Multi-Criteria Spare Parts Planning in F&B Manufacturing Industries

Tey Geok Hua

Abstract

Technical store management is a very important functional activity for almost all the manufacturing plants. Spare part inventory control is one of the most critical activities comprise spare part periodical review, spare part minimum and maximum stock control, and resource planning. Nowadays, spare part inventory management is increasingly important as most of the organization is moving towards lean concept, whereby keeping unnecessary or extra spare parts in the store is a waste.

Most of the technical stores are trying to maintain high service level while keeping the inventory value low. To achieve this, one should consider multi criteria in the analysis and evaluation process instead of conventional method of keeping all the parts recommended by the supplier. The strategy of keeping all the spare parts in order to keep a machine running has become obsolete and the management system needs to be reviewed in order to achieve the objective.

This thesis will propose an integrated approach for the store manager and maintenance team to select the best decision policy in spare part reviewing process. The approach starts with an analysis of current technical store condition to identify all the non-moving spare part. Analytic Hierarchy Process rating model is proposed in the next phase to analysis the critical level of a spare part. Subsequently, a Failure Mode Effect Analysis is carried out to determine the failure mode and cost effect of a spare part. The last step of the approach is to apply all the results obtained in the decision flow chart to choose the most appropriate decision policy for spare part.

A numerical example will be presented to illustrate the implementation of integrated approach in real-life situation. The thesis concludes with a discussion of the contribution and possible improvements of the proposed approach.