Spare parts are a cornerstone of machine maintenance. Every manufacturer has at least some stock of parts on hand, ensuring that they’re able to provide repairs or maintenance to critical machinery as needed. But there’s much more to spare parts management than simply having a gamut of parts available.
Managing spare part inventories is actually very difficult, especially as the number of inventoried parts grows. Concerns arise over costs tied up in unused parts, ordering and inventorying logistics, parts becoming antiquated, parts that are over- or under-ordered based on demand, and more.
Too often, spare parts management becomes an issue affecting more than just a single machine or part. The solution to preventing spare parts management problems from snowballing into bigger difficulties comes in the form of leaner management.
A look at lean methodologies
Gathering data about inventoried parts and their usage paves the way for understanding how to improve management. A few of the simplest lean-inspired practices to adopt include:
- ABC inventory management helps determine critical need for spare parts. Stock essential A items at all times, dedicating as much as 20% of your spare parts inventory to them. B items should encompass about 30% of your stock. They aren’t mission critical but should be on hand to mitigate lead times and ordering delays. C items are trivial or non-critical and should represent 50% of your spare parts inventory but only about 5% of total inventory value.
- Vendor-managed inventory (VMI) eliminates in-house costs by passing spare parts management back to vendors. Understanding different vendor supply capabilities helps reduce in-house inventory demands and may even lead to stronger working relationships with original equipment manufacturers (OEMs).
- Routine and critical maintenance affords managers the ability to plan ahead for spare parts, cutting back on loose inventory. Better foresight reduces the scope of inventoried parts to only essentials. Managers order maintenance components only as needed.
- Automated inventory tracking systems provide keen, up-to-the-minute tracking capabilities for spare parts. Managers can run reports on existing inventory to see what’s on hand versus ordering needs, as well as what costs are currently tied up in inventory.
- Comparing inventory costs to downtime allows executives to see the opportunity cost of inventorying parts. Stacking up the cost of downtime versus the cost of static inventory translates the decision to inventory certain parts into real dollars.
Each lean methodology lends itself to the overall larger goal of driving down inventory management headaches — from lowering costs to anticipating better parts usage.
Inventory smarter, with fewer frustrations
The frustrations of spare parts management are nearly universal across manufacturers. Financial concerns, part obsolescence, unanticipated demand, and procurement logistics are all concerns. Leaner management practices address these worries by putting insights and options into the decision-makers’ hands.
For example, adopting VMI for items classified as C (non-critical) can eliminate the cost of keeping these items on hand without disrupting operations. Likewise, plotting routine maintenance and tracking inventoried parts helps cut down on duplicate ordering or unintended part shortages.
A leaner outlook also improves overall maintenance operations. Having crucial parts on hand and ordering schedules aligned with maintenance can prevent extended downtime or underserved machinery. Better-maintained machines are less prone to error and set up for better longevity, mitigating even more costs over time. These outcomes all stem from diligent spare parts management.