Study On The Spare Parts Management For The Second Factory Of FAWCAR

In recent years, auto industry in China gains rapid development and car sales are rising. Sales of the independent brand cars are also rising. However, it still can't compete with the joint venture brand. The second factory of FAW Car Co., Ltd. is facing huge pressure and has more tasks, as a result, the utilization rate of the mechanical equipments is high. These mechanical equipments have to work around the clock in 6 days of a week. This kind of production pattern has a high demand on the machine's reliability. At the same time, in order to save money and avoid the waste, the down time of the production equipments is short, so every part of the equipment attrits faster, which makes the second factory of FAW Car Co., Ltd. have a higher demand of the spare parts used for maintenance.Spare parts management is a critical part of equipment maintenance management. Only by doing excellent spare parts management, can we provide timely and high quality spare parts. However, the complexity and the precision of the equipments brings about the unpredictability and uncertainty of equipment failures, which also results in stronger randomness and urgency of spare parts. These factors bring a big difficulty to the spare parts management. And it is more difficult to do it not only to be accurate and timely but also to be good in quality. So, how to carry out spare-part management becomes our priority task.The FAW Car Co., Ltd. has not paid enough attention to spare parts of the second factory. In most part, the old managerial approach in the first factory is still used in the second factory. As a result, spare parts lag many times, which endangers the continuous production. Therefore, this paper intends to analyze spare parts in the second factory from the point of plan, purchase, storage and so on. This paper will respectively point out the advantages and disadvantages of spare parts management and bring up the prioritization scheme. At the same time, these methods cited maybe good references for other industries.In this paper, based on the knowledge from books on the management science, modern logistics management, equipment management, ABC management, production management, according to the reality, the author show the problems on the demand forecast and the procurement cost of the Spare parts in the second factory. In order to solve the problem of large spare parts stock, which ties up a lot of the cost of maintenance, this paper tries to classify the spare parts of the second factory by ABC management method which is now widely used the foreign factories and put forward the corresponding measures for each type of spare parts. After classification by ABC method, the factory can take different management measures and control methods according to different spare parts and get an ideal effect with the least amount of management power. This paper uses ABC management method to divide the spare parts into three categories A, B and C and then focuses on the major part. we give strict control from the microscopic point on A and B classes of spare parts which accounts for only 30 to 40% of amount. And give the macro total control on C part which accounts for 60 to 70%, which will result in a multiplier effect. On the other hand, this paper also analyzes the factors which influence the cost of maintenance spare parts of the second factory. At the same time, the author puts forward some improvement measures on controlling and reducing the cost of maintenance spare parts, for example, the factory should establish a warehouse of spare parts in order to do centralized and special management, to formulate strict system on the operation of the equipment maintenance and improve the management personnel's service level, to actively promote the localization of spare parts, to establish and refine the archives of spare parts and introduce scientific management method of maintaining spare parts, etc.