Maintenance Management
MP3704
Material Control
Maintenance Inventory:
Maintenance inventory management is crucial for ensuring that
spare parts, tools, and supplies required for performing
maintenance, repairs, and upkeep of equipment and facilities are
available. It ensures that maintenance teams have the necessary
resources to prevent breakdowns and keep operations running
smoothly.
Importance of Inventory Maintenance:
o Reduce Equipment Downtime
o Improve Maintenance Efficiency
o Cost Control & Budget Optimization
o Enhance Preventive & Predictive Maintenance
ABC Classification
ABC Classification:
ABC classification is an inventory management technique used to
categorize items based on their value and consumption rate.
It helps organizations prioritize resources, optimize stock levels, and
improve efficiency.
ABC Classification Categories:
Category A: (High-Value & Low-Quantity Items)
20% of total inventory but 80% of total inventory value.
Category B: (Medium-Value & Moderate-Quantity Items)
30% of total inventory and 15% of total inventory value
Category C: (Low-Value & High-Quantity Items)
50% of total inventory but only 5% of total inventory value.
Benefits of ABC Classification:
Optimize Inventory Control: prioritize high-value items while
ensuring availability of frequently used parts.
Cost Reduction: avoids overstocking expensive components
while maintaining essential supplies.
Better Maintenance Planning: ensure critical spare parts are
available for preventive and emergency repairs.
Implementation Steps:
1. Gather inventory data (suitable time)
2. Calculate the total annual number used of each item (AN) & total cost
3. Rank Items by ACV (sorting from highest to lowest value)
4. Calculate the percentage of the total usage of inventory items.
5. Calculate the percentage of the total cost of inventory items
consumption cost.
6. Assign categories: First 80%: A items, Next 15%: B items& Last 5%: C
Example 1
Classify the spare parts given in the following list using ABC- Analysis and draw the ABC-
chart. Comment on the classification results obtained.
Annual No. Unit Price,
S. N Part Name
Used (AN) LE. (UC)
1 V-Belt 100 70
2 Ball bearing 40 150
3 Roller bearing 40 200
4 Bolt 500 7
5 Nut 500 5
6 Plain washer 700 2
7 Spring washer 500 3
8 Shaft 5 2000
9 Chain 30 200
10 Oil filter 100 50
Solution
Annual No. Unit Price, Total Item
S. N Part Name
Used (AN) LE. (UC) Cost
1 V-Belt 100 70 7000
2 Ball bearing 40 150 6000
3 Roller bearing 40 200 8000
4 Bolt 500 7 3500
5 Nut 500 5 2500
6 Plain washer 700 2 1400
7 Spring washer 500 3 1500
8 Shaft 5 2000 10000
9 Chain 30 200 6000
10 Oil filter 100 50 5000
Solution
∑ Total Item
Annual No. ∑ Annual No. ∑ Annual No. Unit Price, Total Item ∑ Total Item
S. N Cost %
Used (AN) Used Used % LE. Cost Cost
8 5 5 0.20 2000 10000 10000 19.65
3 40 45 1.79 200 8000 18000 35.36
1 100 145 5.77 70 7000 25000 49.12
9 30 175 6.96 200 6000 31000 60.90
2 40 215 8.55 150 6000 37000 72.69
10 100 315 12.52 50 5000 42000 82.51
4 500 815 32.41 7 3500 45500 89.39
5 500 1315 52.29 5 2500 48000 94.30
7 500 1815 72.17 3 1500 49500 97.25
6 700 2515 100.00 2 1400 50900 100.00
Solution
Annual ∑ Total
∑ Annual Unit
No. ∑ Annual Total Item ∑ Total Item Cost
S. N No. Used Price, Classification
Used No. Used Cost Item Cost %
% LE.
(AN)
8 5 5 0.20 2000 10000 10000 19.65
3 40 45 1.79 200 8000 18000 35.36
1 100 145 5.77 70 7000 25000 49.12
A
9 30 175 6.96 200 6000 31000 60.90
2 40 215 8.55 150 6000 37000 72.69
10 100 315 12.52 50 5000 42000 82.51
4 500 815 32.41 7 3500 45500 89.39
B
5 500 1315 52.29 5 2500 48000 94.30
7 500 1815 72.17 3 1500 49500 97.25
C
6 700 2515 100.00 2 1400 50900 100.00
Solution ABC Classification
120
100
Cumulative Cost %
80
60
40
20
0
0 20 40 60 80 100 120
Cumulative Usage %
Example 2
Classify the spare parts given in the following list using ABC- Analysis and draw the ABC-
chart. Comment on the classification results obtained.
S. N Part Name Annual No. Used (AN) Unit Price, LE. (UC)
1 Oil filter 100 50
2 Ball bearing 100 150
3 Roller bearing 50 200
4 Bolt 1000 5
5 Nut 1500 4
6 Plain washer 2000 2
7 Spring washer 1500 3
8 Oil Seal 50 100
9 Chain 30 100
10 Spring 100 50
11 Clutch 20 300
12 V-belt 100 50
13 Spring 120 60
14 Shaft 5 1000
15 Sprocket 20 200
Eng. Nermeen Adly