Asia e University

Malaysia institute 0f logistics

Intermediate logistics officer

course
(Executive bachelor in logistics management)

Assignment for logistics Management

Assignment no2

How does maintenance planning

affect operational spending: supply
support and facility?
Ltcdr hamed Alghafri
Royal Navy of Oman
Date:23 MAY 2011

Contents
INTRODUCTION........................................................................................................... 2

Spare part classification............................................................................................. 3

Repair cycle................................................................................................................ 4
Repair of repairables............................................................................................... 4
Replenishment........................................................................................................ 5
Performance metrics............................................................................................... 5
Military operations spending and maintenance..........................................................5
References.................................................................................................................. 7

INTRODUCTION
The planned maintenance system is one of the important elements of the
integrated logistics support (ILS) which is an integrated approach to the
management of logistic disciplines in the military, similar to commercial product
support or customer service organizations ILS has been categorized into the
following elements:
Reliability engineering, Maintainability engineering and Maintenance (preventive,
predictive and corrective) Planning
Supply (Spare part) Support.
Support and Test Equipment/Equipment Support
Manpower and Personnel
Training and Training Support
Technical Data / Publications
Computer Resources Support
Facilities Packaging, Handling, Storage, and Transportation (PHS&T) 1.

Aim
The aim of this paper is to highlight the effect of maintenance planning on the
military operation spending in the term of supply support.
Scope
This paper will concentrate on spare part as an item of inventory that is used for the
repair or replacement of failed parts.

Spare part classification

In logistics, spare parts can be broadly classified into two groups, repairables and
consumables. Repairable parts are parts that are deemed worthy of repair, usually
by virtue of economic consideration of their repair cost. Parts that are not
repairable, are considered consumable parts. Consumable parts are usually
scrapped, or "condemned", when they are found to have failed 2.
1Integrated logistics supporthttp://en.wikipedia.org/wiki/Integrated_logistics_support
2

Economically, there is a tradeoff between the cost of ordering a replacement part

and the cost of repairing a failed part.
When the cost of repair becomes a significant percentage of the cost of
replacement, it becomes economically favorable to simply order a replacement
part. In such cases, the part is said to be "beyond economic repair" (BER), and the
percentage associated with this threshold is known as the BER rate.

Repair cycle
From the perspective of logistics, a model of the life cycle of parts in a supply chain
can be developed. This model, called the repair cycle, consists of functioning parts
in use by equipment operators, and the entire sequence of suppliers or repair
providers that replenish functional part inventories, either by production or repair,
when they have failed. Ultimately, this sequence ends with the manufacturer3.
This type of model allows demands on a supply system to ultimately be traced to
their operational reliability, allowing for analysis of the dynamics of the supply
system, in particular, spare parts.

Repair of repairable
In this model, repairable parts are either repaired by local maintenance capabilities,
or sent out for repair by repair providers. Generally, local repair can be accomplish
simple repairs faster and with less expense, however, more sophisticated
diagnostics and repairs, such as overhauls, require better support equipment that is
expensive to deploy to local maintenance facilities. If repair providers are unable to
accomplish a repair, the item may be scrapped (or condemned), and replaced. The
total time a part spends being repaired is known as the repair cycle time 4.

Replenishment
In the maintenance plan Consumable parts short-circuit this process, as they do not
allow for repair. Instead of spending time in the cycle waiting for repair, these parts
are scrapped directly, and a replacement must be obtained from a supplier. The
time it takes for a supplier to provide a replacement part is the lead time.

2 Spare par.t http://en.wikipedia.org/wiki/Spare_part

3 Optimal maintenancehttp://en.wikipedia.org/wiki/Optimal_maintenance

4 Corrective maintenancehttp://en.wikipedia.org/wiki/Corrective_maintenance

Performance metrics
Several logistical measures of performance, or performance metrics can be used to
evaluate the effectiveness of the repair cycle. Key performance metrics include
repair turn-around time, ready rate, fill rate, and system availability.

Military operations spending and maintenance

Military operations are significantly affected by logistics operations. The system
availability, also known as mission capable rate, of weapon systems and the ability
to affect the repair of damaged equipment are significant contributors to the
success of military operations. Systems that are in a mission-incapable (MICAP)
status due lack of spare parts are said to be "awaiting parts" (AWP), also known as
not mission capable due to supply (NMCS).
Because of this sensitivity to logistics, militaries have sought to make their logistics
operations as effective as possible, focusing effort on operations research and
optimal maintenance. Maintenance has been simplified by the introduction of
interchangeable modules known as line-replaceable units (LRUs). LRUs make it
possible to quickly replace an unserviceable (failed) part with a serviceable
(working) replacement. This makes it relatively straightforward to repair complex
military hardware, at the expense of having a ready supply of spare parts.
The cost of having serviceable parts available in inventory can be tremendous, as
items that are prone to failure may be demanded frequently from inventory,
requiring significant inventory levels to avoid depletion. For military programs, the
cost of spare inventory can be a significant portion of acquisition cost.

References
1. Integrated logistics
supporthttp://en.wikipedia.org/wiki/Integrated_logistics_support
2.

Spare par.t http://en.wikipedia.org/wiki/Spare_part

3.

Optimal maintenance. http://en.wikipedia.org/wiki/Optimal_maintenance

4.

Corrective maintenance. http://en.wikipedia.org/wiki/Corrective_maintenance

5. Spare parts management.

http://en.wikipedia.org/wiki/Spare_parts_management