MRO procurement: best practices framework for capital equipment

Abstract

Maintenance, repairs and operations (MRO) of capital equipment is a very critical component of asset management and sustainable operations. Increasingly short product life cycles affect the availability of parts and components for continued MRO of plant and equipment. Procurement activities must consider the product life cycle of expensive industrial products like plant and machinery in terms of continued supply and replenishment of spare parts. In continuous operations/ manufacturing industries, the production process must operate without disruptions. Procurement is suggested as a strategic tool in risk management, spend management and total costs reduction, and is crucial in sustaining competitive advantage within the product life cycle. This chapter investigates the concept of procurement activities during the product life cycle stages of capital equipment and develops a best practices framework for reducing supply risk and sustaining spare parts availability.