Case Study
A high-stakes disposable stock analysis project
Client Objective
Identify all stock on hand made obsolete by the disposal of the clients last EX3600 (15 years old) without impacting the Hitachi excavators remaining in operation.
Challenges
Remote Ice Roads

The client site lies along the famous ice road that connects Yellowknife (in NW Canada) to three mines. 86 percent of it is across frozen lakes.

Seasonal Access

Each winter a year's worth of fuel construction material, heavy mining equipment, and explosives are trucked over the ice roads to the mines.

Limited Space

Limited warehouse space for spares as space is at a premium on the island site.

Timing

The project was also time sensitive; it was important to reliably identify disposable spares without the delay of waiting for candidate items to start appearing on Slow Moving Stock Reports.

Our Approach
The site used our analysis reports as an efficiency and accuracy tool in preparing BOMs and Tasks Lists for PM tasks as well as the company-wide cataloguing status and site-level inventory holding for every part in an OEM parts book for a machine, or model. Using these reports the Disposable Stock project employed a newly developed approach based on the library of Parts Book Analysis Reports.
Findings and Outcomes
100+Obsolete line items
Our report found over 100 line-items of obsolete spares in inventory – applicable only to the EX3600-5 machine.
$1Min recovered value
The obsolete line items had a value of close to one million dollars.
1Actionable report
We delivered a report that converted an amorphous batch of obsolete inventory into a clearly identified batch of spare parts ready for offsite disposal.
Client Feedback
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