WHAT IS THE DIFFERENCE BETWEEN A CRITICAL SPARE AND A STRATEGIC SPARE, AS WE NORMALLY COMBINE BOTH AS ONE. IS THIS RIGHT OR NOT?

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We are facing difficulty in developing a definition of Critical Spare Part Inventory. No one is able to define it in its true essence. The situation is further confused with the difference to strategic spare parts. Any guideline or standard where we can find it ?

In the past, every Plant Manager had their own definition of Critical Inventory which changed with time. In optimization of Inventory, the first step is to establish a definition of Inventory considering all factors like production loss, redundancy, safety hazard, failure frequency, and of course, the lead time? Still I am stuck in this phase. I cannot progress, and don’t know what to do 1st, 2nd, and so forth to proceed further in this journey?

AN ASSET LIFE CYCLE WELLNESS CURVE SHOWS HOW PLANT AND EQUIPMENT RELIABILITY IS LOST AT EACH PHASE ALONG AN OPERATING ASSET’S LIFE CYCLE

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In some industries, 40% of maintenance repairs result from original equipment manufacturing failures. And up to 35% of maintenance is traceable to design engineering mistakes. That totals 75% of maintenance costs during operation can be from prior life cycle process blunders

To get utmost operating plant and equipment reliability, you need to purposefully design and build your business processes to guarantee maximum reliability from each and every phase of the asset life cycle

“Chance-of Success-Mapping” is probably the most revolutionary concept used in Industrial and Manufacturing Wellness. It is certainly one that will help managers most when they want the best choices for their organization

This article outlines key concepts that an organization needs to be aware of to bring about optimal asset health by removing risks and managing their causes. The Plant Wellness Way EAM methodology focuses on the relationship between asset health and business performance. It contains the processes and analysis tools to develop a system-of-reliability that fully supports operating asset health for the greatest ROI from each asset throughout its life cycle.Risk is the total losses suffered when any asset’s components may fail. The causes of failure are the environmental and operating stresses that affect a component’s microstructure. This means that world class reliability is the effective, complete remove of the causes of failure, also known as risks, from your operations.

Adopting the business strategy of intentionally tightening process and work quality standards will drive operating profits higher. You get most operating profits when process and work quality variables are sitting on their optimal cost points. The Taguchi Loss Functions of your operation show the connection between your operating costs and your process and work quality.

Keywords: Taguchi Loss Function, quality verses cost, Quality Cost Function

Companies end rat-race problems fast and get world class reliability by using the simple Plant Wellness Way EAM methodology to slash operational risk and make your plant and equipment world class reliable

How to get a Plant Wellness Way EAM system-of-reliability that ends your Production and Maintenance rat race is shown in the image below. It’s a simple strategy and plan for building a truly effective life cycle asset management system that purposely replaces old production and maintenance rat-race causing systems.

When calculating the replacement asset value fo items brought overseas, factor the effect of the difference in exchange rate into the calculation.

Ahmed asks:

How can we calculate replacement asset value (RAV) of a plant? We have 100’s of equipment in our three plants and we cannot contact 100’s of Vendors to tell us today’s equipment value. We have only the Capitalization Cost or installed historic value of assets.

The oldest plant was installed 6 yrs back (Aug 2015) for a total plant or asset value in our accounting record of 10 MMPKR. When the plant was installed 1 USD = 100 PKR and now after 6 yrs the exchange rate is 1 USD = 172 PKR. We took the capitalization cost of 10 MMPKR and calculated replacement asset value at today’s worth as 10 * 172/100 MMPKR.

The Plant and Equipment Wellness Way lets organizations make their operating assets world class reliable so they can enjoy operational excellence success. A Plant Wellness Way EAM System- of-Reliability puts the reliability processes, skills, paradigm, and culture into companies that creates world class reliability and operational excellence.

Written by Mike Sondalini as a memo to his younger self, the content has been adapted into an article format. Given the depth of detailed information contained, this article is better considered a technical document. It summarizes Mike’s key learnings from decades of research, consulting, and training in the Plant Wellness Way EAM methodology.

 The prime role of Maintenance is to reduce operating risk. Maintenance serves a business well when its use leads to lower production costs than using other choices that could have been taken. Too many managers think that they must maintain plant and equipment. Maybe you do and maybe you don’t. Maintenance is expensive and, as far as it is safe, use less costly answers. But if you do choose to do maintenance, then you ought to pick an operation’s maintenance strategy mix based totally on its effectiveness in delivering the least operating costs for the least maintenance cost. 

A PWW EAM SYSTEM-OF-RELIABILITY ENSURES WORLD CLASS RELIABILITY AND OPERATING PROFIT FROM YOUR ENGINEERING, SUPPLY CHAIN, OPERATIONS, AND MAINTENANCE STRATEGY, METHODS AND PRACTICES

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Build your Engineering, Supply, Operations, and Maintenance processes to get world class reliability with the fewest resources and least costs

Making great choices that get world class reliability for your company is what you do with Plant Wellness Way Enterprise Asset Management methodology.

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