Spare parts management

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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.

Strategic service management (SSM) is a business strategy that aims to optimize the post-sales service that a company provides, by synchronizing service parts and resources forecasting, service partners, workforce technicians, and service pricing. Benefits of strategic service management can include:

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.

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 replacement of failed units. Spare parts are an important feature of logistics engineering and supply chain management, often comprising dedicated spare parts management systems.

Boat vessel for transport by water

A boat is a watercraft of a large range of type and size. Ships are generally distinguished from boats based on their larger size, shape, and cargo or passenger capacity.

Engine machine designed to produce mechanical energy from another form of energy

An engine or motor is a machine designed to convert one form of energy into mechanical energy. Heat engines burn a fuel to create heat which is then used to do work. Internal combustion engines are heat engines that burn fuel in a combustion chamber to extract work from the pressure of expanding gases. Electric motors convert electrical energy into mechanical motion; pneumatic motors use compressed air; and clockwork motors in wind-up toys use elastic energy. In biological systems, molecular motors, like myosins in muscles, use chemical energy to create forces and eventually motion.

Economic considerations

Spare parts are sometimes considered uneconomical since:

Inventory goods held for resale

Inventory or stock is the goods and materials that a business holds for the ultimate goal of resale.

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 workforce or labour force is the labour pool in employment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic region like a city, state, or country. Within a company, its value can be labelled as its "Workforce in Place". The workforce of a country includes both the employed and the unemployed. The labour force participation rate, LFPR, is the ratio between the labour force and the overall size of their cohort. The term generally excludes the employers or management, and can imply those involved in manual labour. It may also mean all those who are available for work.

User considerations

The user of the item, which might require the parts, may overlook the economic considerations because:

Cost-effect compromise

In many cases where the item is not stationary, a compromise is reached between cost and statistical probability. Some examples:

Measures of effectiveness

The effectiveness of spares inventory can be measured by metrics such as fill rate and availability of the end item.

See also

Related Research Articles

Configuration management process for maintaining consistency of a product attributes with its design

Configuration management (CM) is a systems engineering 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.

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.

Logistics engineering is a field of engineering dedicated to the scientific organization of the purchase, transport, storage, distribution, and warehousing of materials and finished goods. Logistics engineering is a complex science that considers trade-offs in component/system design, repair capability, training, spares inventory, demand history, storage and distribution points, transportation methods, etc., to ensure the "thing" is where it's needed, when it's needed, and operating the way it's needed all at an acceptable cost.

Point of sale time and place where a retail transaction is completed

The point of sale (POS) or point of purchase (POP) is the time and place where 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 for the transaction, which is usually printed but is increasingly being 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.

Performance indicator

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.

Purchasing refers to a business or organization attempting 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. Typically the word “purchasing” is not used interchangeably with the word “procurement”, since procurement typically includes expediting, supplier quality, and transportation and logistics (T&L) in addition to purchasing.

Wrecking yard

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, breakers 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 dependability in the lifecycle management of a product. Dependability, or reliability, describes the ability of a system or component to function under stated conditions for a specified period of time. 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.

Wear and tear

Wear and tear is damage that naturally and inevitably occurs as a result of normal wear or aging. It is used in a legal context for such areas as warranty contracts from manufacturers, which usually stipulate that damage from wear and tear will not be covered.

Remanufacturing is "the rebuilding of a product to specifications of the original manufactured product using a combination of reused, repaired and new parts". It requires the repair or replacement of worn out or obsolete components and modules. Parts subject to degradation affecting the performance or the expected life of the whole are replaced. Remanufacturing is a form of a product recovery process that differs from other recovery processes in its completeness: a remanufactured machine should match the same customer expectation as new machines.

Integrated logistic support (ILS) is an integrated and iterative process for developing materiel and a support strategy that optimizes functional support, leverages existing resources, and guides the system engineering process to quantify and lower life cycle cost and decrease the logistics footprint, making the system easier to support. Although originally developed for military purposes, it is also widely used in commercial product support or 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.

ISO/TS 16949 is an ISO technical specification aimed at the development of a quality management system that provides for continual improvement, emphasizing defect prevention and the reduction of variation and waste in the automotive industry supply chain. It is based on the ISO 9001 standard and the first edition was published in June 1999 as ISO/TS 16949:1999.

An online marketplace is a type of e-commerce site where product or service information is provided by multiple third parties, whereas transactions are processed by the marketplace operator. Online marketplaces are the primary type of multichannel ecommerce and can be a way to streamline the production process.

A parts locator or inventory locator is a computer program that enables users to locate spare parts or other inventory items in a number of different storage locations, usually of different owners.

Eight dimensions of product quality management can be used at a strategic level to analyze quality characteristics. The concept was defined by David A. Garvin, formerly C. Roland Christensen Professor of Business Administration at Harvard Business School. Some of the dimensions are mutually reinforcing, whereas others are not—improvement in one may be at the expense of others. Understanding the trade-offs desired by customers among these dimensions can help build a competitive advantage.

Repair kit

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.

References

    Notes

    1. SD-19 in conjunction with MIL-HDBK-512, Parts Management guidance
    2. MIL-HDBK-512 handbook is a guide for Military Acquisition Activities (AA) in the preparation of Requests for Proposals (RFPs) with respect to a parts management program, and will help determine to what extent parts management should be for a given program. It will also identify those elements in a proposal to manage the selection and use of parts.