Calem Blogs

Blogs of CalemEAM

Auto Min/Max Process for Inventory

Auto Min/Max Process is introduced in the coming release of R23e. It allows an organization to better control when to order spare parts for maintenance operations. Here is a use case:

  • An organization has multiple plants each has own warehouses. It would like to minimize parts stored in warehouses across the plants while meeting the maintenance and repair needs.
  • The Auto Min/Max Process will be used to calculate Min/Max stock levels for each part.
  • Parts are only ordered when stock levels fall below minimum stock levels with exceptions such as overhauls.

The following is an example of calculated worksheet with new min/max values to set.

  • Parts with no checkout history will be set to 0 and 0 for min/max stock levels. These parts are ordered when reserved by work orders.
  • Parts with checkout history are calculated based on usage and order history. Details are covered below.

1. Auto Min/Max Process

To launch the auto min/max process one needs to create a record for a process.

  • Menu path: Admin | Open | Auto Min/Max Processes
  • Create a new record for a process with the following parameters:
    • A date range of historical data to calculate new min/max levels.
    • "All Sites" - Check the checkbox to include inventory of all sites. Otherwise, selective sites can be defined.
    • "No Review" - Uncheck the field to do the calculation and application to inventory. Having it checked will stop the process after calculation. One may review results and use "Apply" menu to continue.
    • "No Req" - Check the field to not create requisitions when modifying min/max levels and order info.
    • "Set Auto-Order" Check it to set inventory to auto-requisition creation based on the min/max levels.
    • Min/Max To-Integer dropdown list are arithmetic operations to convert decimal levels to integers.
    • PM Option: a) By annual checkout to PM work orders; b) By definition of parts in PM Plans per year. The default is by usage.
    • Asset Option: a) By annual checkout to non-PM work orders, and checkout to assets directly; b) By definition of asset BOM (bill of material). Default is by usage.
  • Save the record to continue.

 2. Selective Sites

If "All Sites" checkbox is not checked, add sites to be included in the process.

3. Process Execution

The auto min/max process can be executed by menu in the process form. 

  • "Calculate & Apply" to execute the process from calculating new min/max levels to applying changes to inventory.
  • "Calculate" to calculate the new min/max levels, but do not apply to inventories. One may review new min/max levels after the calculation.
  • "Apply" to apply new min/max values to inventories.

The summary of the process is shown in the screen.

  • Total differences of new min/max levels to current inventory.
  • Total differences of new min/max cost based on average unit prices.
  • Percentage of inventories to change.
  • Total count of inventories evaluated.

4. Min/Max Worksheet

The worksheet shows the new min/max levels and factors involved in the calculation. The factors are listed below. 

  • Checkout attributes including min/max of checkout quantities, mean, median, standard deviation, checkout cycles, checkout quantity distribution, etc.
  • Parts required for PMs
  • Parts required for Assets
  • Purchase delivery cycles
  • Vendor Order Quantities
  • See Calem User Guide for detailed description of the factors, and rules to calculate the new min/max levels. 
  • Configurations are allowed to tune the min/max process - see Admin Guide for more info.
  • A flag "No Change?" may be checked so that the calculation is ignored and not applied to inventory.
  • The "Worksheet" list may be exported to excel for analysis and update, then, upload back to Calem for application to inventory.

 5. Summary of Min/Max Process by Sites

The summary of a min/max process run is available by sites. 

  • Go to the "Site" tab of the process form.
  • Clicking a site row to view its summary.

6. Auto Min/Max KPIs

KPIs are provided to show the impact of the auto min/max process. See this blog

KPIs for Auto Min/Max Process
Cross-Site Receiving in Purchase Orders

Related Posts

By accepting you will be accessing a service provided by a third-party external to