MRO inventory reduction—challenges and management: a case study of the Tennessee Valley Authority

Bailey, Gavin; Helms, Marilyn M.

doi:10.1080/09537280601127351

Cited by 21 publications

(29 citation statements)

References 18 publications

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“…Case studies have been conducted in the computer industry (Cohen et al 1990, Ashayeri et al 1996, Thonemann et al 2002, the airline industry (Tedone 1989), the metal industry (Suomala et al 2002), the electronics industry (Cohen et al 1999), power generation (Bailey and Helms 2007) and in the military (Rustenburg et al 2001). These researchers applied general theoretical concepts to specific settings.…”

Section: Decisions On the Planning And Operational Levelmentioning

confidence: 99%

A case study-based analysis of spare parts management in the engineering industry

Wagner

Lindemann

2008

Production Planning & Control

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Eroding margins for primary products have redirected many firms' attention to the highly profitable spare parts business. These firms push for increased sales and more efficient spare parts supply chains. However, previous research in spare parts supply chain management has principally been limited to planning and operational aspects such as the determination of spare parts inventory levels and re-order policies. Taking the sellers' perspective in the supply chain, the primary objective of the case study research presented in this article is to better understand the problems that engineering companies encounter and approaches that they adopt in their spare parts supply chains. The initial proposition, that engineering companies need to, and are eager to, adopt supply chain management practices in their spare parts businesses in order to capture revenue and profit potential, is supported. Among the key areas for improvement are the formulation of spare parts strategies, a better understanding of the installed base, and top management support for the spare parts business.

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Section: Decisions On the Planning And Operational Levelmentioning

confidence: 99%

A case study-based analysis of spare parts management in the engineering industry

Wagner

Lindemann

2008

Production Planning & Control

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“…Despite the importance and high amount of spending that goes into IT procurement, most IT purchases result in buyer's remorse (Oh et al, 2014). Many ERP systems are not equipped to deal with all types of parts, such as tooling MRO parts (Bailey & Helms, 2007;MacDonnell & Clegg, 2007). Dorling (2002) found less than 50% of firms have a risk management strategy for their IT procurement.…”

Section: Risks and Importancementioning

confidence: 99%

“…These purchases are harmful to the organization because they circumvent established best practices, and make analyzing indirect spend more difficult (Sodhi, Sodhi, & Tang, 2014). Additionally, many strategies for indirect procurement tend to focus solely on minimizing purchase price, rather than looking at the costs to the whole system (Bailey & Helms, 2007;Bechtel & Patterson, 1997). Strategies must be tailored to each individual subcomponent of indirect spend, and will vary based on a firm's industry and value of the purchased item (Al-Kaabi, Potter, & Naim, 2007a;Hawkins, Nissen, & Rendon, 2014;Moon, Swar, Chloe, Chung, & Jung, 2010;Sitar, 2012;Thomas et al, 2015;van der Valk & Rozemeijer, 2009).…”

Section: Introductionmentioning

confidence: 99%

Indirect Procurement: A Literature Review and Study of Trends

Israël¹,

Curkovic²

2020

AJIBM

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Indirect procurement is a diverse and crucial component of purchasing that has been largely ignored by scholarly research, due to representing only a small portion of manufacturing firms' expenditures. Indirect purchasing also suffers from confusing nomenclature that makes drawing conclusions from multiple sources difficult. Proper management of indirect spending allows for sustainable competitive advantages and reduced costs. By performing a keyword search in multiple comprehensive databases, we analyzed, consolidated, and summarized the current areas of research as it pertains to indirect procurement. We also identified areas for future research by identifying gaps from our analysis. We find that much of the current research has focused on the procurement of Maintenance, Repair, and Operating (MRO) items and Information Technology (IT). MRO purchasing was also found to have confusing nomenclature, as the term can be used to refer to very different types of purchases. We make distinctions between these types and draw conclusions accordingly. For both MRO and IT research, we found that most research focuses on supplier relationship management, as well as the optimal degree of employee involvement in these purchases. While many studies stress the importance of properly managing indirect suppliers and engaging all stakeholders in indirect purchasing decisions, very few provide a successful framework for doing so. This paper serves multiple purposes. First, it seeks to consolidate and provide new definitions for indirect procurement terms in order to make future scholarly research easier. Second, it seeks to understand what research has been completed already in this field, and synthesizes the research into meaningful groups. Finally, it identifies areas for future research. This is an important endeavor because we seek to summarize and refocus a burgeoning field of study, allowing future researchers to easily understand what has already been studied.

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“…Prasad [11] proposed two different approaches to categorize inventory models: Economic Order Quantity (EOQ) and Material Requirement Planning (MRP). Several case studies have been developed in different fields, including: industrial manufacturing [12,13], the mining industry [1,2], the computer industry [14,15], the electronics industry [16], power generation [17] and in the military [18]. These researchers applied theoretical proposals and concepts to specific settings.…”

Section: Introductionmentioning

confidence: 98%

A Support System for Selecting the Most Suitable Spare Parts Strategy

Viveros

Nikulin

Crespo

et al. 2014

Lecture Notes in Mechanical Engineering

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This paper reports an algorithm to create a decision support system for the most suitable spare parts strategy. It is developed based on risk and cost analysis. The algorithm decision support system makers includes information about the possible scenarios in the maintenance field; moreover, this information is useful to support future strategies, helping to decide the number of the spare parts necessary to increase at the maximum process/equipment availability rate. In this task, the algorithm is based on risk analysis considering two main aspects. The first, related to success and failure probabilities is estimated through Poisson distribution; the second one is related to the expected total cost, considering: storage costs, capital tie-up costs, repair costs, purchase order costs (normal and emergency), opportunity costs, and others.

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MRO inventory reduction—challenges and management: a case study of the Tennessee Valley Authority

Cited by 21 publications

References 18 publications

A case study-based analysis of spare parts management in the engineering industry

A case study-based analysis of spare parts management in the engineering industry

Indirect Procurement: A Literature Review and Study of Trends

A Support System for Selecting the Most Suitable Spare Parts Strategy

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