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World class factory equipment spare parts program

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This deck gives an overall view and the elements of what a World class factory equipment spare parts program looks like. Was presented at the 2007 annual symposium of the Houston chapter of the Society of Maintenance and Reliability Professionals.

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World class factory equipment spare parts program

  1. 1. 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>
  2. 2. <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
  3. 3. 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>
  4. 4. 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>
  5. 5. 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>
  6. 6. 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”
  7. 7. 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>
  8. 8. 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>
  9. 9. 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>
  10. 10. 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>
  11. 11. 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>
  12. 12. 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>
  13. 13. 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>
  14. 14. 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>
  15. 15. 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>
  16. 16. Open Shelving Binstock parts- nuts, bolts, etc. Fasteners, Tools etc.
  17. 17. Pallet Racking Storage
  18. 18. Automated Storage Carousel
  19. 19. <ul><li>QUESTIONS? </li></ul>
  20. 20. <ul><li>BACKUP </li></ul>
  21. 21. Spare parts engineering template
  22. 22. Standardized Part Description – Standard Commodity+ Unique Modifier 50 standardized Commodities
  23. 23. Unique Modifiers for each commodities
  24. 24. 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>
  25. 25. Sample of future catalog vision Dell Confidential
  26. 26. Exploded View sample Dell Confidential
  27. 27. Reorder point analysis using lead time and usage Dell Confidential
  28. 28. 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>

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