Company context
A steel company with a production capacity of 260,000 tons per year was seeking to optimize the inventories necessary to manage its assets.

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Reliability-Centered Spares at a steel company.
A steel company with a production capacity of 260,000 tons per year was seeking to optimize the inventories necessary to manage its assets.
Stock levels were modified on a discretionary basis. There were unnecessary spare parts, strategic stock breaks and coordination difficulties between maintenance, warehouses and purchases.
The need for spare parts was analyzed according to consumption, maintenance tasks and consequences of not having them. RCS allowed us to consider the total cost of holding inventory versus the cost of a shortage.
Evaluation of the consequences of each lack.
Balance between inventory and unavailability.
A common base for maintenance, warehouses and purchases.
The case exposes the diagnosis and inventory optimization criteria. The original publication does not report a final savings figure.
The figures correspond to the scope and context of the case published by Ellmann.
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