Inhouse Group Training

Toronto, Ontario

MRO Materials Spare Parts Inventory Optimization and Cost Reduction Program

Savings Guaranteed – 44 Improvement Tactics, Optimized Materials Inventory, Maximized Profit

Book Now

Inhouse Group Training

Toronto, Ontario

MRO Materials Spare Parts Inventory Optimization and Cost Reduction Program

Savings Guaranteed – 44 Improvement Tactics, Optimized Materials Inventory, Maximized Profit

Book Now

Inhouse Group Training

Toronto, Ontario

MRO Materials Spare Parts Inventory Optimization and Cost Reduction Program

Savings Guaranteed – 44 Improvement Tactics, Optimized Materials Inventory, Maximized Profit

Book Now

Days
Program

About Us

A Practical Learning Experience

About Us

Ready to elevate your knowledge & Skills? Join us to drive efficiency and success !

Effective management of MRO (Maintenance, Repair, and Operations) materials and spare parts inventory is critical to ensuring operational continuity and cost efficiency. However, many organizations face persistent challenges in this area, including overstocking, underutilization, lack of visibility, poor data quality, and fragmented procurement strategies. These inefficiencies often lead to excessive carrying costs, increased downtime, and unnecessary capital expenditure.

The Inventory Optimization and Cost Reduction Program aims to address these issues through a structured, data-driven approach. Past experience has shown significant costs savings are achieved from:

01. Identifying & removing duplicates (most practioner’s don’t do this effectively)
02. Converting from OEM to OPM or APM suppliers
03. Optimizing stock levels & selecting the right replenishment strategy
04. Reducing the number of stocking locations (where appropriate)

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Optimize Your MRO Inventory & Materials

Explore practical methods to optimize MRO materials and control costs

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Expert Instructors

Learn from industry-leading practitioners with hands-on experience in spare parts optimization, inventory control, and cost-reduction strategies.

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Practical Learning

Explore real-world techniques for MRO materials optimization, minimizing excess stock, and improving supply chain efficiency through case studies and exercises.

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Key Takeaways

Walk away with actionable Excel tools, Formulas, Customizable Spreadsheets, Course Materials and valuable insights you can immediately implement to optimize inventory levels & reduce costs.

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Hands-On Exercises

Participate in interactive sessions using Excel-based tools and formulas to assess and improve your own inventory practices.

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Agenda at a Glance

Our Training Schedule Plan

Schedule

Introduction to Spares Management

Delegates’ Issues
Common issues in inventory management with real examples
Where we incur excess costs
Benefits of improved inventory management
Terms and definitions used in the workshop

Increase Profit

Inventory Cost Reduction Techniques (Part 1)

Introduction to 38 tactics categorised in 6 phases (Audit, Document, Cleanse, Rationalise, Optimise, Monitor) that make up our inventory reduction programme, including:
Auditing CMMS Master Data Quality
Spare criticality and service levels
Applying the 80-20 rule to AIV, Item Cost, Stock Holding Cost
Identifying duplicate stock
Standardisation, identify OPMs, APMs, etc.
Select the most appropriate replenishment strategies
(Min-max, ROP Control, constant vendor delivery).

Reduce Cost

Understand Different Spares Costs

Different costs used in the stock management process, e.g.
Buying, holding cost, item cost, issue cost, penalty cost, total ownership costs.

Optimize

Understanding Reliability and Its Impact on Spares Usage

How the selected maintenance strategy impacts spares usage
Common distribution the Normal & Poisson distribution
Issues with historical data
Explanation of service levels, and understanding of what they really mean
Importance of the P-F curve

Increase Profit

Challenge Vendors Recommended Quantities

Calculate estimated annual demand rates based on MTBFs to challenge vendor proposed values
Case studies where actual consumption has exceeded initial estimates

Reduce Cost

Calculating Re-Order Points, Safety Stock

Different approaches to determine safety stock levels
Using the Poisson distribution to set re-order points based on lead time, annual usage, and criticality
Exercise how rules of thumb are inappropriate
Exercise use of formula based on the Poisson distribution

Optimize

How Many to Order? Determining the EOQ

How to determine the quantity to order
The effects of ordering too many or too few,
EOQ related to evaluation discounts for higher order quantities (single and multiple price breaks)

Increase Profit

Auditing Effectiveness of Current ROP Inventory Parameters

Evaluate service levels; compare existing with those parameters in the Inventory Management System
Different KPIs such as Turnover Ratios, Issue Rates, Annual Issue Value, Stock holding value
Using an MS Excel analysis worksheet with all formula and the facility to calculate current KPIs, optimised parameters and Proposed parameters

Reduce Cost

Alternative Replenishment Strategies

What to do when ROP & EOQ is not valid (the Min-Max & CVD strategy)
Exercise: Analyse a Min-Max data set (From an SAP system and impact in stocking parameters when the number of PO line items varies

Optimize

Did You Know?

Over 60% of MRO inventory is rarely or never used in most organizations.

With smart optimization, you can unlock working capital, reduce waste, and improve operational efficiency—without compromising reliability.

21 +

Countries Training Delivered

90 +

Leading Organizations Benefited

19 +

Interactive Latest Modules

10 +

Real-World Case Studies & Exercises

Facilitator

Meet Our Expert

Facilitator

With over 40 years of global experience in MRO spares optimization and reliability management, our expert instructor brings a wealth of practical insights and results-driven strategies. He has helped organizations save hundreds of thousands of dollars through inventory reduction, data cleansing, and process improvement.

Notable achievements include identifying $500,000 in potential savings for a major chemical company from just 10 line items, and exposing critical inefficiencies in SAP BOM structures and vendor-cleansed data. He has developed proprietary tools such as the MRO Master Data Auditor, BOM Builder, and Optimiser to support effective spare parts management.

His sessions are rich in real-world case studies from work across Europe, the Middle East, Africa, and Asia—making complex concepts accessible and actionable for maintenance and engineering professionals at all levels.

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Why Join

Key Learning Outcomes

01. Understand ISO55000 and what it means for inventory management
02. How to achieve consistent master data quality. (cataloguing)
03. The different costs associated with spares management
04. Learn techniques to improve reliability resulting in less spares usage
05. How to select the right inventory policy for fast- and slow-moving parts
06. Good practices related to initial data from vendors.
07. How to evaluate safety stocks scientifically
08. How to determine how many to buy and what to do when the EOQ does not work
09. Learn strategies to minimise stock
10. How to conduct a Critical Spares Analysis
09. How to measure inventory performance

Feedback From Past Participants

Real Experiences. Trusted Learning.

Feedback

The topics covered from this course are very relevant for me to perform my daily job, which will serve better foundation whenever I want to challenge my users and suppliers.