DNV has carried out a survey to identify how the German power industry and Norwegian offshore industry can optimise their efficiency by enhancing spare part management.
What is the impact of spare part management on maintenance? What is the current practice in the field, and how is the general industry performance in this field compared to the state of the art? These are some of the main questions addressed in a recent benchmark study conducted by an international DNV project.
“Both the German power industry and Norwegian offshore industry have been reviewed with the objective of identifying gaps in performance between industry players,” explains Atle Stokke, project manager at DNV.
The management of spare part inventories has not been a highly prioritised improvement area in some industries, including the power and offshore industries. Although the first initiatives to improve the performance of spare parts management were started as far back as in the 1950s, the implementation, and consequently the achievement, of improvements still varies quite a lot. Military and airline companies have traditionally been among the leaders in this area.
Performance differences in Germany
“All the major players in the German power industry market were interviewed, and the results showed significant performance differences between them. Major savings potentials were identified, particularly in terms of reducing and harmonising spare parts inventories,” Stokke continues.
In fact, one of the respondents made savings corresponding to 15-20% of its inventory value by harmonising spare parts across plants. It was found that the main challenge to the surveyed companies was communication and coordination relating to the procurement of spare parts, as several departments are involved in the process. The establishment of clear competencies, at plant and corporate level, proved to be a key factor for success.
Benchmark studies in Norwegian Offshore industry
Several of the main operators in the Norwegian offshore industry were interviewed. Here too, varying performances between the players were observed and several challenges were identified. Two important impediments to optimal spare part management seem to be:
- Firstly, the decentralized structure of supply bases, in that supply bases are located in close proximity to the producing fields, partly due to the requirements of the authorities, resulting in many bases spread along the coastline.
- Secondly, the cost-sharing system applied by the licence partners for each field. The logistics is further complicated by uncertain weather, the limited capacity of supply vessels and the coordination of demand and vessel routing. In addition, the standardisation of spares is a major challenge due to both technology gaps between development periods and the lack of a common industry standard for suppliers.
The focus on operational costs is expected to increase. Costs represented by spare part management constitute a significant share of these expenses, making an improved spare part strategy highly attractive to our clients.
Contact
Atle Stokke
Phone: +47 99 69 15 10
E-mail: atle.stokke@dnv.com
Christian Klöppner
Phone: +49 (0)201 7296 - 451
E-mail: christian.kloeppner@dnv.com
Head of DNV Energy Communications, Svein Inge Leirgulen
Phone: +47 977 23 133
E-mail: svein.inge.leirgulen@dnv.com
Dato: 6. mai 2008