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Issue #119
Hi Friend,
Happy New Year to you!
 At this time of year it is common for companies to either set new objectives for the year or review their existing objectives. In either case there is a huge amount of material already available that will help you work through and develop your goals and I don’t intend to repeat that here.
There is, however, one step that you MUST take if you want to achieve your goals: identify the actual actions you will take, not just the end goal.
Many companies right now might set a goal to reduce their inventory by (say) 10% by the end of the year. This is a worthwhile (if somewhat unambitious) goal and the key to achieving that goal is to be explicit about the actions that the company will take.
Not just by saying that they will ‘review the inventory’ or ‘optimize the inventory’ but by being specific about the process. For example, they might say that to achieve the goal they will:
- Review their Pareto inventory
- Hold monthly review meetings
- Review 60 items per month
- Apply the ICR Process and the 7 Actions for Inventory Reduction
By expanding on the goal to include the actions they can now measure their progress with the execution, not just hope that they reach the end goal. Are they reviewing their Pareto inventory? Are they holding monthly meetings? Are they reviewing 60 items per month? Are they using the 7 Actions?
This approach enables them to work on getting better at what they do while working toward the end objective of inventory reduction.
One person that knows all about setting and achieving goals is Russell Thompson, MRO/Procurement Manager at Idahoan Foods in the USA. Russell is a Premium Subscriber to SparePartsKnowHow.com and late last year he explained in an interview how he has reduced the MRO inventory at Idahoan Foods by more than 50%, using the resources at SparePartsKnowHow.com. You can watch this interview here.
Australasian Oil & Gas Conference
Next month I will be speaking at AOG14, in Perth Australia, with the topic Repair or Replace: Managing Rotable and Repairable Assets.
Here is a video preview of the event and presentation.
Let me know if you are likely to be there and we can catch up.
And remember, if you like what we do, please don’t keep it a secret – share this email with your colleagues and your boss!
Keep on improving,
Phillip Slater
Founder, SparePartsKnowHow.com
P.S One good way to start the New Year is to purchase and read the book Smart Inventory Solutions (2nd Edition). You can purchase the book by visiting http://www.initiateaction.com/SmartInventorySolutions.htm
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