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Houston Chapter SMRP Annual Symposium February 28, 2008 <ul><li>World class spare parts management </li></ul><ul><li>Shobhit Bhutani </li></ul><ul><li>Dell Inc. Maintenance Manager </li></ul>

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<ul><li>Scope </li></ul><ul><li>State of spare parts in industry </li></ul><ul><li>Elements of a world-class spare parts program </li></ul><ul><li>Questions? </li></ul>Agenda

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Scope- Topics not included <ul><li>Human resources and effective people management- Heart of every successful operation </li></ul><ul><li>Equipment Standardization- Cohesive goal of maintenance and engineering organization </li></ul>

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State of spare parts in the industry <ul><li>Often ignored part of maintenance </li></ul><ul><li>No faith on the spare parts personnel </li></ul><ul><li>Cubby holes of spare parts spread all over the field- technicians’ cars, field, near equipment & the stockroom </li></ul><ul><li>Spare parts- an afterthought of project work </li></ul><ul><li>Insufficient infrastructure investment </li></ul><ul><li>Time & management oversight required for a successful spare parts program </li></ul>

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Desired State <ul><li>Transactional accuracy </li></ul><ul><li>Reliable & dependable- 1 central repository or controlled secondary repositories </li></ul><ul><li>Predictive </li></ul><ul><ul><li>spare parts requirements planned in advance </li></ul></ul>

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Elements of a world-class spare parts program Dell Confidential World class Storeroom Processes CMMS- Maintenance & Engg. integration High Spare parts Availability “ Right parts in the right place at the right time with optimum inventory”

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High spare parts availability-1 <ul><li>(#of transactions in which spares not available)*100/ (Total number of transactions) </li></ul><ul><li>High availability should be goal if downtime costs outweigh spare part costs </li></ul><ul><li>More onsite parts = More $ = Less Risk </li></ul>

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High spare parts availability-2 <ul><li>2 Key steps </li></ul><ul><li>Control Introduction of new equipment and spare parts - Engineering Change Control process incorporates spare parts </li></ul><ul><li>Perform spare parts gap analysis on Each unique piece of equipment </li></ul><ul><ul><li>List of spares reviewed by technicians </li></ul></ul><ul><ul><li>Purchase of missing parts- $ spend based on downtime risk </li></ul></ul>

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High spare parts availability-3 <ul><li>Established equipment spare parts guidelines </li></ul><ul><ul><li>BOMs, drawings, minimum spare parts required at install etc. </li></ul></ul><ul><li>Establish templates </li></ul><ul><li>Spare parts description (nomenclature) standardization </li></ul><ul><li>Equipment type standardization </li></ul>

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CMMS-Maintenance & spares integration-1 <ul><li>Heart of maintenance </li></ul><ul><li>Spare parts integrated with work requests </li></ul><ul><li>Visibility to BOMs & drawings of equipment –procuring non available parts </li></ul>

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CMMS-Maintenance & spares integration-2 <ul><li>Sample CMMS spare parts report and benefits </li></ul><ul><li>Usage tracking of spare parts </li></ul><ul><li>Rootcause analysis </li></ul><ul><li>Unit spare parts usage & cost of unit piece of equipment </li></ul><ul><li>Base information for prediction of spare parts usage modeling </li></ul>

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CMMS-Maintenance & spares integration-3 <ul><li>Improved MTTR </li></ul><ul><li>Base of Transactional Accuracy </li></ul><ul><li>CMMS spare parts view </li></ul><ul><ul><li>Detailed Catalogue </li></ul></ul><ul><ul><li>Integrated with Work orders </li></ul></ul><ul><ul><li>Exploded view of equipment assemblies </li></ul></ul>

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World-Class Storeroom Processes-1 <ul><li>“ Audit & verify processes” </li></ul><ul><li>Right parts in right locations. </li></ul><ul><li>Correct stock levels minimum stocked quantity & ordering quantities </li></ul><ul><li>Adequate stocking locations </li></ul><ul><li>Inventory accuracy periodic cycle counting </li></ul>

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World-Class Storeroom Processes-2 <ul><li>Storeroom metrics- Periodic reviews </li></ul><ul><ul><li>$, usage, red flags </li></ul></ul><ul><ul><li>Availability </li></ul></ul><ul><ul><li>Shrinkage (lost parts) </li></ul></ul><ul><ul><li>Stockout % (parts not available) </li></ul></ul><ul><li>Rootcause fixes if issues discovered </li></ul><ul><li>Min stock & ordering qty determined for each part. Take assistance from statistical models </li></ul><ul><li>Perpetual ordering of parts based on min stock Below min stock report </li></ul>

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World-Class Storeroom Processes-3 <ul><li>Centralized location </li></ul><ul><li>Controlled access </li></ul><ul><li>Labeled shelves & bins </li></ul><ul><ul><li>Open Shelves - non-controlled parts </li></ul></ul><ul><ul><li>Pallet racking - Heavy items </li></ul></ul><ul><ul><li>Automated Carouse - Fast movers and controlled items </li></ul></ul>

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Open Shelving Binstock parts- nuts, bolts, etc. Fasteners, Tools etc.

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Pallet Racking Storage

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Automated Storage Carousel

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<ul><li>QUESTIONS? </li></ul>

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<ul><li>BACKUP </li></ul>

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Spare parts engineering template

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Standardized Part Description – Standard Commodity+ Unique Modifier 50 standardized Commodities

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Unique Modifiers for each commodities

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Descriptions Before and After <ul><li>METROLOGIC SCANNER </li></ul><ul><li>SCANNER - FIXED - LASER - METROLOGIC - METROLOGIC IS775-51 </li></ul><ul><li>SEW-MAIN LINE MOTOR-W20DT71D4BMG05HR 1/4HP-87 RPM-3/4&quot; Hollow Shaft W/230V Brake </li></ul><ul><li>MOTOR - GEARBOX - COMBO - 1.5HP - 230/460V - 2A - 1700:87RPM - 3/4&quot; Hollow Shaft W/230V Brake MOTION INDUSTRIES W20DT71D4BMG05HR </li></ul><ul><li>SOLENOID SMC SY3240-5LOZ </li></ul><ul><li>SOLENOID - VALVE - 24VDC - 0.1-0.7 AMPS - SMC - SY3240-5LOZ </li></ul>

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Sample of future catalog vision Dell Confidential

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Exploded View sample Dell Confidential

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Reorder point analysis using lead time and usage Dell Confidential

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References and Bibliography <ul><li>Brown, Michael V. Managing Maintenance Storerooms , ISBN 0-7645-5767-X </li></ul><ul><li>Patton & Feldman Service Parts Handbook, ISBN 0-934623-73-2 </li></ul><ul><li>Mobray, John. Reliability Central Maintenance , ISBN 0-8311-3044-x, Industry Publications, 1992. </li></ul><ul><li>Society of Automotive Engineers Reliability, Maintainability and Supportability Handbook , ISBM 1-56091-244-87 SAE 1992. </li></ul><ul><li>Automated Carousel units </li></ul><ul><li>http://www.donnegansystems.com/Automated_Storage_Products.html </li></ul><ul><li>Pallet Racking </li></ul><ul><li>http://www.cisco-eagle.com/storage/rack/Palletrack/rack%20styles.htm </li></ul>