tva presentation 1
TRANSCRIPT
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STRATEGIC CONFERENCESTRATEGIC CONFERENCESYDNEY AUSTRALIASYDNEY AUSTRALIA
FEBRUARY 28, 2006FEBRUARY 28, 2006
INVENTORY OPTIMIZATIONINVENTORY OPTIMIZATION
BYBY
DAN OLIVERDAN OLIVER
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GeneratingPlants
TransmissionSystem
UTILITY SystemUTILITY System
DistributorCustomers
Residential, Commercial, Industrial
Directly Served
Industries
Interconnection Points
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11 fossil plants (59 units)
3 nuclear plants (5 units)
29 hydro plants (109 units)
4 combustion turbine
plants (48 units)
1 pumped storage station
17,000 miles of
transmission line
Generating FacilitiesGenerating Facilities
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Win-Win-Win
Win for UTILITY
Win for UTILITY
Supplier Partners
Win for UTILITY
Customers
158 power distributors 62 direct serve industries
Over 8 million people in an 80,000 sq mile service area
Public users of land and recreational facilities
Communities with economic development assistance
CUSTOMERS SERVEDCUSTOMERS SERVED
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A key part of the Supply Chain challenge continues to be the change
from a price focus to a Total Ownership Cost (TOC) focus:
TOC Focus
PURCHASE
COST
Actual
Opportunity
or
TOC(The whole iceberg)
PerceivedOpportunity
(Above the Waterline)
FORECASTING: equipment life/failures system improvements system capacity
technology driversTECHNICAL: reliability standardization design / scope clarity configuration management
PROJECTJUSTIFICATION: project justification criteria business unit alignment TVA-wide ROI analysis
INVENTORY
PRACTICES:
inventory ownership(SMI, consignment)
risk mitigation re-deployment of
useable
RETIREMENT
PRACTICES: disposal cost
secondary users
OPERATIONAL
PRACTICES: install & support costs maintenance costs capacity utilization training costs
CONTRACTING: TVA leverage potential technology convergence re-bid frequency
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TYPICAL INVENTORYTYPICAL INVENTORY
SITUATIONSSITUATIONS
DESIRE TO REDUCE SIGNIFICANTDESIRE TO REDUCE SIGNIFICANTCAPITAL INVESTMENT INCAPITAL INVESTMENT ININVENTORYINVENTORY
CONCERN FOR BALANCINGCONCERN FOR BALANCINGINVENTORY WITH RELIABILITYINVENTORY WITH RELIABILITY
DESIRE TO CONTROL FUTUREDESIRE TO CONTROL FUTURE
INVENTORY GROWTHINVENTORY GROWTHCONCERN FOR COMPLIANCE TOCONCERN FOR COMPLIANCE TOSARBANES OXLEYSARBANES OXLEY
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TYPICAL REASONS FORTYPICAL REASONS FOR
INVENTORY GROWTHINVENTORY GROWTH
OVERBUYING FOR MAINTENANCE OROVERBUYING FOR MAINTENANCE OR
CAPITAL IMPROVEMENTSCAPITAL IMPROVEMENTS
CANCELLED OR DEFERRED MAINTENANCECANCELLED OR DEFERRED MAINTENANCE
RETURNS AFTER COMPLETION OF WORKRETURNS AFTER COMPLETION OF WORK
ADDITION OF NEW ITEMSADDITION OF NEW ITEMS
INCREASES TO EXISTING MIN/MAXSINCREASES TO EXISTING MIN/MAXS
INCREASED PRICESINCREASED PRICES
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PROGRAM ELEMENTSPROGRAM ELEMENTS
STRATIFY INVENTORY DATASTRATIFY INVENTORY DATA
IDENTIFY APPROPRIATE STRATEGYIDENTIFY APPROPRIATE STRATEGY
FOR EACH INVENTORY CLASSFOR EACH INVENTORY CLASS
ESTABLISH TARGETSESTABLISH TARGETS
IMPLEMENT PROPOSEDIMPLEMENT PROPOSED
ALGORITHMSALGORITHMSIMPLEMENT EACH STRATEGYIMPLEMENT EACH STRATEGY
TRACK RESULTSTRACK RESULTS
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TYPICAL STRATIFICATIONTYPICAL STRATIFICATION
EXAMPLESEXAMPLES
CLASSIFICATIONCLASSIFICATION
LOCATIONLOCATION
COMMODITYCOMMODITYDOLLAR VALUEDOLLAR VALUE
OVERSTOCK/SURPLUSOVERSTOCK/SURPLUS
SLOWMOVING NO ISSUE IN XSLOWMOVING NO ISSUE IN XYEARSYEARS
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PROGRAM SUCCESSESPROGRAM SUCCESSES
$147M REDUCTION OVER 5.5 YEARS$147M REDUCTION OVER 5.5 YEARS
SIGNIFICANT CASH FLOWSIGNIFICANT CASH FLOW
IMPROVEMENTIMPROVEMENT
SUCCESSFUL IN DIVERSE MROSUCCESSFUL IN DIVERSE MRO
INVENTORIESINVENTORIES
NO IMPACT TO OPERATION ANDNO IMPACT TO OPERATION ANDRELIABILITYRELIABILITY
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INVENTORY OPTIMIZATIONINVENTORY OPTIMIZATION
HIGHLIGHTSHIGHLIGHTS
OBTAIN SENIOR MANAGEMENT BUYINOBTAIN SENIOR MANAGEMENT BUYIN
PERFORM INVENTORY ANALYSISPERFORM INVENTORY ANALYSIS
STRATIFY INVENTORYSTRATIFY INVENTORY
SET INVENTORY REDUCTION TARGETSSET INVENTORY REDUCTION TARGETS
TRACK PROGRESSTRACK PROGRESS
COMMUNICATE TO ALL LEVELS OFCOMMUNICATE TO ALL LEVELS OF
ORGANIZATIONORGANIZATIONCELEBRATE SUCESSESCELEBRATE SUCESSES
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VALVES & PARTS
TURBINES/ GENERATORS
PUMPS
INSTRUMENTATION
MISC ELECTRICAL
BOILERS & BURNERS
MECH PWR TRANS EQUIP
CIRCUIT BREAKERS
GASKETS & PACKING
PULVERIZERS & ASH HA
0
10,000
20,000
30,000
40,000
50,000
39,209
31,315
29,849
18,805
12,26311,296 11,056
10,096
9,119 8,818
MATERIALS MANAGEMENT Inventory Analysis & Reporting STRATEGIC SOURCING INITITIAVES TURBINE/ GENERATOR TEAM
PRELIMINARY "SNAPSHOT"
TOTAL INVENTORY VALUE AT FISCAL YEAR END 1997 = $ 276,845,892.
TOTAL INVENTORY VALUE OF TOP TEN = $ 181,826,000.
INVENTORY INVESTMENT OF TOP TEN COMMODOTIES IN STOCK
ALL BUSINESS UNITS
"MAMS" INVENTORY SYSTEMREPORT GENERATOR (RMDS)
REPORT NAME = TOPTEN 10-03-97
PREPARED BY: Bill Rosenberger
N:\PPT\ INVENCON\billr\ TOPTEN.PPT,10-07-97
( $ MILLION )
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13.5
37.7
0
10
20
30
40
JUN JUL AUG SEP
1-30D > 30D
Months Supply - ActiveBrowns Ferry
20.4
30.6
0
10
20
30
40
JUN JUL AUG SEP
1-30D > 30D
Sequoyah
13.5
50.3
0
20
40
60
JUN JUL AUG SEP
1-30D > 30D
Watts Bar35.8
31.5
0
10
20
30
40
JUN JUL AUG SEP
1-30D > 30D
NSI
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-40
-9
-111
-5
-120
-100
-80
-60
-40
-20
0
JUN JUL AUG SEP
(Thousan
BFN SQN WBN NSI
Outstanding On Order
1.4
1.1
0.4
1.0
0.0
0.5
1.0
1.5
2.0
JUL AUG SEP OCT
(M
illio
n
BFN SQN WBN NSI
Net ROP/ROQ Changes
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MATERIALS MANAGEMENT
Inventory Analysis & Reporting
INVENTORY STRATIFICATION
FOSSIL LOCATIONS
SPARES
PLANT
LOCATION
STOREROOM
LOCATION
CODE
INVENTORY
VALUE OVERSTOCK
SLOW MOVING
(NO MOVEMENT
3 YEARS)
WIDOW CREEK 3700 $15,937,688.20 $2,642,926.50 $8,054,527.52
JOHNSONVILLE 4300 $8,898,315.12 $1,620,071.95 $2,393,344.77
KINGSTON 4700 $6,546,930.44 $1,170,550.31 $1,994,490.27
SHAWNEE 4800 $7,933,564.34 $952,233.36 $3,035,614.59COLBERT 4900 $7,470,185.38 $1,479,333.25 $2,720,707.90
GALLATIN 5000 $3,714,996.16 $411,572.00 $1,084,249.10
ALLATIN OUTAGE 5060 $79,444.12 $75,164.56 $0.00
JOHN SEVIER 5100 $4,124,437.31 $856,676.06 $1,121,598.56
PARADISE 5200 $19,587,857.59 $2,801,711.19 $8,361,141.95
RADISE OUTAGE 5260 $3,750.00 $3,750.00 $0.00
ALLEN 5400 $3,747,105.49 $533,177.85 $1,354,186.33
BULL RUN 5500 $3,821,354.36 $777,712.39 $1,401,195.73
CUMBERLAND 5700 $20,314,379.00 $4,607,234.32 $7,030,254.80
CUMBERLAND
SCRUBBER 5735 $2,961,071.95 $176,052.14 $11,008.46
CUMBERLAND
AUXILIARY
STORAGE
HARTSVILLE 5739 $1,447,222.57 $559,874.14 $0.00
TOTAL VALUE OF SPARES $106,588,302.03 $18,668,040.02 $38,562,319.98
BULK COMMODOTIES
PLANT
LOCATION
STOREROOM
LOCATION
CODE
INVENTORY
VALUE OVERSTOCK
SLOW MOVING
(NO MOVEMENT
3 YEARS)
WIDOW CREEK 3700 $1,400,549.51 $262,335.07 $526,891.29
JOHNSONVILLE 4300 $1,283,140.86 $138,870.76 $234,174.18
KINGSTON 4700 $1,277,119.33 $143,565.95 $263,424.35
SHAWNEE 4800 $1,211,748.41 $94,709.64 $297,124.79
COLBERT 4900 $507,203.99 $377,105.29 $488,395.05
GALLATIN 5000 $136,282.65 $64,989.69 $201,916.93
JOHN SEVIER 5100 $283,370.60 $188,198.05 $195,224.97
PARADISE 5200 $1,807,874.83 $503,935.77 $636,735.23
ALLEN 5400 $415,818.80 $68,365.95 $123,674.77
BULL RUN 5500 $311,187.19 $190,578.46 $184,886.28CUMBERLAND 5700 $1,761,584.13 $506,389.75 $651,926.29
CUMBERLAND
SCRUBBER 5735 $12,074.49 $5,689.66 $7.84
CUMBERLAND
AUXILIARY
STORAGE
HARTSVILLE 5739 $97,321.32 $59,666.54 $0.00
TOTAL VALUE OF BULK $10,505,276.11 $2,604,400.58 $3,804,381.97
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INVENTORY PERFORMANCE FY02INVENTORY PERFORMANCE FY02
GROWTHGROWTH
REDUCTIONREDUCTION
STRATEGIESSTRATEGIES
13.867M
13.196M
October 2001 Beginning Inventory $100.072M
September 2002 Ending Inventory $99.401M
FYTD FYTD
1358135813581358
886865
3,271
7,943
2310
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000 GROWTH DRIVERS
Planned
Work
Receipts
Non-Inv
Planned
Work
Receipts
Inv
Initial
Stock
2,442
1,153
10,272
0
2,000
4,000
6,000
8,000
10,000
12,000REDUCTION DRIVERS
Shared
Inventory
ROP/ROQ
Reduction
Dollars($0
00)
Dollars($000)
Writeoffs Adjust-
ments
Normal
Receipts
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756
INVENTORY PERFORMANCE FY02INVENTORY PERFORMANCE FY02
September 2002 Ending Inventory $28.686M
October 2001 Beginning Inventory $29.106M
GROWTHGROWTHREDUCTIONREDUCTION
STRATEGIESSTRATEGIES
7,184K
6,764K
FYT
DFYTD
756
1358
INVENTORY PERFORMANCE FY02INVENTORY PERFORMANCE FY02
September 2002 Ending Inventory $23.378M
October 2001 Beginning Inventory $23.473M
GROWTHGROWTH
REDUCTIONREDUCTION
STRATEGIESSTRATEGIES
2,864K
2,769K
FYTDFYTD
7561358
321225
371
1,631
221
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000GROWTH DRIVERS
Planned
WorkReceipts
Non-Inv
Planned
WorkReceipts
Inv
Initial
Stock
3 4 7
2 ,069
44 8
0
5 00
1 ,00 0
1 ,50 0
2 ,00 0
2 ,50 0
3 ,00 0REDUCTION DRIVERS
Shared
InventoryROP/ROQ
Reduction
Dollars($000)
Dollars($000)
7561358
7561358
2,225
340
1,366
2,833
0
500
1,000
1,500
2,000
2,500
3,000
3,500 GROWTH DRIVERS
Planned
WorkReceipts
Non-Inv
Planned
WorkReceipts
Inv
Initial
Stock
34 2
1 ,021
5 ,585
23 60
1 ,00 0
2 ,00 0
3 ,00 0
4 ,00 0
5 ,00 0
6 ,00 0
7 ,00 0REDUCTION DRIVERS
Shared
Inventory
ROP/ROQ
Reduction
Dollars($000)
Dollars($000)
1358
INVENTORY PERFORMANCE FY02INVENTORY PERFORMANCE FY02
September 2002 Ending Inventory $33.053M
October 2001 Beginning Inventory $33.136M
GROWTHGROWTHREDUCTIONREDUCTION
STRATEGIESSTRATEGIES
5,758K
5,675K
FYTDFYTD
7561358
7561358
7561358
362300
1,534
3,479
0
500
1000
1500
2000
2500
3000
3500
4000GROWTH DRIVERS
Planned
Work
ReceiptsNon-Inv
Initial
Stock
1 ,614
2 ,618
5 53
97 3
0
5 0 0
1 ,0 00
1 ,5 00
2 ,0 00
2 ,5 00
3 ,0 00REDUCTION DRIVERS
Shared
Inventory
Adjust-
mentsROP/ROQ
Reduction
Dollars($000)
Dollars($000)
Normal
Issues
Planned
Work
ReceiptsInv
INVENTORY PERFORMANCE FY02INVENTORY PERFORMANCE FY02
GROWTHGROWTH
REDUCTIONREDUCTION
STRATEGIESSTRATEGIES
73K
0 K
October 2001 Beginning Inventory $14.357M
September 2002 Ending Inventory $14.284M
FYTD FYTD
13581358135813580
100
200
300
400
500GROWTH DRIVERS
10
4 6
1 7
0
5 0
1 00
1 50
2 00REDUCTION DRIVERS
Shared
Inventory
Dollars($000)
Dollars($000)
Adjust-
ments
Adjust-
ments
Writeoffs
Normal
Receipts
WriteoffsNormal
Receipts
Adjust-
mentsNormal
Issues
Writeoffs
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TVA INVENTORY MANAGEMENT
INVENTORY PLAN
FY 1998-2002($ Millions)
POTENTIAL
ITEM CATEGORY CALCULATION REDUCTION
1 Write-off or make available for sale, $2.541
slow moving consumables.
2 Write-off or make available for sale, 80% of $9.185M or $7.349
slow moving bulk commodities. $7.349M
3 Review consumables for SMI or vendor 60% of $12.400M $7.440
consignment. or $7.440M
4 Negotiate sale or return to vendors 80% of $9.978M $7.982
overstock bulk commodities. or $7.982M
5 Establish consignment contracts for bulk 60% of $13.208M $7.925
commodities. or $7.925M
6 Write-off or make available for sale, spare 50% of $18.706M $9.353
parts that are both overstock and slow or $9.353M
moving.
7 Write-off or make available for sale, 100% of $.307M $0.306
slow moving items at Distribution Centers. or $0.306M
8 Identify total turbine, boiler, transformer, 34% of $110.150M $37.451
and cable inventory for negotiation within or $37.451M
the first wave of sourcing strategy for
vendor buy back & vendor stock.
9 Write-off or make available for sale 25% of $9.750M $2.448
inventory with 10 yrs. or more supply or $2.448M
on hand.
10 Establish "Shared Inventory" for common 50% of $27.494M $13.747
items across all TVA business units. or $13.747M
11 SCAS Review of Spare parts reorders $4.250
TOTAL POTENTIAL REDUCTION $100.792
C:\MYDOCUMENTS\GJ B\TVAINVMG.XLS, EDJ , 08/20/97
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TVA INVENTORY MANAGEMENT
SHORT-TERM PLAN
FY 98-99($ Millions)
POTENTIAL
ITEM CATEGORY CALCULATION REDUCTION FY 98 FY 99
1 Write-off or make available for sale, $2.541 $2.541
slow moving consumables.
2 Write-off or make available for sale, 50% of $9.185M or $4.593 $4.593
slow moving bulk commodities. $4.593M
3 Review consumables for SMI or vendor 50% of $12.400M $6.200 $1.860 $4.340consignment. or $6.200M
4 Negotiate sale or return to vendors 50% of $9.978M $4.989 $2.000 $2.989overstock bulk commodities. or $4.989M
5 Establish consignment contracts for bulk 50% of $13.208M $6.604 $2.000 $4.604commodities. or $6.604M
6 Write-off or make available for sale, spare 25% of $18.706M $4.677 $2.338 $2.338parts that are both overstock and slow or $4.677Mmoving.
7 Write-off or make available for sale, 40% of $.307M $0.122 $0.122slow moving items at Distribution Centers. or $0.122M
8 Identify total turbine, boiler, transformer, 4% of $110.150M $4.406 $2.203 $2.203and cable inventory for negotiation within or $4.406Mthe first wave of sourcing strategy forvendor buy back & vendor stock.
9 Write-off or make available for sale 6% of $9.750M $0.600 $0.200 $0.400inventory with 10 yrs. or more supply or $.600Mon hand.
10 Establish "Shared Inventory" for common 15% of $27.494M $4.124 $1.650 $2.474items across all TVA business units. or $4.124M
11 SCAS Review of Spare parts reorders $2.000 $1.000 $1.000
TOTAL POTENTIAL REDUCTION $40.856 $20.507 $20.348
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TVA INVENTORY MANAGEMENT
LONG-TERM PLAN
FY 2000-2002($ Millions)
POTENTIAL
ITEM CATEGORY CALCULATION REDUCTION FY 2000 FY 2001 FY 2002
2 Write-off or make available for sale, 30% of $9.185M or $2.756 $1.000 $1.000 0.750slow moving bulk commodities. $2.756M
3 Review consumables for SMI or vendor 10% of $12.400M $1.240 $0.400 $0.400 $0.404consignment. or $1.240M
4 Negotiate sale or return to vendors 30% of $9.978M $2.993 $1.000 $1.000 $0.993
overstock bulk commodities. or $2.993M
5 Establish consignment contracts for bulk 10% of $13.208M $1.321 $0.400 $0.400 $0.520commodities. or $1.321M
6 Write-off or make available for sale, spare 25% of $18.706M $4.677 $1.580 $1.500 $1.600
parts that are both overstock and slow or $4.677Mmoving.
7 Write-off or make available for sale, 60% of $.307M $0.184 $0.184
slow moving items at Distribution Centers. or $0.184M
8 Identify total turbine, boiler, transformer, 30% of $110.150M $33.045 $9.000 $10.000 $14.050
and cable inventory for negotiation within or $33.045Mthe first wave of sourcing strategy for
vendor buy back & vendor stock.
9 Write-off or make available for sale 19% of $9.750M $1.848 $0.616 $0.616 $0.616inventory with 10 yrs. or more supply or $1.848Mon hand.
10 Establish "Shared Inventory" for common 35% of $27.494M $9.623 $3.000 $3.000 $3.620
items across all TVA business units. or $9.623M
11 SCAS Review of Spare parts reorders $2.250 $1.000 $0.750 $0.500
TOTAL POTENTIAL REDUCTION $59.937 $18.180 $18.666 $23.053
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TVA INVENTORY MANAGEMENT PLAN
NUCLEAR
($ Millions)
FY 98 FY 99
ITEM BFN SQN WBN HGR SHARE TOT BFN SQN WBN HGR SHARE TOT
1 0.603 0.349 0.634 0.000 0.000 1.586 0.000 0.000 0.000 0.000 0.000 0.000
2 0.714 0.856 0.666 0.143 0.000 2.379 0.000 0.000 0.000 0.000 0.000 0.000
3 0.341 0.301 0.351 0.000 0.011 1.004 0.797 0.703 0.820 0.000 0.024 2.344
4 0.267 0.364 0.461 0.085 0.037 1.214 0.401 0.547 0.692 0.128 0.054 1.822
5 0.216 0.238 0.253 0.022 0.016 0.745 0.504 0.556 0.591 0.052 0.034 1.737
6 0.315 0.441 0.334 0.068 0.000 1.158 0.315 0.441 0.334 0.068 0.000 1.158
7 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
8 0.063 0.036 0.031 0.056 0.006 0.192 0.063 0.036 0.031 0.056 0.006 0.192
* 9 0.047 0.041 0.043 0.002 0.000 0.133 0.093 0.083 0.085 0.006 0.000 0.267
* 10 0.156 0.138 0.142 0.009 0.000 0.445 0.234 0.207 0.214 0.013 0.000 0.668
** 11 0.139 0.123 0.127 0.000 0.021 0.410 0.139 0.123 0.127 0.000 0.021 0.410
TOTAL 2.861 2.887 3.042 0.385 0.091 9.266 2.546 2.696 2.894 0.323 0.139 8.598
C:\MYDOCUMENTS\GJB\NUCINMGT.XLS, EDJ, 8/20/97 - DRAFT
Allocated to sites based on site % of total nuclear category (slow-moving consumables, overstock bulk commodities, etc.)
* Allocate based on % total inventory July 97 (nuclear) excluding shared. BFN 35%, SQN 31%, WBN 32%, HGR 2%
** Allocate based on % total inventory (nuclear) excluding 7300. BFN 34%, SQN 30%, WBN 31%, SHARE 5%
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TVA INVENTORY MANAGEMENT PLAN
($ Millions)
FY 98 FY 99 LONG-TERM (2000-2002)
ITEM NUC F/H TPS DIST FAC TOT NUC F/H TPS DIST FAC TOT NUC F/H TPS DIST
1 1.586 0.902 0.011 0.039 0.003 2.541 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2 2.379 1.934 0.276 0.004 0.000 4.593 0.000 0.000 0.000 0.000 0.000 0.000 1.427 1.160 0.166 0.003
3 1.004 0.615 0.045 0.157 0.039 1.860 2.344 1.442 0.107 0.366 0.081 4.340 0.670 0.410 0.030 0.105
4 1.214 0.588 0.165 0.033 0.000 2.000 1.822 0.870 0.248 0.049 0.000 2.989 1.821 0.875 0.248 0.049
5 0.745 0.652 0.548 0.055 0.000 2.000 1.737 1.456 1.280 0.131 0.000 4.604 0.496 0.422 0.366 0.037
6 1.158 1.082 0.074 0.024 0.000 2.338 1.158 1.082 0.074 0.024 0.000 2.338 2.316 2.165 0.148 0.048
7 0.000 0.000 0.000 0.122 0.000 0.122 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.184
8 0.192 1.960 0.051 0.000 0.000 2.203 0.192 1.960 0.051 0.000 0.000 2.203 2.644 29.410 0.991 0.000
9 0.133 0.044 0.015 0.007 0.001 0.200 0.267 0.088 0.030 0.014 0.001 0.400 1.267 0.366 0.143 0.066
10 0.445 1.089 0.083 0.033 0.000 1.650 0.668 1.633 0.124 0.049 0.000 2.474 2.598 6.411 0.505 0.109
11 0.410 0.380 0.190 0.020 0.000 1.000 0.410 0.380 0.190 0.020 0.000 1.000 0.923 0.855 0.428 0.044
TOTAL 9.266 9.246 1.458 0.494 0.043 20.507 8.598 8.911 2.104 0.653 0.082 20.348 14.162 42.074 3.025 0.645
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TVA INVENTORY MANAGEMENT PLAN
FOSSIL / HYDRO
($ Millions)
FY 99
POOL &
ITEM WCF JOF KIF SHF COF GAF JSF PAF ALF BRF CUF RAC HYDRO RET HED CT TOTAL
1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
3 0.135 0.152 0.159 0.130 0.113 0.064 0.095 0.265 0.042 0.076 0.130 0.028 0.003 0.023 0.020 0.007 1.442
4 0.078 0.042 0.043 0.029 0.112 0.020 0.054 0.151 0.020 0.057 0.172 0.020 0.004 0.066 0.001 0.001 0.870
5 0.185 0.169 0.169 0.160 0.067 0.017 0.038 0.239 0.055 0.041 0.248 0.025 0.004 0.031 0.000 0.008 1.456
6 0.160 0.070 0.055 0.066 0.123 0.012 0.061 0.151 0.026 0.036 0.267 0.018 0.000 0.028 0.000 0.009 1.082
7 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
8 0.300 0.159 0.118 0.135 0.135 0.070 0.074 0.339 0.058 0.071 0.449 0.000 0.000 0.052 0.000 0.000 1.960
9 0.012 0.008 0.006 0.006 0.006 0.004 0.004 0.016 0.002 0.004 0.018 0.002 0.000 0.000 0.000 0.000 0.088
10 0.217 0.126 0.096 0.114 0.109 0.056 0.062 0.274 0.052 0.057 0.333 0.036 0.011 0.059 0.000 0.031 1.633
11 0.051 0.029 0.022 0.027 0.025 0.013 0.014 0.064 0.012 0.013 0.078 0.008 0.003 0.014 0.000 0.007 0.380
TOTAL 1.138 0.755 0.668 0.667 0.690 0.256 0.402 1.499 0.267 0.355 1.695 0.137 0.025 0.273 0.021 0.063 8.911
C:\MYDOCUMENTS\GJB\FHINVMGT.XLS, EDJ, 08/20/97
MATERIALS MANAGEMENT
I t A l i dR ti
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Inventory Analysis and Reporting
INVENTORY STRATIFICATION
INVENTORY VALUE OVERSTOCK SLOW MOVING
SPARE PARTS
TPS $19,053,754.58 $3,992,428.03 $325,815.80
F&HP $117,288,784.83 $22,316,524.46 $42,076,312.17
NUCLEAR $98,979,744.51 $34,209,579.60 $34,638,493.80
DISTRIBUTION $1,617,624.29 $788,807.30 $261,140.35
FACILITIES $0.00 $0.00 $0.00TOTAL $236,939,908.21 $61,307,339.39 $77,301,762.12
BULK COMMOD.
TPS $5,033,132.48 $824,840.91 $552,091.62
F&HP $11,002,436.39 $2,917,841.18 $3,867,663.34
NUCLEAR $15,793,370.95 $6,071,315.40 $4,758,014.48
DISTRIBUTION $542,750.71 $164,058.23 $7,614.97
FACILITIES $0.00 $0.00
TOTAL $32,371,690.53 $9,978,055.72 $9,185,384.41
CONSUMABLES
TPS $304,439.68 $39,649.39 $11,924.90
F&HP $4,103,650.24 $967,722.32 $900,523.55
NUCLEAR $6,695,653.39 $2,559,248.90 $1,586,289.37
DISTRIBUTION $1,044,614.29 $350,055.74 $39,386.18
FACILITIES $252,045.79 $94,312.30 $3,507.54
TOTAL $12,400,403.39 $4,010,988.65 $2,541,631.54
BUS UNITS TOTALS
TPS $24,391,326.74 $4,856,918.33 $889,832.32
F&HP $132,394,871.46 $26,202,087.96 $46,844,499.06
NUCLEAR $121,468,768.85 $42,840,143.90 $40,982,797.65
DISTRIBUTION $3,204,989.29 $1,302,921.27 $308,141.50
FACILITIES $252,045.79 $94,312.30 $3,507.54
GRAND TOTAL $281,712,002.13 $75,296,383.76 $89,028,778.07
NOTE: If you look at the overstock and slow moving (no use in 3 years)
columns, there is an overlap between these two of $18 million.
Therefore, the combined target would be $146,325,162 ($75,296,384 +
$89,028,778 - $18,000,000).
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FY05 Materials Indicators
97,286
9 9 ,0 9 0
9 6 , 0 0 0
9 7 , 0 0 0
9 8 , 0 0 0
9 9 , 0 0 0
1 0 0 , 0 0 0
B UDG ET A CTUA L
T V A N M a r ch 2 005 I n ven t o r y V a l
($000)
Beginning
Balance
Month
Ending
Balance Change
Spare Parts 16,419 19,902 3,483
Consumables 1,055 1,038 (17)
Bulks 2,065 2,162 97
Disposition of Inactive Inventory
Definition: Inventory with no issues or receipts in
3 years or longer
CLOSED WORK ORDER MATERIAL USAGE ($000)
4,828
1,5801,682
2,8813,105
890
2,829
9509661,511
1,783
425
0
1,000
2,000
3,000
4,000
5,000
6,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Material $ Requested Material $ Used
EXPEDITING COSTS ($000)
68
147
1314
326
73
11
4049
264
374329
66
0
50
100
150
200
250
300
350
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep YTD
Total
Cost for Expedited Orders ($000) Cost for Expedited Freight ($000)
In d i c a to r
M o n th l
S u b m it t
M o n th l
C a n c e ll
Y T D $
S u b m it t
Y T D $
C a n c e ll
O v e rm a x 5 0 1 1 8 7 3 , 8 7 9 9 2 9
N e w I t e m s 3 8 6 1 , 2 1 8 2 0 1
T o ta l $ 5 3 9 1 9 3 5 , 0 9 7 1 , 1 3
S IR C L E A D IN G IN D IC A T O R S ($ 0
Indicator Month YTD
Stock Level Reductions at
Reorder ($000) 11 204
Write-offs ($000) 49 214
Due In/ERN Review ($000)
(Cancelled Due In/ERN $) 377 2,402
Shared Inventory (Transfer
Issues) ($000) 96 455
Surplus Material
Redeployment ($000) 317 2,105
SUPPLY CHAIN LEADING INDICATORS:
March2005
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SERVICE OFFERINGSSERVICE OFFERINGS
BENCHMARKINGBENCHMARKING
BILL OF MATERIAL DEVELOPMENTBILL OF MATERIAL DEVELOPMENT
INVENTORY DATA ANALYSISINVENTORY DATA ANALYSIS
PHYSICAL INVENTORYPHYSICAL INVENTORY
SUPPLIER MANAGED INVENTORYSUPPLIER MANAGED INVENTORY
INVESTMENT RECOVERYINVESTMENT RECOVERY
WAREHOUSINGWAREHOUSING
MATERIAL STANDARDIZATIONMATERIAL STANDARDIZATION
PROCEDURE DEVELOPMENTPROCEDURE DEVELOPMENT
INVENTORY OPTIMIZATION MODELINVENTORY OPTIMIZATION MODEL
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Rev. 6/6/05Rev. 6/6/05
INVENTORY
OPTIMIZATIONSUPPLIER
MANAGED
INVENTORY
REVERSE
ENGINEERING
PROCEDURESSUPPLY CHAIN
INVESTMENT
RECOVERY
POOLED
INVENTORY
INVENTORY OPTIMIZATION MODELINVENTORY OPTIMIZATION MODEL
SARBANES
OXLEY
SHARED
INVENTORYMATERIAL
STANDARDIZATION
KPIS
GOALSANALYSIS
RATIONALIZATION
BILL OFMATERIAL