Optimizing spare-parts management

University essay from Högskolan i Gävle/Industriell ekonomi

Abstract: Abstract Purpose: The purpose of the study is to develop a model that will facilitate the choice of maintenance strategy within the Swedish pulp and paper industry. Without compromising system availability, the model aims to reduce inventory holding costs. Methodology: At first, a literary research was conducted to create a holistic view over the chosen topic, in time it developed into a literature framework. Secondly, a case study was conducted in order to obtain empirical data. The data were obtained through interviews and archival records. The literature framework and the empirical data were then cross-analyzed with each other. Findings: In this thesis, a model has been developed based on previously applied and accepted methods. The methods have been identified and described in order to provide a strategy in which the inventory levels- and value could be lowered. The findings indicate that the organization must seek to assign ABC-classified and VED-analyzed components different maintenance actions in order to reduce the total cost. Theoretical contribution: This thesis contributes to a methodology development regarding spare parts management. It aims to add knowledge to the existing gap regarding spare parts order point and batch size. The thesis provides a procedure in which systems including critical and expensive components are evaluated in order to assign them the appropriate maintenance. Practical relevance: The model has only been exemplified by using a system position from Stora Enso Skutskär, the numerical values are examples. The model must be tested with real values and the risk analysis must be carried out with a group of employees with great insight regarding the selected component and system position. Limitations: This thesis is delimited to spare parts management and inventory management. The study only involves one Swedish organization, whereas the organization and its spare parts management illustrates the complexity concerning spares. The model will not be verified as the focus is to highlight the research gap and to develop the model.

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