What is MRO and Why is it Important?

Any organisation or department involved in procurement needs to have MRO functions. Despite constituting a relatively small portion of the overall procurement budget, they can exert a considerable impact on profitability.

If you are running an organisation that involves the production of goods, then this blog is a must-read for you.

As we mentioned above, MRO is a crucial aspect, but the possibility is there that your business is not paying much attention to it.

As industry experts, we don't want your business to lack in any department. That is why, along with providing services, we always try to guide you so that you can make informed decisions at the right time.

So, let's get started with the basic understanding of MRO, and later on, we will dive to see how it actually helps organisations.

What is MRO?

Imagine yourself amidst the hustle and bustle of your factory floor, surrounded by the rhythmic sounds of machinery and the clinking of tools. Despite the apparent smooth operation, what if we tell you that lurking within your equipment management are hidden inefficiencies?

These inefficiencies could be silently draining your resources, costing you not just time but potentially hundreds of thousands of dollars each year.

MRO, short for Maintenance, Repair, and Operations, encompasses the essential supplies and services vital for the seamless operation of any business. It's a cornerstone across various industries, from manufacturing and construction to healthcare and retail.

From routine maintenance tasks to urgent repairs, MRO encompasses everything your maintenance crew does to ensure the continuous functionality of your equipment. Ultimately, MRO ensures that your business operations flow smoothly, keeping your enterprise up and running efficiently.

Types of MRO

Let's explore the different types of MRO (Maintenance, Repair, and Operations):

• Production Equipment Repair and Maintenance

  : Equipment maintenance is the most important aspect of MRO. These are the factory's workhorses, producing goods every single day. These devices wear and tear with time, just like a reliable horse. Frequent inspections, oil changes (consider lubrication!), and occasionally even significant repairs are required. However, it goes beyond only responding to issues. Transitioning to proactive tactics such as predictive maintenance allows us to predict malfunctions before they occur, reducing downtime and guaranteeing the smooth operation of our production line.

• Material Handling Equipment Maintenance

  : Now, picture all the raw materials, parts, and finished products that need to move seamlessly through the factory. Forklifts, conveyors, and robotic arms are the unsung heroes that make this happen, like a well-oiled ballet behind the scenes. Proper maintenance of these material handling systems is crucial. A malfunctioning forklift can create a domino effect, halting production and costing precious time. Regular upkeep keeps them running smoothly, ensuring a steady flow of materials and a happy production team.

• Tooling and Consumables Management

  : Lastly, let's not overlook the necessary supplies and equipment. These are the safety glasses, screwdrivers, and wrenches that our maintenance staff uses on a regular basis. They resemble that dependable ally who never gets the limelight but is there for you whenever you need them. Our staff will always have everything they need to keep the production operating efficiently if these tiny elements are managed properly. In the overall scheme of maintaining production flow, a misplaced wrench or a missing package of screws can be an annoying obstacle.

• Infrastructure Repair and Maintenance

  : While infrastructure maintenance might not seem as urgent as fixing a broken machine, neglecting it can have a ripple effect. Imagine a leaky roof shutting down production or faulty lighting causing accidents. By prioritising these seemingly mundane tasks, we create a safe and functional environment where both people and machines can thrive.

By taking care of all these different aspects of MRO, we can create a well-oiled machine – not just the literal machines on the production line but the entire ecosystem that keeps the factory running.

Let's delve deeper to understand their importance in more detail.

Why is it Important?

MRO is an essential tool for the procurement process, and if you are operating a manufacturing business, you need to understand its importance.

Because it can help your organisation reduce the costs that your business might face because of failure, let's understand this in detail so you don't miss any opportunity to avail benefits of this service:

• Minimised Downtime and Increased Productivity

  : A well-organised MRO program ensures that your machines and systems run smoothly and reliably. Unexpected downtime, idle workers, and breakdowns can all be reduced or avoided by planning maintenance in between shifts or at the conclusion of production runs. This ultimately leads to higher production rates and increased profits.

• Reduced Costs and Improved ROI

  : When everything at your site is operating at its best, productivity is boosted, and costs associated with unexpected failures are eliminated. Having spare parts, tools, and supplies readily available and organised reduces the time needed for maintenance tasks or repairs, resulting in an improved return on investment (ROI).

• Enhanced Safety and Compliance

  : Many times, we see in manufacturing units employees face accidents that occur sometimes due to old equipment and other reasons. But companies that when assets are well-maintained and work areas are organised, safety hazards are addressed and eliminated. This leads to a decrease in accidents.

• Extended Equipment Lifespan

  : Timely maintenance means the extended lifespan of equipment. Though everything comes with a shelf life, which after that comes to an end, we can increase the shelf life of equipment through timely repair and maintenance.

Summary

MRO is often overlooked but is a key element of doing business. That is why we listed it as important for your business so that you no longer overlook this key aspect.

Managing and reducing MRO expenses can pose a significant challenge for procurement teams. However, dedicating time to developing an MRO strategy can align everyone involved and establish clear benchmarks for improvement. If you're not experienced in this area, don't worry – our experts at Refteck are here to help. Our team members have more than 10 years of experience in the field, which means they can help control costs and lead to significant improvements in efficiency and profitability.