What percentage of costs should be allocated to spare parts?
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Our company’s fixed assets in terms of electrical instruments amount to about 30 million, and the boss has asked me to calculate the value of the spare parts. After the statistics, the figure was over one million. The boss asked what a reasonable cost for spare parts would be, and I really couldn’t say. Have the sea friends done any statistics?
Wow, there are over a million spare parts – that’s an absolutely huge amount. There’s probably no specific rule regarding this! If you have money, buy quality products; those that are relatively cheap and offer good value can wait Anyway, the monthly maintenance costs have to be paid!
Wow, there are over a million spare parts – that’s an absolutely huge amount. There’s probably no specific rule regarding this! If you have money, buy quality products; those that are relatively cheap and offer good value can wait Anyway, the monthly maintenance costs have to be paid!
Do you use it yourselves or do you produce it?
Based on my experience, 1 million in spare parts is currently sufficient to cover the needs of a small to medium-sized factory for one year, provided that the allocation of these spare parts is reasonable
I forgot to answer the original poster’s question. Personally, I think that over a period of three years, you should have around 5 million in spare parts to ensure smooth production
I’m not in this field; just guessing. Take a look at your annual profit and total sales volume; after all, no profit is generated if spare parts cannot be sold. For example, if your profit is 10 million and your sales volume is 50 million, with a profit margin of 20%, then spare parts accounting for 5% of the sales volume equates to taking up one quarter’s worth of profit. Therefore, it’s better to reduce this amount to spare parts worth two months’ profit or even less. If you make money by selling spare parts, then the profits are different – spare parts worth one million might be sold for five million, and it’s fine to have two million worth of spare parts in stock, as long as you can sell them.
I had never really considered this issue before; now that the original poster has brought it up, it does seem reasonable to have a certain proportion of fixed assets allocated to spare parts inventory. I haven’t calculated the total cost of the inventory spare parts or what proportion they account for of the fixed assets; the items that need to be purchased must indeed be bought. The principle to be adhered to is as follows: 1. Requirements for spare parts (1) The principle for stocking spare parts is: few varieties, low quantities, and only those that are essential. (2) The stock of spare parts must be maintained at the specified level, and spare complete units of critical instruments must be available to meet production needs. 2 Selection of spare parts (1) The selection of instruments should be safe and reliable, technologically advanced, and economically reasonable ； (2) The types and specifications of instruments should be standardized ； (3) The explosion-proof type of the instrument shall meet the explosion-proof grade requirements of the installation location.
Generally, cost is not considered; rather, it’s the quantity.
Well, if the spare parts are available, use them; if not, buy them. It’s a procurement issue
If it exists, then it makes sense. The cost of instrumentation generally accounts for 10–25% of the total investment. The cost of instrumentation equipment accounts for 60–80% of the total instrumentation costs.