Month: July 2020

The shortage of maintenance technicians is a problem that is neither new nor one that is easy to solve. In the last 20 years, a number of generational, societal, and economic factors have contributed to this growing concern. That’s the bad news. The good news is there are several feasible solutions that can help solve this dilemma. While it won’t be resolved overnight, progress is being made. Here we will talk about why the problem exists and how to combat the maintenance technician shortage.

Why is there a Shortage of Technicians?

There are several reasons why there is a maintenance technician shortage in today’s industrial environment.

More Soon-to-Be Retirees than New Prospects

One major reason for the technician shortage is that there are more seasoned veterans retiring than there are new, entry-level workers entering the workforce. According to Greg Settle, Director of National Initiatives at the TechForce Foundation, as of 2019, 125,000 positions need to be replaced in the automotive industry alone as experienced technicians retire.

In addition, there is a need to fill countless newly created maintenance technician positions across a variety of industries. Cutting edge technology is making assets more complex, requiring a more diversified skill set. In turn, this creates the need for more specialization, which requires more new job openings. While the new positions are expected to be filled completely by 2022, the number of retirees leaving their roles continues to grow. Statistically, everyone in the baby boom generation will reach retirement age by 2031. As these older workers leave their positions, they take their years of knowledge with them.

College Promoted Over the Trades

For the last few generations, four-year college degrees were promoted over the trades—almost to a fault. Many students were guided to believe that obtaining a Bachelor’s degree was the best and sometimes the only path to a lucrative, stable career. While many careers do require a 4-year degree, many others do not.

This major focus on college programs has led to a generational skills gap, meaning there are fewer individuals in their 20s that possess the skills needed to be successful in these positions. Technical programs focused on training young professionals for jobs such as maintenance technician positions provide the skills needed to build a successful career.

Dwindling Interest

Currently, 46% of organizations that have trouble filling maintenance roles say that it’s due to lack of interest. Because of the way maintenance technician roles were presented to Generation X in their academic careers (as less lucrative and secure than jobs requiring a 4-year degree), interest in this type of position has dwindled significantly. Industries that suffer most from lack of interest in maintenance technician roles include fleet, property management, and automotive. Since these industries tend to offer lower pay than others, it makes it more difficult to attract and retain workers with the right skill level.

Another contributing factor to the lessening interest among some new grads may be outdated and inefficient work environments. While OEM automotive environments are on top of updating manufacturing working conditions, other industries still operate with poorly lit and cluttered workspaces. The workflow is often unorganized due to the placement of workers and machines. Many new workers are not attracted to that type of environment.

Lack of Correct Skill Sets

It’s important to note that rapidly changing technology requires a diversified skill set. Industrial digitization, collection of more data, and equipment with cutting edge technology requires more technical knowledge. Those who have or can quickly obtain these technical skills need to regularly supplement their knowledge and learn new skills to stay current with industry developments. In any organization, there will be employees who are unwilling to put in the effort to learn these new skills. These types of roles (as many others do) also require soft or “people” skills, and 12% of newly available applicants lack these skills.

Tight Budgets

The need for companies to be competitive in their product markets is making it necessary to reduce costs, therefore creating tight budgets for organizations looking to fill maintenance technician positions. Different industries have the ability to offer higher or lower compensation based on product demand—for example, fleet maintenance technicians tend to make more than a technician who works on amusement park rides. It is expected that 74% of businesses will experience a major shortfall of maintenance workers in the next five years, which will result in the loss of millions of dollars. This loss of revenue will make it even more difficult to provide competitive wages for the workers they do hire, thus compounding the problem.

Strained Relationships between Maintenance Managers and Executives

Finally, a common contributor to the problem of technician shortage is strained relationships between maintenance managers and executives. When maintenance managers and technicians feel that they aren’t respected or visible to executive level management, it affects morale and work quality. In many organizations, the maintenance team is almost ignored until there is a problem.

Solutions to Maintenance Technician Shortage

While the problem of the shortage of technicians is complex, there are solutions that, when put in place, will help your organization combat this problem over time.

Invest in Technical Training

An important solution that every organization should implement if possible is technical training. Training should be ongoing because technology continually evolves. There are organizations that offer onsite consulting and training services to modernize maintenance programs, such as implementing Total Productive Maintenance. It’s also crucial to educate your team on software that will help them be more efficient throughout their work day. Modern maintenance training programs will help attract individuals who have newly entered the workforce.

Invest in CMMS Software

Computerized Maintenance Management System (CMMS) software is another solution that combats the technician shortage. CMMS software is a tool that allows fewer technicians to do much more during their workday. Maintenance work completed with the use of maintenance management software is distributed more quickly and accurately. In the long run, it results in less maintenance needed on machines, saving the organization time and money. The monetary savings achieved through the use of CMMS software allows the maintenance team to invest more in the hiring process, training, and on-the-job incentives that will result in better employee retention.

Provide Resources for Completing Certifications

Certifications are geared towards maintenance technicians who are already on the job and seeking to improve their skills. While it is up to your employees to take initiative to improve their skills, a step towards resolving the maintenance technician shortage is to provide your team with resources (work time and tuition funding) to obtain certifications. A few of the most popular certificates for maintenance professionals include:

• Certified Maintenance and Reliability Technician
• Certified Maintenance and Reliability Professional
• Certified Facility Manager
• Certified Plant Engineer

There are also industry-specific certifications technicians can obtain, such as automotive and diesel service technician programs. Some of those are offered through the NADA Foundation.

Partner with Tech Schools for Internships or Apprenticeships

Internships and apprenticeships, which can be obtained through or independent of reputable tech schools, will train new technicians before they begin working full time. Any organization with a maintenance team can partner with these tech schools (or create these opportunities on their own). Developing positive professional relationships with these schools will provide you with additional resources for these programs. Internships are short term, often part-time job opportunities for students that can be paid or unpaid. Apprenticeship positions are always paid, longer term, and almost guarantee a full time role upon completion.

Interview and Offer Consulting Roles to Retirees

When your senior maintenance technicians are preparing to retire, one thing you can do to overcome the maintenance technician shortage is interview these technicians before they leave. Doing so will help you retain the knowledge they have gained about your machines and how to perform specific maintenance work. Here are some things you can ask them about:

• Key people and important documents
• Existing projects and deadlines
• Regular and reoccurring duties
• Summary of their role and responsibilities

After you interview your soon-to-be retirees, you can implement any new knowledge they have provided to improve upon recruiting efforts, training, documentation, and maintenance procedures. Many organizations go beyond a single interview with their employees who are ready to retire, offering them consulting arrangements. These experienced maintenance workers can remain semi-retired while providing longer-term transfer of knowledge to new technicians who join the company.

Provide a Fulfilling, Competitive Work Environment

Finally, one of the most important ways to address the maintenance technician shortage is by providing a fulfilling, competitive work environment. In any job or industry, the key to enjoying one’s job is passion. Employees must be passionate about what they do, and managers must be passionate about mentoring them in what they do.

Monetary compensation is one component that creates a fulfilling environment. For example, using an hourly pay model with production-based incentive may be more competitive in today’s market than traditional flat-rate pay models. That being said, be straightforward with what your compensation and benefits are when recruiting new hires. Other things young workers are looking for in a fulfilling work environment include working with other like-minded people, building their skills regularly, and the sense of having a hand in producing the products that are used every day.

Use FTMaintenance to Combat the Technician Shortage

CMMS software such as FTMaintenance can help your team be more efficient which will ease the problems associated with the technician shortage. CMMS software proficiency is a key part of improving technical training for new maintenance team members, as well as for seasoned technicians who have not used CMMS software in the past.

Using CMMS software will lower maintenance costs. With the ability to track maintenance, labor, and inventory, maintenance managers can pinpoint superfluous costs and make decisions on where they can afford to cut those costs. Maintenance reports give you insight into maintenance-related problems and help you to use data to make decisions. The correct data-driven decisions will positively impact your bottom line. If you need more labor resources, the customized data available in your CMMS system will help justify those needs to upper management. FTMaintenance work orders can broken down into easy-to-understand tasks, which can help less experienced technicians more easily determine what work they need to perform. Additionally, work orders will be distributed and completed more quickly, ensuring that more work gets done in less time, increasing productivity.

To find out how FTMaintenance can help you do all of this and more, schedule a demo today.

Key Takeaways:

• MRO inventory is critical to maintenance operations, yet not managed as closely as other inventory, leading to direct and indirect maintenance costs
• MRO inventory management requires the identification, specification, location, procurement, and control of inventoried items
• Computerized maintenance management system (CMMS) software, like FTMaintenance, is designed to help you effectively manage your maintenance inventory

Maintenance teams depend on hundreds to thousands of different materials and supplies to keep assets running. This type of inventory, known as maintenance, repair, and operations (MRO) inventory, includes spare parts, lubricants, tools, safety gear, and other consumables that do not make it into the final product (or service).

Yet, while 94% of industry professionals view MRO inventory as being extremely or somewhat important, it is typically not managed as closely as production inventory. As one can imagine, poorly managed inventory is a real headache for the maintenance department. This article explains MRO inventory management and how it impacts the maintenance process – and ultimately an organization’s bottom line.

What is MRO Inventory Management?

MRO inventory management, or maintenance inventory management, is the process of procuring, storing, using, and replenishing the materials and supplies used for maintaining assets at the lowest possible cost. This process involves ensuring you have stock on hand while factoring in available storage space and budget. To put it simply, the goal of MRO inventory management is to have the right stock at the right time and place, and at the right cost.

Why MRO Inventory Management is Important

The importance of a properly managed maintenance inventory is fairly clear when you consider all the direct and indirect costs. Consider the following common scenarios:

Production Stoppages

If MRO inventory keeps assets running, what happens when materials and supplies run out? Production screeches to a halt! Meanwhile, you pay a premium for expedited shipping while operators and technicians are on standby, waiting for parts to arrive. This major increase in downtime makes the total repair cost skyrocket. If you simply cannot wait to restore assets, you must use risky stopgap measures that could endanger product quality or safety.

Overstock

Having too much inventory can also be a problem. Perhaps you attempt to avoid stockouts by ordering extra parts, only to find that they are seldom used. Alternatively, maybe you panic-purchased a part you knew you had, but just couldn’t find at the time you needed it. In either case, excess inventory sits on a shelf, further cluttering your stockroom. Even worse, you cannot reclaim the money spent.

Losses in Productivity

Finally, let’s not forget how poor MRO inventory management affects day-to-day operations. By some estimates, technicians spend as much as 25% of their time trying to secure parts. While this may only increase downtime a little bit each time, it quickly adds up. Not to mention, there’s also a fair amount of frustration that goes along with not being able to find a part you need.

To remedy this problem, some technicians create their own “private” inventories of materials in their toolboxes or in desk drawers. Though it may be convenient for the individual, this inventory is not available for other technicians when needed. Due to the inaccurate stock counts, the organization may face production stoppages, overstock, duplicated orders, and other bottlenecks in the maintenance process.

Components of MRO Inventory Management

The core components of MRO inventory management are identification, location, procurement, and inventory control, described below. As you read each section, think about how each resolves the problems stated above.

Identification

Swift, effective maintenance relies on knowing exactly what MRO items are kept in stock in your maintenance inventory. Maintenance teams are often judged based on response time, so being able to quickly identify the materials you need for a job is crucial.

Consider that manufacturers may use different parts in their designs, even for similar types of equipment. It is possible that no two machines may share the same parts or require the same supplies. This reality is even more visible when looking at a supplier’s parts catalog. For example, hardware supplier McMaster-Carr lists over 56,000 different types of fasteners!

Maintenance inventory management can be improved simply by identifying what items are stocked. To further assist with identification on an asset level, maintenance teams reference an equipment bill of materials.

Specification

Related to identification is specification. The specification provides the requirements of the spare parts or supplies to ensure an asset’s proper operation. For example, a standard screw has the following attributes, each of which is considered during an asset’s design:

• Thread size
• Length
• Diameter
• Head type (e.g., socket, rounded, flat, hex, etc.)
• Material (e.g., brass, lead, steel, zinc, etc.)
• Drive style (e.g., Phillips, square, slotted, etc.)

How does this affect maintenance? Part specifications define exactly what is needed for optimal asset performance and dictate the tools used to install or utilize the part. In the case of the screw, it’s more efficient for a technician to know which wrench or drill bit will be needed ahead of time. For items that require specialized tools, technicians benefit by ensuring they are available to be checked out ahead of time.

Specifications are also useful when alternative parts or supplies are needed. Tracking specification helps you identify similar, interchangeable parts. In terms of purchasing and reordering, specifications are used to identify vendors that carry the part.

A third way that specification affects maintenance is organization. A stockroom employee may arrange inventory items by their characteristics, such as size, weight, material, shape, and so on. As you’ll read in the next section, an organized stockroom makes MRO items easier to find for technicians.

Location

Once you know what MRO inventory items you have in stock, you must be able to locate them. As mentioned earlier, poor organization leads to unnecessary costs related to expedited orders or losses in productivity. Knowing exactly where MRO inventory items are stored helps improve responsiveness and allows you to fulfill maintenance work orders more efficiently. Locating inventory comes down to creating an organization system and communicating that system with others.

Organization

Depending on the size of your organization, MRO inventory may be spread out across multiple stockrooms or contained within a single storage location. Within those locations, there may be multiple aisles, racks, shelves, and bins. Technicians may keep a personal stock of items in tool chests or service vehicles. Because there are so many places MRO inventory might be stored, you must have a system for organizing the items.

In a grocery store, for example, aisles are numbered, and related items are typically located together. Ask any store clerk about the location of an item, and they can surely tell you what section and aisle to look in. They may even be able to tell you a more precise location, such as “about halfway down, at eye level,” if not the exact shelf.

Similarly, stockrooms and storage locations ordinarily use a letter or number scheme to organize their aisles, racks, shelves, and bins. Like a grocery store, physical labels are affixed to the location, making inventory items easy to find.

Communication

Once items are organized, you must communicate the organization system to others. Appropriate stakeholders should know exactly how things are organized and understand how to interpret naming or numbering conventions. Locations can also be communicated through a maintenance inventory management system such as computerized maintenance management system (CMMS) software.

Procurement

Procurement is the process of obtaining goods or services, such as MRO inventory items, in a cost-effective and time efficient manner. It includes all the activities that take place from the initial requisition to final payment and receipt of goods. In simple terms, the procurement process is how you acquire the MRO inventory items needed for maintenance jobs.

The level of authority given to the maintenance team to make purchases differs from organization to organization. In general, the procurement process will look similar to the following:

1. Identify MRO Inventory Items Needed: Determine what materials and supplies – and stocking levels – are needed for efficient maintenance activities.
2. Generate Purchase Requisition: Create a purchase requisition that includes details such as what items are needed, the recommended vendor, and the date the items are required. Submit the requisition to for approval.
3. Get Purchase Approval: Submit the requisition for review. The purchaser will assess the requisition for completeness and priority. Assuming that the requisition is approved, proceed with the purchase.
4. Select Vendor(s): Identify the best vendor to fulfill the order requirements. Vendor selection criteria may include price, quantity ordered, speed of delivery, customer service, and prior relationships.
5. Create and Issue Purchase Order: Create a purchase order (PO) and issue to the vendor.
6. Receive Order: When the shipment is received, review the delivery, record the items in the inventory tracking system, and stock the items in the appropriate location(s).

Inventory Control

Inventory control ensures the right amount of stock available to the organization so that maintenance can be performed efficiently. It involves knowing what you have, where it is located, and how much of it is on hand. When combined, this information helps those who manage MRO inventory avoid stockouts and ultimately, costly asset downtime.

On the surface, it may sound like inventory control simply means reordering supplies when quantities are low. However, this is only one aspect of inventory control. Proper inventory control also includes regularly counting stock, tracking usage and movement, and anticipating future demand. When it comes to replenishing stock, you must also think about when to place orders, delivery lead times, available storage space, and ways to minimize ordering costs.

MRO Inventory Management Tools

Due to the relatively lax requirements of managing maintenance inventory (compared to other inventory), MRO management tools are typically less robust. In fact, it is not unusual for small businesses to have administrative staff manually track MRO inventory in spreadsheets. Large organizations use enterprise resource planning (ERP) software, though the MRO inventory management capability is often lacking.

Effective maintenance teams benefit from using computerized maintenance management system (CMMS) software for inventory management. With a CMMS, you can leverage functionality designed specifically to help you manage your maintenance inventory. A good CMMS provides the following:

• Comprehensive inventory records
• Automatic MRO inventory count updates
• Reorder point notifications
• Inventory cost tracking
• Vendor and supplier management
• Purchasing capability
• Inventory-focused maintenance reports

Read Cadeco Industries Case Study

Manage MRO Inventory with FTMaintenance

The disorganization of MRO inventory management means there’s ample opportunity for improvement. In fact, some organizations estimate that proper MRO inventory management reduced their inventory spending by as much as 25%!

With FTMaintenance, you can take advantage of these cost savings while increasing your asset’s availability. FTMaintenance CMMS software helps organizations improve their MRO inventory management processes and procedures. Learn more about FTMaintenance inventory management system software.