January 2009

Parts
Management

Maintenance and Repair Management

Section 5

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Parts Management
Contents
5.1 General Information. . . . . . . . . . . . . . . . 3
5.1.1 Goals and Objectives . . . . . . . . . . . . . . 3
5.1.2 Process Overview . . . . . . . . . . . . . . . . . 3
5.2 The Process . . . . . . . . . . . . . . . . . . . . . . 4
5.2.1 On-Site Operation Preparation . . . . . . . 5
5.2.1a Parts Supply Channels . . . . . . . . . . . 7
5.2.1b Communication Channels. . . . . . . . . 7
5.2.1c Parts Management Software . . . . . . 7
5.2.1d Human Resources . . . . . . . . . . . . . . 7
5.2.1e Facilities and Equipment. . . . . . . . . . 9
5.2.1f Parts Inventory . . . . . . . . . . . . . . . . . 11
5.2.1g Component Inventory . . . . . . . . . . . 13
5.2.1h Tools . . . . . . . . . . . . . . . . . . . . . . . . 13
5.2.1i Consumables . . . . . . . . . . . . . . . . . . 15
5.2.1i(1) Oils, Coolant, Fuel, etc. . . . . . . . 15
5.2.1i(2) Cleaning Items (solvents,
rags, towels) . . . . . . . . . . . . . . . 15
5.2.1j High Rotation Items (free access) . . 17
5.2.1k Parts Management Operational
Procedures . . . . . . . . . . . . . . . . . . . 17
5.2.1l Parts Management Performance
Evaluation . . . . . . . . . . . . . . . . . . . . 19
5.2.2 On-Site Daily Operation . . . . . . . . . . . 20
5.2.2a Parts Delivery . . . . . . . . . . . . . . . . . 21
5.2.2b Consumables (fluids, oils,
coolants, etc.) . . . . . . . . . . . . . . . . . 21
5.2.2c Consumables (rags, towels,
solvents, etc.) . . . . . . . . . . . . . . . . . 21
5.2.2d High Rotation Items . . . . . . . . . . . . 23
5.2.2e Tools and Testing Equipment . . . . . 23
5.2.3 Unscheduled Repairs . . . . . . . . . . . . . 24
5.2.3a Parts Request . . . . . . . . . . . . . . . . . 25
5.2.3b Parts Available . . . . . . . . . . . . . . . . 27
5.2.3c Parts Not Available . . . . . . . . . . . . . 29
5.2.4 Scheduled Repairs In Shop . . . . . . . . 30
5.2.4a Components . . . . . . . . . . . . . . . . . . 33
5.2.4a(1) Long-Term . . . . . . . . . . . . . . . . 33
5.2.4a(2) Medium-Term . . . . . . . . . . . . . . 33
5.2.4a(3) Short-Term . . . . . . . . . . . . . . . . 33
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5.2.4b Preventive Maintenance . . . . . . . . . 35
5.2.4b(1) Long-Term (6 month projection) . 35
5.2.4b(2) Medium-Term (14 days) . . . . . . 35
5.2.4b(3) Short-Term (7 days) . . . . . . . . . 35
5.2.4b(4) PM Service Confirmed . . . . . . . 37
5.2.4c Scheduled Repairs
(major and minor) . . . . . . . . . . . . . . 39
5.2.4c(1) Parts Processing. . . . . . . . . . . . 41
5.2.4c(2) Parts Not Available On-Site . . . 43
5.2.4c(3) Correcting Parts Availability . . . . .
Issues . . . . . . . . . . . . . . . . . . . . 43
5.3 Summary Information . . . . . . . . . . . . . 44
5.3.1 Management Process Interactions . . . 44
Condition Monitoring . . . . . . . . . . . . . . 45
Preventive Maintenance . . . . . . . . . . . 45
Backlog Management . . . . . . . . . . . . . 45
Planning and Scheduling . . . . . . . . . . 45
Repair Management . . . . . . . . . . . . . . 46
Component Management . . . . . . . . . . 46
5.3.2 Key Personnel. . . . . . . . . . . . . . . . . . . 46
Parts Manager (Parts Analyst) . . . . . . 46
Warehouse Personnel . . . . . . . . . . . . 47
Toolroom Personnel . . . . . . . . . . . . . . 47
Parts Runner. . . . . . . . . . . . . . . . . . . . 47
Local Purchasing Agent . . . . . . . . . . . 47
Fleet Analyst . . . . . . . . . . . . . . . . . . . . 47
Planner . . . . . . . . . . . . . . . . . . . . . . . . 47
Scheduler . . . . . . . . . . . . . . . . . . . . . . 48
Project Manager . . . . . . . . . . . . . . . . . 48
Data Entry Clerk . . . . . . . . . . . . . . . . . 48
5.3.3 Measuring Performance . . . . . . . . . . . 48
5.3.4 Knowledge Review/Self Test . . . . . . . 50
This symbol indicates information that is
of special importance. Do Not Ignore.
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5.1 General Information 5.1.2 Process Overview
Parts Management is an essential logistical Parts Management Plan
function of any maintenance and repair Documented plan containing detailed
program. The goal is to deliver the right parts, guidelines of what is going to be done.
at the right time, in the right quantity, at the Parts and Component Inventory
right location. Parts Management supports all Determine on-site and off-site inventory
scheduled and unscheduled maintenance and based on the scope of the mining
repair activities with the primary focus on parts operation.
and components. The secondary focus is on
consumables, tools, etc. On-Site Implementation
Implement the needed routines based on
5.1.1 Goals and Objectives the desired outcomes.
Provide parts support 24 hours a day, On-Site Operation
7 days a week, to the daily on-site Operation procedures based on
Maintenance and Repair operation. Maintenance and Repair programs.
Manage the on-site inventory efficiently Measure, Manage, Improve
and effectively. Manage parts and component function to
achieve efficiency and effectiveness goals.
Maintain effective parts and components
supply channels.
Work closely with Planning and
Scheduling to provide adequate parts and
components support to scheduled
activities.
Support unscheduled events with parts
and components. Meet planning
expectations and goals.
Manage additional related resources such
as tools, instruments, consumables, etc.,
efficiently and effectively.
Maintain data and submit updated
information regarding Parts Management
to the appropriate areas.

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5.2 The Process

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 5.2.1 On-Site Operation
Preparation
The basis of any successful Parts
Management process is a documented
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and complete strategy. The strategy is
the overall reference document defining
what the organization intends to
accomplish and a plan for executing the
strategy. Begin to form the plan by
clearly defining the goals and objectives
of the Parts Management process.
These goals and objectives need to link
with the Maintenance Strategy, Planning
Department, site characteristics, and in-
country logistics. Many other factors
may influence the Parts Management
strategy, depending on repair habits and
in-country business policies. The
process review is basically the same for
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building a new facility or taking over an
existing facility from the customer.
1. Define and document a Parts
Management plan. The plan should
be proactive and try to anticipate as
much as possible.
The Parts Management plan should be
based on information gathered from
various sources.
Maintenance Strategy Reference
(MSR)
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Customer Service Agreement (CSA) Scheduled repairs (major and
The customer and the Dealer must minor)
discuss and define who is
The inventory recommendations are
responsible for stocking what parts
based on the following data.
and where they will be located.
This must be well-defined and Preventive Maintenance projections
documented.
Protective and PCR components
Fleet characteristics
Parts recommended inventory
Site characteristics
Consumption feedback
In-country logistics
Inventory corrections
Parts supply center(s)
3. Implement major on-site Parts
2. Determine the initial parts and Management areas.
component inventory. The Parts
Parts supply channels
Management plan provides the scope
5.2.1 On-Site Operation Preparation
of the on-site parts and component Communications channels
inventory.
Parts management software
Inventory recommendations are based
Human resources
on historical data and future use
estimates from Condition Monitoring, Facilities and equipment
Backlog Management, Component
Parts inventory
Management, Planning and Scheduling,
and Repair Management data. Once the Component inventory
parts inventory is established, it is vital
Consumables
that the physical inventory and the
database used to track the inventory are High rotation items (free access)
kept up-to-date and accurate.
Tools
The historical data comes from various
Parts management operational
sources.
procedures
Factory recommendations
Parts Management performance
Past experience evaluation
Other sites experience
Daily on-site use
5.2.1 On-Site Operation Preparation (continued)

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 5.2.1 On-Site Operation
Preparation (continued)
In these first steps, the site prepares the
processes to interact with the external
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supply sources, install and activate the
Parts Control System (software), and
recruit personnel.
5.2.1a Parts Supply Channels
4. Identify parts supply channels
(sources) and determine the methods
to activate them.
Consider location of the on-site
parts warehouse compared to
suppliers (supply delivery
turnaround time).
Determine procedures to access
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supply channels. Consider on-site
and in-country logistics and
policies.
Define communication
requirements. Communication
needs to be accessible and
dependable.
Test communications and
procedures. Procedures for
accessing supply channels and the
communication system must be
tested to make sure they are
functioning properly.
5. Once communications and
procedures are tested and
determined to be reliable, the supply
channels are ready to operate.
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5.2.1b Communication Channels 5.2.1d Human Resources
6. Determine and define communication 10. Determine Parts Management
channels. organization. Areas to consider
when determining personnel
Both internal (on-site) and external
requirements are warehouse
(off-site) communication
operation, management staff, and
requirements need to be
off-site staff.
considered.
Human Resources recruits needed
Define the specifications for the
personnel and trains them in Parts
best communication system.
Management procedures.
Determine implementation
Evaluate competencies and assign
responsibilities. Consult the CSA
personnel to Parts Management
to determine if the customer or the
positions based on skills.
dealer is responsible for acquiring
and installing the communication 11. Complete on-the-job training.
system. Personnel are ready to operate.
Test communication system. The
communication system must be
tested to make sure it is functioning
properly.
7. Communication system ready to
operate.
5.2.1 On-Site Operation Preparation (continued)
5.2.1c Parts Management Software
8. Determine what Parts Management
software to use.
Define communication
requirements.
Install and test software.
Load software with initial parts
inventory and management targets.
9. Test and prep software for start-up.
5.2.1 On-Site Operation Preparation (continued)

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 5.2.1e Facilities and Equipment
12. Define facilities and equipment
needed based on parts and
component inventory and
miscellaneous supplies.
Storage of parts should be efficient and
orderly. Received parts should be put
away in their proper location on a daily
basis to maintain inventory accuracy.
Location of frequently used parts, such
15. If the current facilities are
inadequate, determine if new
facilities will need to be built or if
upgrades can be made to the current
facility.

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13. Review existing on-site facilities.
The location, size, and hours of operation
of the warehouse are important factors to
consider when trying to determine if the
current facilities will support an efficient
Parts Management program. The
location of the warehouse should be
within a short walking distance of the
Repair Shop. If at all possible, parts
should be delivered, by a parts runner, to
the shop bays or to a specific drop area
in the shop. This allows the technicians
to spend their time servicing machines in
as maintenance items, should be near
Determine project responsibilities.
the front of the parts warehouse for easy
Consult CSA.
retrieval. Warehouse layout and storage
are important to warehouse support.
Adequate warehouse space is essential.
16. Once facilities are complete, conduct
Methods of storage and location of an inspection to make sure
inventory by class are important everything is ready. Document and
considerations. The following items make available the facility layout.
should be considered.
What type of storage equipment is
being used?
Is enough floor space available to
store major components within the

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the bays and not searching for parts.
14. If the current facilities are adequate,
define the working and the storage
areas.
warehouse? Store these
components inside, if possible, for
Contamination Control.
What type of warehouse location
system is used or is being planned
5.2.1 On-Site Operation Preparation (continued)

for use? The location system

Consider space for efficiency and
implement clear, work-functional
areas.
Organize and equip areas with
racks, bins, etc. for accessible,
contamination-free storage.
Identify and acquire support
equipment.
should be easy to understand. The
system information should include
aisle, section, elevation, and
opening.
For easy access, specific areas of
the warehouse should be
designated for PM kits, backlog
parts, and component installation
kits that are used for repetitive
repairs and maintenance.
Methods used for parts storage
should follow Cat Contamination
Control guidelines.

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5.2.1 On-Site Operation Preparation (continued)

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 5.2.1f Parts Inventory
17. Generate orders to acquire parts for
the initial parts inventory.
18. Direct orders to appropriate supply
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sources using the established
procedures.
19. Receive and classify parts. As soon
as parts are received, they should be
put away in their assigned storage
location. Provide special storage
conditions, if required.
20. Record the parts available in the
Parts Management software. This
must be done immediately in order
to maintain accurate parts inventory
records.
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Inventory Control Management is simply
providing the right parts, in the right
quantity, to the right place, at the right
time, and at the lowest cost. Parts are
stocked because of anticipated demand
or historical demand. Once a part has
been added to stock, it may be controlled
in a variety of ways, but will typically have
a minimum and maximum setting.
Minimums define when to order while
maximums help define how much to
order.
Lead-time is a critical factor with
minimum vs maximum. Lead-time is the
total number of days from the time a part
reaches the order point to the time the
stock order is received, put away
(physically put in storage and entered in
the system), and made available. If
overstated, it may create a surplus of
stocked items, eventually having a
negative impact on turnover. If
understated, it may cause stock
backorders that will impact customer
service (equipment availability). Lead-
time is affected by country location,
import restrictions, and local
transportation.
The key to having the correct parts
available is working closely with the
Planning and Repair Management
functions of site operations. Knowledge
of fleet make-up and repetitive
maintenance and/or repairs plays an
important role in maintaining the proper
inventory. Standard job usage helps to
identify parts needed for service work.
Pre-ordering parts allows sufficient levels
of inventory to be maintained. Some
parts take longer to acquire than others.
Maintaining communication with Backlog
Management is important so jobs can be
released for scheduling when the parts
become available.
Another important ingredient of the
ordering process is having one central
location in the warehouse where the
parts orders from the Repair Shop are
received. This may be a computer
terminal or an in-basket. This limits
overlooked parts orders. A daily
inventory update of received parts is
important. Having the parts on the shelf
5.2.1 On-Site Operation Preparation (continued)
and in the inventory system will minimize
inventory carrying cost by eliminating
duplication of unnecessary parts.
5.2.1 On-Site Operation Preparation (continued)

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 5.2.1g Component Inventory
21. Determine component inventory
definitions and forward to the Central
Store.
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22. Determine storage location of
protective components.
If the component is to be stored on-site,
determine best location to prevent
damage and contamination.
If the component is to be stored off-site,
determine best location. Keep in mind
logistics and operational procedures for
getting the component to the site when
needed.
23. When component(s) are available
(ready-to-go), record the available
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components in the inventory
database.
The Component Management plan plays
an important role in the overall success
of the operation, keeping costs and
downtime under control. It is extremely
important that when equipment enters
the component exchange interval that
adequate component availability exists.
Component inventory management
involves a number of activities.
Component tracking.
Component storage and
transportation controls.
Fluent communications between
the site and the rebuild center.
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Well-defined and updated Planned
Component Replacement (PCR)
strategy.
Measurement and tracking of
carrying costs related to the
Component Management strategy.
Refer to Best Practices (BP1007-2.0-1106),
Component Management for more
information.
Keeping an up-to-date inventory with the
proper amount of components matching
fleet requirements and schedules is
important. Inventory includes protective
and normal stock for supporting PCRs.
Strategy for handling this inventory is
important. Are the components going to
be dedicated to the particular site or as
part of a pool of components available for
multiple sites? Coordinate with the
rebuild center and Planning and
Scheduling using the long-term and
medium-term repair plans. Rotate stock
so the latest engineering design changes
are available. Cores need to be properly
identified when removed from equipment
so hours of operation and failure mode
data is tracked accurately.
By effectively performing these on-site
activities, it is possible to manage
components within the defined goals.
There are other support functions that
must exist beyond on-site operations,
such as the Component Rebuild Center
and spare parts/component support. Site
support software should focus on the on-
site activities, as well as the interaction
between the site and outside support.
5.2.1h Tools
24. Receive initial tool requirement
information from Repair
Management and Planning and
Scheduling.
25. Purchase initial tool inventory. This
includes tools for the toolroom and
the Service Technician toolboxes.
When tools are received, they need to be
organized, stored, and/or delivered
according to the Parts Management plan.
Providing specialized tools and test
instruments is crucial to maintaining a
fleet. The tool inventory is expensive and
requires special handling. Tools are
usually kept in the Parts Department and
inventoried. A check-out and check-in
procedure needs to be established so
tools dont disappear or get locked in a
personal toolbox. Repairs to the tooling
need to be identified in a timely fashion.
Completing a tag identifying needed
5.2.1 On-Site Operation Preparation (continued)
repairs when tools are checked in serves
the purpose, as well as regular tool
condition audits. Tags or labels
indicating the last test date of the tooling
should be required. One person should
be made responsible for tool
management.
5.2.1 On-Site Operation Preparation (continued)

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 5.2.1i Consumables 5.2.1i(2) Cleaning Items (solvents,
rags, towels)
5.2.1i(1) Oils, Coolant, Fuel, etc.
These are basic items, but very critical to
Determine who will supply and maintain
efficient operation. A local purchasing
the equipment for disbursement of fluids.
agent is a must for various consumable
Consumables and high rotation items
need to be readily available. This can be
as simple as having bins located in the
repair shop with seals, nuts, and bolts.
Levels need to be monitored to make

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Fluid storage and supply must comply
with contamination control guidelines.
Mine Operations is responsible for
knowing and adhering to government
regulations regarding the disposal of
fluids. The Dealer must comply with
those regulations.
26. Receive fluid specifications and
consumption projections from
Planning and Scheduling.
27. Determine volume of fluids to
handle.
sure an adequate supply is available. An
items.
accounting method needs to be
32. Determine initial supply quantities developed so items are charged to the
based on information from Planning correct work orders. Field Service
and Scheduling and Repair should also have a similar strategy in
Management. order to reduce the waiting time for Field
Technicians.
33. Purchase initial inventory supply.
34. Determine the distribution points.
35. Implement inventory control system.
36. Review availability of items and
operation of distribution points with
Repair Shop Manager. Make
adjustments to improve efficiency, if

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necessary.
28. Inspect existing on-site facilities.
29. If the current facilities are
inadequate, determine if new
facilities will need to be built or if
5.2.1 On-Site Operation Preparation (continued)

upgrades can be made to the current

facility.
Determine project responsibilities.
Consult CSA.

30. Once facilities are complete,

purchase the initial fluids inventory.
31. Inspect and test points of delivery.
Fluids are ready to be delivered.

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5.2.1 On-Site Operation Preparation (continued)

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 5.2.1j High Rotation Items (free 5.2.1k Parts Management
access) Operational Procedures
37. Receive initial supply inventory 39. Define and customize working
recommendations from Planning procedures for all areas of Parts

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and Scheduling and Repair Management. This includes
Management. warehouse, parts acquisition,
consumables, etc.
In order to track usage of high rotation
items, they must be included in the parts Document procedures, distribute,
inventory and be available at distribution communicate, and implement.
points. Distribution points need to be
40. Train personnel. The operational
accessible (free access) and include
procedures must be easy to learn
both the Repair Shop and Field Service.
and follow. If the process is not
Work with Repair Management to
easily understood, it will not be used
determine best locations.
and will be ineffective.
38. Implement working method and test.
41. Test and refine procedures. Make
Make improvements, if necessary.
any changes necessary.
Procedures ready for operation.

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5.2.1 On-Site Operation Preparation (continued)

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5.2.1 On-Site Operation Preparation (continued)

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 5.2.1l Parts Management
Performance Evaluation
The use of metrics should be considered
when managing a parts operation.
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Metrics are used to determine how well
maintenance and repair activities are
supported by the parts inventory. They
evaluate the relationship between Parts
Management, Planning and Scheduling,
and Maintenance Departments in the
effort to avoid unnecessary parts related
downtime.
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42. Acquire Parts Management goals
and objectives. The two sources of
this information are the Parts
Management plan and the CSA.
43. Identify and document KPIs to
measure goals and targets
accomplished.
44. Determine inputs (data) needed.
45. Load main software with defined
KPIs (calculations, relations, etc.).
46. Test software and outputs. KPIs
ready for operation.
5.2.1 On-Site Operation Preparation (continued)
5.2.2 On-Site Daily Operation

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 5.2.2 On-Site Daily Operation
It is vital that the right inventory level for
all parts and consumables be
maintained. Maintaining close
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communications with Planning and
Scheduling and Repair Management
(results and forecasts) will provide the
Parts Department with the most current
information to work with.
5.2.2a Parts Delivery
47. Parts for scheduled repairs are
delivered based on scheduled
repairs parts procedures.
48. Parts for unscheduled repairs are
delivered based on unscheduled
repairs parts procedures.
Proper documentation of parts delivery
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procedures and training of personnel in
those procedures will ensure timely
delivery of the parts needed for
scheduled and unscheduled repairs.
5.2.2b Consumables (fluids, oils,
coolants, etc.)
49. Deliver consumables to supply
points.
50. Check current inventory at all supply
points. Regular review of supply
levels at all supply distribution points
is necessary for maintaining an
adequate inventory.
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Consumption must be charged to
specific equipment. Fluid
consumption levels and
contamination levels are good
indicators of machine condition.
Consumption information must be
forwarded to Planning and
Scheduling (historical use and
projected use) and to Condition
Monitoring (equipment condition).
Compare actual consumption levels to
projected (estimated) consumption levels
to determine if adjustments need to be
made to the inventory recommendations.
If the actual consumption level is greater
than the projected level, replenish the
supply based on the actual consumption.
If necessary, activate emergency
procedures for replenishing supply
levels. Advise the Parts Manager of the
inventory adjustments.
If the actual consumption levels meet the
projected levels, replenish the supply
with no adjustments to inventory
recommendations.
Provide all fluid supply data (oil specs,
quantity, ISO codes, and any other
pertinent information) to Planning and
Scheduling and Condition Monitoring.
Update inventory of supply points and
deliver updates regarding fluid levels at
the daily coordination meeting. This
meeting should include the Planner,
Project Manager, Shop Manager, Fleet
Analyst, Scheduler, and Parts Manager.
5.2.2c Consumables (rags, towels,
solvents, etc.)
51. Deliver/supply consumables at
operation points (Shop, Field, PM
bays, etc.).
52. Check inventory levels at all supply
distribution points. Receive orders
from areas of operation, such as the
Repair Shop, Field Service, and
supply points and adjust inventory
levels as needed.
Compare actual consumption levels to
projected (estimated) consumption levels
to determine if adjustments need to be
made to the inventory recommendations.
If the actual consumption level is greater
than the projected level, replenish the
supply based on the actual consumption.
If necessary, activate emergency
5.2.2 On-Site Daily Operation (continued)
procedures for replenishing supply
levels. Advise the Parts Manager of the
inventory adjustments.
If the actual consumption levels meet the
projected levels, replenish the supply
with no adjustments to inventory
recommendations.
Direct consumption information to
Planning and Scheduling, Repair
Management, and Preventive
Maintenance.
Update inventory of supply points and
deliver updates at the daily coordination
meeting. This meeting should include
the Planner, Project Manager, Shop
Manager, Fleet Analyst, Scheduler, and
Parts Manager.
5.2.2 On-Site Daily Operation (continued)

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 5.2.2d High Rotation Items
53. Deliver/supply high rotation items.
Shop Operation
Review the inventory of free supply items
Update inventory of supply points and
deliver updates at the daily coordination
meeting. This meeting should include
the Planner, Project Manager, Shop
Manager, Fleet Analyst, Scheduler, and
As with all other part and supply areas of
the Parts Department, review and
replenish tool inventory regularly.
Provide toolroom status information at
the daily coordination meeting.

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(nuts, bolts, washers, etc.), and replenish
used items for PMs, Repair Shop, and
supply points.
Field Service
Receive and exchange field service high
rotation item kits. Replenish used items
and make sure there is a back-up kit in
storage and ready to go.
Compare actual consumption levels (for
both Shop operation and Field Service)
to projected (estimated) consumption
levels to determine if adjustments need
to be made to the inventory
Parts Manager.
5.2.2e Tools and Testing
Equipment
54. Make sure required tools and testing
equipment are available.
Mechanics Tools
Conduct periodic toolbox audits and
review tool replacement requests.
Replace missing or damaged tools and
charge tools to responsible area.
Advise Planning and Scheduling and
Tool Calibration
Tool calibrations must be performed
according to manufacturer specifications
and the Parts Management program
schedule. Damaged tools must be
replaced and charged to the responsible
area.
Calibrated tools should be identified by
code, date, etc., and returned to
inventory.
Advise Planning and Scheduling and
Repair Management of tool expenses
and provide calibrated tool status

23
recommendations. Repair Management of tool expenses information at the daily coordination
and provide mechanic tool status
5.2.2 On-Site Daily Operation (continued)

If the actual consumption level is greater
than the projected level, replenish the
supply based on the actual consumption.
If necessary, activate emergency
procedures for replenishing supply
levels. Advise the Parts Manager of the
inventory adjustments.
If the actual consumption levels meet the
projected levels, replenish the supply
with no adjustments to inventory
recommendations.
Direct consumption information to
Planning and Scheduling, Repair
Management, and Preventive
Maintenance.
meeting.
information at the daily coordination
meeting.
Toolroom
When tools are requested, inspect the
tool(s) and deliver where needed. The
Parts Department needs to have a
system in place for tracking tools that
leave the Parts Department and which
must be returned to the Parts
Department for storage when they are no
longer needed. This can be in the form
of a personal tool token or other form of
ID. The mechanic exchanges this ID for
the tool. The ID is returned to the
mechanic when the tool is returned in
good condition. Damaged tools need to
be replaced and the replacement costs
charged to the responsible area.

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5.2.3 Unscheduled Repairs

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 5.2.3 Unscheduled Repairs
Unscheduled repairs, due to their
unpredictability, are difficult to plan for.
The service fill level (parts orders filled on
2009 Caterpillar
the first request) needs to be tracked
closely to determine if a sufficient supply
of parts is on hand to cover unscheduled
repairs. Parts Management must work
with Planning and Scheduling to analyze
the percentage of unscheduled events
and determine the level of support
needed. They must also work closely
with Repair Management, especially
Field Service, to determine needs.
25
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5.2.3a Parts Request
55. Receive parts requirements
(unscheduled) from Repair
Management and open a parts
request.
56. Determine if the parts are available
in the local inventory.
As parts are removed and replaced in the
inventory, it is vital that this information
be entered in the on-line inventory
database. This ensures the most current
inventory levels are always available.
Parts must be removed from the on-line
inventory as soon as they are pulled from
the warehouse for use. This is the only
way to maintain an accurate parts
inventory count.
57. If the parts are available in the local
inventory, determine their location
(warehouse rack location).
A well-organized and mapped
warehouse makes locating parts a quick
and efficient process.
58. If parts are not available in the local
inventory, search parts availability
with the Central Store or other
off-site stores.
59. If the parts are available at another
location, determine when the parts
will ship and when they will arrive,
and order the parts.
5.2.3 Unscheduled Repairs (continued)
5.2.3 Unscheduled Repairs (continued)

2009 Caterpillar 26 All Rights Reserved

 5.2.3b Parts Available
60. Prepare parts for delivery based on
delivery requirements.
The parts must be charged to the specific
2009 Caterpillar
Work Order of the machine it is being
used for and removed from the inventory
in order to maintain an accurate on-line
database.
The type of repair, scheduled or
unscheduled, needs to be identified for
input in the database. When reviewing
Parts Management performance, this
information is an important factor.
27
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61. Inform Repair Management of parts
availability.
62. If the parts are to be delivered to the
field, activate the field delivery
procedures, determine the location
for delivery, and deliver the parts to
Field Service.
63. If the parts are to be picked up,
change the parts order status to
Waiting for Pick Up and deliver the
parts to the pick up point at the
warehouse.
64. Close the Field Service Parts
Request.
5.2.3 Unscheduled Repairs (continued)
Identify the type of repair. Is the parts
delivery for a scheduled or unscheduled
repair?
5.2.3 Unscheduled Repairs (continued)

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 5.2.3c Parts Not Available
65. If parts are not available on-site but
are available from Central Supply or
other stores, Repair Management
2009 Caterpillar
and Planning and Scheduling must
be notified immediately.
Continually follow up on parts orders and
shipment arrivals and keep all necessary
personnel informed.
29
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66. Receive parts and inspect for
accuracy and condition of the order.
67. Advise Repair Management as soon
as parts arrive and are available.
68. Charge parts to specific work order
and machine and deliver the parts to
the specified location.
The type of repair, scheduled or
unscheduled, needs to be identified for
input in the database. When reviewing
Parts Management performance, this
information is an important factor.
Identify the type of repair. Is the parts
delivery for a scheduled or unscheduled
repair?
69. Close Field Service Parts Request.
70. If parts are not available from Central
Supply or other stores, activate the
emergency order procedure and
determine the parts arrival time.
71. Advise Repair Management and
Planning and Scheduling of the parts
order status immediately.
Continually follow up on parts orders and
shipment arrivals and keep all necessary
personnel informed. Follow previously
outlined procedures when the parts
arrive and are available.
5.2.3 Unscheduled Repairs (continued)
5.2.4 Scheduled Repairs In Shop

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 5.2.4 Scheduled Repairs In
Shop
72. Receive the maintenance and repair
program which includes short,
73. Participate in monthly, weekly, and
daily planning meetings.
Another source of information used to
forecast parts and component needs is
the planning/coordination meetings.
74. Review and prepare parts inventory
to support the plan.
The parts inventory to support the plan
covers various areas of the maintenance
and repair plan.

2009 Caterpillar
medium, and long-term plans.
In order to accurately forecast parts and
components needs, the Parts
Department needs to work closely with
Planning and Scheduling in reviewing the
short, medium, and long-term plans.
These meetings should be attended by
Preventive Maintenance
the Shop Manager, Fleet Analyst,
Scheduler, Project Manager, Planner, Component exchange (PCR)
and Parts Manager.
Partial major/minor repairs
The participants in the planning meetings
Other (pre-PCR inspections, field
bring the most current data involving their
inspections, etc.)
areas of responsibility.
Component status (long-term)
Components in local storage
Components and parts ready to go
Parts ready for major/minor repairs

31
Preventive Maintenance
Parts problems/issues
5.2.4 Scheduled Repairs In Shop (continued)

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5.2.4 Scheduled Repairs In Shop (continued)

2009 Caterpillar 32 All Rights Reserved

 5.2.4a Components
5.2.4a(1) Long-Term
75. Communicate the medium and long-
term program to the Central Store.
2009 Caterpillar
Work closely with Planning and
Scheduling. This should be the most
current information available, based on the
maintenance and repair program and
updated information from planning
meetings.
The Central Store reviews the
component options and inventory. There
are various options for component
replacement. The CSA, along with local
laws and regulations, determine which
type of replacement is required for
individual mine sites.
33
CRC rebuild
Remanufacture
New component
Pool (exchange)
76. The Central Store will advise the on-
site Parts Department of the
component inventory and their
recommendation for component
replacement.
77. Deliver general component status to
planning area/project management.
Component replacement status must be
forwarded to Planning and Scheduling to be
included in monthly, weekly, and daily
meetings. All information must be complete,
accurate, and forwarded in a timely manner.
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All information regarding component
replacement status must be forwarded to
Planning and Scheduling to be included in
the monthly, weekly, and daily meetings.
All information must be complete,
accurate, and forwarded in a timely
manner.
5.2.4a(2) Medium-Term
78. Activate component acquisition from
Central Store.
79. Prepare component with R&I parts
kits. Parts kitting is an effective and
efficient support strategy.
80. Component is delivered to the site.
Inspect component upon arrival.
Inspect component documentation
upon arrival (ID, history, rebuild
records, etc.).
The component must be in good
condition and all documentation must be
complete and accurate.
81. If there are problems with the
component or documentation, notify
the Central Store to make
corrections.
82. If the component and documentation
pass inspection, forward the
documentation to Planning and
Scheduling.
83. Send the component to the
determined local storage location.
The storage area should protect the
component from damage or
contamination.
The on-site component inventory should
be updated at this time to indicate the
component is ready to go.
84. Planning and Scheduling and
Component Management put
together the PCR Repair Program to
be used by the Parts Department to
prep the component.
Refer to Best Practices (BP1007-2.0-1106),
Component Management for more
information.
5.2.4a(3) Short-Term
85. Activate local component acquisition.
86. Prepare component with R&I kits
and backlog parts.
All backlogs for a machine must be
completed during a PCR. The Parts
Manager must check the Backlogs
Pending Report when a parts order is
received for a PCR.
5.2.4 Scheduled Repairs In Shop (continued)
87. Receive PCR confirmation.
The component and parts must be
charged to the work order for the specific
machine. The component and parts must
be removed from the on-site inventory.
88. Deliver component to the Repair
Shop and forward updated
information to Planning and
Scheduling to be included in the
planning meeting. All information
must be complete, accurate, and
forwarded in a timely manner.
5.2.4 Scheduled Repairs In Shop (continued)

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 5.2.4b Preventive Maintenance
89. Receive the Maintenance and
Repair program.
The parts inventory for Preventive
2009 Caterpillar
Maintenance is based on the short,
medium, and long-term goals outlined in
the Maintenance and Repair program
developed by Planning and Scheduling.
PM is the most frequent known routine.
Everything must be prepared.
Consumables
PM mandatory parts, handled as
kits
Exchange kits
Optional parts
35
5.2.4b(1) Long-Term (6 month
projection)
90. Review the PM parts kits and
consumables projections. This
information is included in the
Maintenance and Repair program.
91. Review current parts and
consumables inventory.
92. Adjust inventory limits to
accommodate demand, as needed,
and advise Central Store of
inventory needs.
93. Conduct periodic inventory reviews.
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Inventory needs can fluctuate due to 5.2.4b(3) Short-Term (7 days)
factors such as unscheduled repairs.
The 7-Day schedule must be confirmed
Regular inventory audits (monthly is
on a daily basis.
recommended) help to keep inventory
levels at an acceptable level. Make 96. Select and reserve specific PM Kit
adjustments to inventory levels, as for specific machine.
needed.
97. Store PM parts kits in a rack or area
designated for reserved PM parts
kits. Separate PM kits in this area by
5.2.4b(2) Medium-Term (14 days)
the specific machine.
94. Order PM parts kits from the Central
Store.
95. Receive and inspect PM kits. Store
the PM parts kits in the warehouse in
the staging area specified for PM
kits.
The use of PM parts kits increases the
efficiency of Parts Management. PM kits
and rebuild kits should be used for the
most frequent known routines and
repairs. Kits are built ahead of time, off-
site, based on Planning and Scheduling
5.2.4 Scheduled Repairs In Shop (continued)
activities. All the parts associated with
the repair are collected in a box. The kit
is delivered, in its entirety, to the
technician. Kits should not be built for
less frequent repairs because part
numbers may change and additional
labor would be required to update the
kits. Parts and kits should be made
available to Field Service, as well as the
main Repair Shop.
5.2.4 Scheduled Repairs In Shop (continued)

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 5.2.4b(4) PM Service Confirmed PM Exchange Parts Kits Consumables
98. Receive PM services confirmation. 102. Review condition of PM exchange 110. Review inventory of consumables.
parts kits.
The Parts Department receives 111. Review availability of required PM
confirmation from Planning and 103. Exchange kits with back-up kits as consumables.

2009 Caterpillar
Scheduling that a PM for a specific
machine is scheduled. They will also
receive confirmation of backlogs to be
completed on the machine in parallel with
the PM.
99. Charge PM kits to specific work
order.
100. Remove PM kits from specified
storage area and group with
backlog parts for the specific
machine.
101. Deliver PM kits to the designated
requested. This is an internal
112. Activate replenishment procedure,
warehouse process.
as needed.
104. Replace missing and/or damaged
parts. Charge the replaced parts to
113. Advise Planning and Scheduling of
PM consumables status (ready and
the specific work order and store
available).
the back-up exchange parts kits.
105. Deliver PM exchange parts kits to
the PM bay. Kits should be Once Planning and Scheduling has
delivered prior to the scheduled advised all necessary departments that
PM. the required parts, kits, and supplies for
the PM are available, responsibility for
106. Inform Planning and Scheduling of
the parts and supplies now belongs to
the status of the PM exchange
the PM Supervisor.
parts kits (ready and available).

37
114. The PM Supervisor inspects
area of the PM bay. Notify delivered parts for completeness of
Planning and Scheduling of the PM Optional Parts order and condition of parts
delivery of the PM kits. (backlog parts, exchange parts,
5.2.4 Scheduled Repairs In Shop (continued)

107. Review inventory of PM optional

fluids, etc.).
parts.
108. Replenish as needed, based on
established inventory limits.
109. Inform Planning and Scheduling of
the status of the PM optional parts
(ready and available).

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5.2.4 Scheduled Repairs In Shop (continued)

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 5.2.4c Scheduled Repairs (major
and minor)
115. Request and receive partial repairs
program (parts requests). The
2009 Caterpillar
program information comes from
Planning and Scheduling and
should include the following (for
parts and component requests).
Equipment number
Work order
Dates, activities, etc.
39
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116. Review the repair program to 117. Check the availability status of any
determine if components are required backlog parts.
requested.
118. Check the availability status of
Refer to 5.2.4a Components, in this parts not included in the existing
section of the Maintenance and Repair backlogs.
Reference Guide and Best Practices
(BP1007-2.0-1106), Component
Management for more information
regarding component procedures.
5.2.4 Scheduled Repairs In Shop (continued)
5.2.4 Scheduled Repairs In Shop (continued)

2009 Caterpillar 40 All Rights Reserved

 5.2.4c(1) Parts Processing 122. When the repair is confirmed, pull 125. If the parts order is complete, hold
the specific backlog parts from the the parts in a designated area until
119. If backlog parts have been ordered,
reserved area to send with the program date confirmation is
but are not yet available, activate
other repair parts, and update the received.
procedures to speed up parts
backlog parts inventory.
arrival. Determine date of parts

2009 Caterpillar
126. Once the program date is
arrival. 123. Charge all parts to be used for a confirmed, deliver the parts to the
piece of equipment to the appropriate bay in the Repair Shop.
120. If backlog parts will not arrive in
appropriate work order and update
time for the scheduled repair, notify 127. Advise Planning and Scheduling
the inventory.
Planning and Scheduling and and Repair Management that the
Repair Management immediately. 124. Determine if the parts order is parts are ready and have been
complete. If the parts order is not delivered to the Repair Shop.
121. If backlog parts are received in time
complete, continue procedures for
for the scheduled repair, reserve
gathering all parts for the repair.
the parts for the specific backlog in
the area designated for reserved
backlog parts. Update the parts
inventory to indicate backlog parts
are ready to go.

41
5.2.4 Scheduled Repairs In Shop (continued)

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5.2.4 Scheduled Repairs In Shop (continued)

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 5.2.4c(2) Parts Not Available On-Site
128. Check parts availability in other
locations off-site, such as the
Central Store.
2009 Caterpillar
129. If parts are available from another
location, order the parts and
determine when the parts will ship
and the arrival date. Activate
supply channels based on the
priority of the parts.
130. Advise Planning and Scheduling of
the parts status.
131. Continue to follow up the parts
order until the shipment of parts
arrives.
132. If parts are not available from
another location, activate
43
emergency orders procedure.
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133. Determine the arrival time and
advise Planning and Scheduling of
parts status. Continue to follow up
the parts order until the parts arrive.
134. When parts are received, they must
be inspected for damage and to
make sure the order is complete.
135. Update the parts request status to
show the parts have arrived and
are available.
136. Deliver the parts to the designated
holding area for the repair program.
5.2.4c(3) Correcting Parts Availability
Issues
When the emergency order procedures
are activated, it is vital that the parts
inventory process be reviewed to
determine where improvements must be
made in the parts inventory program.
137. Conduct an inventory analysis.
Review the current inventory plan
and parts estimates.
138. Communicate the results and the
suggested corrective action plan to
Planning and Scheduling.
139. Planning and Scheduling will send
inventory corrections, based on the
inventory analysis and
recommendations, to the Parts
Department.
5.2.4 Scheduled Repairs In Shop (continued)
5.3 Summary Information
5.3.1 Management Process
Interactions
There are specific functions the Parts
Department must complete in order to provide
efficient and effective parts support to the
Maintenance and Repair Department. In turn,
the Maintenance Department must supply the
Parts Department with timely and accurate
information regarding inventory levels,
maintenance plans, etc. An overview of the
interaction between the Parts Department and
the Maintenance Department is shown in the
following illustration.
This section outlines how some of the other
processes in the Caterpillar Global Mining
Maintenance and Repair Management Process
contribute to effective Parts Management. The
information provided is an overview of key
points.
NOTE: Not all processes are included here.
Refer to the specific process section in the
Maintenance and Repair Management
Reference Guide for more information about a
particular process.

Parts Department Inventory Definition Maintenance Department

Optimize Parts Management Control
Total Investment
- Number of Items
- Total US Dollars
Parts Rotation
Parts Consumption History
Inventory Replenishment System
Obsolescence
Warehouse Management
- Facilities
- Parts Storage Conditions
- Operation
Preventive Maintenance Plan
Backlog Management
Component Replacement Plan
Timely Parts Need Forecast
Service Fill Level
Response Time
Parts Delivery (kits, dispatch)
Parts Integrity (contamination,
damage free)
Optimize Equipment Management
On Time and Fast Repairs
- On Time: Failure Prevention
MTBS
Fast Repairs
- Optimizing Repair Times
MTTR
Results of reliability (MTBS) and
percentage of scheduled work
conditioned the Parts Management
results.

Site Specific Logistics

2009 Caterpillar 44 All Rights Reserved

Condition Monitoring
Data collected during Condition Monitoring
provides information needed to forecast future
parts needs.
Tips
Information should include symptoms and
repair actions so the correct parts can be
ordered.
Make sure the input information is complete
and accurate.
Identify resources.
Prioritize.
Preventive Maintenance
Parts Management helps keep the Preventive
Maintenance program running smoothly and on
time by providing the correct PM parts kits at
the right time.
Tips
Maintain the correct inventory level of PM
parts kits in a clean and organized area.
Maintain good communication with Planning
and Scheduling regarding parts availability.
Define an emergency parts order procedure.
Advise Repair Management immediately of
any parts availability issues.
Keep all areas advised of tool and parts
status and expenses at daily planning
meetings.
Review the Backlogs Pending Report to
determine what repairs can be completed, if
parts are available.
2009 Caterpillar
Backlog Management
Parts Management must have the parts
available in order for a backlog repair to be
scheduled. When a window of opportunity
opens to make a backlog repair, it is the
responsibility of the Parts Department to deliver
available backlog parts to the appropriate
location. Backlog Management provides the
information necessary to forecast future parts
demand/inventory. Do not rely completely on
historical data. Parts must be received in a
timely manner so the backlog can be
completed on time. The older the backlog, the
higher the risk of failure.
Tips
Keep open communication with the Planning
and Scheduling departments.
Manage the backlog parts staging area by
reserving parts for specific backlogs by
specific machine.
Proper handling of backlog parts orders will
keep backlogs moving efficiently from the
Blue waiting for parts Phase to the Green
ready to go Phase.
Assign clear accountability for processing
parts orders from the time the order is
placed until it is delivered to the shop.
Maintain an efficient parts return process
since backlog parts requests are based on
possible parts needs, not actual needs.
Planning and Scheduling
Parts Management extensively uses the
Planning and Scheduling information available.
This information includes historical data and
future parts needs projections.
Tips
Define Parts Management goals and
objectives.
Adopt KPIs and keep updated results.
Make sure Parts Management has the most
current information available.
45 All Rights Reserved
Repair Management
Part unavailability can cause unscheduled
downtime and unnecessary delays in the
Repair Shop. Parts Management must be
aware of pending repairs and historical data in
order to forecast and order the tools and parts
needed.
Tips
Parts orders and work orders must be
complete and accurate so the correct parts
can be obtained in a timely manner.
Service technicians are responsible for
keeping tools in their possession in good
repair.
Notify Parts Management immediately of any
damaged or missing tools or parts.
Notify Repair Management immediately of
any parts availability issues.
Component Management
Periodic Component Replacement is used to
prepare a machine for a new cycle of life. One
hundred percent (100%) of all pending
backlogs for a machine must be completed
during the time a PCR is being done.
Provide Parts Management with short,
medium, and long-term plans.
Notify Parts Management immediately of any
changes to the PCR schedule or repair plan.
Notify Component Management immediately
of any parts availability issues.
Refer to Best Practices (BP1007-2.0-1106),
Component Management for more
information.
2009 Caterpillar
5.3.2 Key Personnel
This section provides information regarding
personnel and their involvement in effective
Parts Management. The information provided
is an overview of key roles and responsibilities
as they relate to Parts Management and is not
intended as a complete job description.
NOTE: Not all personnel are included here.
Refer to the specific process section in the
Maintenance and Repair Management
Reference Guide for more information about a
particular process and the personnel involved.
Parts Manager (Parts Analyst)
Role
Manage the Parts Department by implementing
and maintaining the Parts Management
process.
Responsibility
Manage warehouse operations.
Make sure the parts are on hand when
needed.
Maintain supply and communication
channels both on-site and between the site
and the Central Store.
Maintain open communication with Planner
and Repair Management.
Keep parts and component inventory
updated based on Planning analysis and
projections.
Support Planning strategies with the
appropriate parts action including parts kits
and backlog parts management, etc.
Assist Planner and Repair Management with
parts issues.
Measure results and make changes, as
needed.
46 All Rights Reserved
Warehouse Personnel
Role
Warehouse operation personnel provide
effective parts support services to the entire
Maintenance and Repair operation.
Responsibility
Operate warehouse shifts to provide service
24 hours a day, 7 days a week.
Observe warehouse operational procedures.
Observe warehouse contamination control
and parts storage procedures in order to
guarantee parts integrity.
Provide up-to-date warehouse operational
information to other departments.
Toolroom Personnel
Role
Toolroom personnel provide effective tooling
support services to the entire Maintenance and
Repair operation.
Responsibility
Maintain tool inventory in proper storage
conditions.
Deliver tools in good condition and inspect
all tools returned to the toolroom.
Complete regular tool calibration program.
Determine tool needs and keep the Parts
Manager advised.
Incorporate newly acquired tools into the
inventory.
Parts Runner
Role
Timely delivery of parts to repair locations so
Service Technicians can focus on repairs and
not tracking down parts.
Responsibility
Make sure parts are delivered, in good
condition, to the location where the repair will
take place (service bay, mine site, etc.).
2009 Caterpillar
Local Purchasing Agent
Role
Acquires locally available resources.
Responsibility
Maintain a local supply network for items
such as solvents, rags, and other commonly
used parts.
Fleet Analyst
Role
The Fleet Analyst leads Condition Monitoring
efforts to make sure the data collected is
complete and accurate so that future parts
needs can be estimated as accurately as
possible.
Responsibility
Make sure goals are being met by Condition
Monitoring and the information entered is
accurate and complete.
Identify the most accurate repair action(s) to
complete repair(s).
Receive Parts Management feedback and
make adjustments to the Condition
Monitoring process, if necessary.
Planner
Role
The Planner provides the Parts Manager with
the data needed to maintain correct parts
inventory levels.
Responsibility
Define and implement the Parts
Management process.
Maintain open communication between Parts
Management and Repair Management.
Make sure the process is working.
Assess results - interpret - communicate -
manage.
47 All Rights Reserved
Scheduler 5.3.3 Measuring Performance
Role The collection and input of data is important,
Provide Parts Management with current repair not only to keep all personnel and departments
schedules in a timely manner. informed, but also as a way to determine if the
Parts Management process is working
Responsibility efficiently. It is vital to measure how well
Review repair schedules daily and provide maintenance activities are supported by the
Parts Management with the most current parts inventory and evaluate the relationship
information. between Parts Management, Planning and
Scheduling, and the Maintenance Department
in an effort to avoid unnecessary parts-related
downtime. Certain data is needed to measure
Project Manager the performance of Parts Management.
Role Warehouse Service Fill Level
The Project Manager is the on-site (instantaneous) %
maintenance organization leader. Service Fill Level (24 hours) %
Responsibility Unavailability Due to Parts %
Make sure the Parts Management process is Emergency Response Time
implemented.
Parts Inventory Reduction
Share the strategy with the customer.
Emergency Orders %
Assist in defining Parts Management goals
and objectives. Inventory (items)
Must know the division of responsibilities Inventory (value)
between the customer and the Dealer.
Warehouse Service Fill Level
(instantaneous) %
Data Entry Clerk
Warehouse Service Fill Level (instantaneous)
Role indicates the percentage of all individual parts
Input of all data collected from various sources requests sent to the on-site parts warehouse
into the computerized database and/or paper (including backlog parts requests) that are filled
system. on the first request with parts available on-site.
The benchmark is 95%. An aggressive target
Responsibility is > 90%.
Make sure all data is entered in a timely Service Fill Level = Parts Orders Closed At First Request X 100
manner. (instantaneous) Total Parts Orders

Make sure all data entered is accurate and

complete. Service Fill Level (24 hours) %
Service Fill Level (24 hours) indicates the
percentage of individual parts requests sent to
the on-site parts warehouse that are filled
within 24 hours of the request. There is no
benchmark at this time, but an aggressive
target is 100%.
Service Fill Level = Parts Orders Closed In First 24 Hours X 100
(24 hour) Total Parts Orders

2009 Caterpillar 48 All Rights Reserved

Unavailability Due to Parts %
Unavailability Due to Parts indicates the
percentage of machine unavailability due to
parts delays. There is no benchmark, but a
reasonable target is < .5%. If unavailability
due to parts delays is higher than .5%, it may
indicate problems with the parts inventory or a
higher than normal percentage of unplanned
downtime. It is possible that the Maintenance
Department is not detecting problems before
failure, or is not defining parts requirements
adequately. The issue could also be the Parts
Department has the information needed, but is
not using that information to support the site
with the required parts.
Unavailability Parts = (1 - Avail.) X Parts Delay Downtime X 100
Total Downtime
Emergency Response Time
Emergency Response Time is the average
response time, in days, to fill parts requests
that could not be filled immediately. This
should be analyzed along with the Service Fill
Level (instantaneous). There is no benchmark
or target.
Inventory (items)
Inventory (items) is the number of individual
line items maintained on-site in the parts
inventory. This number is proportional to the
size of the fleet being supported so there is no
benchmark or target. Trend the inventory
levels over a 6 to 12 month period and relate
the trend to fleet performance results such as
MTBS, MTTR, and the percentage of
scheduled work.
Inventory (value)
Inventory (value) is the value of the on-site
parts inventory. This number is proportional to
the size of the fleet being supported so there is
no benchmark or target. Trend the inventory
value over a 6 to 12 month period and relate
the trend to fleet performance results such as
MTBS, MTTR, and the percentage of
scheduled work.

Parts Inventory Rotation

Parts Inventory Rotation is the annual turnover
of parts held in the on-site parts warehouse.
There is no benchmark. It is difficult to define
a realistic target due to variable site logistics
(transportation, storage capacity, warehouse
design, etc.).

Emergency Order %
Emergency Order % is the precentage of parts
orders that are entered in the system on an
emergency basis. This is another way of
analyzing how well the maintenance
organization is responding proactively and
controlling the fleet. There is no benchmark or
target.

2009 Caterpillar 49 All Rights Reserved

 5.3.4 Knowledge Review/Self Test

5.1 General Information

What is the main goal (function) of Parts Management? Page 3
What are the five main components of the Parts Management process? Page 3
5.2 The Process
What sources should be referred to when developing a Parts Management Plan? Page 5
What data is used to develop inventory recommendations? Page 5
What should be considered when developing parts supply channels? Page 7
How is responsibility for the installation of the communication channels determined? Page 7
What areas must be considered when determining personnel requirements? Page 7
Why is the location of the warehouse in relation to the shop important? Page 9
What type of information should be included in the warehouse location system? Page 9
When should the on-line parts inventory be updated? Page 11
What is determined by the minimum and maximum inventory settings? Page 11
What is lead time, as it pertains to Parts Management? Page 11
What factors can impact lead time? Page 11
Why should there be one central drop off location for parts orders? Page 11
What factors should be considered when determining component storage? Page 13
What activities are included in component inventory management? Page 13
Describe a system to be used to track tools checked out from the toolroom. Page 13
Fluid supply and storage must comply with what guidelines and what regulations? Page 15
Why is on-site transportation necessary for Parts Management? Page 21
Name the two main sources of information used to determine and maintain inventory
levels. Page 21
Why is actual consumption compared to projected consumption? Page 21
When should tools in the toolroom be inspected? Page 23
When should tools be calibrated? Page 23
Why is a well-organized and mapped warehouse important? Page 25
If parts are needed and are not available in the local inventory, what is the next step? Page 25
What is done with the Work Order when parts are delivered? Page 27
Which personnel should be in attendance at the planning/coordination meetings? Page 31
What are the available replacement options for components? Page 33
What documents should be with the component when it is delivered on-site? Page 33
What report should be reviewed when a parts order is received for a component
replacement? Page 33

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 Why are monthly inventory audits recommended? Page 35
Who is responsible for PM parts and supplies once they are delivered by the Parts
Department? Page 37
What department supplies the Parts Department with the partial repairs (major/minor)
program? Page 39
When are parts for scheduled repairs delivered to the Repair Shop? Page 41
What is the purpose of an inventory review after an emergency order? Page 43
5.3 Summary Information
What information must be provided by Condition Monitoring so that the correct parts
are ordered? Page 45
What is the role of the Parts Manager? Page 46
Why is a Parts Runner important? Page 47
What is Service Fill Level? Page 48
What is Parts Inventory Rotation? Page 49

2009 Caterpillar 51 All Rights Reserved