Asset Optimization    Services for economical spare parts availability

Fast availability of spare parts determines the duration of production standstills and with that the height of potential outage costs. Siemens has developed an asset optimization program especially for industrial plants. This program ensures optimized and continuous availability of spare parts throughout the whole lifecycle of customer plants. The required spare parts are always available on time while customer inventories are kept at an optimum level.

The challenge On the one hand, spare parts in stock represent tied up capital. On the other hand, the fast availability of spare parts often determines the duration of production standstills – and with that the height of potential outage costs. In order to resolve this conflict and to ensure economical availability of Siemens spare parts in line with requirements, Siemens has developed an asset optimization program.

Our solution

With its asset optimization program developed especially for industrial plants, Siemens ensures that the required spare parts are available on time throughout the whole of the plant lifecycle. At the same time, the customer´s inventories are optimized. The critical point is that both the components in stock as well as those mounted in the plant are incorporated in the program and that their deliverability and delivery times as well as their time criticality and consumption rates are taken into account. In order to realize this in a manner which is as targeted and as efficient as possible, a 4-phase model was developed for the asset optimization program: In the analysis phase the components mounted in the plant and the spare parts in stock are recorded. Comparison with a product database then identifies which parts can still be delivered. The result shows the inventory levels necessary to meet requirements as well as potential overstocking or understocking, all of which can be assessed with the customer taking into account any risk to supply. Based on this, the logistics experts from Siemens develop a concept to exploit the optimization potential. In this conception phase, target inventories are defined and action planned to close supply gaps and reduce overstocking. In the implementation phase gaps in supply are closed by means of procurement activities and supply contracts; overstocking is reduced by selling off and scrapping. Additional services such as condition monitoring for the purpose of predictive maintenance and the resultant reduction of stocked spare parts complete the program. This also includes migration and modernization solutions to replace "old technology", thus reducing the need for components which are no longer available for delivery. In the operation phase, Siemens takes on the stocking and supply of spare parts for certain components as well as carrying out inventory analyses on a cyclic basis and any necessary optimization measures.

Good reasons for Asset Optimization

Lasting optimization of spare parts inventories without supply gaps or overstocking

Availability of required parts is ensured both for products which can still or no longer be delivered

Also indicates where further services may be of benefit, such as migration & modernization, condition monitoring, plant service, etc.