Metso Automation Services. business solution. Device management. Optimizing your spare parts inventory for availability and cost

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1 Metso Automation Services Device management business solution Optimizing your spare parts inventory for availability and cost

2 Maximized production, minimized costs Typical device management goals: Increased production time Critical spare parts available quickly Better spare part coverage Lower spare parts capital expenditure Reduced facilities costs More working capital released Although the goals are clear, they can be difficult to achieve due to: Installed base information deteriorating over time Lack of in-depth device knowledge Incorrect understanding of which devices are critical Manpower constraints Tight maintenance budgets Metso s device management business solution: Optimizes your device inventory Harmonizes device models across your installed base Improves spare parts availability Improves spare part coverage Reduces total spare parts costs

3 A clear view of the installed base Analysis identifies critical devices Lifecycle plan minimizes device models Optimized device and spare part inventory Create an accurate baseline It s difficult to keep track of all the devices and spare parts needed to efficiently run a modern production plant. And yet, to ensure the highest levels of productivity and reduce unnecessary costs, it s one of the most important tasks. The first step is to carry out a detailed audit of the spare parts inventory. If the installed base information is unavailable or potentially out of date, we will carry out an extensive audit of all your systems. This provides a clear view of your current installed base so that we can start to optimize your spare parts inventory, harmonize your installed base and reduce costs. We work closely with you to understand your maintenance and availability requirements, and carefully examine your processes. As part of this activity we work with you to categorize the criticality of both Metso-supplied and 3 rd party devices based on impact on production, safety and the environment. This information is stored in a Metso database and/or your ERP system. Planning for the future Once we have a detailed view of your installed base and spare parts inventory, we work with you to build and keep updated a lifecycle plan to ensure you have an optimal device mix and spare part inventory both now and in the future. The lifecycle plan identifies when device models can be streamlined and when migration should occur to minimize the impact of obsolescence. Keeping the right items in stock Metso s stocking strategy defines stock levels according to device criticality, the agreed lifecycle plan and the target inventory value. Over time, it allows you to reduce and optimize your spare parts inventory. We identify obsolete stock that can be removed, improve spare part coverage and availability by modular stocking, and order missing parts which are critical to the process. A smooth transition Our inventory setup service enables a smooth transition. First we agree with you the spare parts process and train your team. We then work with you to dispose of obsolete stock. When this is complete, we transfer the remaining stock to a Metso site and disassemble spare parts into their components.

4 Stock moved and disassembled at inventory setup Inventory management optimizes stock levels Day-to-day inventory management When stock is on our site, we provide a day-to-day inventory management service to ensure that the spare parts inventory is continually optimized for availability and cost. Our service includes managing outgoing spare parts (assembling components together into devices as needed) and ordering replacements according to the stocking strategy. Benefits include simplified purchasing, guaranteed availability of agreed items, and reduced capital expenditure and facilities costs. And ultimately, the spare parts inventory will gradually be removed from your balance sheet. Importance of device management Over the years, as new products and parts are ordered and changes are incorrectly recorded, information about the installed base deteriorates and stock starts to pile up. Our experience with hundreds of customers has shown that this is a real-life situation in many sites. The actual installed base, installed base data in the systems and spare part stocks no longer match. Without effective device management, there can be high stock volumes with many obsolete parts; and parts which look new could have exceeded their shelf life meaning their warranty is obsolete. This can lead to significant stock write-offs and, most critically, it can mean that there are no available parts for the actual installed base in emergency cases. Metso s device management business solution ensures your spare parts inventory is always optimized for both availability and cost.

5 Customer case with proven results We knew that Metso has concepts ready. And we concluded that Metso could provide the expertise we do not have in-house. Mikko Marjakoski Maintenance Chief, Norilsk Nickel Harjavalta Improved reliability and reduced costs Norilsk Nickel Harjavalta works, Finland Background: Norilsk Nickel is the world s leading producer of nickel and palladium and a globally significant producer of platinum and copper Harjavalta plant produces nickel salts for European markets Target was to ensure valve inventory aligned to criticality of installed base, reduce inventory space and costs and decrease service operation costs Solution: Device management business solution Results: Significant cost savings while maintaining 100% on-time delivery Spare parts inventory reduced by 71% within 2 years Spare part coverage increased from 40% to 90% Management of both Metso and non-metso valves

6 Business solutions: Expert services + proven methodology + world-class tools = improved business performance Plant availability Customer care Intelligent maintenance Intelligent shutdown Device management Lifecycle management Process performance Performance monitoring Process optimization Control performance Lifecycle management Risk control Safety Environment Competence Metso Automation, Inc., E8998_EN_01 09/2013 Metso Automation Inc. Product names in this brochure are all trademarks of Metso Automation Inc.