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MVP Plant Inventory Clerk Justification

Inventory Clerk Justification

CMMS Data Group

Data Entry Field (Enter a value in each yellow field, where applicable.):
Calculated Field (Blue fields will automatically calculate for you.):
Without Inventory Clerk With Inventory Clerk
Annual Obsolete Parts Holding Cost
What percentage of your current inventory do you estimate to be obsolete?
What is the current value of your inventory?
What is the your holding cost (% of current inventory value)?
Total Annual Obsolete Holding Cost:
(Obsolete % * Current Inventory Value * % of Current Inventory Value)
Annual Part Search Cost Enter % reduction
below.
On average, how many Maintenance Technicians (MT's) work per day?
On average, how many days per week does each MT work?
On average, how many times per day does an MT look for a part?
On average, how many minutes does each part search take?
What is a MT's burden rate ($/hour)?
Total Annual Part Search Cost:
(No. of MT's * No. of Days per Week * No. of Part Searches per Day * 52 Weeks
per Year * No. of Minutes per Part Search * 1 hour per 60 minutes * Burden Rate)
Annual Part Search Opportunity Cost Enter % reduction
below.
What is the annual opportunity cost of having MT's search for parts rather than
maintain equipment?
(minimum: the cost of the time spent searching for parts)
Total Annual Part Search Opportunity Cost:
Annual Unknown Equipment Spare Parts List Cost Enter % reduction
below.
On average, how many MT's work per day?
On average, how many days per week does each MT work?
On average, how many times per day does an MT look up a part in an equipment manual?
On average, how many minutes does each look up take?
What is a MT's burden rate ($/hour)?
Total Annual Unknown Equipment Spare Parts List Cost:
(No. of MT's * No. of Days per Week * No. of Part Look Ups per Day * 52 Weeks per
Year * No. of Minutes per Part Look Up * 1 hour per 60 minutes * Burden Rate)
Annual Unknown Equipment Spare Parts List Opportunity Cost Enter % reduction
below.
What is the annual opportunity cost of having MT's look through equipment
manuals rather than maintain equipment?
(minimum: the cost of the time spent looking through equipment manuals)
Total Annual Unknown Equipment Spare Parts List Opportunity Cost:
Annual Maintenance Technician Purchasing Cost Enter % reduction
below.
On average, how many MT's work per day?
On average, how many days per week does each MT work?
On average, how many P.O.'s per day does an MT create?
On average, how many minutes does it take to create a P.O.?
What is a MT's burden rate ($/hour)?
Total Annual Maintenance Technician Purchasing Cost:
(No. of MT's * No. of Days per Week * No. of P.O.'s per Day * 52 Weeks per
Year * No. of Minutes per P.O. * 1 hour per 60 minutes * Burden Rate)
Annual Maintenance Technician Purchasing Opportunity Cost Enter % reduction
below.
What is the annual opportunity cost of having MT's order parts rather than maintain
equipment?
(minimum: the cost of the time spent ordering parts)
Total Annual Maintenance Technician Purchasing Opportunity Cost:
Annual Unkitted Work Order Parts Cost Enter % reduction
below.
On average, how many MT's work per day?
On average, how many days per week does each MT work?
On average, how many times does an MT have to kit parts for a work order?
On average, how many minutes does it take to kit parts?
What is a MT's burden rate ($/hour)?
Total Annual Unkitted Work Order Parts Cost:
(No. of MT's * No. of Days per Week * No. of Kits per Day * 52 Weeks per Year* No.
of Minutes per Kit * 1 hour per 60 minutes * Burden Rate)
Annual Unkitted Work Order Parts Opportunity Cost Enter % reduction
below.
What is the annual opportunity cost of having MT's kit parts rather than maintain
equipment?
(minimum: the cost of the time spent kitting parts)
Total Annual Unkitted Work Order Parts Opportunity Cost:
Annual Part Expediting Cost
On average, how many orders are expedited per month?
On average, what is the expediting cost of each order?
On average, how many times per year was an order expedited for a part already in
house, but unable to be found?
On average, what is the cost to order an item?
Total Annual Part Expediting Cost:
(No. of Expedited Shipments per Month * 12 Months per Year * Expediting Cost
+ No. of Unnecessary Orders * Order Cost)
Annual Parts-Related Downtime Cost Enter % reduction
below.
What is the annual parts-related downtime cost?
Total Annual Parts-Related Downtime Cost:
Annual Unmanaged Inventory Cost Enter % reduction
below.
Unmonitored min/max levels (too much/too little inventory)?
Total Annual Unmanaged Inventory Cost:
Annual Unmanaged Inventory Processes Enter % reduction
below.
Unmonitored inventory processes (how can processes be improved if they are not
monitored)?
Total Annual Unmanaged Inventory Processes:
Unnegotiated Lower Pricing Vendor Agreements Opportunity Cost
What is the value of last years purchases?
What percentage of last years purchases could have been saved had negotiations taken place?
Total Unnegotiated Lower Pricing Vendor Agreements Opportunity Cost:
Annual Vendor Non-Conformance Cost Enter % reduction
below.
What is the annual cost of early or late deliveries?
What is the annual cost of non-compliance to part specifications?
What is the annual cost of overages/shortages shipped?
What is the annual cost of overages/shortages invoiced?
Total Annual Vendor Non-Conformance Cost:
(Sum of Costs)
Total Annual Cost:
Total Annual Savings:
(Total Annual Cost w/o Inventory Clerk - Total Annual Cost w/ Inventory Clerk)
Inventory Clerk Salary:
Payback Period (months):
(Inventory Clerk Salary / Total Annual Savings * 12 Months/Year)