The Tragedy of the Commons
Imagine you were a rancher with a herd of cattle and a small field in which to graze them. One of your primary concerns include determining how many cattle the field could support. With too few cattle, you give up potential earnings that the field could readily sustain. But too many cattle consume the grass faster than the field could replenish it, resulting in malnourished cattle and degraded land quality.
Therefore, as a rancher with long-term prospects, inspecting and maintaining the field, planting new grass, and limiting the number of new cattle in the field all become a cornerstone of your business model. [Read more…]
You begin your day by looking for a part in the storeroom. You are looking for a common bearing used on multiple pieces of equipment on the site. You look up the part in the CMMS and it does not have a bin number associated with it. You walk into the storeroom and beginning going through the “bearing section”. Only the bearing is not there. You wander over the equipment section and find it buried in the equipment specific drawer, but you know that it is used elsewhere. Is this the best way to organize materials, by equipment? 
How often does your facility run out of raw materials? Chances are it is not very often, if ever. Why is this? It may be because the organization has invested heavily in gathering the right data, analyzing and developing contracts for the materials. This prior work ensures a steady supply of materials.