Optimise your spare parts holdings

Balance the costs of stock-outs and inventory holdings.

Optimising spare parts holdings is one of the most common opportunities in many organisations. Holding too many spare parts is an unnecessary waste of money, but not having spare parts when you need them can result in expensive downtime. Determining the optimum stock levels involves understanding and balancing the total costs and risks associated with spare parts stock-outs against the costs associated with holding inventory.

Frequently, however, we find that there is low hanging fruit to be gathered before needing to use optimisation algorithms and tools. A quick review of spare parts inventory often reveals duplicate items in the spare parts catalogue, spare parts being held for equipment that is no longer installed or in use, and stocked spare parts that are in such poor condition that they could not be used. Tackling these issues often offers huge return for effort.

Traditional algorithms for determining spare parts holdings assume random, independent, demand for spare parts items. This errs on the side of conservatism, and generally overestimates the requirement for spare parts holdings. However, the demand for most maintenance, repair and operating spare parts is far from random and is often predictable. The key to understanding the extent to which the demand for parts is predictable lies in understanding the predictive and preventive maintenance program that drives the demand for those spare parts.

How we can support you

Our consultants understand leading-edge maintenance and inventory management practices. Using our inventory optimisation tools and algorithms, we will work closely with your supply and maintenance personnel to ensure that stock levels are optimal.

We can assist you to optimise your spare parts holding by:

• Establishing an accurate spare parts catalogue
• Ensuring that spare parts that are catalogued are linked to equipment bills of materials and parts lists
• Ensuring that naming and numbering conventions used for spare parts allow end-users to find the spare parts they are looking for quickly and easily
• Analysing and inspecting spare parts holdings and identifying duplicate, obsolete and unusable stock
• Helping to establish appropriate spare parts preservation and care practices
• Applying appropriate algorithms and tools to optimise spare parts holdings

Our maintenance management training courses

Do you need to expand the spare parts management of your team? Our training courses are run throughout Australia and online, and offer a comprehensive, practical overview of maintenance best practices.