Inventory Management for Bus and Rail Public Transit Systems Final Report (1995) / Chapter Skim
Currently Skimming:
III. ORGANIZATIONAL STRUCTURES FOR TRANSIT SYSTEM INVENTORY MANAGEMENT
III. ORGANIZATIONAL STRUCTURES FOR TRANSIT SYSTEM INVENTORY MANAGEMENT
Pages 13-26
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 13... ...
Formal inventory management function -- inventory management responsibility located in a department other than maintenance, and; Formal inventory management function -- a single dedicated inventory management group at the department level. Each of these organizational structures are profiled below in the context of the organization, inventory management practices, and performance measures utilized by the transit systems examined.
|
From page 14... ...
1 1 1.5 2 11.5 Average Percent Stockouts Per Week 1% 7% .5% .1% 2% Average Percent Safety Stock 22% 25% 19% 14% 17% Percent Setting Target Inventory Levels 38% 83% 56% 78% 69% Percent Setting Target Service Levels 38% 0% 22% 33% 81% Percent Authorimng Direct Purchases 100% 67% 64% 67% 50% Percent with Written Procedures 25% 33% 44% 56% 75% Average Inventory Management Performance Characteristics Organization Category 1 2 3 4 5 Number of Respondents 8 6 36 9 16 Average Bus Inventory Turnover Average Rail Inventory Turnover Bus Inventory Dollar Level Rail Inventory Dollar Level 1.57 1.22 1.61 1.21 2.6 N/A N/A N/A .48 .76 $114,713 $184,611 $733,496 $1,286,254 $9,380,930 N/A N/A N/A $2,368,677 $27,152,955 14
|
From page 15... ...
3.1.1 Organization Profile #1: No Formal Inventory Management Function-Inventory Responsibility is Located in the Maintenance Department Of the five twes of organizational structures identified, only one has no formal structure in ~ cry ~ place for the management of inventory. As shown in Figure 3-1, responsibility for managing, evaluating, and controlling inventory in these agencies rests within the Maintenance Department one hundred percent of the time.
|
From page 16... ...
Slightly more than one-third of these respondents set target inventory levels. Slightly more than one-third of the agencies responding in this category set target service levels.
|
From page 17... ...
3.1.2 Organization Profile #2: Formal Inventory Management Function ~ Inventory Responsibility is Located in a Department Other than Maintenance at the SubDepartment Level As is the case with our first type of organizational structure, all agencies falling into this category are single mode bus systems with fewer than 60 vehicles. However, unlike Category 1 transit systems, responsibility for inventory management is a formal function located outside of the Maintenance Department.
|
From page 18... ...
The median stockout rate for Category 2 transit systems was approximately 3.5 percent. Target inventory levels were set by five of the reporting agencies, however, none of the agencies reported setting target service levels.
|
From page 19... ...
3.1.2.4 Relative Merits The major advantage of this type of organization structure for the management of inventory is the establishment of a formal inventory management function located outside of the Maintenance Department. An independent inventory management Auction provides the most effective option for balancing the conflicting objectives of financial control and material availability.
|
From page 20... ...
Average size of the network is two storehouses. Average stockouts per week are lower than stockout rates for either Category 1 or Category 2 transit agencies.
|
From page 21... ...
Conversely, while bus inventory fill rates average near the bottom of the five profile categories, this may be a reflection of the overall inventory management policy set by the Maintenance Department. 3.~.4 Organization Profile #4: Formal Inventory Management Function-Inventory Responsibility is Located in a Department Other than Maintenance Category.4 organizations average a bus fleet size of 262.5 buses.
|
From page 22... ...
1 Organization The fourth category of organizational profiles includes those transit systems employing a formal inventory management function reporting to a department other than Maintenance. Of the nine transit systems in this category, three report to Materials, three to Finance, two to Administration and one to Purchasing.
|
From page 23... ...
3.~.4.4 Relative Merits Like the organizations profiled in Category 2, the major advantage of Category 4 organizations in managing inventory is the establishment of a formal inventory management function located outside of the Maintenance Department. Unlike Category 2 agencies, however, these agencies' inventory management functions report to a department level, rather than a subdepartment level.
|
From page 24... ...
Inventory turnover for both bus and rail were the lowest for all five organizational types profiled and percent of items out of balance was the highest. However, bus inventory dollars per vehicle and bus inventory fill rates were among the highest of the groups.
|
From page 25... ...
Eighty-one percent' or ~ 3 transit agencies, set target seduce levels. Of interest, is the fact that all transit agencies who set target inventory levels, also set target service levels.
|
From page 26... ...
In the next chapter, we define the inventory management performance indicators commonly used by the public transit industry. Chapter IV also examines the effects of agency and Deet characteristics and presents the values of the performance indicators, based on the survey responses.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.