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Covers stocking theory and practice.

Uses the Pareto Principal throughout as the best way to achieve superior results with a minimum of investment of time by plant personnel.

Includes the following topics: the risks inherent in setting inventory sto Presented from the book:
Production Spare Parts
(Avoiding Unnecessary Purchaces)

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   by E. C. Moncrief, R. M. Schroder & M. P. Reynolds
Published By:
Industrial Press Inc.
The authors have shown that between 25 and 50 percent of the inventory investment is not necessary. SALE! Use Promotion Code TNET11 on book link to save 25% and shipping.
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6.3 SOME ADDITIONAL THOUGHTS ON PURCHASING

 

6.3.1 Resources

Thus far, we have talked a lot about the consequences of buying spare parts before they are needed. At the other extreme is the problem of purchasing too late and having to expedite. The purchasing function is not a pure science; despite all the advances in computers and software codes to optimize stocking, it remains still pretty much a people-driven function. Certainly purchasing departments have not been immune lately to cost cuts and personnel reductions seen throughout industry. With fewer resources available to handle the same or increasing work loads, things inevitably get delayed. The old saying that “time is money” is certainly true when material and spares are being purchased.

 

6.3.2 Purchasing Procedures

People have a bad habit of not following verbal instructions. Therefore, if you expect consistent adherence to certain tasks, it better be in writing. This is especially true for purchasing procedures. Our work with clients has shown that the following purchasing actions should be documented in the purchasing procedures:

 

• When to call a supplier for a price update.

 

• When to ask a supplier for a current lead time.

 

• When to require justification from the requisitioning person.

 

• Who can approval a vendor shipment delay.

 

• What support information is required to accompany a requisition.

 

To the extent possible, the above issues should be imbedded in the purchasing procedures (electronic or hardcopy) to insure consistent compliance.

 

 

Copyright 2005, Industrial Press Inc., New York, NY

 

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