Spares Optimisation Review – Floating Production Storage Off-take Facility

Transfield Worley Solutions conducted a review of the spares support for the client’s key assets. More than 7000 line items were reviewed to determine minimum and maximum stock levels and the criticality of each item in terms of plant availability. Transfield Worley Solutions was able to offer comprehensive professional and technical services, calling on broad experience across several industries, to assess the client’s spares support practices and systems. By applying our combined knowledge of the best practices in asset management, maintenance engineering and risk assessment, Transfield Worley Solutions was able to tailor the review criteria and consequent recommendations around the specific needs of the client.

The approach taken by Transfield Worley Solutions was to scope the quantity and range of spares to be reviewed, evaluate the criticality of each item, review the accuracy of purchasing information and assess the optimal support arrangements for maximum plant utilisation. The driver for the spares optimisation was the habit of the client to directly purchase spares without first analysing the need, which repeatedly resulted in the delivery of incorrect spares and consequent delays in the maintenance activities. Using a structured spares methodology, Transfield Worley Solutions determined that the client should facilitate effective purchasing of spares by addressing the accuracy of purchasing information.

The key benefits to the client were:

• identification of the criticality of all spares in terms of parent equipment availability, and the related stock levels
• an adjustment of all stock levels to reflect usage rate, criticality and cost, resulting in improved inventory performance
• identification of obsolete spares and equipment for disposal, resulting in savings of one fifth of the total inventory value
• the Bill of Materials was updated to reflect new or additional equipment
• all new items were catalogued in the client’s spares management and materials management systems
• reduction in the total stock levels, with a consequent reduction in inventory management costs
• the client gained a clear understanding of the spares inventory required and the processes for maintaining optimum stock levels
• significant improvements were made to the spares management system, particularly in the purchasing practices