Improving Critical Parts Inventory for Fast Field Service Response

Abstract

This study's focus is the evaluation of critical spare parts inventory for a service business organization to ensure adequate customer support. The study is carried out at a local provider for laboratory and process equipment, which are deemed critical to most of its customers' operations. This paper also reflects how the use of Six-Sigma tools can help improve decision-making and establish a systematic effort to manage and improve the organization's critical spare parts management. Considering that spare parts criticality depends on independent customers and operational needs, the study focused on utilizing data gathered from the organization's Enterprise Resource Management (ERP) system and service log platform. This approach allowed the team to properly identify the most common repairs done compared to the organization's install base. As a result, the aim of the organization is to define the necessary spare parts required for the service organization to improve service response, reduce employee overtime, minimize customer downtime while increasing customer satisfaction. As the organization applies these findings and the recommendations provide by the team executing the study, further evaluation will be required in order to identify long-term limitations and continue improving the process. Key Terms ⎯ Critical, spare parts, inventory, Six-Sigma, PDCA.