Repairs and Spares ― Part 1
Having the right spare part on hand when it's needed for a repair seems like a great idea at the time. However, if you consider the number of parts that can fail in your plant, then having every conceivable spare on hand is expensive. And even if you do have it, that spare may be no good due to corrosion or other damage that occurred during storage.
Companies carry insurance against unlikely events, such as a fire. Having an insurance policy with a third party is one form of insurance. Having spare parts is another form, and that form is called embedded insurance.
When determining how much insurance coverage is adequate, you consider the likelihood the event will occur and the magnitude and cost of the event if it does occur. You need to apply this same analysis to spare parts.
Carrying $50,000 in spares for minor events that each might happen once in 800 years makes no sense. Yet, this is standard policy throughout the manufacturing and process industries. Fixing the cause of failure eliminates this cost permanently.
About the Author
Mark Lamendola
Mark is an expert in maintenance management, having racked up an impressive track record during his time working in the field. He also has extensive knowledge of, and practical expertise with, the National Electrical Code (NEC). Through his consulting business, he provides articles and training materials on electrical topics, specializing in making difficult subjects easy to understand and focusing on the practical aspects of electrical work.
Prior to starting his own business, Mark served as the Technical Editor on EC&M for six years, worked three years in nuclear maintenance, six years as a contract project engineer/project manager, three years as a systems engineer, and three years in plant maintenance management.
Mark earned an AAS degree from Rock Valley College, a BSEET from Columbia Pacific University, and an MBA from Lake Erie College. He’s also completed several related certifications over the years and even was formerly licensed as a Master Electrician. He is a Senior Member of the IEEE and past Chairman of the Kansas City Chapters of both the IEEE and the IEEE Computer Society. Mark also served as the program director for, a board member of, and webmaster of, the Midwest Chapter of the 7x24 Exchange. He has also held memberships with the following organizations: NETA, NFPA, International Association of Webmasters, and Institute of Certified Professional Managers.