Upon completion of this course, participants will be able to:

• Apply ABC/XYZ analysis to classify inventory for differential management.
• Determine optimal stock levels using economic order quantity (EOQ) and safety stock calculations.
• Develop accurate demand forecasting models for critical spares.
• Design an efficient, secure, and organized physical storeroom layout.
• Implement effective cycle counting and inventory accuracy programs.
• Manage vendor and supplier relationships for better material availability.
• Identify and manage slow-moving, surplus, and obsolete inventory.
• Utilize the CMMS to track material usage and trigger automated reorders.

• Inventory and Stores Managers
• MRO Purchasing Agents and Buyers
• Maintenance Planners and Schedulers
• Maintenance Supervisors and Technicians
• CMMS Administrators focusing on materials module
• Financial and Cost Accountants responsible for MRO stock

• Case studies on successful storeroom redesign and optimization
• Individual exercises on calculating safety stock and EOQ
• Group activity in developing an ABC classification strategy
• Discussions on best practices for vendor contract negotiation
• Simulation of a cycle counting program and variance investigation

Unit 1: Strategic Inventory Classification

• Identifying the purpose and function of MRO inventory.
• Applying ABC analysis (value) to prioritize control efforts.
• Using XYZ analysis (consumption rate) for forecasting strategy.
• Classifying parts based on criticality (e.g., insurance/critical spares).

• Identifying the total cost of carrying inventory (holding, ordering, stockout).
• Understanding the financial impact of stockouts and expedited shipping.
• The capital tie-up associated with excess and obsolete stock.

Unit 2: Stock Level Optimization and Control

• Calculating optimal ROP based on lead time and usage rate.
• Determining appropriate safety stock levels to mitigate variability.
• Applying Economic Order Quantity (EOQ) principles.
• Managing vendor-managed inventory (VMI) programs.

• Techniques for short-term and long-term demand forecasting.
• Forecasting for intermittent demand and project-based parts.
• The role of the planner in accurate material reservation and forecasting.

Unit 3: Physical Storeroom Management

• Principles of efficient warehouse layout and organization (e.g., dedicated locations).
• Methods for securing high-value and critical spares.
• Implementing effective receiving and issuing processes.
• Managing kitting and staging areas for planned work orders.

• Implementing a continuous cycle counting program (A/B/C items).
• Measuring and reporting inventory accuracy KPIs.
• Investigating and reconciling variances and discrepancies.
• Conducting a wall-to-wall physical inventory count.

Unit 4: Procurement and CMMS Integration

• Developing effective supplier performance metrics and scorecards.
• Negotiating favorable terms and pricing with key MRO vendors.
• Standardizing parts and reducing complexity in the supply chain.

• Structuring the CMMS materials master data and catalog.
• Linking parts to equipment and job plans for automated reservation.
• Using the CMMS for purchase requisition and receiving workflows.

Unit 5: Non-Stock and Obsolete Management

• Strategies for managing direct-issue and non-stock items.
• Controlling the use of consumables and indirect materials.
• Establishing controls for tool crib and equipment check-out.

• Identifying and categorizing surplus and obsolete inventory.
• Strategies for disposal, sale, or cannibalization of obsolete stock.
• Developing a clear policy for part standardization and substitution.