Spare Parts Stock rationalization for rotating equipment based on companywide interchangeability; an inventory cost reduction strategic technique-Perspective to Petroleum & fertilizer industries across India & Gulf
Faculty & Research Scholar, Mechanical Dept. (Program of Management Studies)
Rajasthan Technical University, Rawatbhata Road- Akelgarh, Kota- Rajasthan-324009(India)
sandeeps_sharda@yahoo.co.in & ssharda.phd@rtu.ac.in
Prof. Sanjeev Mishra
Professor& Head, University Teaching Department of Mechanical Engineering, Rajasthan Technical University, Rawatbhata Road, Akelgarh, Kota- Rajasthan-324009 (India)
smishra@rtu.ac.in
Abstract
Spare parts stock control is crucial to inventory research. Current practice of spare parts stocking is based on individual plant’s equipment. Identical spare parts could be rationalized based on companywide having different plants. It requires a dedicated review through drawings and documents of manufacturer’s data for interchangeability. Primary objective is to contribute in inventory cost reduction on the basis of rationalization of stock levels for identical spare parts. Identical spares rarely require simultaneously for maintenance in relevant equipment among different plants. The methodology is based on three stages which include gathered opinion through questionnaire for companywide stocking policy from above industries in India and Gulf. Subsequently followed by conceptual methodology of companywide codification includes reviewing through an adequate Spare parts Interchangeability record (SPIR) formatted document. The final stage is validation which is supported with case studies based on secondary data collected from one of SABIC affiliate, KSA and other from Fertilizer industry at India. The approach of companywide is applicable for Petroleum & fertilizer industries Globally since having more than two plants at a business unit like Reliance & KRIBCO at India & SABIC & ADNOC affiliates at Saudi Arabia and UAE respectively.
Key words- Companywide codification, Spare parts Descriptive Statistics and Interchangeability