Maintenance. Recovering forgotten spare parts

Effective spare parts management is the foundation of stable production and guarantees smooth operational processes. Today, maintenance departments are increasingly basing their strategies on CMMS systems, which enable meticulous demand analysis based on historical data. Implementing such software enables precise tracking of supply costs.

Understanding the irregular dynamics of component wear and intelligent resource categorization effectively minimizes line losses. Using these tools, warehouse management can be tailored to achieve maximum part availability. Ultimately, we aim for a 98% service level for the most critical parts, which virtually eliminates the risk of sudden downtime.  

Classification and storage costs

Inventory optimization requires judicious allocation of financial parameters to specific product groups. It’s important to remember that maintaining inventory burdens the company’s budget in direct proportion to the price of a given part. To accurately control these expenses and determine the optimal order quantity (EOQ), it’s important to rely on hard data and indicators assigned to specific equipment categories. In the analysis, the key cost variables are as follows:

• annual rate of living costs for priority groups A and B ranging from 10% to 30%,
• a similar indicator for groups C, D and E at a level from 15% to 40%, set at a fixed interval of 5%,
• flat-rate supply cost of €15.34 per order.

Service levels and risk minimization

When we delve into the data, we quickly notice that demand for most components is highly irregular. In everyday practice, only a small portion of the product range is consumed in a predictable enough manner to be easily modeled as a classic normal distribution. To effectively ensure machine continuity and avoid unexpected expenses, service levels must be accurately determined. To achieve this, it’s worth relying on the cumulative frequency of demand . A properly implemented system acts as a safety buffer. It effectively protects the plant from a complete line shutdown in the event of an unexpected failure. Careful testing and the implementation of clear targets for individual inventory classes are crucial:

• target service level of 95% or 98% for the most critical group A,
• standard safety level for group B products, which is 90% and 95%,
• consciously acceptable risk of missing parts for group A, set at 2% or 5%.

Normal distribution and acceptable risk of missing parts

In priority group A, we find a small number of components whose consumption is predictable and fits the classic normal distribution (with an average demand of 33 units). The main challenge here is determining a reasonable risk of stockouts. Rigorous assumptions of 2% and 5% stockouts were compared. The results of this simulation bring excellent news for the budget:

• the difference in maintenance costs between 2% and 5% risk is only 0.3% to 0.5%,
• the maximum financial discrepancy for these parameters on an annual basis never exceeds a symbolic 1%,
• Taking into account the huge losses caused by sudden machine downtime, keeping the risk of shortage at the lowest level of 2% is objectively the most advantageous.

Optimization for lower priority components

Inventory management also requires a proper approach to groups C, D, and E, for which the maintenance cost rate ranges from 15% to 40%. Properly classifying these items frees up tied-up capital and protects against spending on items that are not critical to the continuity of operational processes. Analysis of lower-priority inventories provides a clear illustration of the potential for optimization:

• the costs of storing group C items can increase from several dozen euros to even several thousand euros,
• the use of indicators adapted to group D often allows for reducing expenditures by almost half,
• Components classified in group E are characterized by zero shortage cost – their temporary lack does not block production.

Data-driven decisions, the foundation of modern UR

Digitalization is now the absolute foundation of efficient maintenance. Whether we want to secure 98% availability of critical components or reduce inventory storage costs by 40% , modern management relies on reliable data. Replacing outdated spreadsheets with an intuitive system guarantees complete records. Furthermore, it minimizes the risk of unexpected downtime and delivers measurable financial savings for the entire enterprise.

How did Valvex eliminate hidden inventory costs?

To fully understand the potential of digitalization, it’s worth examining the implementation at Valvex SA, a Polish leader in the plumbing industry. The facility’s maintenance department manages an infrastructure spanning over 9,500 square meters. It encompasses eight key production areas and is overseen by a team of nearly 30 specialists.

Before the introduction of the CMMS system, the lack of proper records led to accidental duplicate purchases. However, after just 10 months of working with the new software, the company recorded measurable financial savings. Precise cataloging of inventory permanently eliminated the problem of missing components. Today, orders flow directly to technicians’ mobile devices, allowing them to effectively schedule daily tasks and finally say goodbye to disorganized, ad hoc responses to malfunctions.

CMMS system as an effective response to lost inventory

The implementation of the software at Sohbi Craft Poland demonstrates the importance of constant, mobile access to data. With hundreds of orders processed monthly, the application has completely eliminated the problem of missed tasks and missing spare parts. At this company, the CMMS system automatically monitors minimum inventory levels, allowing maintenance teams to operate without any delays in repairs.

Moreover, the program automatically generates schedules for periodic machine inspections, ensuring the safety of the machinery without the need to remember routine tasks. Thanks to direct notifications on smartphones and tablets, technicians immediately respond to requests and continuously record used materials directly from the production floor.