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When deciding on the right stocking parameters for spare parts and service parts, it is important to distinguish between consumable and repairable service parts.\u00a0 These differences are often overlooked by\u00a0service parts planning software<\/a>\u00a0and can result in incorrect\u00a0estimates of what to stock<\/a>.\u00a0 Different approaches are required when planning for consumables vs. repairable spare parts.<\/p>\n First, let\u2019s define these two types of spare parts.<\/p>\n Traditional spare parts planning software fail to do the job<\/strong><\/p>\n Traditional parts planning software is not well-adapted to deal with the randomness in both the demand side and the supply side of MRO operations.<\/p>\n Demand-Side Randomness<\/u>\n
Planning for consumable spare parts requires calculation of\u00a0inventory control parameters<\/a>\u00a0(such as reorder points and order quantities, min and max levels, and safety stocks). Planning to manage repairable service parts requires calculation of the right number of spares. In both cases, the analysis must be based on probability models of the random usage of consumables or the random breakdown of repairable parts. \u00a0For over 90% of these parts, this random\u00a0demand is \u201cintermittent\u201d<\/a> (sometimes called \u201clumpy\u201d or \u201canything but normally distributed\u201d). Traditional spare parts forecasting methods were not developed to deal with intermittent demand. Relying on traditional methods leads to costly planning mistakes. For consumables, this means avoidable stockouts, excess carrying costs, and increased inventory obsolescence. For repairable parts, this means excessive equipment downtime and the attendant costs from unreliable performance and disruption of operations.<\/p>\n