A Unique Approach to Spare Parts Procurement

Capital project funding for a medium to large materials handling project often includes a budget for procurement of supplier-recommended spare parts, and it is the Project Team's responsibility to select these parts. With today's economic climate, limited budget, and other factors, the spare parts selection process is a difficult and arduous effort. This decision carries with it a risk to plant operations and in some cases the commodities producers. Too often the decision-making process is not documented, and the reasons for eliminating and reducing quantities are based on "best guess " Recently on the Solids Handling Phase 2 Project in Jose, Venezuela, the Project Team took a unique approach to this problem. This paper discusses the analytical approach taken by the Project Team, the database system that was developed to manage this problem, lessons learned, and their applicability to pre- project planning and preliminary design.