Why is spare part management important?

Why is spare part management important?

Therefore it is important to have a good spare parts inventory system in place. This reduces the production downtime and simplifies equipment maintenance. The goal of spare parts management is to ensure the lowest overall cost possible.

What is the function of spare parts control system?

Spare parts management It is a form of Risk Control; its purpose is to control the risk to business operations caused by equipment downtime by ensuring the availability of spares at optimum cost.

How do you control your spare parts?

9 Tips for Managing and Optimizing Spare Parts Inventory

  1. Choose a Method for Labeling Critical Components.
  2. Balance Inventory Volume With Sawtooth Diagrams.
  3. Keep Your Bill of Materials up to Date.
  4. Calculate Optimal Economic Order Quantity.
  5. Develop a Standard Work Order Process.

How do you manage critical spare parts?

Four best practices in spare parts management

  1. Identify critical motors. Get to know your motor inventory: identify and classify your motors based on their criticality.
  2. Compare carrying costs to downtime. Maintaining a spare motors inventory can be expensive.
  3. Maintain your spares.
  4. Hire a spare parts management firm.

How do you organize your spare parts?

But you can stay in control of your parts inventory by organizing it like a pro.

  1. Cut the Clutter.
  2. Organize by Manufacturer.
  3. Maximize Vertical Space.
  4. Provide Excellent Lighting.
  5. Keep Heavy Merchandise Near the Floor.
  6. Keep Fast Moving Parts Available.
  7. Stock Ahead of the Busy Season.
  8. Utilize Inventory Management Software.

What is effective spare parts management?

Spare parts management is a balance between making sure that you don’t stock out of a critical part, while at the same time keeping your inventory value as low as possible. Keeping inventory low minimizes the monetary value held up in stock and frees up cash flow for other activities.