Spare parts
Encyclopedia
Service parts management is the main component of a complete Strategic Service Management
process that companies use to ensure that right spare part and resources are at the right place (where the broken part is) at the right time.
Spare part
s, are extra parts that are available and in proximity to a functional item, such as an automobile
, boat
, engine
, for which they might be used for repair.
But without the spare part on hand, a company's customer satisfaction levels could drop if a customer has to wait too long for their item to be fixed. Therefore companies need to plan and align their service parts inventory and workforce
resources to achieve optimal customer satisfaction levels with minimal costs.
such as fill rate and availability
of the end item.
Strategic Service Management
Strategic service management is a business strategy that optimizes a company's provided services through the effort of synchronizing: service parts and resources forecasting, service partners, workforce technicians, and service pricing....
process that companies use to ensure that right spare part and resources are at the right place (where the broken part is) at the right time.
Spare part
Spare part
Spare Parts may also refer to:* Spare Parts , by Status Quo* Spare Parts is a Doctor Who audio drama.* Spare Parts , by Servotron* "Spare Parts" , by Bruce Springsteen* "Spare Parts"...
s, are extra parts that are available and in proximity to a functional item, such as an automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
, boat
Boat
A boat is a watercraft of any size designed to float or plane, to provide passage across water. Usually this water will be inland or in protected coastal areas. However, boats such as the whaleboat were designed to be operated from a ship in an offshore environment. In naval terms, a boat is a...
, engine
Engine
An engine or motor is a machine designed to convert energy into useful mechanical motion. Heat engines, including internal combustion engines and external combustion engines burn a fuel to create heat which is then used to create motion...
, for which they might be used for repair.
Economic considerations
Spare parts are sometimes considered uneconomical since:- the parts might never be used
- the parts might not be stored properly, leading to defects
- maintaining inventoryInventoryInventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
of spare parts has associated costs - parts may not be available when needed from a supplier
But without the spare part on hand, a company's customer satisfaction levels could drop if a customer has to wait too long for their item to be fixed. Therefore companies need to plan and align their service parts inventory and workforce
Workforce
The workforce is the labour pool in employment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic region like a city, country, state, etc. The term generally excludes the employers or management, and implies those involved in...
resources to achieve optimal customer satisfaction levels with minimal costs.
User considerations
The user of the item, which might require the parts, may overlook the economic considerations because:- the expense is not the user’s but the supplier’s
- of a known high rate of failure of certain equipment
- of delays in getting the part from a vendor or a supply room, resulting in machine outageOutageOutage may refer to:* Network outage* Sun outage* Power outage* Outing...
- to have the parts on hand requires less “paperworkPaperworkPaperwork is a term used to describe excessive, intricate or meticulous work with documents in an unnecessary and incidental way to more important tasks.- United States Paperwork Reduction Act :...
” when the parts are suddenly needed - of the mental comfort it provides to the user in knowing the parts are on-hand when needed
- The parts are un-economic to be repaired i.e. it's cheaper to discard then to get it repaired
Cost-effect compromise
In many cases where the item is not stationary, a compromise is reached between cost and statistical probability. Some examples:- an automobileAutomobileAn automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
carries a less-functional “donut” tire as replacement instead of a functionally-equivalent tire. - a member of a householdHouseholdThe household is "the basic residential unit in which economic production, consumption, inheritance, child rearing, and shelter are organized and carried out"; [the household] "may or may not be synonymous with family"....
buys extra light bulbs since it is probable that one of the lights in the house will eventually burn out and require replacement. - a computerComputerA computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...
user will purchase a ream of computer paperPaperPaper is a thin material mainly used for writing upon, printing upon, drawing or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets....
instead of a sheet at a time. - a race car team will bring with them to the race track another engineEngineAn engine or motor is a machine designed to convert energy into useful mechanical motion. Heat engines, including internal combustion engines and external combustion engines burn a fuel to create heat which is then used to create motion...
, “just in case.” - a ship carries “spare parts” for its engineEngineAn engine or motor is a machine designed to convert energy into useful mechanical motion. Heat engines, including internal combustion engines and external combustion engines burn a fuel to create heat which is then used to create motion...
in case of breakdown at sea.
Measures of effectiveness
The effectiveness of spares inventory can be measured by metricsMetric system
The metric system is an international decimalised system of measurement. France was first to adopt a metric system, in 1799, and a metric system is now the official system of measurement, used in almost every country in the world...
such as fill rate and availability
Availability
In telecommunications and reliability theory, the term availability has the following meanings:* The degree to which a system, subsystem, or equipment is in a specified operable and committable state at the start of a mission, when the mission is called for at an unknown, i.e., a random, time...
of the end item.
See also
- Choice LogisticsChoice LogisticsChoice Logistics is a third-party service parts logistics provider that offers customized solutions for global high-tech OEMs and service organizations. The company has more than 400 strategic stocking locations around the world to provide same-day logistics solutions to optimize inventory, reduce...
(Service Provider) - Cost-effectiveness analysis
- Just In TimeJust In TimeJust in time is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System...
(Service Provider) - InventoryInventoryInventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
- Service ManagementService managementService management is integrated into supply chain management as the joint between the actual sales and the customer. The aim of high performance service management is to optimize the service-intensive supply chains, which are usually more complex than the typical finished-goods supply chain...
- Strategic Service ManagementStrategic Service ManagementStrategic service management is a business strategy that optimizes a company's provided services through the effort of synchronizing: service parts and resources forecasting, service partners, workforce technicians, and service pricing....
- Microelectronics Parts Management