Inventory Management Optimisation
Client: Oil and Gas Operator
Asset: Onshore Gas Plant
Project Objective: To save time, optimise expenditure and reduce equipment outage time through enhancement of inventory management data
ABL’s CMMS data management software, Effio, was used by the project team to deliver this inventory optimisation solution.
Effio is capable of replicating our clients CMMS environment and provides a user friendly, collaborative, and accessible platform for analysing, enriching and assigning materials to equipment tags efficiently, consistently and accurately.
Challenges faced by the client
Lack of accurate, quality, and standardised 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
ABL’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 standardiSe 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
The value Effio delivers
Risk Reduction
Reduced exposure to risk and optimised costs through the identification of critical spares that should be held in stock
Optimised Costs
Identified opportunities to rationalise the spares inventory and reduce procurement costs through clarity of “what was needed” vs “what was already purchased”
Optimised 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 optimise 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
Project deliverables
7107 Equipment BoMs
Delivered in CMMS upload templates linked to functional location tags with enriched data attributes
Standardised Material Masters
Cleansed and standardised material masters for the purposes of optimised cataloguing
Critical Spares Identification
List of spares parts that should be kept in stock
Recommended Replacement Parts
List of suitable replacement parts to manage equipment obsolescence
About Effio
Effio™ is a cloud-based master data build and optimization software capable of saving up to 30% on time and cost efficiencies compared to traditional methods.