Terminology in spare parts management that equipment managers must know

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1 Spare parts: Among the components that make up a device, those that do not possess functional capabilities on their own, cannot operate independently, and are kept in stock in order to restore the functionality of a malfunctioning device as quickly as possible, are collectively referred to as spare parts. Note 1: In equipment maintenance, parts that are prepared in advance according to the stock principle in order to reduce downtime during repairs. Spare parts can be classified as follows: by type of component, they include mechanical spare parts, electrical spare parts, power supply spare parts, and lifting and transportation spare parts, etc., which facilitates organized storage. Classified by part source: self-manufactured parts, purchased parts, parts manufactured through collaboration, etc., to facilitate the formulation of procurement and production plans. Classified by the performance of the components, they are divided into wear-prone parts, spare parts for matching use, key parts, standard parts, and general-purpose parts, which facilitates the establishment of inventory quotas. 2 Spare parts management: Activities involving management measures for spare parts technology, spare parts planning, spare parts storage, and the economics related to spare parts. 3 Technical management of spare parts. The technical management of spare parts is the foundation of spare parts management. It mainly includes: collection, measurement, and organization of spare parts drawings, as well as the compilation of spare parts catalogs ； Prepare a parts inventory list, forecast parts consumption, and establish reasonable parts quotas and storage methods. 4 Plan management of spare parts: Spare parts plant management refers to the processes involved from preparing spare parts plans to the time when those parts are stored in inventory. Note: Spare parts planning management mainly includes: preparing spare parts plans on a monthly and annual basis, formulating annual and phased plans for purchased parts, submitting requests for the quantity of cast and forged blanks as well as creating manufacturing plans, arranging for the occasional purchase and processing of spare parts, and developing and implementing spare parts repair plans. 5 Spare parts warehouse management: Spare parts warehouse management refers to the processes involved from the time spare parts are stored in the warehouse until they are issued. Note: The management of spare parts warehouses mainly includes: inspection of spare parts upon arrival, maintenance, registration and labeling, storage on shelves; receipt and dispatch of spare parts as well as the cleaning and safety of the warehouse; 6S management and visualization in the warehouse; control of reorder points and inventory levels; statistical analysis and control of spare part consumption, capital occupation, and turnover rates; and collection of information regarding spare part quality. 6 Economic management of spare parts: Economic management of spare parts refers to the economic accounting and statistical analysis related to spare parts. Note 1: This mainly includes: the determination of funds for spare parts inventory, the management of inventory records, the assessment of spare parts costs, and the statistical analysis of various economic indicators related to spare parts (including the turnover rate of spare parts funds, the utilization rate of spare parts funds, the amount of funds allocated for spare parts reserves, and the frequency with which high-value spare parts are used, etc.). Economic management should be integrated throughout the entire process of spare parts management, and the quality and level of condition management should be evaluated based on the results of the statistical analysis of these economic indicators. 7 Spare parts repair: Off-line spare parts that have become defective due to normal use or other special reasons, and which have been repaired in a processing manner by the repair service provider and passed inspection, thereby restoring their original functional capabilities – this process is known as spare parts repair. 8 Management of domestic production of spare parts: This refers to the use of domestically produced spare parts to ensure the proper operation of equipment and reduce costs. It involves replacing imported spare parts with locally manufactured ones, as well as developing alternative spare parts through research and development, with the aim of compensating for any shortcomings of the original spare parts and extending their service life. 9 Storage: The technical management of spare parts is the foundation of spare part management, and it mainly includes the collection, surveying, and organization of spare part drawings, as well as the compilation of spare part catalogs ； Prepare a parts inventory list, forecast parts consumption, and establish reasonable parts quotas and storage methods. The process of storing spare parts in accordance with specified procedures and requirements. Note: Generally, there are requirements for storage facilities in terms of environment, temperature, humidity, cleanliness, ventilation, etc. 10 Storage period: The calendar duration during which a product can be stored under specified storage conditions. Within this period, the opened product can be used while still meeting the specified requirements. This article contains only useful information; please click to save it for future reference ； The author has been working in the equipment and industrial automation industry for over 20 years. New and old friends are welcome to learn together; follow this account to acquire more knowledge on equipment management, meet more professionals in this field, and feel free to share, leave messages, and comment ； 11 Bill of Materials: A bill of materials is a list of all the sub-assemblies, components, and raw materials that make up a parent assembly, as well as a list of the quantities of each component required to manufacture that assembly. “Materials” refers to the raw materials required for completing construction and installation work, as well as spare parts, accessories, finished products, semi-finished products, etc., that are not part of the main body of the equipment but are necessary for equipment maintenance. Note: Materials such as steel, wires and cables, ordinary valves, pipe fittings, oils that are not filled once and only, packing, etc. 13 Spare parts list: A document that records information on equipment spare parts. Note 1: The information in the spare parts ledger mainly includes: spare part name, specification model, material, spare part category, purchase date, key technical parameters, pictures of the spare parts, maximum and minimum stock levels, actual inventory quantity, storage location, replacement cycle, spare part supplier, disposal date, etc., with the information being continuously updated to stay current. 14 Reserve quota: Under certain operating conditions, by taking into account the enterprise’s economic benefits, its capacity to utilize funds, and its technical control capabilities, a economically reasonable standard for determining the amount of spare parts that should be kept to ensure the safe and effective operation of equipment is known as the reserve quota for spare parts. 15 Normal consumption quota: On the premise of ensuring the safe and effective operation of equipment, in order to formulate budgets for equipment operation costs and guide the preparation of spare parts procurement plans, a economically reasonable quantitative standard for spare parts consumption is determined through the statistics and analysis of actual spare parts consumption, taking into account the ability to effectively control their lifespan. This standard is referred to as the normal consumption quota for spare parts. The 16-function contracting mechanism aims to effectively reduce spare parts consumption and the amount of capital tied up in inventory, accelerate capital turnover and logistics flow. It involves establishing a specialized procurement supply chain, identifying suppliers capable of meeting the company’s development needs, and, in accordance with market rules, establishing long-term cooperative relationships with them regarding brands, product specifications, and related services, along with regular settlement procedures. Classified by implementation method, there are six types: production-based contracting, total cost contracting, price cap system, emergency production protection, no inventory system, and the three-lock six-control system. 17 Spare parts swap: The act by which the owner of the property transfers both the ownership rights and the corresponding physical items to another entity. Adjustments can be divided into internal adjustments and external adjustments. Internal redistribution: Spare parts whose ownership belongs to the enterprise are redistributed between different plants within the enterprise according to actual needs. External transfer: Spare parts whose ownership belongs to an enterprise are transferred to entities other than that enterprise. 18 Spares scrapped: Spare parts that can no longer be used due to the technical upgrading or modification of the equipment, or because they have become obsolete; or spare parts that have lost their functionality for various reasons, or for which it is not economical to restore their functionality. 19 Planning accuracy: It is calculated within the specified time period based on the spare parts category (CS/CL/SG), and represents the ratio of the actual amount spent during that period to the total amount expected to be spent according to the procurement plan. Plan execution rate: the ratio of the number of plans that have been executed to the number of plans that can be executed in the current period. A 21-stereoscopic warehouse is a type of warehouse that uses tall shelves, along with boxes or pallets, to store goods, and employs aisle stacker cranes and other machinery for handling operations. 22 A goods shelf is a structured storage facility for storing goods, composed of supports, partitions, or trays. A 23-pallet pallet is a horizontal platform device used for packing, stacking, handling, and transporting goods and products as unit loads. 24 Warehouse management: Activities involving the planning and control of inventory items, warehouse facilities, and their layout. 25 Warehouse layout: It involves the scientific planning of various elements within a certain area or warehouse complex, such as the number of warehouses, their size, geographical location, as well as warehouse facilities and roads. 26 Inventory control: Technical and economic measures for effective management aimed at keeping the quantity of inventory items at a minimum, while ensuring supply. 27 Emergency materials refer to various conventional small-scale supplies and equipment such as those for testing, warning, decontamination, demolition, rescue, transfer, leak sealing, fire fighting, lighting, and communication broadcasting, which are provided to handle emergencies at production sites; these do not include large-scale emergency rescue equipment. 28 Materials stacking: Based on the packaging shape, weight, quantity, and physical properties of the materials, as well as factors such as the load capacity of the floor and the storage duration, these materials are arranged in various shapes of stacks following certain rules. 29 Materials covering and padding: Depending on the properties of the materials and the storage requirements, covering and padding materials are placed on top of and beneath the stacks, based on the stack dimensions and the load weight. The 30-4 number coding system is a method of assigning identifiers to items stored in warehouses, using the format “-warehouse number -shelf (zone) number -floor (row) number -position number”; for items in material yards or sheds, the identifier is assigned using the format “-yard (shed) number -zone number -row number -position number”. 31 Stacking by five pieces: A stacking method in which, depending on the shape of the items, a group of five items is used as the basic unit for arranging them into different types of stacks. 32 Materials maintenance: In accordance with relevant regulations and requirements, stored materials are properly preserved and maintained using scientific methods based on their different characteristics. 33 Material classification: It is the process of distinguishing, categorizing, naming, and describing materials based on certain principles and methods, as well as from different levels of abstraction and perspectives, in order to establish a specific system for classifying materials and a sequence for organizing them. 34 Material Code: A code that uniquely identifies a particular material. 35 Material description: It is a set of information that describes the key characteristics of the actual material. 36 Logistics: The physical process of moving goods from a supply location to a destination. According to actual needs, the basic functions such as transportation, storage, loading and unloading, handling, packaging, distribution processing, delivery, and information processing are integrated organically.