete analysis of spares data that would include the above, for the complete inventory plus:
  • ABC class this should be used by purchasing to negotiate discounts for A items and used by Reliability of Maintenance to conduct RCA/RCFA analysis to improve reliability in order to reduce consumption of these A items.
  • XYZ class this is used to prioritise and challenge existing inventory levels to lower average stock levels
  • HML class, this is used by purchasing to negotiate discounts.
  • Evaluate current inventory levels for excess holding cost or potential stock outs and emergency purchases or excess buying of holding costs.
  • Identify opportunities for alternative replenishment strategies (Default is ROP plus EOQ), but in certain situations this policy is not appropriate and other strategies need to be considered.
  • Calculate current, optimised and proposed changes to inventory parameters and the relevant financial $ value reductions or increases by line item.
  • Calculation of the average stock level and average stock level value.
  • Calculation of the number of years of stock based on average stock levels.
  • Analysis of line items with data shortfalls.
  • Evaluation of slow moving spares.
ENERGY1 also offer training in Stock Optimisation and Inventory Reduction Techniques-

That includes a 21 step improvement programme, plus Excel worksheets that include all formula. However, a database solution is far more effective. This course has been conducted 20 times in Asia with 12-30 delegates,proving that spares management is of great concern to companies.

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