SMS Spares

SMS – What is it… ?

A decision support tool for setting inventory levels for critical, slow moving and high cost parts
Forecasts inventory levels for in-house repair, sub-contract repair and new purchases based on the required reliability, cost and equipment availability
Aligns spare parts replacement decisions with the Equipment Reliability process and the current business situation (risk and cost)
Combines science and economics to set inventory levels according to operations and performance needs, not just budgets
Facilitates placement of final orders for discontinued parts

Improved decision making, reduced cost of spares
Integrates risk and cost calculations
Forecasts timing of replacements for current spares
Sets the Spares levels required to meet multiple replacement conditions and % reliability requirements:
- instant reliability (spare is available when called for)
- interval reliability (spare is available during the period being planned)
- cost minimization
- availability of the process or production unit
- given a stock size, the availability during the period being planned
Accommodates variable failure intervals, variable lead times, variable repair times
Provides cost calculations for repairable and non-repairable spares
Complementary to RCM
Easy to use data entry screens requires little training
Easy to read graphical output shows results at a glance

The required planning period
The type of calculation required – instant or interval reliability, availability or cost minimization
The % level of reliability required
The cost of the spares – new and repaired – regular cost, emergency cost, holding cost, cost of capital, future value of unused spares
Failure rates for the spares
Lead times for the new and repaired parts

Risk and cost calculations for Repairable Spares
Risk and cost calculations for Non-Repairable Spares
Minimum level of Spares requirements for Interval reliability at user determined levels from 50% to 99.99%
Minimum level of Spares requirements for Instant reliability at user determined levels from 50% to 99.99%
Availability calculations at given levels of Spares

Any industry where Spare Parts and Replacement costs are a significant part of operations
Any heavy industry such as mines, steel, metals processing, chemicals, oil and gas petrochemical, pulp and paper
Discrete manufacturing facilities – automotive, electrical, components, furniture, tires, plastics etc
Process manufacturing – pharmaceuticals, food and beverages
Municipal, state and federal departments, military, customs, airports, container ports
Power utilities, telecom, gas, electrical, water distribution companies