Maintenance-Repairs & Spare Parts (Stores) Management

 Effective Maintenance, Repair, and Operations (MRO) management is essential for optimizing vessel performance. Proper MRO management ensures inventory accuracy, quick access to quality spare parts, and seamless integration between the technical department, onboard engineers, purchasers, and supervisors. By addressing challenges, adopting best practices, and leveraging technology, vessel operators can reduce costs, improve efficiency, and minimize downtime.

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Objectives of Inventory Management

The primary goals of inventory management include:

• Reducing operational cycle time by optimizing lead times, repair, transportation, and delivery processes.
• Lowering inventory costs through efficient stock control, reducing carrying costs, and minimizing expedited freight expenses.
• Improving inventory accuracy ensures spare parts are readily available when and where needed.

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Types of Inventory

Vessel inventory falls into three main categories:

1. MRO Supplies: Spare parts and consumables supporting maintenance operations.
2. Hardware: Tools, fasteners, vendor-managed stock, and consumables.
3. Facility Supplies: Office equipment and janitorial essentials.

Efficient MRO management helps minimize costs, enhance operational reliability, and reduce downtime.

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Best Practices for Inventory Management

1. Preventive Maintenance for Stored Spare Parts: Regularly maintain critical components like gaskets, belts, and O-rings to ensure readiness.
2. Vendor-Managed Inventory (VMI): Partner with suppliers to manage stock levels effectively.
3. Cycle Counting: Use methods like ABC classification to maintain inventory accuracy.
4. Obsolete Inventory Removal: Conduct monthly reviews to eliminate non-essential items.
5. Salvage Operations: Reuse or recycle obsolete or scrapped materials.
6. Streamlined Storeroom Layouts: Optimize layouts for efficient access and storage.
7. FIFO Stocking: Use First-In, First-Out methods to avoid expired inventory.
8. Defined Receiving Processes: Inspect and document incoming spare parts for quality control.
9. Inventory Dashboards: Track key performance indicators (KPIs) for real-time insights.
10. Secure Storage: Maintain physical security to protect inventory.

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 Barriers to Effective Inventory Management

Key challenges include:

• Inconsistent inventory classification methods.
• Lack of standardized workflows and KPIs.
• Poor coordination between departments.
• Unaddressed obsolete materials in Computerized Maintenance Management Systems (CMMS).
• Inefficient purchasing practices.

Addressing these barriers requires robust workflows, better inter-departmental communication, and modern inventory management tools.

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Inventory Control Techniques

Effective control minimizes downtime, stockouts, and overstocking by:

• Maintaining optimal inventory levels based on usage and historical data.
• Securing inventory locations to prevent theft and damage.
• Leveraging forecasting tools for better stock management.

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Replacement Asset Value (RAV)

The Replacement Asset Value (RAV) of a vessel influences inventory decisions. Best practices suggest maintaining inventory levels at 0.50% to 0.75% of the RAV to balance operational readiness and cost-effectiveness.

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Risk Management

Stocking critical parts requires:

• Conducting Failure Modes and Effects Analysis (FMEA).
• Evaluating supplier reliability and part availability.
• Implementing preventive maintenance programs for high-risk components.

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Loss Prevention in Inventory Management

To prevent losses due to theft, damage, or mismanagement:

• Implement quality checks during receiving.
• Enforce strict security measures.
• Regularly audit inventory accuracy.
• Maintain appropriate storage conditions for sensitive items.

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Criticality Analysis

Using the equipment bill of materials (BOM), prioritize spare parts by their impact on operations. Components like bearings, electronic boards, and hazardous materials require special attention to meet safety and operational standards.

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Efficient Stocking Levels

Define service levels for critical spares (100% availability), insurance spares (98%), and standard components (90–95%). Supplier accountability and minimum/maximum level reviews are essential for maintaining efficiency.

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Carrying Costs

Carrying costs encompass interest, insurance, taxes, and storage expenses. Reducing slow-moving or obsolete inventory significantly lowers these costs while improving operational efficiency.

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Role of a Storeroom Supervisor

Supervisors play a pivotal role by:

• Ensuring storeroom cleanliness and organization.
• Coordinating with maintenance for parts planning.
• Monitoring inventory levels and maintaining KPIs.

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Leveraging Technology for MRO Management

1. Barcoding Systems: Enable real-time inventory tracking, reduce errors, and streamline processes.
2. Machine Learning: Improve accuracy in demand forecasting and inventory classification.
3. Computerized Maintenance Management Systems (CMMS): Enhance EAM integration for predictive maintenance and inventory control.

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Storeroom Optimization Techniques

1. Adopting 5S Practices: Sort, systemize, standardize, shine, and sustain for streamlined operations.
2. Satellite Stores: Use strategically placed satellite storerooms to reduce downtime.
3. Advanced Storage Solutions: To better utilize space, employ demand flow racks, sliding shelving, and carousel systems.

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Continuous Improvement and KPIs

Measure KPIs such as inventory accuracy, stock-out rates, and carrying costs regularly to identify areas for improvement. Then, use these metrics to implement changes that enhance efficiency and reliability.

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Conclusion

Adequate MRO inventory and spare parts management are foundational to vessel performance and cost control. By leveraging best practices, adopting modern technologies, and fostering cross-departmental collaboration, vessel operators can ensure optimal performance, reduced costs, and enhanced operational reliability.

Frequently Asked Questions (FAQs)

What is MRO inventory management in vessel operations?
MRO (Maintenance, Repair, and Operations) inventory management involves maintaining and controlling spare parts, tools, and supplies required for vessel maintenance and operations. Effective MRO management ensures vessel reliability, minimizes downtime, and optimizes costs.

How does preventive maintenance help in inventory management?
Preventive maintenance ensures that stored spare parts, such as gaskets, belts, and O-rings, remain in optimal condition. It reduces the risk of part failure during usage and helps maintain readiness for planned or emergency repairs.

What are the key benefits of using barcoding for inventory management?
Barcoding improves accuracy in tracking inventory, streamlines the receiving and issuing process, and enhances employee productivity. It reduces errors associated with manual data entry and provides real-time updates to inventory systems.

Why is the Replacement Asset Value (RAV) important in inventory planning?
RAV provides a baseline for determining the optimal value of MRO inventory to stock. Best practices recommend maintaining inventory levels at 0.50% to 0.75% of the RAV to balance availability and cost.

What role does a storeroom supervisor play in vessel management?
The storeroom supervisor ensures that inventory is organized, accessible, and maintained to support maintenance activities. They also coordinate with purchasing, planning, and technical teams to optimize inventory levels and improve operational efficiency.

How can technology improve MRO inventory management?
Technologies like barcoding, machine learning, and Computerized Maintenance Management Systems (CMMS) enhance accuracy, enable predictive maintenance, and streamline workflows. These tools help in real-time inventory tracking, demand forecasting, and efficient resource allocation.

Disclaimer:

Out of Box Maritime Thinker © by Narenta Gestio Consilium Group 2022 and Aleksandar Pudar assumes no responsibility or liability for any errors or omissions in the content of this paper. The information in this paper is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness, or timeliness or of the results obtained from using this information. The ideas and strategies should never be used without first assessing your company's situation or system or consulting a consultancy professional. The content of this paper is intended to be used and must be used for informational purposes only.

MAINTENANCE RELIABILITY

Maintenance Reliability in Maritime Industry

Maritime Industry is very competitive, and sustainability (ESG) requires owners and vessel operators to capitalise on every possible advantage. As a result, owners and vessel operators often pursue lean management to gain a competitive advantage.

Similarly, owners and vessel operators drive initiatives to attain excellence in maintenance and reliability.

Unfortunately, owners and vessel operators do not address the significant synergies of lean and maintenance excellence that power the combination of lean management and lean maintenance.

The concepts presented here are proven through more than 20 years of experience in the maritime industry and the creation and execution of maintenance systems on more than 20 vessels from delivery to handover to new owners.

The most common tanker vessel asset performance metrics include financial and technical management metrics. These metrics are used to evaluate the performance and profitability of tanker vessels. The most common metrics are:

·         Time Charter Equivalent (TCE) - measures the revenue the tanker vessel earns per day of operation after deducting all voyage-related expenses.

·         Vessel Utilisation - measures how much time a tanker vessel is used for transporting cargo.

·         Operational Efficiency - measures how well a tanker vessel is performing in terms of operational costs and fuel consumption.

·         Planned maintenance - measures how well the tanker vessel is maintained according to its planned maintenance schedule.

·         Class Inspection Performance - measures how well the tanker vessel performs during mandatory inspections by a classification society.

·         Overall Equipment Effectiveness (OEE) - measures how effectively the tanker vessel's equipment is utilised.

·         These metrics are used by shipowners, operators, and charterers to assess the performance of tanker vessels and to make informed decisions about investments, maintenance, and chartering.

The best approach for owners and vessel operators is implementing lean principles while improving maintenance and reliability. This involves stabilising purchasing processes through proper maintenance of equipment and, in consequence, improving reliability while challenging organisational work processes. Furthermore, by applying lean tools to maintenance, we can enhance the synergies achieved by integrating lean principles.

 

 

Every owner and operator wants their vessels to operate reliably, efficiently, and safely. Profitability maximises when vessels operate as they should, with minimal downtime and optimal performance. No organisation wants its vessels to break down, provide poor-quality service, or operate inefficiently. Unfortunately, physical assets like vessels cannot operate flawlessly forever. Breakdowns, maintenance-related corrective actions, and other equipment-related problems are common. Maintenance is often blamed for all problems plaguing most companies, but all functional groups (departments) share the reasons for these problems.

 

The organisation and management of the maintenance function for owners and vessel operators contain several vital steps:

 

Establishing Maintenance Policies and Procedures:

Maintenance policies and procedures should be established to ensure consistency in maintenance activities across the fleet. These policies should outline the goals and objectives of the maintenance function, the types of maintenance activities that will be performed, and the responsibilities of different personnel.

Developing a Maintenance Management System:

A maintenance management system should help manage maintenance activities, including scheduling, work orders, and inventory management. The system should include both preventive maintenance and corrective maintenance activities.

Building a Maintenance Team:

A maintenance team should be established with qualified personnel experienced in maintenance activities. The team should include shore-based and onboard personnel and be responsible for implementing the maintenance policies and procedures.

Establishing Key Performance Indicators (KPIs):

KPIs should be established to measure the effectiveness of the maintenance function; these should include metrics such as maintenance costs, vessel availability, and downtime.

Developing a Training Program:

Establishing a training program is essential to ensure that they are trained and familiar with maintenance policies and procedures and using PMS. In addition, training should keep the crew updated with policy, procedure, and technology changes.

Implementing Continuous Improvement Processes:

Continuous improvement processes should be implemented to identify areas for improvement in the maintenance function; this includes analysing maintenance data, identifying trends, and implementing corrective actions to improve maintenance performance.

Plate 1.1 Primary Elements of Performance.

To address these challenges, owners and vessel operators must focus on implementing lean principles and improving maintenance and reliability; this involves developing a maintenance management system that prioritises preventive maintenance, implementing key performance indicators to measure maintenance effectiveness, and building a highly trained maintenance team. Additionally, continuous improvement processes must be implemented to identify areas for improvement in the maintenance function. By taking a comprehensive approach to maintenance and reliability, owners and vessel operators can ensure safe and efficient operations, maximise profitability, and meet the needs of their customers.

 

REDUCTION OF MANAGEMENT COST PER VESSEL, I.E., REDUCTION OF MAINTENANCE COST OF VARIOUS EQUIPMENT ON BOARD

Vessel operating costs are a critical factor affecting the profitability of a vessel operator/owner. These costs include various expenses related to the operation and maintenance of the vessel, such as labour, fuel, repairs, and maintenance. Improved asset reliability can significantly impact vessel operating costs in two ways - by reducing maintenance and repair costs and increasing vessel uptime.

Efficient utilisation of resources, such as fuel, labour, and maintenance materials, can help minimise expenses and reduce the vessel's operating costs. Furthermore, by increasing vessel uptime, vessel operators/owners can also increase the availability time and reduce the vessel OPEX cost; this is because, even though the labour cost remains constant, the incremental cost for fuel and maintenance materials reduces as the vessel's availability increases.

Eliminating losses, such as those caused by equipment breakdowns or delays, can help maximise vessel availability, thereby reducing operating costs. In addition, even if the additional availability is not needed, eliminating losses can enable vessel operators/owners to reduce the vessel's operating schedule or asset base, reducing fixed costs and overall operating expenses.

REDUCED MAINTENANCE COSTS OF THE EQUIPMENT

Improved reliability of the maintenance process results in lower maintenance costs. If the vessel's machinery is not breaking down, a more significant percentage of maintenance work can be performed planned and scheduled, in service enabling the crew to be efficient. Reducing these results in

·         Less spare parts kept on board

·         Less or no overtime for corrective/unscheduled maintenance

·         No outsourcing to contractors

All of these result in maintenance expense reductions.

BETTER MAINTENANCE STABILITY

Equipment breakdowns equal to the vessel not being available to make earnings. Stable vessel availability is difficult when the equipment constantly fails; this inevitably results in problems providing the best customer service. However, when reliability is improved, vessel availability variability is reduced, and service to the customer is stable.

EXTENDED EQUIPMENT LIFE

Many vessel operators and owners spend large chunks of their maintenance budgets on replacing equipment that failed far earlier than it should have. For example, suppose routine maintenance is continually postponed due to delays in delivering spare parts or not having a natural opportunity to execute maintenance. In that case, vessel operators and owners are mortgaging the machinery's future value—taking the capital value from the future and spending it today. The result is a piece of wasted machinery that must be replaced. The financial result is excessive write-off expenses and a requirement for a constant infusion of new capital.

Vessel operators and owners prioritising reliability recognise that newer is not necessarily better and that a small amount of investment in routine care can result in expense savings due to extended equipment life.

By using this approach vessel operator or owner frees up capital for more productive purposes, such as expansion or implementing new technology.

REDUCED MAINTENANCE SPARE PARTS INVENTORY

All vessels require spare parts inventory to ensure the correct parts are available. Usually, these are divided into categories such as Critical Spare Parts, Optimum Spare Parts, Consumable Spare Parts, and essential Spare parts. Vessel operators and owners following reactive maintenance typically carry a large inventory because they cannot predict when the parts will be needed. This ties up working capital and results in high carrying costs.

Vessel operators and owners that take a proactive approach to reliability place a high value on knowing the condition of their assets. As a result, the need for parts is much more predictable. There are fewer "surprises"; more parts can be purchased on a just-in-time basis. Since the volume of inventory required is based to a large degree on usage, the fewer parts we use, the fewer we need to keep on hand.

OTHER BENEFITS

In addition to the reduced cost and increased vessel availability periods, capacity and reliability excellence provides other benefits that improve the vessel's overall performance.

Improved Sense of Employee Ownership

In most reactive organisations, employees do not feel pride in the workplace. The high frequency of equipment failures demands more attention to making repairs and managing the consequences of equipment failures than to routine preventive maintenance and housekeeping. Dirt and contamination are widespread; little attention is paid to cleanliness.

In proactive organisations, however, it is realised that primary equipment care is one of the most critical elements affecting equipment reliability. Therefore, emphasis is placed on routine cleaning, inspection for deteriorating conditions, and essential lubrication.

In most cases, this is done by the personnel operating the equipment and is a fundamental job expectation. As they take an interest in the condition of equipment, they tend to develop a sense of ownership—in the appearance of the equipment and its operating performance.

Improved Employee Safety

Several studies have indicated that machinery reliability and crew safety are closely correlated. When the operations are unstable, as in a breakdown environment, the crew are often placed in dangerous situations. As a result, they often take shortcuts to get the machinery back up and running, which increases the likelihood of an injury. In a culture that values reliability, however, these situations are minimised.

Additionally, the same behaviours resulting in improved reliability—the discipline to follow procedures, attention to detail, and the perseverance needed to find the root causes of problems— improve vessel and crew safety.

Reduced Risk of Environmental Issues

Equipment failures on many vessels, especially oil tankers, can release hazardous substances into the environment ( sea). If we improve equipment reliability, we reduce the risk of environmental accidents /incidents.

One of the key requirements is the IACS Unified Requirements Z17 for "Environmental Protection - Environmental Control Systems for Machinery". These requirements guide the design, installation, and operation of environmental control systems for machinery, including engines, boilers, and auxiliary systems, to minimise the release of pollutants into the air and water.

Additionally, IACS has developed requirements for handling, storing, and disposing of hazardous materials on board ships. For example, the IACS Unified Requirements Z9 for "Classification of Offshore Units" includes requirements for storing and handling chemicals and other hazardous materials on offshore installations.

Overall, the IACS requirements related to environmentally hazardous machinery aim to promote the sustainable operation of ships and reduce their impact on the environment.

In all cases, the same systems and procedures that protect the reliability of machinery equipment will also protect permitted equipment, significantly reducing the risk of environmental releases.

CONTINUOUS IMPROVEMENT

No vessel operator or owner can afford to accept its current level of performance, or competitive pressures will eventually drive it out of business. Therefore, an organisation must continue to improve. One key element of reliability excellence is an organisational focus on continuous improvement. A significant degree of emphasis is placed on systems that provide data on current performance, and the analysis of that data is highly valued. However, the bottom line is simply this. Maintenance can no longer be reactive; fix it when it breaks the anchor that prevents vessels from achieving their full potential. Instead, maintenance must become an active team member focusing on life cycle vessel management and optimum reliability.

SELF-DIRECTED WORK TEAMS: A COMPETITIVE ADVANTAGE

On board a vessel, because the vessel is in the middle of the ocean, the teams are self-reliant. As a result, these teams are generally empowered to design how work will be done and take corrective actions to resolve day-to-day problems by following their internal company safety management system, planned maintenance systems etc. In addition, nowadays, the onboard team members have direct access to information that allows them to plan, control, and improve their operations. In short, vessels; teams manage themselves.

For example, an engine department team would consist of a Chief Engineer, a Second Engineer, a Third/Fourth engineer, an Electrician, a Fitter,  a Motorman, an Oiler and a Wiper.

Each team member has duties and responsibilities and maintains and operates the machinery and equipment. The engine team not only does the work but also takes responsibility for managing that work.

The effective use of self-directed work teams and proper following of provided management systems has resulted in improved quality, productivity, and service

•         Greater flexibility

•         Reduced operating costs

•         Faster response to technological change

•         Fewer, more straightforward job classifications

•         Better response to workers' values

•         Increased employee commitment to the organisation

Shore management also has a vital role to play in the implementation of self-directed work teams. First, TSI-s must vigorously champion and sponsor the teams and the process. This commitment must constantly be visible and ongoing. It also should be reinforced with sufficient resources, including time. Last, management must exhibit patience and tolerance because the vessel is sometimes not in the same time zone, the crew change happens in the middle of maintenance, and delays and mistakes will occur. The self-directed work team concept is not for everyone. Some vessel operators and owners cannot lose the traditional micro-managing mentality from the office that restricts the ability to utilise existing resources properly.

Try empowering your onboard teams. I think you will like the results.

Aleksandar Pudar

Technical Superintendent and Planned Maintenance Supervisor Reederei Nord BV

Co-founder of "Out of Box Maritime Thinker Blog"

Disclaimer:

Out of Box Maritime Thinker © by Narenta Gestio Consilium Group 2022 and Aleksandar Pudar assumes no responsibility or liability for any errors or omissions in the content of this paper. The information contained in this paper is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness, or timeliness or of the results obtained from the use of this information. The ideas and strategies should never be used without first assessing your own company situation or system or without consulting a consultancy professional. The content of this paper is intended to be used and must be used for informational purposes only.

Shipyard Experience

Published in "Nord News"  Winter 2019 pages 8 and 9
Publisher
REEDEREI NORD BV
Alpha Tower, De Entree 53
1101BH Amsterdam - Netherlands
www.reederei-nord.com
Abstract: Published in "Nord News" Winter 2019 pages 8 and 9 Publisher REEDEREI NORD BV Alpha Tower, De Entree 53 1101BH Amsterdam - Netherlands www.reederei-nord.com