Machine shop supervisors at StreamFlo Industries knew there had to be an easier, less time consuming way to keep track of tool inventory and replenishment. For this oilfield production equipment manufacturer too much time was spent on these tasks instead of more productive things. They needed to make a change.

Toolcrib managers at the Edmonton, Alberta, Canada, company had been keeping up with tool issues and returns by entering them in a log book, handwriting purchase orders, and regularly sifting through all that information to create reports that upper management wanted. They spent considerable amounts of time sorting through POs to find out previous costs and lead times.

StreamFlo began looking for an inventory tracking system to solve these difficulties. Managers wanted a system that could track some 2,400 frequently used items in the toolcrib. The system would also have to take over much of the work of producing purchase orders, identifying places where costs were too high, and providing fast and informative reports.

StreamFlo chose a complete inventory management system that enables manufacturers to take control of their toolcribs. It provides inventory tracking, purchasing, and reporting capabilities. And it increases efficiency by using bar code technology coupled to radio frequency data communications (RFDC).

"It's control in the sense that we know right now where our consumables are going instead of just issuing them to people and not knowing," says Les Kibler, manufacturing purchasing exec at StreamFlo.

Toolcrib items are issued using the RFDC bar code scanner, which talks to the system in real time. Every transaction is immediately tracked by the system. "We also use the scanner to simplify our inventory cycle-counting process," explains Kibler.

The system accommodates StreamFlo's practice of considering the vast majority of its tools expendable. When items are issued, they go to a machine, rather than to a person. The tools stay with the machine for the life of the tool. As a result, 96% of the transactions StreamFlo makes using the inventory system are considered expendable.

Although they are expendable items, certain inserts can be costly and need to be controlled. "When we used to count our inventory, we would sometimes find $200 to $300 worth of inserts sitting next to a machine. Now when we take inventory, we find this (happens) to a much lesser degree. Our employees know we have greater control," says Kibler.

The new system gives StreamFlo knowledge of what is in the toolcrib at any given time, as well as what needs to be ordered. The program calculates order points and order quantity for each item, and generates purchase orders either automatically or manually.

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