Assessing The Performance Of Your Fastener Inventory For Renewable Energy Sector Production
It seems easy to measure performance for many things but it is never easy to measure performance when it comes to the manufacturing sector. I know of many manufacturing plants who simply yield to the fact of acknowledging that FOD occurrences or repeated out of stock occurrences as an inevitable operation process. Because of this, […]
It seems easy to measure performance for many things but it is never easy to measure performance when it comes to the manufacturing sector. I know of many manufacturing plants who simply yield to the fact of acknowledging that FOD occurrences or repeated out of stock occurrences as an inevitable operation process. Because of this, they might even calculate in shrinkage costs into their cost estimates, making the output cost higher.
I am really puzzled why these manufacturers do not depend on best business practices that could actually improve this situation better. In regards to your renewable energy fastener inventory, you can take measures to take stock of the overall performance by having performance markers to help you understand the supply chain management better.
FOD
No occurrences of FOD should be one of your performance markers. It is important to control incidences of FOD though I know you have so many items in your renewable energy inventory when it comes to fasteners and this makes it difficult. The need to emphasize on precision assembly is one way to help you reduce the incidences of FOD happening. You might even want to look at customized inventory programs to help you handle stock management better.
Out of stock
When you are manufacturing renewable energy parts, you will aim to achieve maximum output with a neat production schedule. What happens when you don't have enough items in your fastener inventory? A stock out might occur and this might slow down the production process at best and halt the entire process at worst. The side effects might even include messed up shipments, delayed deliveries to your clients as well as wasted labor costs.
Your performance marker here is to ensure that you have a fastener supplier who is able to have ready stock for you to continue your production process fast and for better results, make sure that you have a strong inventory program to keep your fastener count accurate. This program can be shared with your supplier and with this knowledge, he can actually send replacements automatically as he is observing through this inventory program on what you might need for your inventory.
Soft costs
If you purchase a fastener such as a hex nut for your renewable energy production and fail to use it for your production, this item itself will be incurring a soft cost. The longer it remains untouched at your manufacturing plant, the more it will incur money from your end. And think about these consumables contracting shrinkage waste if you continue to neglect them at your production facility. Make sure that you are not keeping any extra fastener by keeping a tight inventory.
Overall, you can see the importance of the fastener inventory to your renewable energy production, so learn to assess if you are running a well-designed inventory for your fasteners. Talk to your fastener supplier as he would have more options for you in this regard because generating cost savings by maintaining a neat inventory can actually improve your bottom line in the long run.
