Q. In today's tough economy, I wonder what your thoughts are on keeping on hand an extensive supply of spare parts. Can you help me formulate a spare-parts policy?

A. A very timely question considering the supply chain challenges right now.

As a design/build contractor of complex operating facilities, it is important for us to advise the owner of the spare parts recommended to maintain the effective operation of the equipment and systems -- and to minimize the extent of any downtime.

While some owners may consider spare parts uneconomical -- because some parts may never be used and there are costs associated with maintaining an appropriate inventory -- you need to consider the expense of an extended plant outage which can far exceed the total cost of the spare parts.
Strictly speaking, spares are usually parts needed to replace other parts when they either break or wear out. Spare parts management is the main component of a strategic service management process that companies use to ensure that the right spare part and resources are at the right place at the right time. Controlling the inventory of spare parts is paramount to controlling the costs associated with unanticipated outages caused by equipment failures. Read More>>>