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DECEMBER 2013 PRO INSTALLER
PRO PRODUCTS
www.proinstaller.co.uk
Raising the standard
Chris Gordon, Buck & Hickman, explains to Clearview the role of MRO
product standardisation in operational and commercial success.
The process of purchasing and managing tools, maintenance, repair &
overhaul (MRO) and health & safety products for manufacturing and
process facilities can be a complicated one, requiring hundreds or even
thousands of stock-keeping units to
be available whenever and wherever
they are needed on-site.
This means that significant amounts of
cash can be tied up in slow-moving products, while there may be little thought given
to whether these products are delivering
optimal performance and value, with the
same product simply reordered whenever
stocks run low.
In a bid to simplify the process and reduce
working capital, many companies have in
recent years been taking a long, hard look
at the process to see how it can be improved.
One of the areas where the greatest impact is consistently achieved is in ‘standardisation’ – minimising as far as possible
the number of different brands and models
of product used for the same task, while
ensuring there is no compromise on performance, quality or safety.
Typically undertaken as part of an overall
improvement initiative, standardisation can
rapidly deliver a measurable commercial
return.
In the area of abrasive discs and belts, for
example, it is not uncommon for companies to source and stock multiple grades
of product to cope with all stages of the
process from weld and burr removal to
tial cost savings identified at the outset are
not fully realised. Hand-in-hand with the
standardisation of products, therefore, must
go a process to standardise procedures to
ensure maximum value is extracted from
the change.
A model for success
finer cosmetic finishing. Yet innovation in
recent years has created abrasive products
that not only reduce the number of process
stages required (and therefore the number
of different belts or discs needed) but last
longer too.
While the initial purchase price of these
new items may exceed that of the existing
products, the true value they can offer will
only be appreciated through a study of
whole life costs and, of course, trials under
real operating conditions. Considered in
these calculations must be factors such as a
comparison of processing time, changeover
time, and reject rates. Standardisation in this
area will only work if the operatives using
the new consumables buy into the process
and are fully trained in getting the best out
of them. Incorrect product choice by the
operative, poor technique, and disposal of
consumable products which may still have
useful life in them – simply because they
have always been changed at those intervals
– will all conspire to ensure that any poten-
How can the benefits of standardisation be
delivered, in pressured production environments where the interests and motivators
of different stakeholders in the process
– financial directors, quality managers,
purchasing teams, production managers,
health & safety specifiers, and production
operatives – may vary radically?
The initial opportunity for standardisation
can be identified internally or externally by a consultant or supplier. An initial
feasibility study should set targets for the
project which are SMART - specific, measurable, attainable, relevant and time-bound
objectives. Once these are agreed, with a
documented projection of financial benefits,
buy-in should be sought from key stakeholders such as the head of production and
financial decision-makers, before the procurement team are involved. The next stage
is the establishment of an ‘integrated product team’ (IPT) who will agree timescales
and location for the trial. The trial then
takes place, with the IPT evaluating the
results and then preparing a final evaluation
against the original objectives and proposal
for sign-off by all stakeholders. The full project is then implemented, with training and
induction for those individuals involved in
the changeover, measured and continuously
monitored against the objectives set.
While SKU numbers will almost inevitably
fall, with a positive impact on cashflow,
standardisation should not be considered
solely as a means of reducing the costs of
MRO purchases. In some instances initial
purchase costs may increase as the value
and compensation they offer will appear
elsewhere on the balance sheet. Best value
will be extracted through taking a holistic
view with a scientific approach to assessing
the return on investment at every s tage of
each project.
‘In a bid to simplify the
process and reduce
working capital many
companies have in recent
years been taking a long,
hard look at the process to
see how it can be improved’
Planned and managed effectively, in conjunction with a partner who can provide
independent advice alongside a broad product range and ongoing technical support, a
product standardisation programme has the
potential to deliver significant operational
and commercial benefits.
www.buckandhickmanuk.com,
08450 510 150.
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