Risk based prediction technique on critical spare parts requirement for plant producer

• Main Authors: Ibrahim, Jafni Azhan, Mohd Sharif, Kamal Imran, Mohamed Udin, Zulkifli, Osman, Nor Hasni
• Format: Article
• Language: English
• Published: Asian Research Publishing Network (ARPN) 2015
• Subjects: TA Engineering (General). Civil engineering (General)
• Online Access: http://repo.uum.edu.my/17337/1/IRPN%201138-1344.pdf; http://repo.uum.edu.my/17337/; http://www.arpnjournals.com/jeas/research_papers/rp_2015/jeas_0215_1599.pdf

The number of major losses and equipment breakdown due to unavailability of spare parts has posed challenges for planning and inventory control. Moreover this issue can lead to unproductive breakdown of the equipment with eventually give impact towards company’s profit.Most of the inventory planner strengthen their inventory policies by maintaining high inventories of spare parts in which resulting irrelevant to the total cost of the asset investment.The inventory planner is considered risk neutral and willing to trade off between the lower profit gain for the protection against possible production losses. Nevertheless, the objectives of maintaining high inventories of spare parts often conflict from meeting the needs of risk averse inventory management. In view of this situation, the management of spare parts become critical issue in the company and it is suggested to quantify the potential impact in order to reduce risks.This paper describes the development of risk quantification technique using Spare Parts Probability Derivation Table for the plant inventory control. The table will provide the probabilities of four critical spare parts that has been identified by the maintenance planner. These probabilities can be used to quantify the risk for the spare part failure and later to produce optimization in terms of risk and finding the minimal inventory cost.