Author: Bailey G. J.
Publisher: Taylor & Francis Ltd
ISSN: 1366-5871
Source: Production Planning and Control, Vol.18, Iss.3, 2007-04, pp. : 261-270
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
Emphasis on maintenance, repair, and operations inventory (or MRO inventory) can lead to improved inventory control, reduced operational costs, enhanced productivity, and increased cost accounting accuracy. To review the benefits of MRO inventory reduction, as well as highlight the management challenges associated with the process, a case study of the Tennessee Valley Authority (TVA) is presented. TVA is a not-for-profit electric power generation entity. TVA standardised inventory policies and procedures. Their comprehensive five-year plan included employee training, changes in organisational structure and strategy, reduced MRO inventories and the establishment of new growth drivers. Net inventory reductions of $47 million were realised. Suggestions for future MRO inventory reductions as well as replication of the management involvement and improvement process in other organisations are included.
Related content
Performance measures for returnable inventory: a case study
By Chew E.P. Huang H.C. Horiana
Production Planning and Control, Vol. 13, Iss. 5, 2002-07 ,pp. :
Journal of Cases on Information Technology (JCIT), Vol. 3, Iss. 1, 2001-01 ,pp. :