Spare Parts Interchangeability Records (SPIRs) are small, but crucial parts of supply chain management. But the methods are in dire need of an overhaul.
Spare Parts Interchangeability Records (SPIRs) are tedious necessities for any industrial project of scale. However: Useful as they are, they are vastly time-consuming and cumbersome to manage. We have some great tips on how to save time, ease your mind and improve results.
What exactly is a SPIR? It’s a common term, but many don’t know the details and intricacies of it. To help, we’ve made an easy-to-read guide that not only what it is, but the challenges related to them and our solution to those challenges. You can download it here.
We’ve been analyzing how much time is being spent on SPIR workflows across organizations, specifically in offshore-related projects on the Norwegian Continental Shelf. The results were incredibly enlightening but equally depressing. After discussing the issue with other clients across market segments, the feedback is very similar.
The sheer number of work hours spent manually filling out spreadsheets, communicating with colleagues and external stakeholders and getting hold of the correct input data was simply staggering.
Is there a better way? There has to be.
OH, THE PAIN: Spreadsheets and email has been the SPIR norm for decades. Spreadsheets are great, but they were never designed for this use.
The breakdown
On average, the SPIR process for a single SPIR would consume about 40-50 work hours, depending on the complexity and quality of data.
It seems the lion's share of time is consumed by suppliers and project owners' technical teams. While this might be expected given the specialized knowledge required for some of these processes, the analysis has also highlighted several pain points that we believe are major contributing factors to delays and inefficiencies:
The first major issue we identified is data consistency. Different team members have different understandings and interpretations of what data is required, leading to significant discrepancies. This leads to a domino effect, causing other team members to spend additional time correcting and standardising data. Even so, the risk of ending up with bad data (i.e. wrongful, unvetted or non-quality-assured data) is significant.
The second major bottleneck is a lack of effective collaboration and communication. Due to a lack of visibility into each other's progress and updates, team members often do duplicative work or wait for information from others, leading to unnecessary delays. Communication too often relies on emails and attachments, which is not only ineffective (due to wait times, availability issues and possible unwanted email filtering), but also exposes the project to potential security threats and complicates communication among multiple stakeholders.
Thirdly, we have noticed a lot of time being spent on manual data input and reconciliation, due to the unavailability of an automated, integrated system. Some regions and industry segments have initiated programs and database development programs to counter the issues of fragmented data and lack of standardized lists of quality assured and approved equipment and spares (like the NCS EQHub initiative), but those efforts are few and far between.
EMBRACE NEW WAYS: New technological solutions are paramount to combat SPIR process inefficiencies
The action list
It's clear that addressing these pain points could significantly enhance the efficiency of SPIR workflows, thus freeing up team talents to focus more on innovation and strategic initiatives (improving workload sustainability), significantly cutting CAPEX numbers across projects and effectively cutting industrial carbon footprints – a direct result of more detailed and precise equipment orders.
There are several ways to improve the SPIR process. Some are based on technological advancements and new digital tools (like the ones we offer). Others are strategic actions and prerequisites that are too often ignored or passed by in the flurry of busy project management processes.
There is a pressing need to establish better, more detailed and more extensive industry standardized nomenclature and coding systems – i.e. industry-wide spare parts databases for spare parts information - which includes details such as part descriptions, specifications, manufacturer details, lead times, and interchangeability information, will facilitate quick identification and ordering.
This needs to be paired with an Interchangeability Index - a matrix indicating which spare parts are interchangeable. This helps to identify alternative parts that can be used when the original part is not available, reducing downtime. The interchangeability records need to be periodically verified and validated by conducting physical inspections and testing, ensuring that recorded information matches actual parts in stock.
Revision Control: Implement a revision control system to track any changes or updates to the spare parts information. This ensures that the database remains accurate and up-to-date. Some ERP solutions offer this. Still: Bad data in equals bad data out. You need systems to cleanse old data and ensure that incoming data to ERP system is vetted and quality assured.
The human aspect of effective SPIR processes is too often overlooked. Provide training to employees involved in spare parts management to ensure they understand the importance of accurate interchangeability records and how to use the system effectively.
Don’t underestimate the value and importance of data analytics and reporting when it comes to commissioning and spare parts. It will directly impact both financial and ESG bottom lines. Utilize data analytics to gain insights into spare parts usage patterns, lead times, and criticality. Generate regular reports to identify potential issues and opportunities for improvement. Use those analytics to improve the spare parts interchangeability process and perhaps equally important: Encourage feedback from employees and other stakeholders to add to those analytics.
Start using proper cross-functional collaboration tools that enable communication across multiple stakeholder levels and domains. Foster collaboration between maintenance, procurement, and engineering teams to ensure that interchangeability information is shared effectively and used optimally. It will significantly reduce downtime and inventory management processes, thereby reducing needless spending. It is also the main fix to reduce time spent on SPIR processes.
Smartcube Solutions offers tools and solutions to address several of these recommended actions: tools that are tested, proven and easily customizable for every client. They streamline data collection and standardization, improve communication channels and offer automation options to optimize your SPIR processes. Want to learn more? Click here.
Do you have any thoughts on how to combat SPIR process inefficiencies? Share them below; we love to hear about your experiences!
