Admin, on July
In business, we use acronyms to communicate and abbreviate content. One such acronym KPI (Key Performance Indicator) we hear and use regularly. In maintenance there are several KPI’s used including those tracking MRO Storeroom performance. Recently we conducted a poll asking which Storeroom KPI people considered most important.
A couple of months ago, I visited an organization that had just started an initiative to reduce their spend on spare parts. The odd thing about this initiative was that it was driven by finance and procurement. The focus was on cutting the price they paid for these spare parts. When I asked why this initiative had started, I was told that someone in finance felt that their procurement practices weren’t what they should be. They believed that there was opportunity to cut costs through better management of the process.