Advertisement

A Decision Making Framework for Managing Maintenance Spare Parts in Case of Lumpy Demand: Action Research in the Avionic Sector

  • M. Macchi
  • L. Fumagalli
  • R. Pinto
  • S. Cavalieri
Chapter

Abstract

Traditionally, maintenance has been considered as a core in-house activity. Only a few years ago outsourcing maintenance has become a common practice (Taracki et al. 2006). According to Harland et al. (2003), “outsourcing involves the use of specialists to provide competences, technologies and resources”. Three fundamental factors nowadays bring firms to use outsourcing in maintenance: (i) cost reduction, since providers are more experienced, thus they can provide better service efficiency; (ii) more skills, since using external resources is a way to rapidly get new skills via qualified people and specific instruments; (iii) a highest service level, since this is normally bound to penalties established during the contracting phase measured by clear Key Performance Indicators (KPIs) to which the provider is duly responsible.

Keywords

Spare Part Time Series Forecast Original Equipment Manufacturer Inventory Holding Policy Test 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Archibald BC, Silver EA (1978) (s, S) Policies under continuous review and discrete compound Poisson demand. Manage Sci 24:899–909CrossRefMATHGoogle Scholar
  2. Ashayeri J, Heuts R, Jansen A, Szczerba B (1996) Inventory management of repairable service parts for personal computers. Int J Oper Prod Manag 16(12):74–97CrossRefGoogle Scholar
  3. Bailey GJ, Helms MM (2007) MRO inventory reduction—challenges and management: a case study of the Tennessee Valley Authority. Prod Plan Control 18(3):261–270CrossRefGoogle Scholar
  4. Balana AR, Gross D, Soland RM (1989) Optimal provisioning for single-echelon repairable item inventory control in a time varying environment. IIE Trans 21(3):202–212CrossRefGoogle Scholar
  5. Bartezzaghi E, Verganti R, Zotteri G (1999) A simulation framework for forecasting uncertain lumpy demand. Int J Prod Econ 59:499–510CrossRefGoogle Scholar
  6. Baskerville R, Pries-Heje J (1999) Grounded action research: a method for understanding IT in practice. Acc Manage Inf Technol 9:1–23Google Scholar
  7. Birolini A (2004) Reliability engineering: theory and practice, 4th edn. Springer, BerlinGoogle Scholar
  8. Cavalieri S, Macchi M, Garetti M, Pinto R (2008) A decision making framework for spare parts inventory planning: proposal and validation in industrial cases. Prod Plan Control 19(4):379–396Google Scholar
  9. Cobbaert K, Van Oudheusden D (1996) Inventory models for fast moving spare parts subject to “sudden death” obsolescence. Int J Prod Econ 44(3):239–248CrossRefGoogle Scholar
  10. Conboy K, Kirwan O (2009) An action research case study of the facilitators and inhibitors of e-commerce adoption. Int Bus Res 2(2):48–56Google Scholar
  11. Coughlan P, Coghlan D (2002) Action research for operations management. J Prod Oper Manage 22(2):220–240CrossRefGoogle Scholar
  12. Croston JD (1972) Forecasting and stock control for intermittent demands. Oper Res Q 23(3):289–303CrossRefMATHGoogle Scholar
  13. De Smidt-Destombes KS, van der Heijden MC, van Harten A (2006) On the interaction between maintenance, spare part inventories and repair capacity for a k-out-of-N system with wear-out. Eur J Oper Res 174(1):182–200CrossRefMATHGoogle Scholar
  14. Dekker R, Kleijn MJ, de Rooij PJ (1998) A spare parts stocking policy based on equipment criticality. Int J Prod Econ 56–57(3):69–77CrossRefGoogle Scholar
  15. Dhillon BS (2002) Engineering maintenance: a modern approach, 1st edn. CRC Press, Boca RatonCrossRefGoogle Scholar
  16. Dubi A (1999) Monte Carlo applications in systems engineering, 1st edn. Wiley, New YorkGoogle Scholar
  17. Ebeling CE (1991) Optimal stock levels and service channel allocations in a multi-item repairable asset inventory system. IIE Trans 23:115–120CrossRefGoogle Scholar
  18. Gajpal PP, Ganesh LS, Rajnedran C (1994) Criticality analysis of spare parts using the analytic hierarchy process. Int J Prod Econ 35(1–3):293–297CrossRefGoogle Scholar
  19. Ghobbar AA, Friend CH (2002) Sources of intermittent demand for aircraft spare parts within airline operations. J Air Transp Manag 8:221–231CrossRefGoogle Scholar
  20. Guide VDR Jr, Srivastava R (1997) Repairable inventory theory: models and applications. Eur J Oper Res 102(1):1–20CrossRefMATHGoogle Scholar
  21. Haffar I (1995) “SPAM”: a computer model for management of spare parts inventories in agricultural machinery dealerships. Comput Electron Agric 12:323–332CrossRefGoogle Scholar
  22. Harland C, Brenchley R, Walker H (2003) Risk in supply networks. J Purch Supply Manag 9(2):51–62CrossRefGoogle Scholar
  23. Huiskonen J (2001) Maintenance spare parts logistics: special characteristics and strategic choices. Int J Prod Econ 71(1–3):125–133CrossRefGoogle Scholar
  24. Jardine AKS, Tsang AHC (2006) Maintenance, replacement and reliability: theory and applications, 1st edn. CRC Press, Boca RatonMATHGoogle Scholar
  25. Kennedy WJ, Patterson JW, Fredendall LD (2002) An overview of recent literature on spare parts inventories. Int J Prod Econ 76(2):201–215CrossRefGoogle Scholar
  26. Kumar R, Markeset T, Kumar U (2004) Maintenance of machinery—negotiating service contracts in business-to-business marketing. Int J Serv Ind Manag 15(4):400–413CrossRefGoogle Scholar
  27. Lawless JF (2003) Statistical models and methods for life time data, 2nd edn. Wiley, New YorkGoogle Scholar
  28. Levén E, Segerstedt A (2004) Inventory control with a modified Croston procedure and Erlang distribution. Int J Prod Econ 90:361–367CrossRefGoogle Scholar
  29. Mabini MC, Pintelon LM, Gelders LF (1992) EOQ type formulations for controlling repairable inventories. Int J Prod Econ 28(2):21–33CrossRefGoogle Scholar
  30. Muckstadt JA, Isaac MH (1981) An analysis of a single item inventory system with returns. Naval Res Logistics Q 28:237–254CrossRefMATHGoogle Scholar
  31. Mukhopadhyay SK, Pathak K, Guddu K (2003) Development of decision support system for stock control at area level in mines [online]. http://www.ieindia.org/publish/mn/0803/aug03mn3.pdf. Accessed 9 Jan 2008
  32. Murthy DNP, Xie M, Jiang R (2004) Weibull models, 1st edn. Wiley, New YorkMATHGoogle Scholar
  33. Petrovic D, Petrovic R (1992) SPARTA II: further development in an expert system for advising on stocks of spare parts. Int J Prod Econ 24(3):291–300CrossRefGoogle Scholar
  34. Rustenburg WD, Van Houtum GJ, Zijm WHM (2001) Spare part management at complex technology-based organizations: an agenda for research. Int J Prod Econ 71(1–3):177–193CrossRefGoogle Scholar
  35. Saaty TL (1988) Multicriteria decision making: the analytic hierarchy process, 2nd edn. RWS Publications, PittsburghGoogle Scholar
  36. Saaty TL (1990) How to make a decision: the analytic hierarchic process. Eur J Oper Res 48(1):9–16CrossRefMATHGoogle Scholar
  37. Sarker R, Haque A (2000) Optimization of maintenance and spare provisioning policy using simulation. Appl Math Model 24(10):751–760CrossRefMATHGoogle Scholar
  38. Schaefer MK (1989) Replenishment policies for inventories of repairable items with attrition. OMEGA Int J Manage Sci 17:281–287CrossRefGoogle Scholar
  39. Schultz CR (2004) Spare parts inventory and cycle time reduction. Int J Prod Res 42(4):759–776CrossRefMATHGoogle Scholar
  40. Singh N, Shah KS, Vrat P (1980) Inventory control of recoverable spares in a two echelon repair-inventory system: case study. Terotechnica 1:257–264Google Scholar
  41. Syntetos AA (2001) Forecasting of intermittent demand. Unpublished PhD thesis, Buckinghamshire Business School, Brunel University, UKGoogle Scholar
  42. Syntetos AA, Boylan JE (2001) On the bias of intermittent demand estimates. Int J Prod Econ 71:457–466CrossRefGoogle Scholar
  43. Taracki H, Tang K, Moskowitz H, Plante R (2006) Maintenance outsourcing of a multi-process manufacturing system with multiple contractors. IIE Trans 38(1):67–78CrossRefGoogle Scholar
  44. Tedone MJ (1989) Repairable part management. Interfaces 19(4):61–68CrossRefGoogle Scholar
  45. Tucci M, Bettini G (2006) Methods and tools for the reliability engineering: a plant maintenance perspective. In: Proceedings of the 2nd maintenance management MM2006, Sorrento, Italy, AprilGoogle Scholar
  46. Willemain TR, Smart CN, Schwarz HF (2004) A new approach to forecasting intermittent demand for service parts inventories. Int J Forecast 20:375CrossRefGoogle Scholar
  47. Zohrul Kabir ABM, Farrash SHA (1996) Simulation of an integrated age replacement and spare parts provisioning policy using SLAM. Reliab Eng Syst Saf 52(2):129–138CrossRefGoogle Scholar

Copyright information

© Springer-Verlag London Limited 2011

Authors and Affiliations

  • M. Macchi
    • 1
  • L. Fumagalli
    • 1
  • R. Pinto
    • 2
  • S. Cavalieri
    • 2
  1. 1.Dipartimento di Ingegneria GestionalePolitecnico di MilanoMilanItaly
  2. 2.Dipartimento di Ingegneria IndustrialeUniversità degli Studi di BergamoDalmineItaly

Personalised recommendations