Maritime Spare Parts Manage ment

Spare Parts Managemen t: Taming the Chaos

3 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Spare Part Management: definition Spare parts management is the main component of a complete Strategic Service and Maintenance Management process that companies use to ensure that right spare part and resources are at the right place (where the broken part is) at the right time.Strategic Service and Maintenance Management

4 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Spare Parts Management includes: Procurement Inventory Management Repair Management Logistics Supply Chain

5 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Tips and Tricks: how to start Tip #1: Develop Clear Spare Parts Stocking Criteria Tip #2: Provide Clear Guidelines on How Many Parts to Stock Tip #3: Accept that Some Stock Outs are OK Tip #4: Review the Holdings of Critical Spare Parts Tip #5: Identify the Causes of Excess Spare Parts Inventory Tip #6: Review Your Storeroom Security

6 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Spare Part Classes Rotable engine Repairable Fuel pump Expendable Integral Sleeve Non-integral Spring, bulb Consumables Bolts, …. Expendable-repairable Seats, tables, …

7 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Spare parts: close call On time in full Work around Temporary fixtures Cannibalism Stand by

8 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Interchangeability criteria: Form /Fit/ Function The phrase form fit function, also referred to as FFF, is used in manufacturing to describe the identifying characteristics of a part (a single component that goes into the final build of your product, typically kept on an item master). Form fit function can be defined as: Form – the shape, size, dimensions, mass, weight and other visual parameters that uniquely distinguish a part. For example, you might describe a screw that will be used in your product as ‘SCREW, PAN HEAD, M3 x 0.5, 2mm Lg, 316 SS.’ Fit – the ability of a part to physically interface with, connect to, or become an integral part of another part. For example, if we want our screw to fit to correctly in the final product, it must adhere to the rules set by engineering in the design phase. This might include specifications for the space around the screw relative to a faceplate hole or the location of the screw’s top position relative to the product surface. Function – the action or actions that a part is designed to perform. In our example, the screw is intended to hold other parts of the product together. Please Note: Document classification is not to be removed.

9 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Voorbeelden JDN

10 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Costs and Opportunities: monitoring best practices Infrequent demand, costly downtime Accurate demand forecasting Spare part obsolence Extensive and complex parts Quality control standards (superior) service level (low) but efficient and effective holding cost of spare parts

11 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Interchangeability and repleceability of parts First step: Working lists containing: Type/model/serial identification Drawings/sketches/diagrams Status requirements Maintenance requirements Engineering requirements Tooling requirements Cfr. Example JDN

12 ©2016 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Confidential Just one final note: One of the biggest surprises for me over the years is the relatively low number of asset managers that take the maintenance of spare parts seriously. This includes ensuring that parts are protected from rust or corrosion, inspected for damage, ensuring moving parts are lubricated properly, protecting certain materials from drying out, preventing parts from excessive stretching or compression, and eliminating dust from parts that might be degraded. How parts are stored and cared for is critical to extending their shelf life and that of each relevant asset. For example, hanging certain types of belts on nails might cause kinks over time, which might, in turn, result in premature asset failure. (Berger;2012)

Thank you Koen Bogers