Spare Parts & Inventory Management PDF

SPARE PARTS & INVENTORY MANAGEMENT Presented by: CEAT AMT Audrey Grace Cardinez 1st Semester 2024-2025 1 INTRODUCTION Spare parts and inventory management in aviation maintenance is the systematic process of overseeing and controllin...

SPARE PARTS & INVENTORY MANAGEMENT Presented by: CEAT AMT Audrey Grace Cardinez 1st Semester 2024-2025 1 INTRODUCTION Spare parts and inventory management in aviation maintenance is the systematic process of overseeing and controlling the inventory of spare parts, components, tools, and materials necessary to support the maintenance, repair, and overhaul (MRO) activities of aircraft and related systems. Efficient inventory management is crucial in aviation to ensure that the right parts are available when needed to maintain aircraft airworthiness, minimize downtime, and optimize costs. 2 Let’s talk about spare parts: In any aircrafts, wear and tear are bound to occur over time, and parts will need to be replaced or repaired. Spare parts are an essential aspect of maintenance and repair, ensuring that machines and equipment continue to function effectively. In reality, the spare parts management brings together the diverse disciplines of maintenance management, inventory management, storeroom management, supply chain, procurement and logistics. 3 Identification of Spare Parts Kinds of Spare Parts Used Parts Original Equipment Manufacturer (OEM) Aftermarket Parts Classification of Spare Parts: Consumable Expendable Rotable 4 Kinds of Spare Parts: AFTER MARKET USED PARTS OEM PARTS PARTS Used parts are those that OEM parts are those Aftermarket parts are have been taken from produced by the original manufactured by third-party equipment that is no manufacturer of the companies and not the original equipment longer in use or has been equipment or machinery. manufacturer. decommissioned. These parts are designed These parts are often to match the exact cheaper than OEM parts but These parts are often the specifications of the may not have the same level cheapest spare parts but original parts that came of quality or durability. may have limited with the equipment. Many aftermarket parts are functionality or lifespan. They are often the most designed to meet or exceed expensive spare parts, but OEM specifications, and they offer the highest level some even offer better performance than OEM of quality and reliability. parts. 5 Classification of Spare Parts: CONSUMABLE EXPENDABLE ROTABLES 1. Any materials used only 1. Cannot be repaired and 1. Complex Components once will be scrapped after 2. Normally unlimited number 2. Raw materials removal and inspection of repairs 3. Controlled by individual 3. Items which merge on result is unserviceable serial number production with new 100% replicable items 4. Exchange during product and cannot be 2. Items which cannot be maintenance removed repaired 3. Standard Parts 6 EXAMPLES: CONSUMABLES EXPENDABLE ROTABLES Adhesives Batteries Engines Sealants Cable Assembly Fuel Pumps Composite Filters Hydraulics APUs Materials Lamps / LEDs Landing Gear Grease Decals Compressors Oil Contacts (spark Lights Lubricants plugs) Motors / Fans Industrial Gases Fans Pumps Paints & Seats Coatings Pneumatics GTE Vanes 7 Analysis of Spare Parts Inventory It is essential to analyze the spare parts inventory based on various characteristics such as the frequency of issues, the annual consumption value, the criticality, the lead time and the unit price. 8 ABC ANALYSIS A CLASS ITEMS 10% OF TOTAL SPARE >>>> 70% OF TOTAL COSUMPTION VALUE (High Value or High Criticality) (examples: avionics systems; engines) A CLASS ITEMS 20% OF TOTAL SPARES >>>> 20% TOTAL CONSUMPTION VALUE (High Value or High Criticality) (examples: landing gears, communication system) C CLASS ITEMS (Low Value or Low 70% OF TOTAL SPARES >>>> 20% TOTAL CONSUMPTION VALUE Criticality) (examples: ladders, hydraulic power units) 9 XYZ ANALYSIS X CLASS ITEMS X items have very little demand variation. Demand can be reliably (Steady or forecasted because it does not change as often or as drastically Constant Demand) compared to other items.) Y CLASS ITEMS Y items have fluctuating demand. The demand is typically due to a (Erratic or known or predictable cause, such as specific seasons, holidays, or Intermittent changes in economic Demand) factors. Z CLASS ITEMS Z items have the highest demand variations. These variations are (Rare or Infrequent sporadic and unpredictable, caused by unknown factors or Demand) unusually strong changes in demand. 10 Best Practices in Aviation Spare Parts Management: ▪Forecast Demands ▪Vendor Relationship and Procurement Strategies ▪Minimizing Excess Stocks ▪Stocking Essential Spare Parts 11 INVENTORY CONTROL METHODS First In, First Out Mininum Stock (FIFO) Levels Just-In-Time Economic Order (JIT) Quantity (EOQ) 12 First In, First Out (FIFO) DEFINITION ADVANTAGES DISADVANTAGES An inventory Safety Reliability Cost Allocation management rule Regulatory Inventory Holding that helps reduce the Compliance Costs risks of deterioration Reduced Complex Inventory caused by lengthy Obsolescence Management storage. Risk of Misalignment 13 Just-In-Time (JIT) DEFINITION ADVANTAGES DISADVANTAGES An inventory Cost Reduction Supply Chain management Capital Efficiency Vulnerability strategy that has a Reduction in Limited company receive Obsolescence Redundancy goods as close as Efficient Space Risk of Stockouts possible to when Utilization Increased Reliance they are actually on Suppliers needed High Transportation Costs 14 Minimum Stock Levels DEFINITION ADVANTAGES DISADVANTAGES The lowest quantity Reliable Higher Holding of a product that a Component Costs company wants to Availability Capital Tie-Up have on hand at Safety Assurance Risk of any given time to Supply Chain Obsolescence avoid stockouts or Stability Complex Inventory backorders. Predictable Management Replenishment Overstocking Risk 15  Economic Order Quantity (EOQ) DEFINITION ADVANTAGES DISADVANTAGES EOQ is an inventory Cost Efficiency Assumption Sensitivity management technique Optimized Complexity for Aviation that helps optimize the Replenishment Potential for Stockouts amount of inventory Capital Preservation Risk of Obsolescence company should Simplicity Limited to Non- purchase in order to Perishable Items meet its demand while minimizing its holding and storage costs. 16  Technology In Aviation Inventory and Spare Parts Management 17 What are these technology? RFID Tracking Inventory Management Softwares Barcode System 18 What are these technology? Technology plays a crucial role in aviation inventory and spare parts management, from optimizing inventory levels and ensuring the availability of critical parts to enhancing safety through predictive maintenance and compliance tracking. It streamlines operations, reduces costs, and ultimately contributes to the overall efficiency and reliability of aviation maintenance processes. 19 CONCLUSION Aviation inventory and spare parts management are vital components of aviation maintenance. Understanding the importance of spare parts and inventory management in aviation maintenance and exploring key principles and best practices underscore the critical role these processes play in ensuring aircraft safety, operational efficiency, and cost- effectiveness. Effective management minimizes downtime, enhances safety, and optimizes resources, ultimately contributing to the success and reliability of aviation operations. 20