Logistics: Organization

for the Parts, Materials

and supplies

Materials Management

A typical shutdown might have 1000 or more parts and materials from a hundred vendors to manage. Initially, the purchasing team leader, and eventually the logistics leader, are key players. They are responsible for the process from ordering, shipping, expediting, delivery, storage, on-site management and tracking, issuing and/or delivery to the work site. The whole chain starts with the planner, who calls out the part needed on the individual job plan Bill of Material (BOM).

Managing delivery of all the parts is an essential and frequently a massive job. On a small shutdown you even use a PIM (Personal Information manager - such as the schedule in Outlook), to remind you when parts are due. On a typical shutdown the major parts (at least) should be set up in the schedule as activities so that they are managed along with everything else. The duration of the activity would equal the lead-time of the part.

Far, far away

In a major city, standard bearings, seals, motors, drill bits and a wide range of shutdown parts, consumables, supplies and small tools can be obtained in a few hours. North of the Arctic Circle, in the middle of the ocean, or on a small island without a large industrial base, the supply situation is quite different. Without industrial distributors, courier services, frequent airfreight service, and other supply lines, each purchase can be a major undertaking. The material management function takes on a much greater significance when plants are located far from these channels of supply. The material management plan has to be increasingly bulletproof, accurate and reliable. International sourcing is another tough area for all shutdowns but particularly for remote sites. Differences in language, time zone, and attitude, make business more challenging. Fortunately the Internet is starting to simplify international sourcing, but the part or supply item still has to get to your location. Many smaller vendors are still reluctant to do business overseas, and maintain a parochial point of view.

Master Material List

Consider a master material, spares, and supply list (you can even add tools and equipment or keep a separate list) of the type:

If the list was kept in a spreadsheet it could be sorted by date due for follow-up. To follow-up, first check with receiving and be sure the item has not come in recently. Call the supplier to find out the status. If the item has been shipped, get the tracking numbers and trace the shipment. As a last resort, cancel the order and find a new vendor.