Maintenance Cost Optimisation via Asset Modification and Local Sourcing
Case Study
Maintenance Cost Optimisation via Asset Modification and Local Sourcing
The client faced rising maintenance costs due to reliance on overseas OEM parts, long lead times, and excessive emergency freight. The harsh operating environment led to high part failure rates, impacting machine uptime and stretching the budget.
Implemented local sourcing strategies to cut lead times and lower procurement costs, minimizing reliance on expensive international suppliers.
Significantly reduced the need for urgent part shipments by improving inventory planning and establishing a localized spares system.
Enhanced parts reliability and machine uptime by selecting materials and components better suited for the operating environment.
Project Info
Confidential
Maintenance Strategy Consultant
Maintenance Cost Reduction & Local Sourcing Strategy
Approach & Execution
Phase 1: Cost Driver Analysis
MRO Pareto analysis, root cause mapping, and frequency review
Phase 2: : Asset & Part Modification
3D CAD reverse engineering, modular redesigns, heat-resistant spec updates
Phase 3: Local Supply Chain Activation
Qualified local vendors, conducted trials, QA checks, and integrated suppliers into CMMS
Tools & Frameworks
- Maintenance Cost Pareto
- RCA (5 Whys, Fishbone)
- CAD Design, Supplier Matrix, BOM Conversion
- CMMS Part Master Integration
Workforce Engagement
Techs engaged in RCA and redesign validation
QA involved in inspection approvals
Procurement trained on SLA-based local sourcing
Monthly cross-functional part review board launched
Results
USD 200,000 annual savings achieved
Average part lead time cut from 6.5 weeks to 5 days
Emergency procurement down 70%
Improved equipment uptime and reduced repair cycle time
Engineering self-sufficiency increased