What’s in YourStockroom?WIKA Helps Company Reduce SKU Count By 90%

ChallengeWhen a large chemical company was implementing a new enterprise resource planning (ERP) system, it faced the daunting task of centralizing what had previously been a localized function: the management and standardization of pressure gauge SKUs. There were literally thousands of such SKUs in use, with many of the same gauges being called different names and assigned multiple part numbers.

The company faced months of tedious data entry for gauges. Even more difficult: the challenge of coming up with standardized records for thousands of gauges used on-site. Most of the company’s gauges were similar, in type and in function, but their SKUs were not organized in a uniform way, because under strategic sourcing methods at each site and business unit, most gauges were procured independently of each another.

Service Name:Storeroom Audit

Operations Improvement and Benefi ts:

SKU Rationalization

▪ Reduce SKU count and save money

▪ Easier global ERP integration and maintenance

In this case, the customer reduced its SKU count by 90%.

Compliance & Standardization

▪ Fewer guessing in matching the right gauges for applications

▪ Process for ensuring the correct gauges are on hand for planned and unplanned shutdowns

▪ Improves safety during maintenance cycles by ensuring the correct gauges are installed in every processing application

WIKA RespondsThe company asked WIKA to implement its Instrument Storeroom Audit. WIKA’s first step was to conduct an audit of more than 3,000 gauges in use at the customer’s facilities, which lead to a gauge-inventory template.

“The audit was a collaborative process,” says Raimund Weissner, Technical Director at WIKA. “At every step, we involved plant personnel, from manufacturing and engineering to purchasing and supply chain operations.”

All information gathered in the audit process formed the basis of a detailed report for the customer. This report outlined current gauge use, instrumentation practices and the products used by particular plants. This report also identified opportunities for eliminating duplicate SKUs for gauges, thus simplifying the company’s inventory system and making for a more error-free operation.

“We determined that most of the SKUs for their gauges were duplicates, and with our recommendations, they

were able to slash SKUs,” notes Weissner. “Based on the success of this pilot effort, we are conducting Instrument Storeroom Audits for other customer plants, with an eye toward even greater efficiencies.”

In addition, the Instrument Storeroom Audit helped solve one of the biggest operational training problems faced by any company or factory that uses many different gauges – that of employees knowing just which gauge to select for a particular use. The audit creates defined scenarios – in essence, usage templates for different kinds of processes involving gauges and instruments. Through defined scenarios, users are less likely to select the wrong gauge which might in turn result in equipment failure, productivity loss and even workplace accidents.

WIKA’s Instrument Storeroom Audit also greatly simplifies the supply chain. The company is able to manufacture only those gauges that are actually used, the distributor only stocks the gauges needed, and the customer only has the right gauges for its applications.

ResultsAfter working with WIKA, the company slashed the number of gauge SKUs in its plants – by 90 percent.

“An Instrument Storeroom Audit complements modern tools for enterprise effi ciency,” says Weissner. “We ensure that our customers have the right gauges in stock for their operations, and this service is a key part of our overall product and service portfolio.”

WIKA’s value-added, one-of-a-kind Full Audit Service Team (FAST) can review your plant and storerooms to ensure you have the right solutions for your applications.

Visit www.WIKA-FAST.com or contact us at 855-651-FAST(3278) to learn more.

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