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What is Obsolete Surplus Maintenance Inventory (OSMI)?
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Why would my Company be interested in these services?
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What system would ISSPOTS Management Services use to manage assets?
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What procedures do you have to receive and repair equipment?
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How will you initially qualify my inventory?
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Where are your Service Centers and what is your turn-around
capability?
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How will we know that returned items will function correctly when
installed?
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How much will IMM cost and how will we pay for it?
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What are the Service Charges and other requirements for service?
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How can we maintain up-to-date information on our inventory?
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What types of reports are available and would this information
address utilization and control?
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Who within ISSPOTS would be responsible for Our Facility(s)?
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How would we transition from our current operation to the IMM
Program?
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If we moved forward with IMM, when could service begin?
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Would information we disclose be held in confidence?
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What about Insurance?
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1. What is Obsolete Surplus Maintenance Inventory (OSMI)?
OSMI is defined as that machine specific material that currently is taking up
valuable space within your in-plant central stores location. Material that has
no home, the machines have left years ago and no process is in place to manage
when this happens again.
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Equipment Identified, Tagged, Crated and Relocated
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Warehousing & Advertising
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Inventory Management / Tracking
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Inventory Optimization & Liquidation
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WEB Interface
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70/30 Fee Split
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Reporting and Continuous Improvement Tools
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2. Why would my Company be interested in these services?
There are a number of reasons why outsourcing makes sense and can be of benefit
to you.
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Frees you to focus on your core business, conserving costs and management
resources.
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Reduces manufacturing / production downtime.
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Cost benefits of larger scale purchasing power.
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Reduces need for internal infrastructure to successfully perform these
services.
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Your facilities and personnel can be better utilized for other purposes.
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Lowers overall cost of performing services internally.
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Lowers and controls inventory costs that are high due to excess purchased
material, unknown inventory condition, and under utilized inventory.
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3. What system would ISSPOTS Management Services use to manage
assets?
Hardware - ISSPOTS operates in a power driven PC-Based, GUI
environment. To provide speed and reliability, all systems are powerful
desktops running with a Windows NT Server providing file services. ISSPOTS also
runs Windows NT Server to take advantage of the routing schemes necessary to
link our network to the Internet and the outside world. From here, ISSPOTS
broadcasts its web site and uses E-mail with customers and vendors to provide
efficient communication. We can access these systems with remote dedicated or
dial-up lines for data exchange, remote-node WAN connection, and Internet
access. Daily backup routines are performed and backup tapes are stored off
site in a secured facility for emergency safekeeping.
Software - We will utilize their custom Industrial Support Services Process Order Tracking System (ISSPOTS) that tracks customer orders, client and ISSPOTS inventory
and allows part linking through order retrieval and customer data. This
software will be used in conjunction with the Computerized Maintenance
Management System (CMMS) software to track individual items, orders, and
schedules through the repair and supply process to build operational histories
on critical equipment.
Communications Network - Communications Network - ISSPOTS has ISDN
and telephone line capabilities which will yield high speed transfer, virtual
remote control and remote-node access at impressive speeds.
Bar Coding - Bar Coding - ISSPOTS manages and tracks shipments
from initial receipt to the return to inventory. Through use of
state-of-the-art bar coding methodology, Norand hand-held radio frequency (RF)
bar code terminals process and track the movement of every product. Due to the
small size of ISSPOTS's bar code stickers, tracking can be performed on physically
small but expensive components such as printed circuit boards.
Capturing data to this level effectively maximizes management system asset
accuracy and minimizes shipping errors and inventory shrinkage. If you
currently use bar coding technology, we will be happy to review the feasibility
of incorporating your existing bar code labels within our inventory system.
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4. What procedures do you have to receive and repair equipment?
Industrial Support Services uses an internal numbered 4 part repair tag that is initiated upon
failure by the trades allowing for input on sourcing choices. After completion
Industrial Support Services people will generate all necessary documents to efficiently move
material to it’s service location.
Upon return to the point of origin, Industrial Support Services tracks warranty installation by
using our
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Items covered under a remote contract will be shipped to your repair providers,
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Items covered by an On-site contract will be received at a central tool crib
location within your facility.
As each item is received, a bar code label will be applied to the component
which will tie serial number and other relevant data to the device using our
CMMS software.
Repair & Verification - Depending on the item, ISSPOTS will
utilize your service providers or ISSPOTS's network of service partners and OEM's
to perform appropriate repairs. Repair history will be tracked on each
component that will aid in future analysis and reporting. The objective is to
make data collection easy and foolproof in order to collect as comprehensive a
picture as possible of the overall plant and equipment performance.
For questionable items, testing services will be used where appropriate to
identify intermittent problems. Uniquely developed items of equipment requiring
specific test fixtures, documentation, or training to enable performance
verification and repair will be identified and the appropriate information
collected with the help of your employees.
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5. How will you initially qualify my inventory?
Initial inventory qualification will be achieved using ISSPOTS resources in
conjunction with technical assistance from your existing maintenance personnel.
A specially trained start-up team will be used to organize and expedite data
gathering and entry. In the event you already have much of your equipment on a
current tracking system, our team will confirm existing inventory and catalog
bar code inventory items for future tracking.
Once the Start-Up phase of the program is complete, components returned for
repair will be added to the system for future tracking, troubleshooting, and
reporting on an ongoing basis.
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6. Where are your Service Centers and what is your turn-around
capability?
ISSPOTS has three regional process centers that utilize a host of suppliers to
manage repair and new material requests. These facilities are centers of
excellence designed to service a family of products from many different
vendors. In addition to these facilities, ISSPOTS works closely with the OEM
product groups, and other distribution organizations to provide comprehensive
repair / request for material capabilities.
The strength of our turn-around capability rests with our Integrated Network
capabilities and our purchasing and logistical strengths. ISSPOTS enjoys strong
economies with traffic and courier companies which translates into better
response and lower cost shipping, and being a large purchaser of manufacturing
equipment, we have relationships with many of the manufactures you have in your
plant.
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7. How will we know that returned items will function correctly
when installed?
There are a number of avenues for potential failure which we address when
performing a transaction to ensure items are functional when they are
installed. Since there may be a significant time delay between repair and
reintroduction into service, ISSPOTS makes sure your equipment will be functional
by:
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Validating a vendors ability to perform full function tests on all hydraulic
and mechanical components
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Performing full-load tests on all PLC, CNC and packaged drive products
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Auditing our suppliers quality standards to ensure they perform consistent
repairs and material supply needs.
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Packaging all returned components in ESD protective packaging
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Providing all returns in robust, clearly marked packaging to ensure packaging
is not opened and components disturbed before they are required for service
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8. How much will IMM cost and how will we pay for it?
Depending on your needs and the size of your facility, Integrated Maintenance
Management is available as an On-Site service or as a remote service. On-Site
services include a monthly charge to cover the cost of this resource and
related equipment. You will also have to provide a secured area and phone lines
for the On-Site resource. Transaction charges are involved with On-Site
services and will be introduced based on business volume.
For remote services, a transaction charge is applied to each transaction sent
in for repair or request for material requirements. This transaction charge
covers data entry and related equipment costs, as well as administrative time
associated in managing individual items.
In all cases, we will provide an estimate of total cost savings that include
all costs associated with the IMM and related cost savings in using this
program. As part of our overall program, these costs will be tracked and
provided to you during our quarterly review process.
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9. What are the Service Charges and other requirements for
service?
The service charges are unique to each individual facility. Upon receipt of
information outlining the size and mix of your inventory, equipment mix, and
shipment history, ISSPOTS will develop Transaction Fees specific to your Company.
These Transaction Fees will be based on a minimum number of transactions per
month, and will give you an illustration of the cost difference between On-site
Services and Remote Services.
This fee structure will include a base 100 hours of system development and
software customization to meet your specific business needs. Expected system
development and customization is generally less than 100 hours, however, in the
event that more than 100 hours is required, no additional hourly rate will be
applied.
You will also be responsible for providing or covering the cost of all
consumable items associated with the IMM program including supply of bar code
and other labeling materials.
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10. How can we maintain up-to-date information on our
inventory?
Standard reports will be provided to your personnel that will cover current
inventory levels and turns, as well as monthly cost, availability, and
performance data on repair activity. Specialized reporting can be designed to
meet your specific needs as the program proceeds.
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11. What types of reports are available and would this
information address utilization and control?
Our inventory management system offers numerous reporting options. Our
reporting capabilities are extremely flexible and can be customized to meet
your requirements. Utilization and inventory control reports are available and
will be provided in a mutually agreeable format. These reports can include the
following information:
Management Reports
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Monthly component usage reports by asset or area
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Monthly repair cost reports summarizing activity
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Activity specific Lifecycle extension program reports contrasting total cost
and expected savings.
Operating Reports
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Order entry detail and summary reports, including item, location, ship date,
return date, and current inventory levels.
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Inventory utilization at the model number level
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Off-Premise inventory levels. This report will detail assets centralized for
combined plant use, including turns, level, and units disposed.
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Warranty returns including unclaimed warranty and total saved cost.
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12. Who within ISSPOTS would be responsible for Our Facility(s)?
An Implementation and Service team would be established to manage the
transition from your current operation to IMM. Once the transition is complete,
a member of the team will remain as the On-Site Facility Manager.
The On-Site Facility Manager would have daily responsibility for managing the
site, and would be supported by an IMM team consisting of other ISSPOTS On-site
Facility Managers in similar plants. This group interacts on a regular basis to
share best practices and improve the overall effectiveness of each site.
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13. How would we transition from our current operation to the
IMM Program?
The Transition Plan from in-house management to IMM is unique for each
facility. ISSPOTS will design a customized program to meet your company's specific
needs, however, the main elements of the transition will generally include:
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A Start-Up team will be tasked with Performing an Inventory Audit and Summary
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Optional qualification on inventory would be performed
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A secure area will be established for the On-Site Facilities Manager
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On-Site systems would be installed and operation initiated.
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14. If we moved forward with IMM, when could service begin?
Repair processing and RFM activity could begin immediately. We would collect
repair data on individual components and download this information to the
On-Site Facilities once they were operational.
Activating the On-Site team and performing the initial inventory review could
take a few weeks to organize depending on the availability of team leaders and
an On-Site Facilities Manager. Since these two positions are critical to the
long term success of the program, it makes sense to ensure the right people are
selected for these roles.
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15. Would information we disclose be held in confidence?
ISSPOTS acknowledges the sensitive nature of information disclosed on an IMM
project, and will sign a Non-Disclosure Agreement to assure confidentiality.
Likewise, ISSPOTS considers its Service Charges and the terms for any Agreement to
be Confidential, and prohibits the release of this information in any manner.
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16. What about Insurance?
ISSPOTS will provide proof of insurance to cover all ISSPOTS employees performing
services on-site. Coverage will include the costs associated with the OPIM
center and inventory housed within.
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Integrated Maintenance Management -
Questions & answers about outsourcing maintenance services