How to count MRO Parts

A while ago I was asked to participate in an annual inventory stock count at a large chicken and beef processing plant in Kitchener, Ont. I was contacted by the maintenance department to support their CMMS software and bar-coding scanners in case there were any problems.

The stockroom was the largest I had ever seen, with about 15,000 SKU’s (stock-keeping units). A typical stockroom will have 3,000 to 6,000 SKU’s so this company’s inventory was up to four times the size of a typical stockroom. You can imagine the continuous care this stockroom would need. It was in great shape, laid out and organized so parts could be found easily. The physical stock count took place on a weekend when very few items would be issued or received to and from the stockroom.

Maintenance shops working the weekend were given prior notice of the stock count and were advised to plan their work in advance and check out any parts they needed before the weekend. Only parts required for breakdown repairs would be issued from the stockroom in order to keep the count as accurate as possible.

With a physical count of this magnitude, it stands to reason they would need some gear to get the job done. Having done physical counts before, they were well-equipped with six bar-code scanners and multiple docking stations to download the data. To get the count done in two days, they definitely needed six hand-held scanners.

The maintenance planner had prepared for the weekend with printed physical count sheets organized by part location. We’ll talk more about the count sheets later.

So they were ready to go. With six teams and two maintenance people per team, we dug in for a long and busy weekend.

For two days the teams diligently scanned and counted parts. One team member handled the scanner and the other verified the part in the bin and noted any abnormalities on the counting sheet. The teams started at 8 a.m. and finished at 8 p.m. each day. We broke for lunch around 1 p.m. and other than that we only took short breaks every couple of hours. The breaks usually corresponded with scanner downloads into the CMMS software, so very little time was wasted.

The bar-code scanners worked great and the CMMS software, in this case MP2, stood up to the challenge. The MP2 software, made by DataStream (now owned by Infor) is one of the easiest CMMS programs to use and continues to be one of the leading CMMS software programs in the world.

The barcode software is simple to understand and easy to use. To count the inventory you simply scan the barcode and enter the number of parts on the keyboard. The MP2 upload function consists of three easy steps. 1) Upload the data from the scanner. 2) Review of process the data to update the inventory count. 3) Print the stock adjustment report.

Stock counts can be a time-consuming process so it’s great to have software that makes the process easy.

Counting nearly 15,000 SKU’s, which equates to several hundred thousand parts, and with the number of teams we had, you can be sure we learned some valuable lessons to make it easier next year.

What was learned

So here is what we learned. Feel free to take the following valuable information and apply it to your next physical stock count.

First, plan for the stock count. Make sure you have the people you need. Maintenance people are best because they will recognize the parts and be able to sort out any discrepancies on the spot. The maintenance group also has a vested interest to make sure the job is done properly. After all, it’s about their parts.

Second, inform the maintenance departments when the stock count will take place. This gives them a chance to get the parts they need for planned work. Only parts needed for breakdown repairs can be checked out during the count.

Third, check the condition of bar-code labels on the part bins. If labels are ripped, worn or dirty, they will not scan well, if at all. When replacing those labels, do not apply the new label over the old. The old barcode will often partly show through the new label, confusing the scanner. Taking the time to clean, inspect and replace labels is a worthwhile activity prior to your stock count.

Fourth, use teams. I mentioned earlier we had teams of two for each scanner. Most stock counts I’ve seen usually use only one person with a scanner. The person scans the barcode counts and enters the number of parts into the scanner and moves on to the next bin. What’s wrong with that method? Well, the part in the bin is not being verified as being the right part for that location.

With a team, there is one person managing the scanner and the other person is verifying if the correct parts are in the bin. Any discrepancies are noted on the physical count sheet. Each part counted is crossed off the list so every item gets counted. Teams of two people are definitely the way to go.

Provided you agree that the team method is best, then you’ll want to make sure the physical count sheets are printed in advance. Have them grouped by stock location and stapled together.

As the teams finish one list, they can turn it in when they download their data. Later the count sheets will need to be reviewed to address the notes made by the team.

If you have more than one team counting, it’s best to schedule them to download their data at different times. Having the teams arrive at the scanner docking station at the same moment will waste time. Space them out through the day.

Following these few important steps will make your stock count go pretty smoothly. Do the up-front planning and get the right people for the teams.

We had a successful weekend with very few problems. We learned some valuable lessons that can be applied next year. Everyone worked hard and spirits stayed high throughout the weekend. Sure hope I get invited again next time.

Machinery & Equipment MRO software editor Peter Phillips of Trailwalk Holdings, a CMMS consulting and training company based in Nova Scotia, can be reached at 902-798-3601 or by e-mail at peter@trailwalk.ca.