Spare Parts Reduction Initiative

Assignment

Review, identify, and determine the status of the Spare Parts Inventory (including 10,129 items) for a major North America automotive manufacturer.

Results

Achieved estimated cost savings of $2.6 million in parts or materials to be removed, deleted or obsoleted.

Challenge/Tasks

  • Develop a standardized decision tree for the status of each spare part.
  • Consolidate information for more than 10,000 spare parts sourced from five independent spreadsheets into one comprehensive workbook for improved efficiency in information management.
  • Decipher existing rudimentary spare part tracking system, based on initial set-up by various individuals and possible department for intended use.
  • Ensure integrity of the overall data contained in master spreadsheet with multiple users.
  • Also identified $2.38 million in items that required verification and another $2.15 million of items that need to be kept for production purposes.
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