PRISM (Programmed Review on Inventory and Spares Management), is an analytical tool for inventory optimization and defining norms for spares and consumables. PRISM will suggest the desired service levels required for items.

This solution analyzes the past inventory values and calculates the inventory values by applying standard tools and techniques related with standard formulae. The base data could be keyed-in, uploaded through MS excel in to the solution. The Material Code, Material Description, UOM , Unit Price, Stock on Hand, Procurement Lead time, Equipment Criticality, Equipment details with Bill of Material, Annual Consumption value (5-7 years)are the base data required to analyse.

The given Inventory Master data, with the derived data using industry standard formulae, and the configured parameters in the tool are used to result in Inventory values like the Economic Order Quantity, Reorder level, Reorder Quantity, Maximum stock, Minimum stock and Safety stock. The data elements could be feed in at one short and the results could be received. Alternatively, the solution could be interfaced with nay ERP to have the timely data like the consumption data (issues / receipts), average unit price and stock on hand, so that the inventory values could be viewed anytime, whenever required from the Tool. Further to the live data, the parameterized values are lead time, service level, spare carrying cost and spares buying cost.

Items that exhibit a majority of the below characteristics are classified as Insurance spares