The Advantages of a Satellite Stocking Program

Posted on Monday, August 27, 2018

In many manufacturing plants, a parts room occupies considerable space, uses non-value-added staff and takes employees away from their jobs to get the supplies they need.

One drawback of a centralized parts room is that it may provide incentives for staff members to waste valuable production time. For example, an employee's need to replace a broken drill bit is legitimate, but in addition to the time-consuming walk to the parts room, he may waste a few minutes socializing. And instead of replacing his worn gloves at the same time, he may wait until tomorrow so he can make another trip.

Typically, if staff members need new gloves or a machine part, they take the old ones to a parts room where a clerk exchanges them for new ones. With this scenario, the parts room is stocked with everything needed throughout the plant and is staffed full-time during all shifts.

With a satellite stocking program, department managers and supervisors are in charge of parts for their shifts. Here are some specific factors:

Each department has a locked parts cabinet.

At the beginning of the first shift, the department manager reviews the inventory control sheet, writes up an order for supplies and turns it in to the parts clerk. The goal is to have everything needed for all shifts that day. With a well-ordered system, the manager should spend no more than 10 to 15 minutes each day ordering parts.

The parts clerk fills and delivers orders for each department. From that point on, the parts room is closed for the day.

If a machine part breaks, the employee takes it to the department manager or shift supervisor who unlocks the parts cabinet, exchanges the part and notes it on the inventory control sheet. If the part isn't stocked in a department cabinet and the parts room is closed, a maintenance worker with a key lets the supervisor into the parts room.

Benefits: The principle saving from a satellite stocking program comes from the elimination of parts room jobs. In smaller plants, the parts room can be closed once parts are delivered. In larger plants, it may be necessary to leave it open for all shifts, but staff numbers can be reduced.

Employees spend more time fulfilling their duties when parts are stocked in each department. The time savings can be considerable, depending on the distance to a centralized parts room and the number of trips employees make.

Finally, with its new scaled-down function, the space allotted to the parts room can be significantly reduced. There's also the potential benefit of tightening inventory control when department managers and shift supervisors take charge.

Posted in Manufacturing/Distribution

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.

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