Case Studies

Below are examples of Net Results Group helping optimize client MRO practices.

Accurate, Useable BOMs:

The problem: A company realizes the Bill Of Materials for its MRO items is confusing and often incorrect. Different words describe the same function and the people who identified the parts sometimes guessed the part name and function (and often guessed wrong). Spares are not found quickly (if at all). Poorly made BOMs sabotage effective decision making for capital spares.

How Net Results Group Helps: Net Results Group builds BOMs quickly and accurately using their MRO3i™ tool and the “Where Used” exercise of walking down the company’s storeroom, itemizing spare parts and assigning them to an asset hierarchy constructed specifically for the company. During this process, the company does NOT need to stop production, and the MRO3i tool captures each part’s information with absolute certainty regarding its technical attributes. Without shutting down production, between 75-85% of each equipment’s total parts are itemized. A short shut-down allows the remaining 15-25% to be captured – typically completed during a regularly scheduled PM outage.

The Benefits: There is no guessing by the person identifying the parts about each part’s attribute – each attribute’s data descriptions are standard and consistent. The tool instantly recognizes and assigns the part number to all associated assets. With MRO3i, building a BOM is efficient, user-friendly, and unquestionably accurate. The “Where Used” exercise ensures PM outages are even briefer due to the highly accurate input obtained from the MRO3i tool. Return on investment is realized by parts being issued accurately and found quickly in the storerooms during every future PM.

Regain Control and Compliance:

The problem: A company recognizes its abundance of MRO spares in the storerooms, unidentifiable parts, and even obsolete MRO stock. The Maintenance department has difficulty managing the tens of thousands of its SKU’s. The operations department questions its equipment’s sustainability and their ability to pre-empt a failure. The finance team worries about the amount of capital allocated to dead stock and the accuracy of its accounting for the value of this inventory.

How Net Results Group Helps: Net Results Group deploys its MRO Insight™ process starting with the self-assessment instrument to determine the company’s baseline measurement. Net Results Group collaborates with the company in a physical walk down on-site to build the enriched database, cross-referencing every MRO item and its associated equipment, use, manufacturer, and procurement consideration. Analyzing this data to identify MRO items and quantities critical to operational sustainability yields an optimized procurement strategy which streamlines the MRO inventory holdings.

The Benefits: With a more efficient replenishment strategy, the Maintenance department holds more optimal inventory on-site and leverages just-in-time supplier deliveries. With improved parts management and visibility, Operations is more confident in the maintenance and performance of its capital equipment. The Finance department realizes more cash flow to invest in higher earning projects that otherwise would have been used to purchase unneeded MRO inventory, and the company complies with fiscal reporting standards including Sarbanes-Oxley (Section 409).

New Build/Initial Provisioning:

The problem: A growing company is evaluating bids for new capital equipment as part of a planned expansion. To make an informed decision, the company needs help understanding the capital spares requirement for each bid.

How Net Results Group Helps: Net Results Group uses its decades of experience and proven proprietary MRO Invest ™ methodology to determine Total Cost of Ownership for each bid option based on price, warranty conditions, performance, and maintenance requirements. This information informs the bid award as Net Results Group determines the optimized MRO inventory and spares procurement plan to support the new equipment and maximize its sustainable life cycle.

The Benefits: This proactive approach ensures the company achieves the greatest return on its capital investment.

What people who have worked with us have to say

Our indirect item master had many issues. Bad data quality caused us to lose productivity and experience higher inventory values. Net Results Groups solutions helped us get back on the right track with better standards and methods for cleansing data, and they created a more efficient process to ensure we maintain the quality of our MRO data using their MRO3i tool for ongoing data governance. MRO3i is intuitive and easy to use.

SVP Corporate ProcurementProcess Manufacturing Company

My company wanted an asset hierarchy for its production facilities and establish an enterprise model at its largest location with multiple production buildings that can be used as the standard for the 27 other plant locations in the enterprise. We struggled to get this process working efficiently. NRG provided us with the expertise and the methodologies that we now use across the enterprise. NRG walked down the assets with our team of SME’s to create the hierarchies with a multitude of data using their MRO3i technology. This sped up the process and allowed us to then start creating equipment parts lists (BOM’s) for each equipment at the lowest level of the hierarchy. Because of NRG’s success with the development of the asset hierarchy, we engaged them to also work on the BOM’s.

VP Global Maintenance and EngineeringConsumer Products Manufacturer

We acquired several paper mills and box plants that had to be integrated into the corporate system. Integrating these operations into our enterprise required us to convert the acquired item master data from an antiquated enterprise system to our SAP enterprise system. We also wanted to avoid creating duplicate data between the two item masters. NRG’s team came onsite with their MRO3i tool to accelerate this process for us and meet the “go live” deadline for the new mills. During this process, we realized we had an outdated taxonomy of noun modifier templates to help standardize the data. Net Results Group their library of over 5,000 new templates to ensure we met ISO standards required by our corporation to give us a competitive advantage and lowering the cost per part for our inventory.

Chief Procurement OfficerPaper and Packaging Company

My company invested approximately $60 million in new equipment at three plants and needed to identify the required parts list for each of the equipment items to make sure they were added to our item master before the equipment went live. We had to establish critical spares identification for the parts and make smart decisions on what items to maintain in inventory. Net Results Group’s experts using their MRO3i technology created these parts list faster than we could have done. They also trimmed down the equipment manufacturer’s suggested list which was overkill. NRG also helped us avoid duplication by identifying items we already had in our item master. We saved money by not overbuying, and kept inventory values lower, with the right min/max levels for the applicable parts. NRG used its library of parts information to cross reference the manufacturer’s OEM items to a commercial equivalent spare, which lowered spend. NRG did a great job for us in many facets.

SVP ManufacturingBuilding Products Company

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