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Service parts management is the main component of a complete strategic service management process that companies use to ensure that right spare part and resources are at the right place (where the broken part is) at the right time.
Spare parts , are extra parts that are available and in proximity to a functional item, such as an automobile, boat, engine, for which they might be used for repair.
Spare parts are sometimes considered uneconomical since:
But without the spare part on hand, a company's customer satisfaction levels could drop if a customer has to wait too long for their item to be fixed. Therefore, companies need to plan and align their service parts inventory and workforce resources to achieve optimal customer satisfaction levels with minimal costs.
The user of the item, which might require the parts, may overlook the economic considerations because:
In many cases where the item is not stationary, a compromise is reached between cost and statistical probability. Some examples:
The effectiveness of spares inventory can be measured by metrics such as fill rate and availability of the end item.
Configuration management (CM) is a management process for establishing and maintaining consistency of a product's performance, functional, and physical attributes with its requirements, design, and operational information throughout its life. The CM process is widely used by military engineering organizations to manage changes throughout the system lifecycle of complex systems, such as weapon systems, military vehicles, and information systems. Outside the military, the CM process is also used with IT service management as defined by ITIL, and with other domain models in the civil engineering and other industrial engineering segments such as roads, bridges, canals, dams, and buildings.
Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well.
The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer, and indicates the options for the customer to make payment. It is also the point at which a customer makes a payment to the merchant in exchange for goods or after provision of a service. After receiving payment, the merchant may issue a receipt, as proof of transaction, which is usually printed but can also be dispensed with or sent electronically.
Service management in the manufacturing context, is integrated into supply chain management as the intersection between the actual sales and the customer point of view. The aim of high-performance service management is to optimize the service-intensive supply chains, which are usually more complex than the typical finished-goods supply chain. Most service-intensive supply chains require larger inventories and tighter integration with field service and third parties. They also must accommodate inconsistent and uncertain demand by establishing more advanced information and product flows. Moreover, all processes must be coordinated across numerous service locations with large numbers of parts and multiple levels in the supply chain.
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most.
Drop shipping is a form of retail business in which the seller accepts customer orders without keeping stock on hand. Instead, in a form of supply chain management, the seller transfers the orders and their shipment details either to the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer.
Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
A wrecking yard, scrapyard or junkyard is the location of a business in dismantling where wrecked or decommissioned vehicles are brought, their usable parts are sold for use in operating vehicles, while the unusable metal parts, known as scrap metal parts, are sold to metal-recycling companies. Other terms include wreck yard, wrecker's yard, salvage yard, breaker's yard, dismantler and scrapheap. In the United Kingdom, car salvage yards are known as car breakers, while motorcycle salvage yards are known as bike breakers. In Australia, they are often referred to as 'Wreckers'.
Reliability engineering is a sub-discipline of systems engineering that emphasizes the ability of equipment to function without failure. Reliability is defined as the probability that a product, system, or service will perform its intended function adequately for a specified period of time, OR will operate in a defined environment without failure. Reliability is closely related to availability, which is typically described as the ability of a component or system to function at a specified moment or interval of time.
Fault tolerance is the ability of a system to maintain proper operation despite failures or faults in one or more of its components. This capability is essential for high-availability, mission-critical, or even life-critical systems.
Integrated logistics support (ILS) is a technology in the system engineering to lower a product life cycle cost and decrease demand for logistics by the maintenance system optimization to ease the product support. Although originally developed for military purposes, it is also widely used in commercial customer service organisations.
Environmental stress screening (ESS) refers to the process of exposing a newly manufactured or repaired product or component to stresses such as thermal cycling and vibration in order to force latent defects to manifest themselves by permanent or catastrophic failure during the screening process. The surviving population, upon completion of screening, can be assumed to have a higher reliability than a similar unscreened population.
An automobile repair shop is an establishment where automobiles are repaired by auto mechanics and technicians. The customer interface is typically a service advisor, traditionally called a service writer.
The Michelin PAX was an automobile run-flat tire system that utilizes a special type of rim and tire to allow temporary use of a wheel if its tire is punctured. The core of Michelin's PAX system is the semi-rigid ring installed onto the rim using special equipment. It provided support to the tire and its sidewall to allow emergency operation at limited speed until such time as the tire can be replaced. Cars that used the system include supercars like the Bugatti Veyron EB 16.4, luxury cars like the Rolls-Royce Phantom, and more common vehicles like the Honda Odyssey and Nissan Quest.
In a manufacturing environment, a request for waiver (RFW) is a request for authorization to accept an item which, during manufacture or after inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use as is or after repair by an approved method.
In the context of libraries and archives, an inventory refers to a detailed list or record of the items, materials, or resources held within a collection.
A spare part, spare, service part, repair part, or replacement part, is an interchangeable part that is kept in an inventory and used for the repair or refurbishment of defective equipment/units. Spare parts are an important feature of logistics engineering and supply chain management, often comprising dedicated spare parts management systems.
Pay on production (PoP) is a special build-operate-transfer (BOT) model, where payment is made to a supplier by the original equipment manufacturer (OEM) per piece produced on the supplier's own equipment by the OEM's employees.
A repair kit or service kit is a set of items used to repair a device, commonly comprising both tools and spare parts. Many kits are designed for vehicles, such as cars, boats, airplanes, motorbikes, and bicycles, and may be kept with the vehicle in order to make on-the-spot repairs. Some are considered essential safety equipment, and may be included survival kits. In the military, personnel crossing large water bodies in aircraft may be equipped with a raft and raft repair kit. Other kits, such as those for watch repair or specific engine components, are used by professionals. Depending on the type, a repair kits may be included when buying a product, or may be purchased separately.