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LEAN SIX SIGMA

Magic? Or Just Hard Work?


When an account signs on with IBT's Integrated Services Group (ISG), the complex process of rationalizing the customer's inventory begins in earnest. In some ways, it resembles watching a large machine ramping up.

With a detailed and disciplined approach in place, the transition from "before" to "after" status starts to take place in a step-by-step fashion.

ISG's methodologies, well-developed and constantly being refined, attack the usually thorny issues connected with MRO inventories. Experience has shown that the on-hand "stuff" is an area ripe for tighter organization

That is understandable. Operations of a plant are like a show -- and the show must go on. If old, partially used, occasionally needed or totally unidentifiable old gears, bearings, belts, motors, widgets and whatnots are on the shelf, that is just par for the course.

In more than one instance, the plant manager and the maintenance department have been in conflict over the materials. One food plant exec calls it the bone-yard and harps constantly at his MRO team to get it "cleaned up."

The MRO boss -- a thoroughly grizzled veteran -- barks back that "we never know when we might need that stuff."

ISG's approach has been created to try and figure out some answers to major questions: What is it? Why do we have it? Where did it come from? What is it worth? How soon are we likely to need it? And to answer the most critical question: What should we do with it?

The process begins with data scrubbing.

What does the customer call it (stock number)? What does the original manufacturer call it? Who made it? What is it? Does IBT's system have a number for it?

Once the initial "what have we got here?" business is complete, the "what good is it doing us?" process takes over.

In that phase, quantity on hand, optimum stocking levels, usage, value, interchange and some sort of valuation take over.

Then, the movement towards getting the situation more orderly and predictable occurs.

Getting everybody singing off the same song sheet involves getting consistent SKU IDs set up, consolidating holdings, developing complete cross references -- and deciding what gets kept and what gets liquidated.

Liquidation involves harvesting what value there is from excess inventory -- and moving it out. Sometimes the destination is back to the vendor, sometimes to another location in the customer's company.

In other cases, IBT may take the products into master inventory or they may be sold elsewhere.

Final steps in the process involve setting up an orderly, manageable and well-maintained stocking program and integrating it all into IBT's master system -- and then keeping the info current via the internet.

Like most other important and complicated jobs, this whole transformation requires three things: Knowledge. Effort. Teamwork.

The knowledge comes from both inside the customer's organization and from the ISG people attached to the project. They draw upon their combined experience and understandings of mechanical processes, equipment, inventory control and factory operations.

Effort comes into play, too. If this type of mobilization were easily accomplished, customers would do it themselves. But, as is readily apparent, the pressure to keep product going out the door generally is more important than a neat, orderly store room -- regardless of how much bad resource usage that represents or how much inefficiency in emergency repairs it may cause.

And, finally, the job calls for teamwork. ISG, IBT and the customer must all pull together to make it happen and make it happen smoothly. With the combination of specific site managers, account and headquarters staffing -- and the customer's own good people -- ISG performs the transformations the customers require.

All it takes is hard work. It only looks like magic because it happens so smoothly.

  
To learn more about ISG services from IBT, contact us today!