Increasing average craft time has such an impact on your bottom line, the results are equivalent to hiring additional workers without having to pay for them. Without a proper craft time study, however, managers likely will formulate inaccurate assumptions based on an incomplete picture. All too often, management does not have a good strategy for increasing productivity because they have little or no craft time data to pinpoint exactly how to most effectively address productivity. We’ve discovered after completing extensive craft time research, that poor materials coordination is one of the biggest areas of TAR inefficiency.
What do I mean by materials coordination? I’m referring to the issues associated with materials not ordered, materials lost or late due to inefficient delivery, kitting and staging of materials–all of these factors will slow-down craft time.
Onpoint Materials Management Program
Our rule-driven approach places much-needed guardrails around the Materials Management process but allows for flexibility and adaptive changes when needed. We also recommend materials management be integrated with a software program used for receiving, tracking and controlling all materials. With our technology solution, TrackPoint, you can all but eliminate delays associated with needing to look for and hunt down materials when the time comes to use them. Onpoint has designed a comprehensive program to mitigate the financial losses associated with inefficient materials management.
Our program reduces craft time delays associated with materials management in the following ways:
- Reduces reactiveness during execution
- Reduces the strain on planners, procurement and warehouse
- Reduces the need for additional contract warehouse support
- Reduces expediting costs for late and missed orders
- Reduces amount of reordered and surplused materials
- Reduces lost materials (4 percent of materials are lost)
- Reduces warehouse inventory buildup (a $10 inventory item adds $55 to cost)
- Implementing Materials Management Program will improve pricing agreements with vendors as well as awareness and reporting to all users.
There’s no reason to waste valuable craft time due to ineffective and inefficient materials management. To learn more about how Onpoint can save you time and money on your next turnaround or capital project, call 1-800-630-1347.