SPARE PARTS

MANAGEMENT
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2.
3.
4.
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6.

INTRODUCTION.
SPARE PARTS PROBLEM.
CATEGORISATSION OF SPARES.
CHOICE OF EQUIPMENTS.
CODIFICATION.
STANDARDISATION.

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13.

SELECTIVE APPROICH FOR COST

REDUCTION TECHNIQUES.
RELIBILITY OF SPARES .
INSPECTION OF SPARES.
VALUE ANALYSIS.
SPARE PARTS PLANNING.
RECLAIMATION.
OVERSTOCKING .

1. INTRODUCTION
Some times ,Machines worth cores of rupees are lying idle
for want of spares. On the other hand items are lying in
the store which perhaps may never be used. Thousands
of cores of rupees are blocked in these obsolete items.
This fact emphasize the need of paying more attention on
management of spares I improvement in the capacity
utilization and then cost reduction can be achieved by
better spare parts management.
Studies have indicate that 40% of total working capital is
tied in spares inventory and out of this about 25% is
obsolete (in terms value).
The objective of spare parts management is to provide
right parts at right time and at the right cost.

2. SPARE PARTS PROBLEM

Requirements of spares are uncertain in
quantity and in time.
It is uneconomical to manufacture the spare
parts as only small number is required.
It is economical to manufacture spare parts
as the original equipment changes its
models very frequently and it is difficult to
procure the spares for that old model
equipment.
The range of spares part is very large.
Cost of spares becoming obsolete is very
high .

 Excessive build up of inventory.

Due to large range of spares parts identification of
spare parts is a real problem.
It is difficult to decide as, how much qty. to kept be
in stock.
Lead time for procurement of spars varies too much
ranging from few minutes to several months
depending upon source of availability .This problem
is major whenever equipment is an imported one.
When equipments are purchased
from different
countries with different specification ,then large
stock of spare parts has to be kept.

3. CATEGORISATSION OF SPARES
Spare parts are generally classified as:
Maintenance spares : These are the
spares which are consumed regularly like
belt, bearings oil seals etc, these spares
should be stocked after building a data
based on the consumption pattern .
Ratable spares: Costly parts like engine
pump. and motors etc. These can be
removed , repaired and kept in stock for
further use and are not thrown in scraps.

 Insurance spares: Vital parts ,which

are normally not
required to be
changed as it has life equal or more
than that of equipment/ machine itself
but to cater for emergency failures,
one standby is required to be kept.
Overhauling spares : These spares
are required to carry out regular
overhauls of the equipments in order
to give a new lease of life to it.

4. CHOICE OF EQUIPMENTS
At the time of ordering the
equipment we see the following
specifications :
Guarantee of spare availability for
at least next 10 years from the date
of purchase.
Know about technical details .
Details about maintenance of the
equipment.
Operators manual.

5. CODIFICATION
Identification of spares part is very important
because very wide range and large number of spare
are required and are available in the market.
1. Rationalized coding helps to avoid these problems.
Give same code for same types of spares .
2. The code may be in numerical ,alphabets ,or both.
3. The digits vary from 1 to ..etc. and these digits
may
be split into group and group indicate
classification
e.g. hard ware, tools , electrical spares ,machinery,
bearing belts.etc.

6. STANDARDISATION
Standardization is helpful to optimize on
the number of spare parts and thereby
reduces the stock level.
For
the
same
value
of
business
standardization reduce number of items
needs to be procured and this lead to
reduction of cost .
Standardization also advantageous due to
the possibility of interchangeability of
part .

7. SELECTIVE APPROICH FOR COST REDUCTION TECHNIQUES

This help to utilize his energy to

problem areas resulting in optimal
use of his effort ,these methods
demand more concentration in areas
of more importance ,while area of
least importance can be left to
supervisory level.
Decision on critical and important
areas are taken ,using various
scientific
decision
making

8.RELIBILITY OF SPARES
Reliability is the ability of an
equipment performing its purpose
adequately for the period intended
under the operating condition.
The determination of reliability value
is a highly mathematical process.
This helps in analyzing spare parts
failure.
Failure may be due to following
reasons:

 Due to wear and corrosion ,which

causes the part to degrade slowly.
Due to sudden failure, wherein some
parts fail at random in an unpredictable
way .
Due to accident ,which are caused due
to human failure.

In order to examine and compare

various failures following details are
required to be collected:
Frequency of failure,
Usage rate,
Environmental condition,
Warranty claims ,
Operators efficiency,
Fault diagnosis etc.

9. INSPECTION OF SPARES

Inspection of spares means to check

the part with the stipulated reliability
and specification on dimension and
metal characteristics, at the time of
accepting the spare in the store .

 Depending on the items and their

use , following test can be carried
out:
a) Hardness
tests
-for
blades
,knives.etc
b) Electric spark test-for checking the
quality of linings.
c) Radiography- for detection of voids
in casting , welding etc.
d) Friction test for various types of
bearing.

10. VALUE ANALYSIS

It is the organized systematic study of functions
of a Material, Component, System or Service to
identify the areas of unnecessary costs which
can be eliminated without affecting its
objective .
Thus it is a tool of management for cost
reduction, improved quality and reliability.
Value analysis ,analyses various values namelyfunction value ( use value) ,esteem value,
exchange value , cost value, time value, place
value and personal value.

11. SPARE PARTS PLANNING

Factors governing spare parts planning:

Usage rate and equipment s life span.
Cost.
Service level.
Standardization of equipment and
components.
Preventive maintenance .
Codification .
Location of project.
Lead time for procurement .
Category of spare parts .

12. Category of spare part .

a) Regularly used spare parts.
b) Limited /Irregularly used spare
parts.
c) Non moving spare parts.
d) Overhaul spares.
e) Insurance spares .
f) Maintenance spares.

13. Procurement of spares

Right time. Procurement should be made
well before it is needed.
Right price. Procurement should be made at
right cost without compromising on quality.
Right quality no wastage of the material.
Right contracts.
Right place of delivery. Probably at the
works.
Right
procedure.
Proper
purchase
procedure should be adopted.

14. After Sales Service

After sale service has great importance in the
field of spare parts management .
This is the most important link in the
relationship between the manufacturer and
the user .
Though it is essential for the manufacturer to
maintain ,rather to improve his image and
reputation in the long run ,to give full
attention for the after sales service .
Through prompt, quality and reliable service
he can win the confidence of the user and
gets and edge over other competitors.

15. Obsolete Spares control.

Following are the main reason for
obsolescence:
Change of technology and thereby a
change in design.
Change in fashion.
Adoption of standardization.
Not paying full attention to initial
provisioning of spares.

 Some time unwanted spares parts

are purchased due to the fear of
funds lapsing .
Improper
material
handling
or
incorrect codification result the spare
parts to remain surplus and will
become obsolete after a few years.
Where usage is very low ,at least one
spare part has to be kept in store
after some times it become obsolete.

16. RECLAIMATION

Common methods for reconditioning

or reclamation of spare parts:
Various welding techniques.
Metal locking/ metal spraying .
Machining oversize and then putting a
liner.
Repair oversize and then putting a liner.
Repair by eutectic welding alloy deposits
on the worn out parts.
Termite welding.
Electro-deposition.

17. OVERSTOCKING
Following are the main reasons
responsible for overstocking :
A)Generally initial stock of spares is
purchased on the recommendation of
original equipment supplier.
Some time suppliers try to push
their idle and slow moving stock
which are not normally required .

B)The accountability of top engineers

of the organization is high which
create tendency to play a safe ,
resulting overstocking .
C)Defective codification cause the
same spare parts to be stocked in
different bins with different
part
numbers.
D)Incorrect assessment of probability
of failure of various spares.

E) Long lead time and the variation in

lead time.
F) Due to the long procedure obtaining
import,
license and availability of foreign
exchange, the tendency is to procure
as much as possible whenever
foreign exchange is available.
G)Non-standard and many makes and
models
of equipments are
responsible for more stock.