Posted in Operations and Supply Chain Terms, Total Reads: 145
Definition: Field Service Parts
Field service parts are referred to as spare parts that are used to replace the failed units or the parts that have crossed their designated life time. Field spare parts form a major component of the logistics or supply chain management and are a major source of revenue for the original equipment manufacturers.
Spare parts form a major part of the revenue of the original equipment manufacturers since OEM’s provide genuine spare parts for the entire lifecycle of the machine. Capital spares are the spare parts that have a long life and less chances of failure but their failure can cause shut down for prolonged duration and can result in economic losses. Spare parts are the result of the industrial revolution and need for the machines for mass production.
Normally, the parts can be repaired or replaced. There is a trade-off between the cost of repair and cost of replacement. When the repairing cost is significant and results in less efficiency, it is preferred to replace the parts. There are parts that are preferred to be repaired and are designed in such a way that they can be easily removed, repaired and replaced or repaired without removing them. There are some parts that are referred to as consumables and it is not economically worth to repair these parts and are preferred to replace them.
For Example: Some spare parts that are used in a typical care are Tires, Car Battery, Air filters etc.