The effects of customization on spare part business: A case study in the metal industry

Suomala, Petri; Sievänen, Matti; Paranko, Jari

doi:10.1016/s0925-5273(00)00060-8

Cited by 28 publications

(16 citation statements)

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“…Service levels . Inventory levels Aronis et al (2004), Ashayeri et al (1996), Caglar et al (2004), Chang et al (2005), Cohen et al (1989Cohen et al ( , 1990Cohen et al ( , 1999, Dekker et al (1998), Diaz (2003, Fortuin (1980Fortuin ( , 1981, Hollier (1980), Kalchschmidt et al (2003), Kennedy et al (2002), Liu and Lee (2007), Schultz (2004), Sleptchenko et al (2005), Suomala et al (2002Suomala et al ( , 2004, Thonemann et al (2002), Wong et al (2005) 398 S.M. Wagner and E. Lindemann In the past three decades, literature on the planning and operational level of spare parts in most cases has focused on the determination of the optimal inventory level for parts (Huiskonen 2001, Kennedy et al 2002.…”

Section: Decisions On the Planning And Operational Levelmentioning

confidence: 99%

“…Case studies have been conducted in the computer industry (Cohen et al 1990, Ashayeri et al 1996, Thonemann et al 2002, the airline industry (Tedone 1989), the metal industry (Suomala et al 2002), the electronics industry (Cohen et al 1999), power generation (Bailey and Helms 2007) and in the military (Rustenburg et al 2001). These researchers applied general theoretical concepts to specific settings.…”

Section: Decisions On the Planning And Operational Levelmentioning

confidence: 99%

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A case study-based analysis of spare parts management in the engineering industry

Wagner

Lindemann

2008

Production Planning & Control

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Eroding margins for primary products have redirected many firms' attention to the highly profitable spare parts business. These firms push for increased sales and more efficient spare parts supply chains. However, previous research in spare parts supply chain management has principally been limited to planning and operational aspects such as the determination of spare parts inventory levels and re-order policies. Taking the sellers' perspective in the supply chain, the primary objective of the case study research presented in this article is to better understand the problems that engineering companies encounter and approaches that they adopt in their spare parts supply chains. The initial proposition, that engineering companies need to, and are eager to, adopt supply chain management practices in their spare parts businesses in order to capture revenue and profit potential, is supported. Among the key areas for improvement are the formulation of spare parts strategies, a better understanding of the installed base, and top management support for the spare parts business.

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Section: Decisions On the Planning And Operational Levelmentioning

confidence: 99%

Section: Decisions On the Planning And Operational Levelmentioning

confidence: 99%

A case study-based analysis of spare parts management in the engineering industry

Wagner

Lindemann

2008

Production Planning & Control

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“…At the other hand, if one considers specific or customized equipment, the related costs will increase significantly. Suomala, Sievänen and Paranko (2002) studied the effect of customization in the spare parts business and pointed out its consequences on spare part business operations. An important question in spare parts management and that causes an impact in total cost of ownership is an eventual end of life ordering.…”

Section: Spare Parts Management Decision Instancesmentioning

confidence: 99%

Linking the spare parts management with the total costs of ownership: An agenda for future research

Durán

Roda

Macchi

2016

JIEM

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Abstract:Purpose: This manuscript explores the link between Spare Parts Management and Total Costs of Ownership or Life Cycle Costs (LCC).Design/methodology/approach: First, this work enumerates the different managerial decisions instances in spare parts management that are present during the life cycle of a physical asset. Second, we analyse how those decision instances could affect the TCO of a physical asset (from the economic point of view). Finally, we propose a conceptual framework for incorporating the spare parts management into a TCO model. Findings:The recent literature lacks discussions on the integration of spare parts management with the Total Costs of Ownership (TCO). Based in an extensive literature revision we can declare that the computation of costs related to spare parts management has been neglected by TCO models. Originality/value:The contribution of this paper is twofold. First, a literature review and identification of a series of spare parts management decision instances and its relationship with TCOs is presented in this paper. Second, a conceptual framework is suggested for linking those -991-Journal of Industrial Engineering and Management -http://dx.doi.org/10.3926/jiem.2083 decisions instances to a total cost of ownership perspective. Some research questions and future research challenges are presented at the end of this work.

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“…Customized products are slight variations of standard configurations and are typically developed in response to a specific customer order (Suomala, Sievänen, & Paranko, 2002). For this product category, product cost, R&D production efficiency and customer satisfaction are the major success factors.…”

Section: Product Design and Corporate Strategymentioning

confidence: 99%

Organizational adaptation for using PLM systems: Group dynamism and management involvement

Kung

Hung

et al. 2015

Industrial Marketing Management

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The effects of customization on spare part business: A case study in the metal industry

Cited by 28 publications

References 1 publication

A case study-based analysis of spare parts management in the engineering industry

A case study-based analysis of spare parts management in the engineering industry

Linking the spare parts management with the total costs of ownership: An agenda for future research

Organizational adaptation for using PLM systems: Group dynamism and management involvement

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