EFFECTIVE SPARE PARTS MANAGEMENT REDUCING COST THROUGH OPTIMIZED SPARES INVENTORY

INTRODUCTION FOR EFFECTIVE SPARE PARTS MANAGEMENT REDUCING COST THROUGH OPTIMIZED SPARES INVENTORY

Spare parts management is a critical key functions in physical asset management. The availability of spare parts for maintenance and repairs is crucial for the uptime and effectiveness of assets, but high spare parts availability comes at a cost. The challenge is to effectively balance spare parts availability, working capital and operational costs. effective spare

Spare parts inventories can soon add up to tens of thousands of various items in a value of hundreds of millions RM. It is obvious that efficient spare parts inventory management can bring significant economies in operational costs. effective spare parts

COURSE OBJECTIVE

• Why we waste money purchasing the wrong spares
• Our inventory costs are extremely high, and we have no way of understanding how to rationalize them
• We have no visibility on what we hold vs what we need to stock
• We do not have the time or resources available to build accurate BoMs
• Outdated spares are being held for equipment that has been modified, upgraded, or disposed of
• We waste time and money sourcing the correct parts due to free text requests being made in the CMMS
• We can’t source the spares we need due to obsolescence
• We have no visibility on the make, model and manufacturer information
• Spare parts are not being preserved correctly, inducing premature failure post installation
• We lose sight of the location of spares

COURSE CONTENT

Module 1: Introduction to Spare Parts Management

• What is SPM?
• Why manage spare parts
• What is a spare parts?
• When a spare part is required
• Understanding the description including the size and type
• Holding Type Costs
• Staffing costs and staffing levels

Module 2: Managing Inventory-Related Costs

• Ordering
• Holding
• Human resources
• Parts issuing
• Parts receiving
• Parts returning
• User considerations
• Measure of effectiveness
• Parts requisitioning/purchasing
• Access to stores
• Spare parts inventory
• Physical inventory
  • Cycle count
  • 100% count
  • Stock-out

Module 3: Maintaining Spare Parts Stock

• Maximum stock
• Minimum stock
• Lead time
• Safety stock
• Re–order point
• Economical order quantity
• Obsolete rate
• Inventory monitoring
• Successful spare parts management,
• Commonly used inventory analyses
• Development of inventory control systems

Module 4: Best practices in Storeroom organization

• Parts bin locations
• Vertical storage
• Open racks
• Closed cabinets
• Format numbering
• Centralized vs. Satellite Stores
• Parts issuing areas
• Parts receiving areas
• Housekeeping and parts cleanliness
• Vending machines
• High density store

Module 5: Inventory Optimization

• Duplicate parts
• Parts movement
  • Fast
  • Slow
  • No
• Obsolescence
• How to identify
• Managing

Module 6: Establishing Spare Parts Criticalities

• What is spare parts criticality
• How to set component criticality
• Establishing visual set up
• Insurance policy
• Cost Effect Compromise
• Measure Parts Effectiveness
• Improve Parts Life
• Parts Obsolete Rate

Module 7: “Spare Part Usage” Cost Reduction Repair and spares workshops

• Develop spare part usage record
• Usage analysis
• Establish failure consequences
• Improve “parts” life
• Reduce spare parts cost
• Spare parts inspection
• Reconditioning of spare parts
• Reducing Spare Parts Cost
• Education and Training

Module 8: Why Use Maintenance Software for Spare Part Management?

Computerised Spare Parts Management

• What is CMMS
• Use CMMS trends to set reorder levels.
• Utilize stock counts in event of discrepancies.
• Perform regular reviews of critical spare parts.
• Find out how many parts of each type you will need for preventive maintenance in the future.
• Can review work orders reports to identify parts that fail frequently.
• Can associate parts & supplies with equipment.
• Specify reorder levels when to restock items.
• Will have parts usage and inventory reports.
• Selection of right CMMS