Cost and failure analysis
Used MRO spend, failure frequency and root-cause analysis to identify the components creating the greatest cost and availability exposure.
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.
Procurement and supply chain advisory
Maintenance Cost and Local Supply Development
Reducing maintenance cost and supply risk through asset modification, component qualification and local supplier development.
$200kannual saving
5 daysaverage lead time
70%less emergency buying
6.5 weeksprevious lead time
The challenge
A clear operational constraint with measurable consequences.
The client faced rising maintenance cost and prolonged downtime due to reliance on overseas OEM parts, long lead times and repeated emergency freight. Components were also failing prematurely in a demanding operating environment.
The engagement identified the highest-cost and highest-frequency items, reviewed the underlying failure modes and developed technically controlled alternatives. Local suppliers were assessed, trial parts were inspected and approved, and validated items were incorporated into the site’s maintenance and inventory controls.
Engagement approach
Structured from evidence to sustained control.
The work was organised into three connected stages so that diagnosis, implementation and internal capability developed together.
Modification and qualification
Reviewed material and design requirements, developed controlled component alternatives and completed trials with quality and maintenance input.
Local supply activation
Qualified local vendors, established inspection requirements and integrated approved items into the bill of materials and CMMS part master.
Methods and controls
Practical tools selected for the operating environment.
Methods were applied to support decisions, strengthen internal ownership and create repeatable management controls.
MRO ParetoRoot-cause analysisControlled CAD supportSupplier assessmentQualification trialsBOM controlCMMS integration
Outcome
The programme reduced annual maintenance cost, shortened part lead times and materially reduced emergency procurement. It also strengthened local supplier capability and increased engineering control over critical replacement parts.
Measured improvement supported by clearer ownership, stronger controls and practical workforce engagement.
Results shown reflect the stated client baseline and engagement scope. Client identity remains confidential, and outcomes may vary according to operating conditions, available data and implementation ownership.
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