Towards more predicted and planned spare parts management

Towards more predicted and planned spare parts management: Designing an integrated approach with a focus on demand forecasting, inventory control and supply management

Van der Vorst, W.W.F.

Rezaei, J. (mentor)
Warnier, M.E. (mentor)
Rodenburg, M. (mentor)
Tavasszy, L.A. (mentor)

Technology, Policy and Management

Transport & Logistics (TLO)

Systems Engineering, Policy Analysis and Management (SEPAM)

SPM5910

2016-12-02

Service logistics companies aim for their high value capital assets to be operationally available, to prevent lost revenues and customer dissatisfaction. To assure this maintenance is performed, and therefore spare parts are required. An important activity is to have spare parts available when they are demanded for conducting maintenance. However, the stock levels and operational costs should be minimized at the same time. This is difficult to achieve due to unpredictability of demand for spare parts, differentiated decisions about inventory and unpredictability of supply. In existing literature little attention is given to an integrated perspective and high practical applicability, which is required for companies to achieve overall effective spare parts management. In this article the following question is central: How can an integrated approach be designed that can be used to achieve a more desirable balance between spare parts availability, operational costs and working capital (stock levels) in service logistics companies with high value capital assets? Findings in a literature review and during field research at a rail transport operator are combined to design the integrated approach. It focuses on demand forecasting, inventory control and supply management and it is differentiated along the dimensions ‘price’, ‘consumption rate’ and ‘supply risk’. This way a combination is made between an inventory classification and a supplier segmentation. The differentiation assists companies managing groups of spare parts with a suitable level of attention and with a suggested focus with respect to performance improvement. Based on the field research, also differentiated focus areas for organisational and process improvements are indicated. Finally, to make the approach simple and targeted in its use, the main activities are assigned to the three main departments that are concerned with spare parts management: maintenance, purchasing and logistics. The results show that the approach could help companies move forward, though the study can be extended in a number of directions. Hence, suggestions for future research are presented in this article.

supplier segmentation
Spare parts management
demand forecasting
inventory control
supply management
inventory classification

http://resolver.tudelft.nl/uuid:87e882e0-7c33-4e90-b478-c57014a535b6

Student theses

master thesis

(c) 2016 Van der Vorst, W.W.F.