Want to optimize your spare parts inventory? Download the FREE list of barriers to an optimized maintenance spare parts inventory at: http://www.strategydriven.com/maintenance-inventory-optimization/ Call or text now for a FREE consultation: +1 (770) 765-3692. Prefer email: ContactUs@StrategyDriven.com How to Optimize Your Maintenance Spare Parts Inventory explores the challenges causing inflated parts inventories, high expediting costs, and unnecessary warehouse spoilage and obsolescence. Economic demands place increasing pressure on executives and managers to reduce costs while maintaining high levels of operational safety and reliability. For Work Management and Supply Chain leaders, areas of potential savings lie with:   - optimizing inventory levels while reducing associated carrying costs, - minimizing or eliminating expediting costs, and - eliminating losses incurred as parts become obsolete in the warehouse … while providing the highest level of parts availability. While every company’s circumstances are unique, StrategyDriven Advisors observe significant avoidable expenses incurred because of work management – supply chain program misalignments, including: - inventory reductions of 10 – 25 percent - near elimination of expediting costs - significant reductions in warehouse spoilage and obsolescence For more information regarding the barriers to optimizing your parts inventory, download the FREE list of barriers to an optimized maintenance spare parts inventory at: http://www.strategydriven.com/maintenance-inventory-optimization/. This document presents the sixteen most commonly occurring work management – supply chain program barriers StrategyDriven Advisors have identified when helping clients optimize their inventories. We believe these barriers represent an excellent starting point to evaluate the sufficiency of your company’s maintenance spare parts inventories. Should you need assistance in determining whether or not your maintenance inventory is optimized, StrategyDriven’s Advisors stand ready to assist you. Please contact us at +1 (770) 765-3692 or ContactUs@StrategyDriven.com.

1. effective executives, efficient employees
A VETERAN OWNED SMALL BUSINESS
StrategyDriven TM
Optimizing Inventories Through
Improvements to the Work Management /
Supply Chain Interface
Nuclear Operations and Maintenance Efficiency Summit
16 November 2015
www.StrategyDriven.com/wmscinterface

2. Optimizing Inventories Through Improvements to the WM – SC InterfacePage 2 StrategyDriven TM
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StrategyDriven Advisory Services
StrategyDriven advisors serve the global Energy Industry
 United States
 Canada
 Brazil
 Peru
 El Salvador
* Companies served over the course of our advisor’s careers and not necessarily through StrategyDriven.
In 2014 alone, StrategyDriven advisors identified $200+ million in inventory
reduction opportunities across four companies!
Just imagine what we might do for yours.
*
 United Kingdom
 Norway
 Switzerland
 Hungary
 Cayman Islands
 United Arab Emirates
 Angola
 Nigeria
 Australia
 Japan
 Thailand
 Singapore
 India
Industry Experience
 Power & Utilities
 Oil & Gas
 Healthcare
 U.S. Navy
 U.S. Army
 Not-For-Profit
Global Client Experience

3. Optimizing Inventories Through Improvements to the WM – SC InterfacePage 3 StrategyDriven TM
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A Challenging Economy
The ongoing economic malaise pressures utility managers to hold down costs
Economic demands place increasing pressure on utility managers to reduce costs while
maintaining high levels of operational safety, reliability, and efficiency. For Work
Management and Supply Chain leaders, areas of potential savings lie with:
 optimizing inventory levels while reducing associated carrying costs,
 minimizing or eliminating expediting costs, and
 eliminating losses incurred as parts become obsolete in the warehouse
… while providing the highest level of parts availability.

4. Optimizing Inventories Through Improvements to the WM – SC InterfacePage 4 StrategyDriven TM
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Inventory Characterization
Identifying achievable inventory optimization
Total Inventory
Inventory Restocking
Over Max Inventory
Temporary Over Max Inventory
High Economic Order Quantity Item Over Max Inventory
Frequently Used, Long Lead Time Item Over Max Inventory
Cost of Doing
Business Over Max
Inventory
Inventory Reduction
Opportunity
High Reorder Point Over Max Inventory
Late Item Ordering Over Max Inventory
Total Inventory
Reduction Opportunity
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
(millions)
Upward Pressure on Inventory Levels
While every utility’s circumstances are unique,
StrategyDriven advisors commonly observe
$10+ million in inventory optimization opportunities.
Illustrative

5. Optimizing Inventories Through Improvements to the WM – SC InterfacePage 5 StrategyDriven TM
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Industry Opportunities
StrategyDriven WM – SC evaluations reveal numerous program misalignments
Existing utility industry guidelines and evaluation groups commonly ignore the highly
integrated relationship between the Work Management and Supply Chain programs.
Consequently, the constraints and limitations each program has on the other is frequently
overlooked resulting in transaction disruptions and redundancies that result in elevated
costs.
In our experience, organizational, process, and technological barriers between the Work
Management and Supply Chain processes disrupt the flow of information that would
otherwise facilitate timely error-free transactions.
 Organizational Challenges
 Process Challenges
 Technological Challenges
The New WM-SC Paradigm
 The Supply Chain organization is an integral partner in the execution of the
work management program
 Work Management and Supply Chain processes are co-developed and
interdependent
 Work Management and Supply Chain performance metrics and reports are
linked and evaluated in combination with one another

6. Optimizing Inventories Through Improvements to the WM – SC InterfacePage 6 StrategyDriven TM
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Opportunities for Improvement
StrategyDriven identified opportunities to align WM – SC processes
Based on work performed with a broad number of nuclear and non-nuclear electric
generation utilities, StrategyDriven advisors have previously identified the following Work
Management – Supply Chain interface issues:
 Parts ordering occurred within the lead time of needed parts
 Component lead times were observed to change frequently without being updated
within the supporting supply chain application
 Enterprise resource planning system algorithms were not used
 Supply chain personnel are not actively involved in the work management process
 Inflated stocking logic parameters
Potential Cost Savings Opportunities
 Inventory reductions of 10 – 25 percent
 Expediting cost reductions of up to 90 percent
 Significant reduction in inventory spoilage and obsolescence

7. Optimizing Inventories Through Improvements to the WM – SC InterfacePage 7 StrategyDriven TM
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WM – SC Interface Assessment
How to uncover Work Management – Supply Chain interface misalignments
Plan & Prepare Collect Data
Interview &
Observe
Review & Analyze Conduct Briefings
WM Process Framework Phase-by-Phase WM
Process Assessment
WM & SC Time-dependent
Process Execution
Assessment
Item Lead Time Accuracy
Analysis
Work Management
Maturity Model
 Review Work Management and Supply Chain processes for interface misalignments
 Analyze Work Management and Supply Chain performance data for quality and
process performance inefficiencies and misalignments
 Observe the performance of and information flow supporting work planning; parts
ordering; procurement processing; and parts receipts, issues, and returns
 Assess Work Management and Supply Chain process supporting applications for
information access and flow

8. Optimizing Inventories Through Improvements to the WM – SC InterfacePage 8 StrategyDriven TM
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Contact
For more information on how to optimize your spare parts inventory, contact…
Nathan Ives
Principal
StrategyDriven Enterprises, LLC
(678) 313-0150
nathanives@strategydriven.com
or visit us on the web at:
www.StrategyDriven.com/wmscinterface

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1720 Mars Hill Road, Suite 8-232
Acworth, Georgia 30101
ContactUs@StrategyDriven.com
(678) 810-0892
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