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A Study on Spare Parts Management Influencing Factors

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 A Study on Spare Parts Management
Influencing Factors

André F. V. Pedroso1(B) , Francisco J. G. Silva1,2 , Raul D. S. G. Campilho1,2 ,

Rita C. M. Sales-Contini1,3 , Naiara P. V. Sebbe1 , Rúben D. F. S. Costa2 ,
and Marta L. S. Barbosa1
1 CIDEM, ISEP, Polytechnic of Porto, R. Dr. António Bernardino de Almeida, 4249-015 Porto,
Portugal
afvpe@[Link]
2 Associate Laboratory for Energy, Transports and Aerospace (LAETA-INEGI),
Rua Dr Roberto Frias, 400, 4200-465 Porto, Portugal
3 Technological College of São José Dos Campos, Professor Jessen Vidal, Centro Paula Souza,

Avenida Cesare Mansueto Giulio Lattes, 1350 Distrito Eugênio de Melo, São José Dos
Campos/SP 12247-014, Brazil

Abstract. Modern companies rely heavily on industrial equipment, ensuring by

this way their operation under optimal conditions is paramount. Industrial mainte-
nance significantly contributes when management adopts an aiming loss reduction
philosophy. Maintenance’s primary purpose is the organisation of the information
to implement in the Enterprise Resource Planning (ERP) system and analyse stor-
age costs of spare parts, aiming to lower the number and cost of spare parts in the
warehouse. Moreover, it improves effectiveness and efficiency without losing the
quality of the service. The developed work focused on creating a framework to
analyse and implement internal procedures, storage, and technical support for a
warehouse management model of spare parts. The main objective was to analyse
existing material through screening, identification, study and removal of obsolete
spare parts, promoting the reduction of losses and continuous improvement. To
validate the model, 27 pieces of equipment out of 191 were analysed and, 200
spare parts references from the maintenance warehouse were associated with the
respective equipment.

Keywords: Spare parts control · Continuous improvement · ERP · Food

industry · Reliability-Centred Maintenance · Supplies · TPM · Maintenance costs

1 Introduction

According to BS EN 13306:2017 [1], maintenance is defined as all the operations

required to retain or restore an equipment’s ability to perform its task, significantly
contributing to increased productivity [2, 3]. Predictive Maintenance (PM), considered
a part of Preventive Maintenance Plans (PMP) [4], encompasses the regular monitoring
of actual mechanical condition, operational efficiency, and other indicators [5–7]. The

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2024

Y.-C. Wang et al. (Eds.): FAIM 2024, LNME, pp. 403–412, 2024.
[Link]
404 A. F. V. Pedroso et al.

optimal maintenance interval is based on condition, time, usage, or workload [8, 9]; there-
fore, its management and evaluation should occur within a global framework conceived
in conjunction with Quality and Production departments. Total Productive Maintenance
(TPM) is a methodology that aims to increase the availability of existing equipment,
hence reducing the need for further capital investment [10]. TPM uses universal tools
like Six Sigma (6σ), Pareto analysis, ABC analysis, and cause-and-effect diagrams [11].
Tools such as Single Minute Exchange of Die (SMED), Poke-Yoke, jidoka, Overall
Equipment Effectiveness (OEE), and 5S are specific to the TPM methodology [12].
Reliability-Centred Maintenance (RCM) [13], which was invented by the aircraft indus-
try in the 1960s to organise the increasing need for maintenance to reduce costs without
reducing safety [14], stands out among the various existing maintenance management
models. The FMEA analysis [15] is considered the heart of RCM. It can be defined as
a systematic analysis of potential failure modes to prevent breakdowns. FMEA analysis
can identify necessary corrective actions to prevent failures from affecting customers,
ensuring maximum production, quality, and reliability. Large and medium-sized compa-
nies rely on Enterprise Resource Planning (ERP) systems: they are needed to administer
products, customers, orders, employees, and projects, and to manage complex produc-
tion, service delivery processes, and supply chains [16]. The management of spare parts
[17] has gained significant importance in the literature over the past decades. The most
addressed topics regarding spare parts include inventory control, demand forecasting,
reliability, and the entire supply chain management [18]. Two types of methods can be
applied to classify the criticality of spare parts: quantitative and qualitative [19]. In the
industry, classification is commonly done through ABC analysis [19].
This study is focused on analysing and improving any maintenance management
system. To this end, a model for supporting spare parts management and providing well-
structured tasks related to storing, supplying, and procuring these items is is developed,
presented and implemented. The execution of this work is underpinned by cost analysis
in the procurement of spare parts, a proposal for improved management and control
of the maintenance department, the information structuring for implementation in the
company’s ERP system, and the association of spare parts with equipment. The paper
follows up in five sections: Literature Review, Methodology, Results, Discussion and
Conclusions.

2 Literature Review

Pinto et al. [10] implemented a strategic TPM plan within a company with CNC Lathes
and CNC Machining Centres. The primary issues with the cell equipment were identi-
fied and addressed and procedures for Autonomous Maintenance (AM) and PMP were
formulated and executed. Mean-Time between Failures (MTBF) decreased by 23% for
CNC lathes and 38% for CNC machining centres. OEE registered a 5% enhancement.
Pinto et al. [17] also conducted a case study in an automotive multinational company by
implementing Key Performance Indicators (KPIs) to meet the IATF 16949:2016 stan-
dard. A spare parts management model linked to the maintenance of existing equipment
was devised. The SMED methodology was applied, reducing setup time by 11%, and the
Lean 5S tool was employed to organise mould exchange activities, achieving an OEE
 A Study on Spare Parts Management Influencing Factors 405

of over 90%. Ferreira et al. [20] underscores the significance of KPIs and obsolescence
management in maintenance operations. BS EN 15341:2007 [21] and IEC 62402:2007
[22] were used. In the first phase, a decision matrix providing a qualitative assessment of
the executed work, identifying components at a higher risk of obsolescence was created.
The subsequent step involved crafting a decision-making tool to assess the obsolescence
of electronic components and determine the appropriate mitigation approach. The sec-
ond phase assesses the repercussions and proposes mitigation strategies with a decision
matrix, determining whether a proactive or reactive approach should be adopted. The
novel KPI and obsolescence approach were effectively tested in a practical setting in
a dairy processing factory, demonstrating their successful fulfilment of the initially set
goals. Santos et al. [23] instituted a practical method for categorising equipment criti-
cality based on its significance in production, classifying equipment into A, B, and C
categories. Considering Quality, Availability, Safety and Environment, Costs, and Tech-
nological Complexity as factors, the method was applied across a semolina factory, two
pasta factories, and a cookie factory belonging to a prominent food group in Portugal.
Categorising prompted the adoption of RCM, revision of PMP and integration of criti-
cal assets into the Computerized Maintenance Management System (CMMS). Martins
et al. [24] employed an Action-Research methodology following the identification of
critical issues. A blended maintenance strategy of RCM and TPM was implemented,
outcoming (a) grading equipment criticality based on its significance to the produc-
tion process, (b) creation of a new flowchart for decisions and actions in PMP, (c) an
MTBF reduction, (d) a 66% decrease in equipment failures due to the implementation
of AM, (e) introduction of a new set of KPIs, (f) and a 12% increase in maintenance
plan compliance rates. A cost reduction of e 120,060 was achieved. Ferreira et al. [25]
established a procedure across various organisations to enhance their maintenance prac-
tices, outlining the proper sequence of tools to be employed and elevating maintenance
operations to greater efficiency and effectiveness. It allows for determining the success
of implemented improvements and helps identify the need for different approaches.

3 Methodology
An Action-Research (AR) methodology [24] was adopted for the development of the
procedure and implementation on a Portuguese food-group case study.

3.1 Diagnosis
The scope of this paper will be centred on the maintenance department, aiming to present
and implement a model for supporting the management of spare parts and providing well-
structured tasks related to storing, supplying and procuring these items. However, the
ability to comprehend what was in the parts warehouse and to maximise and optimise
its stock was a task that had not been fulfilled. From the entire existing stock, it was
evident that there were two types of spare parts: those that were obsolete and needed
identification and removal and those that were active. A preliminary analysis of the
active items stored in the warehouse allowed to find that 20% of the active items account
for 82.8% of the value invested in stock in the warehouse, and 50% of the active items
406 A. F. V. Pedroso et al.

account for 97.9% of the value invested in stock in the warehouse. On the other hand,
there is also a need to associate spare parts with equipment to assist the technical staff
in locating the parts, thereby reducing fault resolution times.

3.2 Action Planning

Various functions were planned, encompassing the entire process from raw material
procurement to the assembly of various components, towards establishing a materials’
management process with proper control of the flow of material input, storage, and out-
put. The expected outcomes of the flow are 1) stock and procurement parameters, 2)
inventory recommendations, 3) procedures for controlling the entry and exit of items
from the warehouse, 4) list of critical spare parts, 5) flowchart of the defined process, 6)
roles and responsibilities defined for the implementation of the new process, and the main
impacts are anticipated to be 1) reduction in maintenance costs, 2) increased equipment
availability, 3) decreased risk of obsolete items in the warehouse, 4) reduction in inven-
tory discrepancies (physical stock vs. accounting stock), 5) investment in stock aligned
with the established stock policy, 6) greater agility and effectiveness in the maintenance
planning and scheduling process, 7) higher productivity of the execution workforce due
to improved organisation and availability of intervention materials. Following the defined
planning, the decision was made to address three issues in managing spare parts: Quest a
- Spare parts management model creation, Quest B - Association of spare parts to equip-
ment, Quest C – Machine improvement. Figure 1 depicts a SWOT analysis to evaluate
the concept of assisting the maintenance team in the inventory value and maintaining a
cleaner, organised, and optimised warehouse with only essential items. Considering the
objectives, an initial stock model was developed with the following parameters: 1) Arti-
cle nomenclature, 2) Internal code; 3) Location, 4) Sessions, 5) Associated equipment,
6) Criticality, 7) Average article cost, 8) Lead Time, 9) Risk analysis, 10) Evaluation, 11)
Annual demand, 12) Quantity existing in the warehouse, 13) Value in the warehouse.
Towards warehouse optimisation the possibility of developing a platform for associating
spare parts with equipment was explored in responding to faults.
Figure. 2 depicts how spare parts would be assigned to existing equipment. The main
advantages of this system are: 1) Technicians create a record of installed parts, so when
replacement is needed, the location in the warehouse and quantity are already defined;
2) Ease of control for the management, confirming consumptions in Work Orders (WO)
are accurate.
The issue of how spare parts would be assigned to existing equipment arose after the
sessions conducted with the teams during the implementation of the management model.
The solution to this problem primarily aims to attempt to reduce the occurrence of faults.
From the perspective of spare parts warehouse management, this solution would bring
advantages since it would eliminate the need for some parts in stock.
A SWOT analysis on machine improvement was conducted to understand this solu-
tion’s capabilities and relevance, as shown in Fig. 3. This type of work must be thoroughly
analysed and studied, as machine changes can entail conflicts with other equipment or
cause alterations and differences in the products they produce. Therefore, an initial finan-
cial analysis should be conducted to determine if there is an advantage, and only then
should a technical analysis be carried out.
 A Study on Spare Parts Management Influencing Factors 407

Strenghts Weaknesses
• ID 5500 references, • Time spent on tool
• ID of obsolete items, development,
• ID of critical parts, • Time spent on sessions and
• Reduction of occupied space, their preparation,
• Improved access to key spares. • Time spent leads to a cost in
resources.

Oportunities Threaths
• Equipment pairing, • Newer components provided
• ID of important items not by the suppliers.
present in stock,
• Use of FMEA to determine
which components are critical.

Fig. 1. SWOT analysis for Quest A.

Strenghts Weaknesses
• Equipment organization, • Time spent on filling in all
• Higher knowledge about fields,
maintenance needs, • Need for training to make
• Control easeness. associations in the system.

Oportunities Threaths
• Better preparation for future • Delay in adapting to the new
steps of TPM implementation, information system by the
• Spare-parts to multiple operators,
equipmants. • Errors in filling out forms,
• Lack of knowledge regarding
which equipment the spare
part belongs to.

Fig. 2. SWOT analysis for Quest B.

408 A. F. V. Pedroso et al.

Strenghts Weaknesses
• Reduction of failures, • High cost of adaptations,
• Decrease in corrective • Need to create adaptations to
maintenance tasks, implement improvements,
• Better adaptation to the • Machine is no longer in
company's needs. accordance with the
manufacturer's manuals.

Oportunities Threaths
• Development of new systems. • Non-compliance with standards,
• Manufacturer unable to assist
with changes.

Fig. 3. SWOT analysis for Quest C.

4 Results
The ERP led to a successful improvement in the spare parts management with the imple-
mentation (third step of the AR methodology) of an enhanced item research method:
internal code has the local of the spare part embedded concerning the shelf where it is
stored, as well as the criticality assessment by ABC analysis was another enhancement
to the spare-parts management. In the case of MTBF, spare parts association with respec-
tive machines is an up-to-date feature that allows maintenance to be undertaken quickly
on the production line. It is possible to identify the components by evaluating and fil-
tering by brand or existing association from the warehouse database. Alternatively, the
same outcome can be achieved through the purchase history with the association made
to specific lines and machines. A third source of information comes from FMEA anal-
yses, with all components selected whose risk assessment yielded a rating above 100.
Once all the information for each equipment and brand was gathered, sessions were
organized at the Spare Parts storage site with the coordinators from each factory where
the equipment operates. The objectives of the sessions were to review and study each
article individually. With the assistance of the procurement and purchasing manager, the
price and lead time for each article were defined. During the sessions, there was a healthy
discussion among the coordinators about identifying obsolete articles and initiating the
topic of equipment association. In practice, an attempt was made to determine to which
line each article belongs. This effort helped reduce some confusion in associating articles
with equipment. The task of associating Spare Parts with each piece of equipment was
done in the company’s ERP system, requiring specific training from the IT technical
services. To ensure that this training was not lost, a one-point lesson (OPL) standard
was created and archived along with other standards already established for different
 A Study on Spare Parts Management Influencing Factors 409

procedures. During the sessions with the coordinators, some technical doubts arose that
could not be immediately clarified but were crucial to address. Therefore, an action plan
was created following the cycle Plan - Do - Check - Act (PDCA). Following to the fourth
step of the AR methodology, the evaluation of the application of this ERP resulted in
27 pieces of equipment that underwent estimation out of a total of 191 machines in the
packaging department, representing 14% of the industrial park of packaging machines.
Forty-four obsolete references were identified, amounting to a value of e 7,945, approx-
imately 0.8% of the parameterised references in the warehouse and around 1% of the
total value in the warehouse, respectively. There were 24 references of items to analyse,
corresponding to a value of e 44,278. The high value is due to parts with elevated costs
that often entered the evaluation field according to the risk analysis.

5 Discussion
The Monitoring and Theory phase of AR is discussed in this context. The implemen-
tation of ERP in a case study involving a unit of a Portuguese food group facilitated
the examination of existing materials through screening, identification, study, and elim-
ination of obsolete spare parts, leading to reduced losses and ongoing improvement.
ABC and FMEA methods application allowed for assessing the value and association of
spare parts with each piece of equipment, streamlining the number of references in the
warehouse. Conversely, certain items can now be excluded from stock due to proximity
to suppliers, adopting a Just-In-Time (JIT) approach. The initiative also raised aware-
ness among the team about the significance of these activities, including recording parts,
linking used spare parts to equipment, and making informed decisions about purchas-
ing spare parts, emphasizing the need for careful consideration. The AR methodology
was successfully implemented in this work and the approach developed holds potential
applicability to diverse industrial sectors, with adjustments as necessary.

6 Conclusion
This paper provides a comprehensive understanding of the significance of maintenance,
using to validate this approach a case study on a Portuguese food-group unit that heav-
ily relies on automatic equipment. Typically, optimising productive processes focuses
solely on activities directly associated with production. However, suppose industrial
enterprises invest solely in improving activities directly linked to productive processes
and neglect attention to the maintenance area. In that case, the achieved improvements
will be short-lived and inconspicuous, given that such companies fundamentally depend
on their equipment. Thus, maintenance assumes an increasingly crucial role in the indus-
trial milieu, ceasing to be perceived merely as a support activity to production and pro-
gressively aligning with it. In Table 1, the respective solution and implementation status
for each objective can be observed.
In this work, it was possible to evaluate approximately 14% of the industrial park
of the pasta packaging department, resulting in a reduction of just over 1% in ware-
house value by removing obsolete spare parts. The primary outcomes were improved
internal warehouse knowledge and the assessment of items not justified to be kept in
410 A. F. V. Pedroso et al.

Table 1. Objectives, solutions, and status of the work undertaken.

Objective Solution State

Examining purchasing records, ware-
Cost analysis in the procurement of
spare parts.
house data, and indications from FMEA
analysis. ☑
Development of an analytical model that


Proposal for improved management and enables the evaluation of all existing
control of the maintenance department. references in stock.

☑
Development of an OPL standard to input
Information structuring for implementa-
information into the ERP.
tion in the company's ERP system

Approximately 200 references are associ-

ated in the warehouse, corresponding to


Association of stock parts with equip- about 700 associations with equipment.
ment for better control. Creation of a database to safeguard the
information.

Caption: ☑ - Done,  - Work-in-progress.

stock. Through this effort, the project not only assisted the company in its organisation
and control but also raised awareness among its employees about the often-neglected
importance of maintenance management. As a proposal for future work, the continuation
of the project is suggested, which should be expanded based on the criticality of equip-
ment, starting with equipment of criticality A, followed by B, and finally, C. Once this
process is completed, it should be repeated, refining the parameters of the risk formula,
and attempting to filter out additional spare parts. The effort to raise awareness among
technicians regarding the records of parts associated with equipment should also be a
consideration for the maintenance department. This model should also be applied when
selecting and purchasing spare parts.

Acknowledgements. The authors thank ISEP and Cerealis – Produtos Alimentares, S.A., for
their support.

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