Spare Parts Optimization
Optimizing resources and spare parts in a complex logistic system is a major problem specially in almost every organization and industry and it involves a large capital investment. In industries characterized by heavy utilization of equipment and machinery, such as defence, mining, oil & gas, utilities, transportation, adequate stockholding of critical spare parts becomes essential. Insufficient stocks affect overall performance of physical assets, as lack of spares may result in gross penalties, lower availability or increased operational risks. On the other hand, oversized inventories lead to inefficient use of capital and may imply severe expenditures. (U of T).
LPS offers comprehensive spare parts recommendation that fits the specific needs of your mission to minimize your down time and optimize your parts stock. We base our analysis on two cost optimization criteria’s: (1) total no shortage probability and (2) availability; and our approach is based on component cost, similar system criteria’s and taking consideration of factors such as operational and environmental requirements. Initial spare parts planning, optimization and recommendations are based on available legacy data and reliability prediction results.LPS uses Normal distribution, Poisson distribution, reliability models (i.e. instantaneous, Interval) and latest spare optimization software technology to present the optimal stock size (repairable and non-repairable parts). Considered criteria on sparing are confidence level, minimization of costs, maximization of equipment availability, and the achievement of a desired stock reliability.