Warranty & Repair Strategy as a Component of Reliability-Centered MRO
For the last 45 years, we’ve built our solutions to address the needs and pain points of our customers. We call our platform for supply and demand side management, Reliability-Centered MRO because it focuses on ways to make our clients’ production lines and facilities more reliable. And whether you’re in procurement, operations or maintenance, the common goal is ultimately reliability.
It starts with actionable data and information technology – the infrastructure and the data from which any endeavor to manage MRO stems. From there, we can execute on one or all of three different strategies:
- Cash Flow Management, which focuses on the storeroom as a way to manage the MRO supply chain
- Spend Leverage, which focuses on procurement
- Asset Life Optimization, which lives in both the storeroom and procurement but typically involves a reliability engineering and maintenance component as well.
One component of any Asset Life Optimization strategy should also be a Warranty & Repair Strategy. Research shows that typically 10-15% of items are repairable, representing about a 5% savings against total new item spend. As part of our Asset Life Optimization strategy, SDI has a process for tracking repairs and performing root-cause failure analysis that allows us to more easily identify common failures for our clients, and address them. Our goal is consistent reliability – to focus on causes of failure and reduce them. We also handle the warranty process and partner with repair vendors that can bring assets back to factory standards. This collaboration provides greater visibility into root-cause failure analysis, thereby improving reliability. It’s a more sustainable and reliable way to find greater savings in MRO.
Coming in January, we’ll reveal a brand refresh on our Warranty and Repair Tracking Program in addition to some exciting partnerships and other great news.
It takes a progressive manager to push the organization to look at indirect spend and managing it in a different way - but once you see it, then you realize the opportunity.
In the third post in this series on MRO As-a-Service by Spend Matters, Pierre Mitchell and Michael Lamoureux talk about how managing MRO as a process delivers benefits from efficiency to effectiveness and beyond to an evolutionary phase. The next generation of value, MRO-as-a-Service, helps organizations build intelligent, agile, scalable and integrated supply chains (direct and indirect).
The project team has worked its way through Define, Measure, Analyze, and Improve. It’s time to begin the Control phase. The key stakeholders gather to evaluate the solution as implemented and create a plan to sustain the improvements. The goal is to standardize the improved processes, establish an audit schedule and schedule periodic follow-up to identify additional opportunities for improvement.