Continuing operations not only require you have the people and supplies in place to make your product, but also the equipment. In a critical time like this it is important to review and update your supply of critical spares.
Critical spare parts are the parts within critical equipment that, should they fail, will badly reduce or stop production, or harm your business. It’s obvious you can’t have one of everything so it’s important to decide what to keep on the shelf.
Identifying critical spares requires several areas of focus:
Failure History and Predictability
OEM Recommendations
Lead time for Replacement vs Acceptable downtime
Impact on the business….and ultimately cost.
Failure History and Predictability
The list of necessary spare parts should start with a history of what fails. A part having a frequency of failure that almost guarantees it will fail again soon should have a spare ready to go. The predictable parts are also obvious candidates. There is a reason all cars come with a spare tire. Most of us have experienced a flat tire in our past. Tires are also a good example of a part we can accurately predict when it will be time to replace them.
OEM Recommendations
The list of necessary spare parts should move next to the Original Equipment Manufacturer’s recommendations. They are in the best position to be able to answer the history and predictability question. They also have insight in to the engineering and design elements that make some parts better to have ready than other.
Lead time for Replacement vs Acceptable downtime
The list moves on to the cost benefit analysis phase. It starts by comparing the time required to order, receive, and install the new part compared to the acceptable downtime. While no downtime is acceptable, some may be tolerated for a part that is just too cost prohibitive to always have on hand. The question to have on hand is a balance between expected production loss based on the lead time compared to the cost of lost production.
Impact on the Business and the Ultimate Cost
Finally, the cost benefit analysis takes a broader look at the total impact on the business and the ultimate cost. There are some parts that are not obvious until you consider the ultimate cost to the business. An example may be a support beam for an overhead crain. It may seem silly to have a spare, but if the beam were damaged by a fork truck accident or severe weather it could take months to replace and render movement of product impossible.
Help your organization ensure their continuing operations with the right critical spares on hand and also help them realize you hope you never have to use it!
Jeff Boris
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