Published February 19, 2021
The MRO supply chain is a crucial but often under-optimized element of an efficient and profitable plant. The lack of analytics and automation in this department cause costly but common mistakes. This article examines these common MRO mistakes, and how leveraging technology can resolve them.
What Are the Most Common MRO Mistakes?
In a survey by ReliabilityWeb.com, the following MRO mistakes were identified as the most common:
- 40% of lost time for maintenance trades people are attributed to the lack of spare parts
- 80% of work orders do not have all parts delivered on time
- 25% of jobs must wait for parts
- Storeroom inventory stock turn goals are x2; actual turns are less than one
- 26% of surveyed companies have less than 60% of needed parts listed in the maintenance catalog; this means that 40% of parts are purchased as spot buys [at higher prices] without inventory control
- Only 57% of SKUs in the maintenance catalog have alpha and numerical listings; 43% of the listings have incomplete/inadequate/duplicated descriptions
- Only 53% of issued parts are charged to a work order or to an account number which effects inaccurate maintenance costs for affected assets
- 48% of the companies reported that Inventory levels are not updated in near real time causing stock outs and overstocked SKUs
While it’s good to know these statistics to ensure your company avoids any MRO issues, understanding the underlying reasons for MRO mistakes is equally as important. Once the underlying causes are identified, your company can take steps of rectify MRO issues. So, what are the underlying reasons for these statistics? It boils down to three things:
1. Technology is underutilized
2. Lack of planning and tracking
3. Little communication among different plant departments
How Do You Avoid These Common MRO Mistakes?
Under Utilization of Technology
- The keystone to avoiding costly MRO mistakes is to utilize technology to catalogue all parts and maintenance activities. Standardized MRO data, ongoing governance protocols, and advanced analytics reveal insights for changing processes to gain efficiencies.
Lack of Planning & Tracking
- Once your technology systems are in place, you can utilize them to track and plan all maintenance requests, identify critical spare parts, and ensure the optimal min/maxes are in inventory to eliminated downtown.
Poor Interdepartmental Communication
- Standardized data, systems and processes create visibility, transparency and proactive collaboration between maintenance, plant and purchasing departments.
How Does Synovos Help Our Customers Tackle These Issues?
As MRO experts, Synovos understands these common challenges and how to overcome them. We bring the technology & expertise in MRO Master Data Standardization to systematically identify and rectify these common MRO mistakes for optimal Equipment Reliability & performance.