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  1. 1. SPARES CRITICALITYASSESSMENT METHODGroup MembersKelvin LazarusKong Chiou ShinLoh Vuan YeeHou Xiao Ming
  2. 2. What are Spares Parts Spare parts are extra parts that are near to a functioning part When a machine has problems, spare parts can be used to replace broken /damaged parts so that the machine can function. Example :-  power module (eg. Transformer)  Electronic parts (eg. Integrated components / semi- conductors and etc.
  3. 3. What is Criticality Assessment Give an indication of which items of plant are most critical to your process. Good idea to do a criticality assessment so everybody involved on your plant knows how crucial any single item of plant is to the process and how quickly to act when diagnosed an impending failure.
  4. 4. What is Spare CriticalityAssessment Spare Critically Assessment plays an important role in achieving the desired plant availability at an optimum cost Downtime for such plant and machinery is prohibitively expensive It has been observed in many industries that the non-availability of spare parts, as and when required for repairs, contributes to as much as 50% of the total down time
  5. 5. Classification of Spare Parts1. Critical spares  without which the machine can’t be operated even in suboptimal efficiency  with a high failure rate  with long procurement lead time  without a substitute  used in critical machines (identified for preventive maintenance)2. Non critical spares  without which machine can run (at least sub optimally)  that have high reliability  that can be made / purchased in short notice  that have substitutes  available off shelf as standard parts (bearings etc.)
  6. 6. Models for Type of Spares Non-repairable Spares  Partswhich fail can’t be repaired and must be replaced with a new parts
  7. 7. Models for Type of Spares Repairable Spares  Parts which fail can be repaired and be used back as spares
  8. 8. Assessment Method Analytic hierarchy process  findout relevant factors of the critical spare parts and determine the relative importance Grey prediction model  find a sequence of each element corresponding to future dynamism, thereby developing prediction model Back-propagation network  used as a tool for judging the predictability Moving average method  The moving average (MA) is the mean of the previous data sets used to perform CSP demand
  9. 9. Assessment Method
  10. 10. Management of Spare Parts Proper planning and control of spare parts inventory. Eg: Material forecast planning, Asset recovery services, Equipment receiving and staging, Equipment tracking and reporting.
  11. 11. How To Manage Spare Parts1. Identify requirement Standard procedures and relevant documentation is obtained Current holdings are monitored and checked against levels determined by procedures Each holding location is checked as to needs
  12. 12. How To Manage Spare Parts2. Procure parts Current holdings are matched with need Requests for additional parts are made in accordance with enterprise procedures Checks are made as to extra holdings in other locations
  13. 13. How To Manage Spare Parts3. Initiate replacement process Need for spare parts is determined Data base is activated to check possible location of specific parts required Arrangements are put in place to deploy the part to the site where it is required Part is changed over with the faulty part Faulty part is recovered and disposed of or returned for repair as determined by condition and enterprise policy
  14. 14. How To Manage Spare Parts4. Reorder part replacements Relevant part request (forms/documentation) is completed and forwarded to the vendor Delivery of replacement is followed up on a regular and ongoing basis (eg: phone call) Alternate spares are sought where difficulties (delay/no stock) are experienced with replacement
  15. 15. How To Manage Spare Parts5. Complete administrative tasks Relevant documentation is completed, signed and forwarded to the appropriate area (eg: Account Payable - Boucher, Account Receivable – receiving documentation, Filing and Retention document – filing history) Regular audit of stock holdings is conducted in accordance with enterprise policy Checks are made to ensure that all parts are latest issue and are compatible with installed systems and equipment
  16. 16. Inventory Inventory is the total amount of goods and/or materials contained in a store or factory at any given time. Helps us know the precise number of items on the shelves and storage areas in order to place orders or control losses
  17. 17. Inventory Analysis Commonly used inventory analyses are: (1) FSN Analysis (2) HML Analysis (3) VED Analysis
  18. 18. Inventory Analysis FSN Analysis  Fast Moving (F) = Items that are frequently issued say more than once a month.  Slow Moving (S) = Items that are issued less than once a month  Non-Moving (N) = Items that are not issuedused for more than 2 years. Help establishing most suitable stores layout by locating all the fast moving items near the dispensing window to reduce the handling efforts
  19. 19. Inventory Analysis HML Analysis  HighCost (H) : Item whose unit value is very high  Medium Cost (M) : Item whose unit value is of medium value  Low Cost (L) : Item whose unit value is low Efforts may be necessary to find out the means for prolonging the life of high value parts through reconditioning and repair
  20. 20. Inventory Analysis VED Analysis  VITAL (V) : A spare part will be termed vital, if on account of its non-availability there will be very high loss due to production downtime and/or a very high cost will be involved if the part is procured on emergency basis. In a process industry, most spare parts for the bottleneck machine or process will be of vital nature.For example, bearings for a kiln in a cement plant will be considered vital.  ESSENTIAL (E) : A spare part will be considered essential if, due to its non-availability, moderate loss is incurred. For example, bearings for motors of auxiliary pumps will be classified as essential.  DESIRABLE (D) : A spare part will be desirable if the production loss is not very significant due to its non-availability. Most of the parts will fall under this category. For example, gaskets for piping connection.
  21. 21. The End