Preamble. Inventory Management
Inventory management, or inventory control, is an attempt to balance inventory needs and requirements with the need to minimize costs resulting from obtaining and holding inventory. There are several schools of thought that view inventory and its function differently. These will be addressed in this course, but first we present a foundation to facilitate the reader’s understanding of inventory and its function.
The course provides an outline on the importance of an effective inventory management system. Inventory is looked at in terms of the overall cash flow of a business entity. The course also looks at methods of applying an effective inventory management system and more current approaches to inventory management.
Preamble. Asset Management
Good asset management is critical in projects and programs. Significant assets are infrastructure assets with long life spans and enormous capital outlay that are vital to providing a foundation for economic activity.
Since the promulgation of the Public Finance Management Act (PFMA), Act No.1 of 1999 and as part of the move towards proper management and recording of assets a strategy was adopted to gradually enable entities to comply therewith.
The strategy involves: The compilation of asset registers; Validation of the completeness thereof through physical identification and counting of assets; and Introducing values to the register through the reference to original documentation of purchase.
The asset management of physical assets is critical for any organization. How we manage the assets determines the efficiency of projects, Programs and organizations. Much money is spent annually on maintaining and developing the asset base and providing services to improve asset management has in itself become a major competitive market internationally.
This training course aims to support this drive to improve management practices by presenting standards, methodologies and guidance how to set up good asset management. The course shows the delegate how the international standards on Asset Management, the Publicly Available Specification PAS 55 and the ISO 55000, can be used to implement the best practices in order to realize higher performance at lower costs within compliance. The course finalizes with an
assessment of the current state of your Asset Management processes and results.
- To provide a step-by-step guide to Asset Management best practices (as part of PAS 55 and ISO 55000), starting with foundations and building up to best practices that will deliver maximum business benefits
- To provide appreciation of PAS 55 and ISO 55000
- To instruct Asset Management optimization best practice methodologies and technologies
- To provide opportunities to discuss and learn the practical application of these best practices, through case studies and exercises
- To provide insight in the current state of Asset Management best practices within the delegates company
- Understand what Asset Management is and how it can contribute to asset effectiveness and efficiency
- Understand the background, application and benefits of PAS 55 and ISO 55000
- Understand the most important Key Performance Areas and related activities and methodologies of Asset Management
- Be able to participate in the implementation and application of the underlying Asset Management methodologies and technologies
- Have insight in the current status of the Best Practices and Performance of the Asset Management process within their organization by assessing the current Asset Management processes and results of the company
The course is composed in such a way that it can be held for all professionals involved in managing or implementing
asset management processes. It is conducted along workshop principles with formal lectures and many interactive exercises. Relevant case studies illustrate the application of each subject in an operations environment and each learning point will be re-enforced with practical exercises. There will be many opportunities for discussion and sharing experiences.
Who Should Attend?
The training course will benefit all professionals involved in managing or participating in asset management processes, including all staff in Asset Department, procurement, IT Department, Operation Department and Finance Department.
Introduction to Asset Management & Strategy Framework
- Asset & maintenance management as a business process
- Asset management process model – The Asset Management System
- Strategy framework
- Line of sight
- Asset management policy, asset strategy, asset management strategy
- Asset management objectives (goal setting)
- Asset management plan
- Feedback & improvement
Asset Management Roles + Standards on Asset Management (PAS 55 + ISO 55000)
- Asset Management roles
- Sourcing & outsourcing
- Stakeholder management
- BSI-PAS 55:2008 – a proven standard for Asset Management
- ISO 550000 – the new international standard on Asset Management
Good Asset Management Practice – Part 1
- Demand forecasting
- Level of service and performance measures
- Defining the right key performance indicators
- Capacity or utilization monitoring
- Condition assessment and monitoring
- Information & configuration management
- Vendor management & past performance
- Asset procurement
Good Asset Management Practice – Part 2
- Risk management
- Risk Based Maintenance concepts (RBM)
- Life Cycle Costing (LCC)
Assessment & Implementation Aspects
- Asset Management assessment
- Asset Management teams
- Changing the behaviour of people
- Implementation of Asset Management – case study
Introduction to Inventory Management
- Objectives of inventory planning and stock control
- Reasons to hold inventory
- Inventory information system considerations
- Inventory push vs. pull systems
- Identifying inventory costs
- • Customer service in inventory management
Description and Classification of Inventory
- Types of inventory
- The inventory ABC classification ranking model
- Uses of the ABC ranking
- Materials specifications and cataloguing
Forecasting Demand and Lead Time
- The inventory order cycle
- Dependent versus independent demand
- Factors affecting demand
- Factors impacting demand forecast accuracy
- Demand patterns
- Time series forecasting methods:
- Seasonal demand
- Moving average
- Exponential smoothing
- Measuring the accuracy of the forecast
- Elements of inventory holding and ordering costs
- The Economic Order Quantity (EOQ) model
- Dealing with quantity discounts
- Objectives of safety stocks
- Setting safety stocks
- Determining the Reorder Point (ROP)
Way forward after the Training
The delegates, through the help of facilitators will develop work plans. It is expected that the delegates will apply all skills acquired during the training in their work place. ASPM will monitor implementation progress after the training.
Participants will undertake a simple exercise before the training and after the training in-order to monitor knowledge gained through the training.