How a Neglected MRO Storeroom Drains Reliability One Part at a Time

by | Articles, Maintenance and Reliability

Walk into most plants and the storeroom looks like an afterthought. Shelves half labeled. Bins holding parts that haven’t moved in six years. A CMMS that swears there are 12 bearings on hand when the physical count is closer to 3.

That storeroom is bleeding reliability, and most maintenance leaders never connect the two.

The damage doesn’t arrive in one dramatic event. It shows up as one delayed work order, one wrong seal, one frantic run to the local supplier at a time. By the time the reliability numbers go soft, the storeroom is rarely the first place anyone thinks to look.

The Storeroom Nobody Puts on the Org Chart

Reliability programs get built around the glamorous work. Condition monitoring routes. Failure analysis. Precision alignment and balancing. The MRO storeroom sits off to the side, treated like a closet with a counter and a clipboard.

There’s a flaw in that thinking. Every planned job depends on the right part being available, correct, and in the right location. When the storeroom can’t deliver on all three, the best maintenance plan in the building collapses into improvisation.

A planned job is only as reliable as the part sitting on the shelf behind it.

Reliability Engineers can recite MTBF figures for critical equipment without missing a beat – but ask them about storeroom inventory accuracy, and the room goes silent.

I saw this firsthand while working with an organization shifting its MRO storeroom from Finance oversight to the Maintenance Manager. When I asked the storeroom supervisor about their inventory accuracy, the answer came without hesitation: “90% accurate on 50% of the inventory.”

That number should have alarmed everyone in the room. It did, however, get a chuckle!

That gap – between what gets measured and what actually keeps the work moving – is precisely where reliability quietly bleeds out

Storerooms get starved of attention because they don’t break in obvious ways. A pump screams when it fails. A bin that’s been wrong for two years says nothing at all. Silence reads like health, right up until the moment a planner needs the part that isn’t there.

How the Drain Works, One Part at a Time

The storeroom doesn’t sink a reliability program in a single afternoon. It does the job through small, repeatable failures that stack up across every shift and every crew.

Stockouts That Stop Planned Work

A planner schedules a PM for Thursday. The technician walks to the storeroom and the seal kit isn’t on the shelf. Now the job gets pushed, the asset keeps running on borrowed time, and schedule compliance takes a hit nobody traces back to a missing part.

Stockouts on critical spares are reliability failures wearing a purchasing department uniform. Call them what they are.

The ripple runs further than the single job. A pushed PM crowds next week’s schedule, which pushes another job, which forces a planner to expedite parts at a premium. One empty bin sets off a chain of reactive scrambling that burns labor hours nobody planned to spend.

Wrong Parts, Wrong Specs, Wrong Outcomes

Sometimes the part is there, but it’s the wrong one. A substituted bearing with a different internal clearance. A generic seal rated for the wrong temperature. The technician installs it because the line has to run, and a premature failure shows up three weeks later wearing a disguise. 3%-7% of the inventory items in a typical storeroom are the exact same part, different part number!

Nobody writes “wrong part from the storeroom” on the failure report. They write “bearing failure” and move on. The real root cause sits in plain sight on aisle four.

Phantom Inventory and Counts You Can’t Trust

Phantom inventory might be the most maddening problem of the three. The system shows stock that isn’t physically there. A planner builds a full week of work around parts the count claims exist, then the crew opens the bin and finds dust.

When the count lies, every plan built on top of it inherits the lie.

Inventory accuracy below 95 percent means planners are gambling every time they schedule. Plenty of plants run in the 70s and call it normal operating procedure.

The Math Leaders Keep Avoiding

Finance loves to squeeze the storeroom. Carrying cost is visible, easy to attack, and sits right there on the balance sheet. So, the parts budget gets cut, stocking levels drop, and the carrying cost line looks fantastic in the quarterly review.

The cost that quietly replaces it is far larger and far harder to see: downtime.

A single hour of unplanned downtime in a mid-size plant runs anywhere from 8,000 to 50,000 dollars depending on the industry. One stocked-out critical spare can trigger several of those hours while the part ships overnight from three states away.

One Stockout Erases a Year of Inventory Savings

$40K
Carrying cost
trimmed per year
$200K
One 8-hour stockout
on a critical spare

Carrying cost is visible on the balance sheet. The downtime it trades for usually isn’t tracked at all.

Trimming 40,000 dollars of “excess” inventory looks like a win until one stockout on a critical spare erases the whole savings in an afternoon. The balance sheet applauds while the plant pays the tab somewhere else.

Worse, the cost reduction gets celebrated and the downtime gets buried in a dozen other accounts: overtime, expedited freight, scrap, missed shipments. Nobody adds them back up and lays the total next to the inventory cut that caused it. The two numbers live in separate spreadsheets owned by separate people, which is precisely how the trade keeps happening.

What a Reliable Storeroom Actually Looks Like

Accuracy Comes First

None of the advanced reliability tools matter if the storeroom can’t be trusted. Cycle counting, a locked and controlled stockroom, and barcode or RFID tracking are the foundation accuracy gets built on. Treat them as core infrastructure and budget for them that way.

Think about that. At 70% inventory accuracy means that only 7 of the 10 parts required for the job are available! Remember, 90% accurate on 50% of our inventory! Critical spare should be 100% accurate. I always told my staff, there are only three certainties in life, death, taxes, and cycle counts. What in the system must be in the location and what’s in the location must be accurate in the CMMS, period.

Target 97 percent inventory accuracy or better. Drop below that and planners stop trusting the system, then start hoarding parts in toolboxes and lockers, which makes the official data even worse. The squirreling away of spares is a symptom, not the disease.

Accuracy also changes how the rest of the building behaves. When planners trust the count, they schedule with confidence and kit jobs ahead of time. When they don’t, they pad every estimate and chase parts on the day of the work. Trust in the storeroom shows up directly in wrench time, even though it never appears on a single reliability dashboard.

Inventory discrepancies come down to only two root causes: the process failed, or someone chose not to follow it.

How often do you hear a maintenance tech say they didn’t have time to log a part number, work order, job name, or quantity? That 30 seconds of documentation they skipped doesn’t disappear – it gets redistributed. Now the storeroom attendant, storeroom supervisor, maintenance supervisor, purchasing, and receiving are all pulled in to solve a problem that never should have existed.

One person. Thirty seconds. Five people paying for it.

Criticality Over Volume

Not every part deserves the same attention. A criticality-based approach puts stocking decisions where a failure hurts most, instead of spreading the budget evenly across thousands of line items that don’t matter equally.

Stocking everything equally is the same as stocking nothing strategically.

The work here is unglamorous and worth every hour. Tie each spare to the asset it serves (where used in the material master or CMMS), the lead time to replace it, and the cost of the downtime it prevents. That single exercise tends to reveal both the critical parts sitting unstocked and the slow-movers eating shelf space for a decade. Most storerooms are overstocked and underprepared at the same time.

  • Critical spares: long lead times, single points of failure, high downtime cost. Stock these even when they almost never move.
  • Essential spares: important, but with shorter lead times or available substitutes. Stock to demand and watch the trend.
  • Commodity items: fasteners, filters, common consumables. Manage with min and max levels, and lean on vendor-managed inventory where it makes sense.

Where to Start Monday Morning

Fixing the storeroom doesn’t require a six-figure software project or a year of consulting. It requires discipline and a place to begin.

  • Run a physical count on the top 50 critical spares and compare it to the CMMS. The size of the gap will get leadership’s attention fast.
  • Pull every stockout from the last 90 days and trace each one to a delayed or deferred work order.
  • Rank spares by criticality, not by dollar value or how much shelf space they take up.
  • Lock the storeroom and assign clear accountability. Open stockrooms guarantee inaccurate counts and walking inventory.
  • Set an inventory accuracy target and cycle count against it every week until it holds.

Pull the Lever Behind the Counter

The storeroom rarely gets credit when reliability improves, and it rarely gets blamed when reliability slips. That blind spot is exactly why it keeps draining performance year after year while everyone studies the failure data.

Maintenance leaders who want better uptime have a cheap, unglamorous lever sitting right there behind the counter. Pull it before signing the check for the next analytics platform.

The parts on those shelves decide whether every other reliability investment actually pays off. Manage them like they do.

Now, avoid death, pay your taxes, and do your cycle counts!

Author

  • Andrew Gager

    Andrew Gager, CEO of AMG International Consulting, Inc., is an industry-leading expert in manufacturing best practices, maintenance systems, and supply chain optimization, with over 20 years of Operations Leadership experience spanning from shop floor operations to plant management. The last 20+ years working with M&R organizations across industries such as manufacturing, oil & gas, food & beverage, pharma, and transportation, specializing in OpEx, reliability-based solutions and materials management. A Certified Maintenance Reliability Professional (CMRP), Certified in Planning & Inventory Management (CPIM) and Six Sigma Green Belt (CSSGB), Andrew is a sought-after speaker and trainer, known for his dynamic presentation style. He is regularly published in multiple trade periodicals. He holds a BS in Business & Operations Management from Rochester Institute of Technology.

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