SMS

SMS – What is it… ?

  • A decision support tool for setting inventory levels for critical, slow moving and high cost parts
  • Forecasts inventory levels for in-house repair, sub-contract repair and new purchases based on the required reliability, cost and equipment availability
  • Aligns spare parts replacement decisions with the Equipment Reliability process and the current business situation (risk and cost)
  • Combines science and economics to set inventory levels according to operations and performance needs, not just budgets
  • Facilitates placement of final orders for discontinued parts

The SMS Benefits

  • Improved decision making, reduced cost of spares
  • Integrates risk and cost calculations
  • Forecasts timing of replacements for current spares
  • Sets the Spares levels required to meet multiple replacement conditions and % reliability requirements:Accommodates variable failure intervals, variable lead times, variable repair times
    • instant reliability (spare is available when called for)
    • interval reliability (spare is available during the period being planned)
    • cost minimization
    • availability of the process or production unit
    • given a stock size, the availability during the period being planned
  • Provides cost calculations for repairable and non-repairable spares
  • Complementary to RCM
  • Easy to use data entry screens requires little training
  • Easy to read graphical output shows results at a glance

Input Data

  • The required planning period
  • The type of calculation required – instant or interval reliability, availability or cost minimization
  • The % level of reliability required
  • The cost of the spares – new and repaired – regular cost, emergency cost, holding cost, cost  of capital, future value of unused spares
  • Failure rates for the spares
  • Lead times for the new and repaired parts

Outputs

  • Risk and cost calculations for Repairable Spares
  • Risk and cost calculations for Non-Repairable Spares
  • Minimum level of Spares requirements for Interval reliability at user determined levels from 50% to 99.99%
  • Minimum level of Spares requirements for Instant reliability at user determined levels from 50% to 99.99%
  • Availability calculations at given levels of Spares

 

Case Study

Randomly failing motors

  1. Plant Availability at 95%: = 0 spares
  2. Plant Availability at 99%: = 2 spares
  3. Instant reliability (always one when wanted): 95% reliability = 4 spares
  4. Cost minimization: = 6 spares
  5. Interval reliability (never run out): 95% reliability = 7 spares

Target Industries

  • Any industry where Spare Parts and Replacement costs are a significant part of  operations
  • Any heavy industry such as mines, steel, metals processing, chemicals, oil and gas petrochemical, pulp and paper
  • Discrete manufacturing facilities – automotive, electrical, components, furniture, tires, plastics etc
  • Process manufacturing – pharmaceuticals, food and beverages
  • Municipal, state and federal departments, military, customs, airports, container ports
  • Power utilities, telecom, gas, electrical, water distribution companies