Maintenance and Reliability Symposium

February 28, 2008

Houston Chapter SMRP Annual Symposium

World class spare parts management-Shobhit Bhutani

Dell Inc. Maintenance Manager

Scope State of spare parts in industry Elements of a world-class spare parts

program Questions?

Agenda

Human resources and effective people management- Heart of every successful operation

Equipment Standardization- Cohesive goal of maintenance and engineering organization

Scope- Topics not included

Often ignored part of maintenance No faith on the spare parts personnel Cubby holes of spare parts spread all over the

field- technicians’ cars, field, near equipment & the stockroom

Spare parts- an afterthought of project work Insufficient infrastructure investment Time & management oversight required for a

successful spare parts program

State of spare parts in the industry

Desired State

Transactional accuracy

Reliable & dependable- 1 central repository or controlled secondary repositories

Predictive spare parts requirements planned in

advance

Elements of a world-class spare parts program

Dell Confidential

World class

Storeroom

Processes

CMMS-

Maintenance

& Engg. integration

High Spare parts

Availability

“Right parts in the right place at the

right time with optimum inventory”

“Right parts in the right place at the

right time with optimum inventory”

High spare parts availability-1 (#of transactions in which spares not

available)*100/ (Total number of transactions)

High availability should be goal if downtime costs outweigh spare part costs

More onsite parts = More $ = Less Risk

High spare parts availability-2

2 Key steps Control Introduction of new equipment and

spare parts - Engineering Change Control process incorporates spare parts

Perform spare parts gap analysis on Each unique piece of equipment List of spares reviewed by technicians Purchase of missing parts- $ spend based

on downtime risk

High spare parts availability-3 Established equipment spare parts guidelines

BOMs, drawings, minimum spare parts required at install etc.

Establish templates

Spare parts description (nomenclature) standardization

Equipment type standardization

CMMS-Maintenance & spares integration-1

Heart of maintenance

Spare parts integrated with work requests

Visibility to BOMs & drawings of equipment –procuring non available parts

Equipment number Equipment Time open Time closed Elapsed Time Work Order#Description of Work

performedTechnician Rootcause

Consumed spare part code

Consumed spare part description

CV1001 Brake Conveyer 12/01/07 12:25pm 12/01/07 1:02pm 37 minutes 12200 Changed brake Tom Brake 14001 Linear BrakeBrake Conveyer 12/7/07 12:00 AM 12/7/97 12:43 AM 43 minutes 12456 Changed bearing Will Bearing 14325 Lube free brakeBrake Conveyer 12/10/07 4:56 PM 12/10/07 5:56PM 60 minutes 12459 Reset Bill 0 0 0

CMMS-Maintenance & spares integration-2

Sample CMMS spare parts report and benefits Usage tracking of spare parts Rootcause analysis Unit spare parts usage & cost of unit piece of

equipment Base information for prediction of spare parts

usage modeling

Improved MTTR

Base of Transactional Accuracy

CMMS spare parts view Detailed Catalogue Integrated with Work orders Exploded view of equipment assemblies

CMMS-Maintenance & spares integration-3

World-Class Storeroom Processes-1“Audit & verify processes”

Right parts in right locations.

Correct stock levels minimum stocked quantity & ordering quantities

Adequate stocking locations

Inventory accuracy periodic cycle counting

Storeroom metrics- Periodic reviews $, usage, red flags Availability Shrinkage (lost parts) Stockout % (parts not available)

Rootcause fixes if issues discovered Min stock & ordering qty determined for each

part. Take assistance from statistical models Perpetual ordering of parts based on min

stock Below min stock report

World-Class Storeroom Processes-2

Centralized location

Controlled access

Labeled shelves & bins Open Shelves - non-controlled parts Pallet racking - Heavy items Automated Carouse - Fast movers and controlled items

World-Class Storeroom Processes-3

Open Shelving

Binstock parts- nuts, bolts, etc. Fasteners, Tools etc.

Pallet Racking Storage

Automated Storage Carousel

QUESTIONS?

BACKUP

Spare parts engineering template

Equipment Name KVM SwitchDescription Model #Serial #BuildingLocation

Equipment Number

DescriptionStoreroom Location

Vendor Part Number

OEM Part # MFG. of Part Vendor

Qty in Machine

or System

Rec. Quantity

Lead Time (in weeks)

Unit of Measure

Unit Price

Extended Price

MIN Stock Level

MAX Stock Level

SPoF, Criticality of Part? (H,M,L)

`

Standardized Part Description – Standard Commodity+ Unique Modifier

50 standardized Commodities

Unique Modifiers for each commodities

Descriptions Before and After

METROLOGIC SCANNERSCANNER - FIXED - LASER - METROLOGIC - METROLOGIC IS775-51

SEW-MAIN LINE MOTOR-W20DT71D4BMG05HR 1/4HP-87 RPM-3/4" Hollow Shaft W/230V BrakeMOTOR - GEARBOX - COMBO - 1.5HP - 230/460V - 2A - 1700:87RPM - 3/4" Hollow Shaft W/230V Brake MOTION INDUSTRIES W20DT71D4BMG05HR

SOLENOID SMC SY3240-5LOZSOLENOID - VALVE - 24VDC - 0.1-0.7 AMPS - SMC - SY3240-5LOZ

Dell Confidential

Sample of future catalog vision

Dell Confidential

Exploded View sample

Dell Confidential

Reorder point analysis using lead time and usage

References and Bibliography

Brown, Michael V. Managing Maintenance Storerooms, ISBN 0-7645-5767-X

Patton & Feldman Service Parts Handbook, ISBN 0-934623-73-2 Mobray, John. Reliability Central Maintenance, ISBN 0-8311-3044-

x, Industry Publications, 1992. Society of Automotive Engineers Reliability, Maintainability and

Supportability Handbook, ISBM 1-56091-244-87 SAE 1992. Automated Carousel units

http://www.donnegansystems.com/Automated_Storage_Products.html Pallet Racking

http://www.cisco-eagle.com/storage/rack/Palletrack/rack%20styles.htm