MRO stands for Maintenance, Repair and Operations, but what does that really mean?
Maintenance, Repair and Operations, or MRO, is a commonly used phrase in many industries and manufacturing settings. Knowing what the acronym stands for, however, is not the same as knowing what is means. This article is here to bridge that gap.
In terms of procurement, MRO typically sits within the Indirect category and refers to the items and equipment required for production processes or facilities to work but not in the final product. In a food manufacturing plant, for example, MRO procurement refers to supplies needed for the machinery, maintenance and employee safety, but not the raw materials. The tools and parts needed to repair a piece of broken equipment are MRO supplies; ingredients such as flour and yeast are not.
This distinction explains why the provision of MRO items is also referred to as indirect procurement. It also illustrates how widespread MRO is. Maintenance and repairs of some kind are a feature of almost all businesses, whatever the context or size of the organisation.
From private manufacturing operations to public sector bodies such as the NHS, MRO management is required – and if MRO is poorly managed, it can cause significant harm to a business by bringing key functions to a standstill.
Reactive maintenance
Reactive maintenance is what typically comes to mind when lay people think of maintenance and repairs: an operative or engineer coming to the rescue when an essential bit of industrial equipment stops working. Unfortunately, many businesses still rely heavily on this approach, which causes problems.
It may not be possible to completely eliminate unexpected breakdowns and breakages, they do need to be kept to a minimum. Why? Because corrective maintenance often means part, or all, of the production process will be held up – and every minute of downtime means money. According to research by RS and the Chartered Institution of Mechanical Engineering, maintenance engineers spend an average of 20 hours per week on unscheduled maintenance at an average cost of over £100,000.
A good MRO strategy can help to minimise this downtime and disruption. Having quick access to commonly used items, including parts and personal protective equipment helps, whether such inventory is held on site or available from a third-party MRO supplier. RS, for example, offers a range of on and off-site inventory management solutions such as RS ScanStock®. You choose the products and the stock levels then leave the monitoring and replenishment to RS – and your team to get on with their job.
Preventative maintenance
Another way to reduce the downtime and disruption caused by equipment failure is to move away from purely reactive maintenance and towards a more preventative approach. Looking out for potential problems and early-warning signs then arranging repairs, replacements and upgrades during planned downtime means less interruption to a production line and greater business continuity. Preventative or proactive maintenance can mean less costly repairs and improvements in the future too.
Preventative maintenance can be as simple as ensuring that any changes in how a piece of machinery is running, such as increased vibration or noise, are investigated. Establishing a maintenance schedule that allows machinery and equipment to be inspected for wear and tear, and treated accordingly, at a time when they aren’t required for business continuity can help too.
Industry 4.0, and with it the Internet of Things for Industry (IIoT) and smart digital technologies, means preventative maintenance can even become predictive maintenance. The right sensor, for instance, can give operatives an early-warning sign – thus an essential repair can be undertaken before the equipment grinds to a halt and disrupts the whole site.
MRO: more important than ever
The multiple crises that have disrupted supply chains during the first part of the 2020s have highlighted why good management of indirect procurement inventory levels is essential – and reinforced just how business critical MRO is. Those responsible for MRO, of course, knew this all along.
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