Initial Spares Parts Planning & Procurement

Duration - 2 days


This 2-day workshop is new and focuses on the important activity of purchasing spares during the project phase. The workshop will provide the delegates with best practices and processes related to the planning and procurement of initial spares. This activity is nearly always done badly, resulting in duplication of stock, poor cataloguing, under or over stocking and poor ordering rationalisation.
Initial spares planning starts in the design phase with equipment specifications and the request for a recommended spares parts list, and ends with the items handed over to the company’s warehouse and the items set-up in the CMMS.
ISO55000 stipulates that we have to demonstrate that all assets are effectively managed from cradle to grave, and that the initial spares planning and procurement process is an important element of asset management.

The course will focus on:

  • The need to build into the design phase standardisation in order to reduce the variability of items purchased
  • The responsibilities of who does what and the timing, who buys the spares, the company or the EPC contractor and this will cover commissioning & start up spares, 2 year spares and insurance spares.
  • Achieving rationalisation in the initial spares phase by creating a master recommended spare parts database (RSPL or SPIR), e.g. rather than purchase RSPL/SPIR spares by each submitted RSPL/SPIR, we need to leverage grouping common items.
  • Good cataloguing principles
Learning Objectives

As a result of attending this workshop delegates will understand:

  • What is required under ISO55000 to manage the initial spares procurement process
  • Why existing RSPL/SPIR forms are ineffective
  • How to rationalise initial spares procurement using MS Access
  • How to challenge vendors spares recommendation and specify inventory parameters
  • The importance of assigning a spares criticality
  • How to select stocking strategies to minimise stock holding
  • How to justify the financial case for high value spares
  • How to develop a database tool to support the initial spares process


Course Introduction

Topic 1 Common Issues with the Initial Spares
Delegates state their issues in this process
Common issues found by author during auditing and data upgrade assignments, e.g. lack of effective procedures, poor specifications, purchasing duplicates, etc.
Discussion on stocking objectives

Topic 2 Initial Spares Planning & Procurement Process
Review of the spares planning & procurement process categorised into 12 main phases
Delegates should understand their company’s current process, so that areas of opportunity can be identified
Group exercise to develop a map of their process (using post-Its) to cover specification, RSPLs, purchase, receiving, preservation, handover
Documents required to support the Strategic Asset Management Plan (SAMP) for initial spares. A SAMP is a key term within the new ISO55000 standard

Topic 3 Effective Recommended Spare Parts List (RSPL) from Vendors
SPIRs, their purpose and why they are submitted incorrectly, principles of good spares cataloguing to ensure zero duplicates, and ease of searching
A critical review of a typical RSPL form known as a SPIR (Spare Parts Interchangeability Record) and the associated procedure sent to vendors. We have developed 11 review rules
Examples of good and bad RSPL/SPIR. 
Proposed improved format for the electronic RSPL/SPIR that facilitates migrating to a database

Topic 4 Building an Effective Spares Catalogue
Introduction to ISO55000 and the requirements for initial spares
Key features of cataloguing including the selected vendor, i.e. OEM, original vendor or to select an alternative vendor
An introduction to our 8 step cataloguing process, and a detailed treatment of each step, including:

  • Spares naming formats
  • Developing part type guides to ensure naming consistency
  • Defining rules when vendors utilise different specification formats
  • Defining strategies for purchasing common items and understanding the scope of the maintenance strategy as this influences parts stocked
  • Documenting the cataloguing process with all the defined rules and decisions
  • Building the spares catalogue and conducting quality checks
  • Creating CMMS migration upload files

Topic 5 Deciding whether to Stock
The questions to be answered in deciding whether to stock or not
Criticality definitions (vita, essential, desirable and non-critical)
Different approaches to aid the decisions, including a simple decision diagrams for slow moving spares
Maintainability FMEA

Topic 6 How to Challenge Vendors Recommended 2 Year Quantities
Introduction to reliability principles, probability distributions and the bath tub curve and its influence on spares demand
Risk and the Poisson distribution
How to estimate annual demand rates (ADR) from populations or generic data sources using a formula requiring populations, MTBF, Utilisation Factor
Exercise to support understanding

Topic 7 Converting Annual Demand Rates to Inventory Control Parameters
The ROP inventory model and definitions of the metrics used
Introduction of 11 key metrics formulas including ROP, Safety Stock, Average Stock Levels and Values. EOQs, etc.
How to use the estimated ADR to establish the CMMS parameters (defined above)
Exercises using the Excel calculation Worksheet designed to support inventory parameters using populations & MTBFs as well as estimated demand for Bulk items

Topic 8 Creating Additional CMMS Spares Data
Spares class and sub class
Type codes
Spares attributes & purchase descriptions
Cost & demand codes including the ABC classification
Item cost including transport costs

Topic 9 Building the SPIR Build & Tracking Tool
Introduction to database solutions, what are the functionality requirements?
How MS Access can provide a useful tool to support the RSPL/SPIR process
Overview of the RSPL/SPIR Database tool including the structure and how data is imported
Identifying duplicates, updating installed populations for duplicated items,
Comparing calculated 2 year quantities to vendor recommended quantities, updating quantities, & the preferred vendor
Printing the pro-forma PR and exporting spares data to the CMMS for purchasing

Topic 10 Insurance Spares & their Evaluation
Definition of insurance spares
What is required to support the decision: whether to purchase an insurance spare or not (penalty costs, repair times, planned and emergency purchase lead times and costs)
Overview of RAM Study Software that allows the analysis of whether to stock 0, 1 or 2

Course Review and Delegates Action Plan
i.e. what are they going to do differently as a result of this workshop?

Who Should Attend

Maintenance Managers, Engineers
CMMS super users
Maintenance Planners
Warehouse Managers & Supervisors
Project Engineers
Spares & Inventory Personnel
Purchasing & Logistics

Training Methodology

PowerPoint slides. Delegates will learn by active participation during the workshop and through the use of exercises, case studies
Laptop required