University Study Proposal: Spare Parts Management and Inventory

This report presents a study proposal focused on spare parts management within a business context, emphasizing the critical role of inventory systems in maintaining operational efficiency, reliability, and cost-effectiveness. The study aims to address the challenges of managing spare parts, including risk assessment, inventory control, and the development of effective strategies for planning, scheduling, and cost reduction. Key areas of investigation include the identification of potential problems, the implementation of effective scheduling and planning cycles, and the optimization of pricing and supply strategies. The report highlights the importance of aligning spare parts management with overall business objectives, customer service, and the diverse needs of the industry. The study will explore various strategies for optimizing sales performance, managing risks, and enhancing productivity within the spare parts management system. References to relevant literature provide a foundation for the proposed research, emphasizing the need for practical knowledge and strategic approaches to ensure financial sustainability and operational success. The study will contribute to the understanding of best practices in spare parts management, providing insights into how organizations can improve efficiency and reduce costs.

Running head: SPARE PARTS
SPARE PARTS
Name of the student:
Name of the university:
Author Note:

1SPARE PARTS
STUDY PROPOSAL
The aim of the assignment deals with the management of the spare parts which
depends on the demand and the supply of the spare parts of the company. For providing
assistance regarding the spare part, sufficient and appropriate knowledge regarding the same
must be adopted in that case. There are certain risk management process which are discussed
in the below discussion which are the risk identification, vigilance, identification, probability
and response.The planning, scheduling and controlling the spare parts within the system is
significant in that case. The strategies which are adopted in this case are discussed in the
conducted study regarding the spare parts. The management of the spare parts plays
significant role in the conducted study which is shown in the bellow discussion regarding the
same.
The above discussion is related to the spare parts and inventory systems contributes to
the economic demands to reduce cost while maintaining high levels of operational safety,
reliability and efficiency in an organization with their core business is fleet operations.
Inventory management for suppliers must be able to provide services for a wider range of
customers in terms of reliability and supply on demand (Van Houtum, &Kranenburg, 2015).
Practical knowledge of spare parts and inventory systems provides financial
sustainability and a positive operational environment. Spare parts suppliers must acquire
principle of customer service care and acknowledge the diverse cultures of the New Zealand
metropolitan customers in the motor industry (do Rego& de Mesquita, 2015).
The Spare parts deals with the cost-effective and excellence equipment’s mainly
reliable on the basis of the Planning, maintenance and scheduling. If it is needed to enhance
the effectiveness, productivity and reduce the overall maintenance cost, then it is needed to
implement the training necessary training course required. In order to understand the

2SPARE PARTS
effectiveness of the spare parts, it is needed to implement to best suitable practices. In case of
the operating cost of the plant, it is needed to implement the maintenance materials and there
lies other parts which enhances the reliability, productivity and the bottom line. It is
significant to provide the materials management and the reliability based spare parts provides
quite a possible solution regarding the inventory and the management problems. Hence in this
case sufficient knowledge regarding the supplies and spare parts are required for the overall
growth of the system (Behfard et al.,2015).
The objectives which are required in this case is to identify the problems and issuing
the clearly defined solution as a work packages. The aspects of the scheduling and the
planning cycle must also be taken into consideration in this case. The business process
support effective plant maintenance and the process to implement scheduling and planning in
the respective plant. The significant thing which must be taken into consideration is that the
long term objectives of the operations (Kian, Bektaş, &Ouelhadj, 2019).
In case of the spare parts management strategies, the operation strategy is considered
as one of the significant strategies regarding the assets like the spares and the effectively
control operating costs of the spare parts (Fox, 2017). The foundation of the reliable plant
operations are practical spare part management. This process of the management is further
significant to a plant manager’s success. For determining the spare parts, it is important to
determine the inventory system in brief and further needed to be effective. The significant
parts which are needed to be developed is that are the few factors which are the inventory
control, operating system and the lead times among them. If this few factors are taken into
consideration, then it would be possible for the management to enhance the efficiency,
disturbance and the carrying cost (van Jaarsveld, Dollevoet, & Dekker, 2015).

3SPARE PARTS
It is significant job for the management of the company in order to maintain the spare
parts and further tracking the sales performance. In order to increase the sales performance,
there are certain strategies in the spare parts which is the optimization of the pricing parts.
The growth of the sales in the service parts which have the rights parts and quantify
(Ghaddar, Sakr&Asiedu, 2016).
In case of the risk assessment in spare parts management four basic functions in the
management ofrisk which are the risk quantification, identification,response and
responsibility. The first three quantification, identification and probability are groped in the
process of the risk management. The process of Risk vigilance is just the recognition of the
situations associated with risk, the current response to the situational risk and improvisation
of the impeccable risk responses. In case of vigilance, it is needed to identify an appropriate
prompt andfurther defines the parameters for the vigilance. The term appropriate risk
responses is mentioned in the study and the reason behind that is different risks require
different approaches (Hu et al., 2018).
From the above discussion, it can be concluded that in case of the spare part
management the certain aspect which are discussed above must be kept in mind regarding the
spare parts management and inventory control. The sales performance regarding the spare
parts must be tracked and further changes in the system must be adopted in order to enhance
the sale along with the productivity of the spare parts. Effective approaches in the spare parts
planning and scheduling must be adopted in order to comply with the spare management in
the system. Enhancing the productivity of the spare parts along with optimizing the pricing
and the supply strategy must be undertaken in the above discussed strategy.

4SPARE PARTS
References
Behfard, S., van der Heijden, M. C., Al Hanbali, A., &Zijm, W. H. (2015). Last time buy and
repair decisions for spare parts. European journal of operational research, 244(2), 498-
510.
doRego, J. R., & de Mesquita, M. A. (2015). Demand forecasting and inventory control: A
simulation study on automotive spare parts. International Journal of Production
Economics, 161, 1-16.
Fox, R. C. (2017). Spare parts: Organ replacement in American society. Routledge.
Ghaddar, B., Sakr, N., &Asiedu, Y. (2016). Spare parts stocking analysis using genetic
programming. European Journal of Operational Research, 252(1), 136-144.
Hu, Q., Boylan, J. E., Chen, H., &Labib, A. (2018). OR in spare parts management: A
review. European Journal of Operational Research, 266(2), 395-414.
Kian, R., Bektaş, T., &Ouelhadj, D. (2019). Optimal spare parts management for vessel
maintenance scheduling. Annals of operations research, 272(1-2), 323-353.
Van Houtum, G. J., &Kranenburg, B. (2015). Spare parts inventory control under system
availability constraints (Vol. 227). Springer.
vanJaarsveld, W., Dollevoet, T., & Dekker, R. (2015). Improving spare parts inventory
control at a repair shop. Omega, 57, 217-229.