Auto Min/Max Process for Inventory

Auto Min/Max Process is introduced in the coming release of R23e. It allows an organization to better control when to order spare parts for maintenance operations. Here is a use case:

• An organization has multiple plants each has own warehouses. It would like to minimize parts stored in warehouses across the plants while meeting the maintenance and repair needs.
• The Auto Min/Max Process will be used to calculate Min/Max stock levels for each part.
• Parts are only ordered when stock levels fall below minimum stock levels with exceptions such as overhauls.

The following is an example of calculated worksheet with new min/max values to set.

• Parts with no checkout history will be set to 0 and 0 for min/max stock levels. These parts are ordered when reserved by work orders.
• Parts with checkout history are calculated based on usage and order history. Details are covered below.

1. Auto Min/Max Process

To launch the auto min/max process one needs to create a record for a process.

• Menu path: Admin | Open | Auto Min/Max Processes
• Create a new record for a process with the following parameters:
  • A date range of historical data to calculate new min/max levels.
  • "All Sites" - Check the checkbox to include inventory of all sites. Otherwise, selective sites can be defined.
  • "No Review" - Uncheck the field to do the calculation and application to inventory. Having it checked will stop the process after calculation. One may review results and use "Apply" menu to continue.
  • "No Req" - Check the field to not create requisitions when modifying min/max levels and order info.
  • "Set Auto-Order" Check it to set inventory to auto-requisition creation based on the min/max levels.
  • Min/Max To-Integer dropdown list are arithmetic operations to convert decimal levels to integers.
  • PM Option: a) By annual checkout to PM work orders; b) By definition of parts in PM Plans per year. The default is by usage.
  • Asset Option: a) By annual checkout to non-PM work orders, and checkout to assets directly; b) By definition of asset BOM (bill of material). Default is by usage.
• Save the record to continue.
  

 2. Selective Sites

If "All Sites" checkbox is not checked, add sites to be included in the process.

3. Process Execution

The auto min/max process can be executed by menu in the process form. 

• "Calculate & Apply" to execute the process from calculating new min/max levels to applying changes to inventory.
• "Calculate" to calculate the new min/max levels, but do not apply to inventories. One may review new min/max levels after the calculation.
• "Apply" to apply new min/max values to inventories.

The summary of the process is shown in the screen.

• Total differences of new min/max levels to current inventory.
• Total differences of new min/max cost based on average unit prices.
• Percentage of inventories to change.
• Total count of inventories evaluated.

4. Min/Max Worksheet

The worksheet shows the new min/max levels and factors involved in the calculation. The factors are listed below. 

• Checkout attributes including min/max of checkout quantities, mean, median, standard deviation, checkout cycles, checkout quantity distribution, etc.
• Parts required for PMs
• Parts required for Assets
• Purchase delivery cycles
• Vendor Order Quantities
• See Calem User Guide for detailed description of the factors, and rules to calculate the new min/max levels. 
• Configurations are allowed to tune the min/max process - see Admin Guide for more info.
  
• A flag "No Change?" may be checked so that the calculation is ignored and not applied to inventory.
• The "Worksheet" list may be exported to excel for analysis and update, then, upload back to Calem for application to inventory.

 5. Summary of Min/Max Process by Sites

The summary of a min/max process run is available by sites. 

• Go to the "Site" tab of the process form.
• Clicking a site row to view its summary.

6. Auto Min/Max KPIs

KPIs are provided to show the impact of the auto min/max process. See this blog. 

7. Part Usage for PMs

There are two options to calculate annual PM part usage.

• Option 1. The annual usage is based on the parts planned on PM Plans. 
  • It requires maintenance planners to define part requirements in PM Plans for it to work properly. 
  • This option was implemented initially.

•  Option 2. Annual PM part usage is derived from checkout transactions. 
  • It is based on real part usage for PMs.
  • It does not require planners to defined part requirements in PM Plans.
  • It is an enhancement to option 1.
• Option 2 is used in PM usage calculation unless defined in Min/Max process form (screenshot below).

 8. Part Requirement for Asset

There are two options to calculate annual part requirement.

• Option 1. The usage is based on the bill of material (BOM) defined in assets.
  • It requires maintenance planners to define BOMs in assets for it to work properly. 
  • This option was implemented initially. 

• Option 2. Asset part requirement is derived from checkout transactions.
  • It is based on real part usage for assets.
  • It does not require planners to defined part requirements in assets.
  • It is an enhancement to option 1.
• Option 2 is used in part requirement calculation for assets unless defined in Min/Max process form (screenshot below).

Additional Resources

• Barcode for Physical Count
• Barcode for Part Checkout
• Youtube Demo of WO by Asset Scan
• Clock WO by Asset Scan
• Inventory Checkout by Barcode
• Inventory Module Training
• User Guide and Admin Guide (customer account required)
  
• Calem Enterprise Training Site
  
• Calem Enterprise Blogs
  
• Calem Enterprise demo