Parts Standardization - Definition & Meaning

Published in Operations and Supply Chain Terms by MBA Skool Team

What is Parts Standardization?

Parts standardization is essentially a process which aims to eliminate all the deliberate, accidental and superficial differences in the production of similar parts in order to achieve significant reduction in the supplier and part proliferation.

The fundamental concepts of customization and build- to- order are supported by the process of standardization. For achieving this, it is essential that all the parts must be available at all points in the production cycle and not at only some locations in the plant. This essentially helps in eliminating the costs involved in setups to load, find and kit parts. It is a process that helps reduce cost and enable improvement in flexibility.

The process of standardization eases the process of roping in parts into the assembly. It does this by a reduction in the number of part types to a point such that we are able to arrange the just-in-time deliveries with the help of few standard parts. When lesser quantity of parts are ordered in large quantities, it leads to reduction in the material overhead and the part costs.

Basically, this process aims are achieving reduction in lifecycle costs and operational capabilities by promotion of use of common, cost effective, available, common and reliable.

The implementation of the process of part standardization involves:

• Agreement on the hierarchy or the structure of library of automation tools. Without these it becomes extremely difficult to evaluate groups of similar products or to analyse the existing data, thus leading to tedious job

• For each part class a set of attributes must be determined. There must be a standard method which can group and collect similar parts and attributes in order to class wide decisions pertaining to attribution

• Loading duplicate data must be avoided by careful evaluation of the data

The benefits of a properly implemented part standardization process include:

• Reduced annual costs which are required to maintain a supplier

• Reduced annual costs which are required to maintain a part

• Reduction in duplicate designs

• Ensuring availability of better quality by the process of increasing re-use of good parts. This helps achieve reduced warranty costs

• Reduced time requirement for searching parts by the engineer


Hence, this concludes the definition of Parts Standardization along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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