Hours of production are lost while troubleshooters try to find the part they need on the shelves of the storeroommore...
Production equipment availability is a key focus for almost any manufacturing company, especially when each item produced is sure to find a buyer as soon as it is available on the market.
When a strategic equipment is down, money is vanishing every passing second until your maintenance gets it fixed.
The time your troubleshooter takes to identify the problem and correct it can cost you a lot of money. That is why an army of qualified technicians are trained and paid to make the reaction time as quick as possible.
But between the moment they identify and correct a problem, your technicians will need the right spare parts to be available . It usually takes between 20% and 30% of the machine downtime to issue the needed spare parts from an inventory of thousands of miscellaneous items, often managed with poor organization standards.
During urgent maintenance work, you do not want to loose any time having people search for the spare part you need in the mess of a storeroom.
What you want is to have your storekeeper pick up the part straight away from the right storage bin, after just a few clicks in your database.
Making your spare parts data right to save you hours of production…
Thousands of storage bins managed as independent stocks actually contain duplicate partsmore...
Constant pressure on working capital impacts maintenance as well. Spare parts inventories amount to hundreds of millions of dollars in top manufacturing companies, and downsizing them can be a tricky challenge.
Spare parts inventory level optimization is very difficult, due to the wide range of different references to be managed, and the necessity to keep fast runner items, as well as rarely used but strategic spare parts in stock.
Defining spare parts inventory levels is often a fight between finance people pushing to reduce the overall inventory value, and production people wanting to be sure that the spare part they might need is available at any time, whatever it costs.
However, there is one lever that everybody will agree on: the identification of the parts you have duplicates of without knowing, which can sometimes represent 15% of the stock!
Easier said than done, as item-by-item identification of duplicates among hundreds of thousands of references would take decades… Except if your spare parts data content and structure allow mass comparison supported by dedicated tools and experts.
2-digit spare parts inventory reduction percentage through duplicates identification…
Millions have been spent on buying parts that have never been quoted by alternative suppliersmore...
Top manufacturing companies spend hundreds of millions of dollars a year on spare parts in order to keep their production equipment, infrastructure and facilities up and running. To optimize this expenditure, purchasing departments try to get the best quotes from key distributors or OEM.
However, suppliers will only be able to quote a part that they can identify precisely by its description and manufacturer part number. Unfortunately, it may not be the case for up to 30 to 50% of your spare part references!
Another difficulty for buyers is the lack of visibility on volumes they can negotiate: each duplicate in the spare parts database may result in redundant work effort for buyers and suppliers during the quotation, but also in missed savings due to the lack of visibility on consolidated quantities.
Last but not least: negotiated contracts bring savings… if people use them! Only a structured and homogeneous database will allow hundreds of users in multiple plants around the world to identify the part they need among price lists negotiated by a central buyer.
Good data are mandatory to move your spare parts sourcing to the next level and reach new savings levels…
Thousands of new additional part references are added to the database year on yearmore...
Engineers design new equipment to adapt production capabilities to new products and processes, improve productivity, replace obsolete equipment.
To create the Bill Of Material of new equipment, the engineers try to identify the specific parts they need among the internal database of references already managed. When the data quality is poor, this simple research can represent up to 25% of their time.
If the research is not successful, a new reference has to be created, potentially resulting in a duplicate entry in the database. That is how many industrial companies see their number of spare parts references growing year after year, despite of their efforts of standardization. A duplicate reference means a new technical description for maintenance, a new stock to handle, a new item to source.
All of this would not happen if engineers could easily identify the parts they need in the internal database through simple filtering on the technical characteristics they are searching for, which requires complete and structured data.
Easy part identification and complexity under control...
Key spare parts metrics
Proportion of equipment downtime corresponding to part issuing 25%
Duplicate references in spare parts database 15%
Spare part references that cannot be quoted due to lack of data 40%
Price gap between on- and off-contract spare parts unit prices 20%
Time spent during equipment design searching for existing parts data 20%
Mass enhancement of spare parts technical data. Executed in a manner that creates business value.
Neonec proposes turnkey technical data enhancement services, including spare parts
classification, technical data homogenization and enrichment.
Our services integrate automated mass data processing completed by manual data interpretation and research done by our technical specialists.
Our business consultants can support you from the early project shaping to the final use of your enhanced data for sourcing or inventory optimization actions.
Specific spare parts technical data enhancement.
Neonec classifies, harmonizes and enriches the technical data describing the wide variety of electrical, electronic, mechanical, hydraulic and pneumatic spare parts necessary to maintain the equipment of the industrial sites of its clients. This applies to sectors such as Oil & Gas industry, Automotive supplies, Food & Beverage, Consumer goods, Chemicals, and more generally to all manufacturing or process industries managing a wide variety of technical equipment.
It is not just about data crunching.
Data enhancement is not an end in itself, but a means to reaching operational excellence. The spare parts business is very specific and our experience of operations consulting is the key to ensuring that the data enhancement is done including the right technical content, with the adapted detail level and the necessary quality to ensure the benefits you expect to achieve.
Mass data processing with efficient cost and timing.
We use a comprehensive set of mass data processing algorithms to significantly speed up the work of classification, formating, and comparison. As the end data quality should not be driven by any algorithm limitations, but by the actual business needs, our off-shore team of technical specialists is ready to apply our tested methodology to do the necessary manual work following a tight timeline and at low costs.
equipment downtime reduction
spare parts inventory value reduction
realized purchasing savings
efficiency improvement for data users
Neonec on-shore consultants and off-shore specialists supported Michelin to classify, format and enrich technical data of ~800k spare parts references in 11 languages and optimize spare parts inventory value for ~70 plants worldwide. Enhanced spare parts data were also used for the deployment of Michelin’s new CMMS and enabled overall initiatives of spare parts sourcing and operational management.
Neonec has supported Lotus F1 Team with an optimization program aiming at reducing significantly their industrial purchasing costs while optimizing their operations. Neonec helped to identify and implement multiple savings opportunities related to the sourcing of their high technological and critical spare parts, that you can find in first class motorsport competition.
A former client
“I have been relying on the consultants of Neonec team for several years now, since I led worldwide programs of spare parts data enhancement, spare parts inventory optimization and maintenance costs reduction.
I appreciated finding the dedication and professionalism that you can expect from major consulting firms, but also pragmatism, and a real understanding of what creates concrete value for our operations. Their relational skills allowed them to build trust with operational teams, as well as with support functions or top management.
This collaboration resulted in hundreds of thousands enhanced spare parts data lines, dozens of millions of euros of both inventory value and expenditure reduction, significantly above the initial project targets.”
William has been leading the global spare parts management department within the Michelin Group, from where he initiated and managed ambitious maintenance optimization programs deployed in more than 70 plants over the world.
These successful experiences led William to take on operational responsibilities in the industrial hierarchy of the leading Tire Manufacturer.
Another performance seeker
“For a Formula 1 driver, it is very important to get the right parts to achieve the best performance, to achieve the best set-up and get the maximum out of the car at the end of the race.
This is exactly what Neonec does for its clients, with the same constraints and the same performance goals, helping them to maximize their productivity and optimize their industrial operations.”
Romain GROSJEAN is now an experienced Formula 1 driver, after multiple successes in Formula Renault, Formula 3 and GP2 in his early years. For the 2016 season, he carries the hopes of Haas F1 Team, as well as of all French Formula 1 fans.
Sharing common values like performance culture, passion for our jobs and team play, Neonec is proud to be partnering with Romain for a third F1 season.
One of our Partners
“Neonec was built around a simple idea: in our expertise area, to offer what creates the most value for our clients with inspiration from consulting firms, industrial, and start-up cultures.
Strong analytical skills supporting client decision-making creates value… but shooting fancy savings figures in a slide does not.
Efficient tools and processes create value… when the right profiles operate them.
Wise recommendations create value… if somebody is qualified and available to implement them.
A high-level vision of problems creates value… if followed by pragmatic solutions.
Content expertise creates value… multiplied by dedication and commitment.
Our bet is that you will agree with us and that our way of doing business will perfectly match yours.”
Satyam has been designing and managing multiple worldwide programs covering industrial maintenance sourcing, operational costs reduction, and mass data enhancement in sectors such as automotive supplies, food & beverage and resources.
Satyam has an engineering background (Ecole Centrale Paris) and was a Senior Manager at Accenture Strategy prior to joining Neonec.
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