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Strategic MRO Stocktaking: MAGNA International Success Story

Driving Maintenance Excellence through Data-Driven Inventory Management

Key Achievements

Our strategic MRO stocktaking and data reconciliation initiative delivered significant measurable improvements for MAGNA International.

Downtime Reduction

Significant
improvement

Substantial reduction in average monthly downtime

Inventory Accuracy

Enhanced
accuracy

Major improvement in inventory data reliability

Cost Savings

Substantial
savings

Reduced emergency orders and optimized inventory levels

Maintenance Efficiency

Notable
increase

Faster parts location and maintenance response time

Executive Summary

MAGNA International, a global automotive supplier with over 158,000 employees and 343 manufacturing facilities worldwide, faced significant challenges with their Maintenance, Repair, and Operations (MRO) inventory management. Inaccurate stock data led to production delays, increased downtime, and unnecessary emergency orders. CPCON GROUP implemented a comprehensive MRO stocktaking and data reconciliation program for a key manufacturing facility, resulting in dramatically improved inventory accuracy, reduced downtime, and substantial cost savings.

Challenges Faced

  • Significant discrepancies between recorded and actual inventory levels.
  • Frequent production delays due to missing critical parts despite system showing availability
  • Excessive emergency orders at premium prices (averaging 14.3% of total MRO spend)
  • Inconsistent inventory management practices across facilities
  • Lack of standardized categorization and naming conventions for MRO items
"The discrepancies in our MRO inventory were causing significant operational challenges. We needed a partner who could not only help us reconcile our data but implement sustainable processes for long-term accuracy. CPCON GROUP delivered beyond our expectations."
— Director of Operations at MAGNA International

Our Approach & Solution

Implementation Timeline

Phase 1: Assessment & Planning

Conducted comprehensive analysis of current inventory management practices across all five facilities. Developed customized stocktaking methodology and data reconciliation plan.

Phase 2: Physical Stocktaking

Deployed specialized teams to conduct comprehensive physical inventory counts using mobile scanning technology. Implemented rolling stocktake approach to minimize operational disruption.

Phase 3: Data Reconciliation

Reconciled physical count data with ERP system records. Standardized part naming conventions and categorization. Identified and resolved root causes of data discrepancies.

Phase 4: Process Implementation

Developed and implemented standardized inventory management processes. Trained staff on new procedures. Established cycle counting program for ongoing accuracy.

Phase 5: Monitoring & Optimization (Ongoing)

Implemented KPI dashboard for real-time inventory accuracy tracking. Established quarterly review process. Continuous improvement of inventory management practices.

Methodology & Process Workflow

Process Workflow Diagram

Data Collection

Mobile scanning technology with barcode/RFID integration for accurate physical counts

Standardization

Unified naming conventions and categorization across all facilities

Cycle Counting

Implemented ABC analysis-based cycle counting program for ongoing accuracy

Results & Impact

Key Benefits Achieved

  • Significant increase in production uptime
  • Substantial reduction in emergency orders
  • Notable improvement in inventory turnover
  • Standardized inventory processes across all facilities
  • Enhanced maintenance team productivity
  • Rapid achievement of return on investment
"The data-driven approach implemented by CPCON GROUP transformed our maintenance operations. We now have complete confidence in our inventory data, which has dramatically improved our planning capabilities and reduced costly downtime."
— Director of Operations at MAGNA International

Detailed Implementation Insights

Project Leadership Team

Tiago Jeveaux

Tiago Jeveaux

Chief Operating Officer

Luiz Monteiro

Luiz Monteiro

Consultant

Cameron Braid

Cameron Braid

Consultant

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