Do You Have a Parts Intake Process?

Spare parts intake sounds like a simple matter of unpacking a box, but when you begin to process parts in high volume, the lack of a documented and consistently executed process for intake can start to become costly. This counts double if you have machines in remote locations, if you ship parts out to other facilities, or if you service customers in the field. Ensuring accurate inventory, working status of parts, and completeness of enclosed package contents is essential for running a consistently profitable operation.

Inventory Accuracy

When you take in new parts, who is responsible for putting them in the correct designated location and logging the intake onto the books? Is your receiving dock properly secured, with adequate measures to ensure that only properly authorized personnel are able to directly access material after it is delivered? Would anyone be able to walk onto the dock and start grabbing parts? This is a major issue for some companies, and not just because of theft. If your intake process is slow and security is loose, line workers may have an urgent need for something that’s still sitting on the dock.

People who aren’t accountable for inventory have no motivation to make sure that parts are accurately logged. They need what they need to do their jobs. Also, it is recommended that you store spare parts in a locked area with restricted access. Otherwise, the situation will become a free-for-all and you will find yourself with thousands of dollars (or hundreds of thousands) in inventory that cannot be accounted for.

Working Status of Parts

Minor parts intake issues can seem inexpensive when viewed individually, but they can add up to a lot of money. For example, let’s say you buy a motor from a vendor and it carries a 90-day warranty. The motor sits on the shelf for over 90 days, and you find that it’s defective. The company now must absorb the retail cost of a defective part—which rightfully should have been covered under the manufacturer’s warranty. It isn’t the vendor’s fault; after all, no one notified them of anything.

It is essential to have some form of intake QA for parts. It might be as simple as a visual inspection. It might involve a power-on test. It might even involve testing parts inside a machine. It all depends how expensive those spares are. But defective parts are a fact of life. If bad parts are installed in a customer’s equipment, you could end up absorbing even more costs. The earlier you catch a bad spare, the less it will cost you.

Completeness of Contents

Parts are often shipped with missing plugs, button panels, caps, bulbs, connectors and subassemblies. Some vendors are better about this than others. The people who receive parts should be trained on what is supposed to be included in a kit or a unit. On the flip side, vendors sometimes include extras. For parts that you use often, pull any extras out and keep them on the side. Don’t ship them with extras, because the extras will likely be thrown away.

Parts intake is more critical than you might think. It’s one of those places in a business where problems often start out small and begins to snowball. Parts intake issues often go unnoticed because the symptoms show up somewhere else. If you have untended parts inventory issues, these issues are costing you more money than you think.

This entry was posted on November 21st, 2013 and is filed under General, Technology. Both comments and pings are currently closed.