Lesson 7 - MR0

AMT 3129
MRO
Learning
Objectives:
Student should be able to define
maintenance, repair, overhaul and
operations
Understand the importance of MRO
in business operations
Learn the different maintenance
types in MRO materials
Understand the MRO Inventory
Management Strategies
MRO
General concepts
MRO is an acronym that stands for maintenance, repair, and overhaul. Some companies may
also refer to MRO as maintenance, repair, and operations. In either case, MRO is a term that
accounts for three main types of physical goods that a company utilizes in its day-to-day
operation.
The primary keyword, MRO meaning, refers to the essential activities and tasks
associated with maintaining, repairing, and operating the equipment, facilities, and
systems within a business. These activities are necessary for the daily functioning of a
company and contribute to its overall productivity and efficiency. MRO encompasses a
wide range of tasks, including maintenance of the facility, repair of production
equipment, and management of consumable supplies.
Importance of MRO in Business
Operations
Reducing disruptions: Anticipating and rectifying Improving inventory Enhancing safety: Increasing productivity:
Proper MRO management issues: management: MRO activities, such as By keeping equipment in
helps minimize unexpected Effective MRO management MRO inventory management regular maintenance and optimal condition and
equipment breakdowns and can identify potential helps companies optimize repair of equipment and reducing downtime, MRO
downtime, ensuring that the problems before they occur, their inventory levels, providing personal protective helps maximize a business's
production process runs allowing businesses to take avoiding stock-outs and equipment (PPE) to productivity, leading to
smoothly. corrective actions and avoid minimizing investment in employees, ensure a safe higher revenues and profits.
costly repairs or unnecessary inventory. working environment.
replacements.
Maintenance Type in MRO
Preventive Corrective Predictive

Maintenance Maintenance Maintenance
Preventive maintenance Also known as breakdown maintenance, Predictive maintenance is a type of
tasks are scheduled tasks corrective maintenance is reactive in condition-based maintenance that
that aim to prolong an nature. In this type of maintenance, monitors the condition of assets through
asset's life span by tasks are carried out only after an issue sensor devices. These sensor devices
preventing breakdowns. has been identified. Issues typically arise supply data in real-time, which is then used
from equipment breakdowns or routine to predict when the asset will require
inspections. maintenance and thus, prevent equipment
failure.
MRO Inventory Management
Strategies
CONDUCT REGULAR INVENTORY AUDITS

IMPLEMENT EFFICIENT INVENTORY TRACKING SYSTEMS
LEVERAGE VENDOR-MANAGED INVENTORY (VMI)
ADOPT DEMAND FORECASTING AND DATA ANALYTICS
CENTRALIZE MRO INVENTORY STORAGE
How Do Businesses Obtain MRO Products and
Services?
Suppliers and
Distributors
Contracts and
Many businesses establish Manufacturer's Agreements
relationships with suppliers or
Direct Sales
distributors specializing in MRO These contracts can establish In-House Inventory
products. These suppliers may This approach can provide pricing terms, service-level Management
have a wide range of MRO items agreements, and delivery
access to original equipment
available for purchase, such as schedules, providing stability and This may involve establishing a
manufacturer (OEM) parts
spare parts, consumables, tools, continuity in the supply of MRO dedicated MRO warehouse or
and direct technical support
and equipment. products and services. storeroom, implementing
inventory management systems,
and employing staff responsible
for procurement and inventory
Maintenance Service Vendor Managed control.
Online Marketplaces Providers Inventory

These providers often have VMI is a collaborative approach where
Online marketplaces, provide a
expertise in specific industries or suppliers or distributors take responsibility for
convenient platform for businesses to
equipment types and can handle managing and restocking a business's MRO
browse and purchase MRO products. inventory. The supplier monitors inventory
all aspects of MRO activities,
These platforms often offer a vast levels and automatically replenishes products
including sourcing and procuring
selection of items from various when needed. This helps streamline the
the necessary parts and
suppliers, allowing businesses to consumables. procurement process and ensure optimal
compare prices, read reviews, and inventory levels without requiring extensive
choose the most suitable products. involvement from the business.

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AMT 3129

Preventive Corrective Predictive

CONDUCT REGULAR INVENTORY AUDITS

Online Marketplaces Providers Inventory

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