Evaluating effective spare-parts inventory management for equipment reliability in manufacturing industries

The spare part management function is critical from an operational perspective especially in asset intensive industries such as refineries, chemical plants, paper mills, automotive manufacturing, and oil mills.Given the determinants like demand, unpredictability, part substitution, and tight control on spare parts inventory coupled with high service level expectations; the exigency of spare parts management in manufacturing operations cannot be underrated.In most organizations, a constant scrimmage persists over the stocking, ordering, and maintaining of products required by maintenance and operations. The Materials Management and Purchasing functions are often vied against Maintenance, Facilities, Engineering, and Operations with respect to; the number and types of stock keeping units, capital and critical spares, obsolete inventory, inventory investment, and turnover and program operation. This paper evaluates best practices in the Maintenance Repairs & Overhauls, discusses the ABC classification scheme, and elaborates on the role of maintenance storeroom as service provider

Maintenance spare parts planning and control : a framework for control and agenda for future research

This paper presents a framework for planning and control of the spare parts supply chain in organizations that use and maintain high-value capital assets. Decisions in the framework are decomposed hierarchically and interfaces are described. We provide relevant literature to aid decision making and identify open research topics. The framework can be used to increase the e??ciency, consistency and sustainability of decisions on how to plan and control a spare parts supply chain. Applicability of the framework in di??erent environments is investigated

A Method to Improve the Sustainment of Systems Based on Probability and Consequences

The FROST Method is presented which improves the efficiency of long-term sustainment of hardware systems. The FROST Method makes sustainment and scheduling decisions based on the minimization of the expected value of current and future costs. This differs from current methods which tend to base decisions not on the expected value of costs, but on the expected inventory demand found through projections using data which is often inaccurate. Distributions are used to account for randomness and inaccuracy in inputs such as failure rates and vendor-claimed dates for end of production. A Monte Carlo technique is then used to convert these distributions into a statistically relevant set of possible futures. Finally, these futures are analyzed to determine what combination of actions will result in the system being sustained for least cost. Simulations show that, for a realistic range of system parameters, the FROST Method can be expected to reduce the cost of sparing and sustainment engineering between 21.1% and 69.1% depending on the situation, with an average of 43.6%. Implementation involves a slightly increased burden over current methods in terms of the amount of data that must be collected and provided as inputs

A review of asset management literature on multi-asset systems

This article gives an overview of the literature on asset management for multi-unit systems with an emphasis on two multi-asset categories: fleet (a system of homogeneous assets) and portfolio (a system of heterogeneous assets). As asset systems become more complicated, researchers have employed different terms to refer to their specific problems. With an objective to facilitate readers in searching conducive studies to their interests, this paper establishes a novel classification scheme for multi-unit systems in accordance with essential features such as diversity of assets and intervention options. Moreover, discerning differences in characteristics between cross-component and cross-asset interactions, we select three types of potential multi-component dependencies (performance, stochastic, and resource) and extend their notions to be applicable to multi-asset systems. The investigation into these dependencies enables the identification of problems that could exist in real industrial settings but are yet to be determined in academia. Ultimately, we delve into modelling approaches adopted by previous researchers. This comprehensive information allows us to offer the insights into the current trends in multi-asset maintenance. We expect that the output of this review paper will not only stress research gaps on multi-asset systems, but more importantly help systematise future studies on this aspect

RFID in the supply chain: lessons from European early adopters

Purpose Radio frequency identification (RFID) is increasingly being presented as a technology with the potential to improve supply chain performance, but empirical evidence from early adopters is sparse. This paper aims to rectify this scarcity and contribute to a more informed discussion in and between academic and practitioner communities. Design/Methodology/Approach The paper is based on a conceptual model of factors influencing the success of adoption efforts. It then reports the results of a survey of 612 European supply chain managers, focusing on the 128 respondents who have begun RFID trials. Findings A significant influence on operational deployment is the presence of mandates from key customers requiring the technology’s use. Customer mandates also impact the anticipated benefits of a faster sales cycle and of enhanced systems integration, though the relationships are complex. By contrast, greater cost reduction benefits are anticipated in two industries where mandates are less common – industrial goods and logistics. Perceived organizational innovativeness positively impacts anticipated ROI from RFID. Companies adopting a ‘slap and ship’ approach are less likely to anticipate pricing benefits than those integrating RFID into enterprise systems Research Limitations/Implications The limitations of the paper include the limited sample size of early adopters. In addition, qualitative research is needed into RFID supply chain applications and into different approaches to IS integration of RFID, to inform future survey work. Practical Implications This paper informs supply chain managers and senior decision makers who are examining the potential of RFID technology. It offers guidance on what issues to look for when adopting this technology, approaches to take and the benefits that might be accrued. Originality/Valuer This paper offers a major contribution to understanding the current status of the adoption of RFID in European supply chains. This understanding is put in the context of the wider literatures on supply chain management and the adoption of information systems and te

Using a Novel Hierarchical Coloured Petri Net to Model and Optimise Fleet Spare Inventory, Cannibalisation and Preventive Maintenance

Spare part availability is crucial to restoring inoperative platforms to the working state. Platforms failing during operation undergo corrective maintenance to replace failed components with spares. To reduce the frequency of this unplanned, corrective maintenance, platforms are inspected periodically and degraded components preventively replaced. Maintenance delays occur when spares are unavailable but cannibalisation can reduce these delays by allowing working components to be removed from inoperative platforms and used to restore other inoperative platforms. Fleets can be deployed across multiple bases that are served by one or more depots. Failed components that cannot be repaired at a base are sent to a depot for repair, along with associated requests for spares, which are satisfied by depot inventories.The management of fleet corrective and preventive maintenance, cannibalisation, spare inventories, provision of spares to bases and depots, and response of the depot to spare requests is a complex problem for fleet maintenance managers and critical to ensuring acceptable fleet performance. This paper presents a novel hierarchical coloured Petri net (HCPN) model of a fleet spare inventory system, which accounts for these issues alongside fleet deployment and mission-oriented operation. The application of the model is demonstrated using case studies of two example fleets

Spare parts planning and control for maintenance operations

This paper presents a framework for planning and control of the spare parts supply chain inorganizations that use and maintain high-value capital assets. Decisions in the framework aredecomposed hierarchically and interfaces are described. We provide relevant literature to aiddecision making and identify open research topics. The framework can be used to increasethe e¿ciency, consistency and sustainability of decisions on how to plan and control a spareparts supply chain. This point is illustrated by applying it in a case-study. Applicability of theframework in di¿erent environments is also investigated