Project showcase

Inventory Management Optimization

Project goal

To save time, optimize expenditure and reduce equipment outage time through enhancement of inventory management data

Client:

Oil and Gas Operator

Asset:

Onshore Gas Plant

Software:

Effio™

Client Challenge

Lack of accurate, quality, and standardized materials data caused:

Excessive and wasted expenditure spent on purchasing incorrect spare parts

Extended periods of equipment outage due to the correct spare not being available for maintenance

Unable to source replacement parts for obsolete equipment

Surplus stock and excessive warehouse footprint

High storage costs of spare parts for equipment that was no longer installed on the asset

Significant values worth of spares on order that were already in stock

What We Did:

Add Energy’s materials specialists verified, enriched, and developed equipment BoMs through completion of the following tasks:

Reviewed data completeness, quality and company repair and spares capabilities

Determined list of spares that should be held in stock and requirements for data enrichment

Verified part and equipment specifications with original equipment manufacturer (OEM)

Identified 12% of material masters were “duplicate versions” and worked to cleanse and standardize data to rectify this

Enriched BoM data and assigned materials and datasheets to the appropriate functional location (FLOC or equipment tag)

Set min/max levels for stock holding

Issued CMMS upload template to client for loading into CMMS

Identified 21% of spares parts were obsolete and provided list of recommended suitable replacement parts

Software Used

Add Energy’s CMMS data management software, Effio, was used by the project team to deliver this inventory optimization solution.

Effio is capable of replicating our clients CMMS environment and provides a user friendly, collaborative, and accessible platform for analyzing, enriching and assigning materials to equipment tags efficiently, consistently and accurately.

Learn more about Effio here

Deliverables

Delivered in CMMS upload templates linked to functional location tags with enriched data attributes

Cleansed and standardized material masters for the purposes of optimized cataloguing

List of spares parts that should be kept in stock

List of suitable replacement parts to manage equipment obsolescence

The deliverables provided by Add Energy’s material specialists unlocked the following benefits for our client:

Risk Reduction

Reduced exposure to risk and optimized costs through the identification of critical spares that should be held in stock

Optimized Costs

Identified opportunities to rationalize the spares inventory and reduce procurement costs through clarity of “what was needed” vs “what was already purchased”

Optimized Inventory

Provided insights on what spares were missing from inventory and exposed the equipment to risk of delays in maintenance and failure

Established Strategy

Set recommended inventory levels to optimize future costs and mitigate risk

Time Efficiencies

Enabled part sourcing to be more time and cost effective through access to reliable, accurate and readily available data

Avoid Unnecessary Expenditure

Correct equipment specifications now help the asset to avoid purchasing the wrong equipment, causing unnecessary expenditure

Effective Planning

Assure the planners have the information they need to source the correct parts in a timely manner without paying premium prices associated with last minute orders

Mitigate Downtime

Avoid asset or equipment downtime through immediate access to critical spares

Find out more about our Inventory Management Optimization Solutions

Learn more

REGISTER YOUR INTEREST IN INVENTORY MANAGEMENT OPTIMIZATION

By registering your interest, you can:

Speak to one of our experts to learn more about our solutions
Receive ongoing insights and advice around inventory management optimization initiatives
Learn more about our digital inventory management software