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BP Metric 1.4 Stocked Value Per RAV DiStefano 060610E R0 PUB
BP Metric 1.4 Stocked Value Per RAV DiStefano 060610E R0 PUB
A. Definition:
The metric is the value of maintenance, repair and operating materials (MRO) and spare parts
stocked on site to support maintenance, divided by the Replacement Asset Value (RAV) of the
assets being maintained at the plant, expressed as a percentage.
B. Objectives:
This metric allows one to compare the value of stocked maintenance inventory on site with
other plants of varying size and value, as well as to benchmarks. The RAV as the denominator
is used to normalize the measurement given that different plants vary in size and value.
C. Formula:
Stocked MRO Inventory Value per RAV (%) = Stocked MRO Value ($) X 100
Replacement Asset Value ($)
D. Component Definitions
Stocked MRO Inventory Value Current book value of maintenance, operating and
repair materials held in stock at the plant site (including
consignment and vendor-managed stores). Include
value of MRO materials in all stored locations,
including remote stock locations – whether or not that
material is officially accounted for in the inventory
asset accounts, or an allocated portion of pooled spares.
(Try to estimate value of “unofficial” stores in the plant
even if they are not under the control of the central or
formal storerooms and even if they are not “on the
books”). Include estimated value for stocked material
that may be officially held in stock at zero-value
because of various CMMS and/or accounting
idiosyncrasies, etc. DO NOT INCLUDE raw material
or finished goods inventories.
F. Sample Calculation:
If Stocked MRO Inventory Value is $3,000,000, and the Replacement Asset Value (RAV) is
$100,000,000, then the Stocked MRO Inventory Value as a Percent of RAV would be:
Stocked MRO Inventory Value per RAV (%) = Stocked MRO Value ($) X 100
Replacement Asset Value ($)
= [ $3,000,000/$100,000,000] x 100
= 3%
SMRP Metric 1.4 and its supporting definitions are similar or identical to the indicator
E7 in standard EN 15341