Case Studies/Projects

Spares & Materials Strategy Development: Nuclear Sector

Client – Confidential

Industry – Nuclear

Location – United Kingdom

Year Completed – 2020

Project Summary

A large scale Nuclear facility were looking to address ongoing poor visibility and planning for materials, which was leading to high material management costs and significant amount of obsolete stock being held across various warehousing sites. A core priority for the organisation was to ensure high asset availability to meet stringent safety and environmental requirements.
The basis of the project was to improve stock and spares holding of over £91 million, of which an estimated £53 million of stock was over 20 years old, taking up to about 40% of warehouse capacity.

The Optimal project team undertook a review of organisation’s materials management practices to establish the ‘As is’ state and determined the desired ‘To be’ outcome using major Systems Architecture Frameworks TOGAF 9.2 (The Open Group Architecture Framework) and SAFe (Scaled Agile Framework).

Following the analysis, Optimal delivered a Materials Management Strategy designed to provide:

  • a framework for decision making across the organisation in the short, medium and long term
  • a resource loaded plan to deliver and execute the strategy.

Key Benefits | Outcomes

The project delivered a comprehensive Materials Management Strategy providing the following:

  • Direction to Projects and Operations on the best practice approach for the management of spares and materials
  • Appropriate recognition and management of the risk of equipment unavailability through the identification of critical spares
  • Guidance for ensuring that spares records are kept up to date and master data records updated as new materials requirements are identified
  • Support to the ongoing Obsolescence Management Programme
  • Alignment of objectives between the operations, maintenance and logistics functions
  • Optimisation of the overall cost associated with materials management and effective utilisation of the company’s working capital.

Since the handover of the strategy, client has established the recommended Materials Management Steering Committee through activities of which £14m worth of stock has been identified for disposal, £2.1m of which has been achieved through the first year of strategy implementation. This has helped to free up an estimated 20% of current warehousing space. The committee has also secured buy in for closedown of legacy warehouses and established plans for the fit for purpose stock holding.