Master thesis Poster : How to get a sustainable maintenance spare parts management?

1. Master Thesis project at Dow Benelux B.V.
28 February 2012, Eindhoven
Student:
“How to get a sustainable maintenance Florence Miroux 0757953
Supervisors:
f.y.j.miroux@student.tue.nl
spare parts management?” H.P.G. van Ooijen, TU/e, OPAC
G. Alpan-Gaujal, Grenoble INP, G-SCOP
A.W. Kesteloo, Dow Benelux B.V.
Introduction Results for Dow
MRO* management is traditionally in-house managed by Output of the project are recommendations to improve the
manufacturing industries to support their maintenance current MRO organization sustainability. Implementation is
activities. MRO management is needed to avoid costly left to Dow after the end of this project. Guidelines to
equipment downtime. How can an in-house MRO manage the change, to leverage results across sites and
organization survive in the long term when it delivers its control the solution were provided. The formulated
service to an increasing number of clients and when the recommendations were the following:
MRO market is opened to competition? In-house MRO
sustainability matters to avoid losses due to plant
shutdown and to achieve this MRO service at a lower cost.
The project objectives
To achieve sustainability,
an in-house MRO
organization needs:
 to be business oriented
i.e. to aim at minimizing
the MRO total cost of ownership;
 to be best in class i.e. to aim at
optimizing internal performance to Top 4
deliver the service the MRO clients need. recommendations
are highlighted.
Project methodology To successfully improve, MRO management should receive
To improve MRO management sustainability: attention its deserves from high level management, as MRO
 business strategy and best in class MRO management is a complex, specific and critical business. To handle and
were defined, thanks to best practices and internal KPIs; optimize MRO management, the right knowledge should be
 the MRO strategy and service performance of Dow in place, through processes, tools and people.
Chemical at Terneuzen site was measured and analyzed;
 recommendations were proposed to improve Terneuzen Project contribution for the research and industry
Dow Chemical MRO management sustainability, by being • definition and characterization of function and business
business oriented and best in class. strategies on service and cost optimization;
• outsourcing decision for MRO activities: advantages,
Project scope and assumptions
disadvantages, global outsourcing decision process, what
The project was conducted at a high and strategic levels. and how to outsource, success drivers;
Data analysis and detailed optimization are out of scope. • Issues raised by the multi-client perspective;
The project concerned all MRO related process including • SLA & external KPIs proposition;
inventory management, logistics, purchasing, etc. • Best practices proposition for MRO based on literature
study and interviews across industries ;
• Internal KPIs proposition for each MRO related process;
• Dow Chemical Terneuzen industry case.
Conclusion
MRO management is a multi-disciplinary activity that
MRO processes and management requires broad and specific knowledge. Within industries,
framework, Driessen et al. (2010) MRO management might suffer from business awareness.
To be sustainable, MRO management needs:
Analysis and results are valid in environments having the • to be business driven by having service level agreements
following characteristics: with the clients thanks to external KPIs and by aiming at
• Multi-product with high diversity minimizing the long term TCO;
• Multi-indenture structure • to be best in class by adopting best practices and tracking
• One level stocking supply chain and several locations its performance with internal KPIs.
• Multi MRO clients References
• High risk environment Driessen, M.A., Arts, J.J., Houtum, G.J.van, Rustenburg, W.D. and Huisman, B.
• Allowed backorders (2010). Maintenance spare part planning and control : a framework for control and
agenda for future research. Beta working research paper series .
*MRO: Maintenance, repair and operations. Maintenance spare part and MRO are synonyms
/ Master of Sciences: Operations Management & Logisitcs – Departement of Industrial Engineering & Innovation