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Integrated classification methods for spare parts
A case study on a mass production factory

Selin Yesilkayali

Selin Yesilkayali
Document type: Independent degree project – second cycle

Main area: Department of Information Systems and Technology (IST)
Credits: 300 ECTS
Semester, year: 10, 2020
Supervisor: Aron Larsson
Examiner: Leif Olsson
Degree program: Master of Science in Engineering; Industrial Engineering and
Management
Selin Yesilkayali 2020-08-12
Abstract
Inventory management is a complex system which involves different
stakeholders from multiple areas in a company which creates a limitation when
seeking information between involved staff. Having the right procedure of
tracking regular and critical spare parts will give a better control and efficiency
in the production process. It is important to have the right classification method
to facilitate critical spare parts. The incorrect criteria classification can be
achieved in case inventory management have the wrong systematic procedure.
Classification methods have different purposes and achieve the highest
utilization by combining a variety of methods. By integrating classification
methods, set limits and combination of multiple criteria decision analysis can be
performed. The study has conducted a case study to compare and evaluate the
performance of inventory management in a trustworthy and efficient way. A
theoretical framework is constructed with the intention on identify which
classification methods can be combined and applied to a production factors
criterion. Based on interviews with stakeholders from maintenance, warehouse,
and production area related to spare parts and the company’s software system.
Two perspectives were used to map the qualitative and quantitative measures.
The results show 14 criteria were defined as parameters that measure the
performance of criticality in spare parts. The conclusion of both perspectives
suggests combining and implement an integration of AHP and ABC
classification methods. A proof of concept is demonstrated on AHP analysis and
ABC analysis to identify the critical spare parts and the criteria.
Keywords: Inventory management, maintenance, warehouse, production, AHP

analysis, ABC analysis, VED analysis, criteria, criteria analysis, spare parts.
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Sammanfattning
Lagerhantering är ett komplext system som involverar olika intressenter från

flera områden i ett företag. Detta skapar en begränsning av information som de
involverade personalen har möjlighet att nå. Att ha rätt arbetsmetod för att
kunna spåra vanliga och kritiska reservdelar ger möjligheten till en bättre
kontrollstyrning och effektivitet i produktionsprocessen. Det är viktigt att ha
rätt klassificeringsmetod för att kunna underlätta identifiering av kritiska
reservdelar. Vid användning av fel klassificeringsmetoder kan kriterier
bedömas fel. Klassificeringsmetod har olika syften och uppnår det högsta
utnyttjandet genom att kombinera olika metoder. Denna fallstudie syftar till ett
nytt tillvägagångssätt som utvärderar vilka metoder som kan implementeras för
att bidra till ett mer pålitlig och effektiv lagerhanteringen. Ramverket för denna
studie är avsett att identifiera vilka klassificeringsmetoder som kan kombineras
och tillämpas på företagets kriterier. Denna metod involverar intressenter från
underhåll, lager och produktionsområdet relaterat till reservdelar. Ett teoretiskt
ramverk konstruerades för att identifiera de kriterier som krävs för tillämpning
av klassificeringsmetoderna med flera kriterier. Genom att analysera kvalitativa
data kunde intressenternas kriterier identifieras. Dessa bestod av 14 kriterier
som används inom reservdelar. Två perspektiv av ramverk användes för att
kartlägga de kvalitativa och kvantitativa data. Resultaten som visas från båda
ramverken föreslår att fallföretaget bör kombinera och implementera multi-
kriterier metoderna AHP och ABC. Ett bevis på konceptet visas genom att
demonstrera AHP analys och ABC analys för att identifiera de kritiska
reservdelarna och kriterierna.
Nyckelord: Lagerstyrning, underhåll, lager, produktion, AHP analys, ABC

analys, VED analys, kriterier, kriterieanalys, reservdelar.
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Acknowledgement
I would like to thank my supervisor Aron Larsson at Mid Sweden University for the
time and advice he has contributed through the study. I would also like to thank the
case company and all the participants that were involved in this research study.
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Table of contents
List of abbreviations ........................................................................................................... vii
1 Introduction ..................................................................................................................... 1
1.1 Research background ............................................................................................... 1
1.2 Research problem ..................................................................................................... 1
1.3 Aim and Research question..................................................................................... 2
1.4 Delimitations of the study ....................................................................................... 2
2 Theory ............................................................................................................................... 3
2.1 Spare parts management ......................................................................................... 3
2.1.1 Spare parts characteristics ................................................................................ 3
2.2 Spare parts classification methods ......................................................................... 4
2.2.1 ABC analysis ...................................................................................................... 4
2.2.2 VED analysis ...................................................................................................... 5
2.2.3 AHP analysis ...................................................................................................... 6
2.3 Integrated classification methods ........................................................................... 8
2.3.1 ABC analysis combined with VED analysis .................................................. 9
2.3.2 AHP analysis combined with VED Analysis ................................................ 9
2.3.3 AHP analysis combined with ABC analysis ............................................... 10
2.4 Quantitative and Qualitative criteria methods .................................................. 11
2.4.1 Qualitative criteria method ............................................................................ 12
2.4.2 Quantitative criteria method ......................................................................... 13
2.5 Literature review .................................................................................................... 13
2.6 Case Company ........................................................................................................ 14
3 Method ............................................................................................................................ 16
3.1 Research strategy .................................................................................................... 16
3.2 Data collection method .......................................................................................... 16
3.3 Data collection procedure ...................................................................................... 18
3.3.1 Data classification procedure......................................................................... 20
3.4 Validation and reliability ....................................................................................... 21
3.5 Ethical consideration .............................................................................................. 22
3.6 Proof of concept ...................................................................................................... 22
4 Results ............................................................................................................................. 23
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4.1 Interviews ................................................................................................................ 23

4.1.1 Criteria observation......................................................................................... 26
4.2 Experts design of mapping ................................................................................... 27
4.3 Technical design of mapping ................................................................................ 28
4.4 Properties and criteria matching .......................................................................... 29
4.5 Classification method support .............................................................................. 30
5 Analysis........................................................................................................................... 31
5.1 Criteria observation ................................................................................................ 31
5.2 Classification and property observation ............................................................. 32
5.3 Classification method observation ....................................................................... 33
6 Proof of concept ............................................................................................................. 34
7 Conclusion ...................................................................................................................... 38
References .............................................................................................................................. 39
Appendix A: Case study interviews general ................................................................... 42
Appendix B: Case study interviews machine ................................................................. 43
Appendix C: Case study interviews spare parts ............................................................. 44
Appendix D: Case study interviews inventory. ............................................................. 45
Appendix E: Estimation of data for each criterion. ........................................................ 46
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List of abbreviations
ABC Activity Based Costing
AHP Analytic Hierarchy Process
VED Vital Essential Desirable
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1 Introduction
Following chapter is presenting background a practical background about the research
area and research problem, followed with aim of the study.
1.1 Research background

Spare parts are a significant part of a company’s inventory and crucial for
production; they require constant control and development (Roda et.al., 2012;
Stanford & Martin, 2007). When a certain component fails, the need for spare parts
arises then a decision gets made as to whether a machine requires replacing or
repairing. A spare part is a unit whose purpose is to replace a damaged part of a
machine. Maintenance staff assists to restore the system which will then continue
to perform its intended function (Roda et.al. 2012; Roda et.al. 2014).
Machine availability and performance will be at optimum levels when they are
maintained properly. This is an important task to make sure there is continuity of
production. By correctly tracking the availability of spare parts, machine
supervision will be at an optimum level (Antosz & Ratnayake, 2016).
The problem within inventory management is usually deciding how the inventory
should be managed. A useless inventory of spare parts can have adverse financial
consequence (Grondys, 2015). These are consequences that most companies are
usually not aware of, nor do they have the knowledge or the competence to control
the inventory effectively (Mikaelsen, 2015).
One of the many reasons for failing to achieve an optimum inventory of spare parts
is that managers do not know how to maintain an inventory. Companies usually
manage all spare parts the same way which is a mistake that can be corrected over
time by developing procedure on evaluate the character of spare parts (Mikaelsen,
2015; Grondys, 2015).
1.2 Research problem

Spare parts management can be a complicated task, some problems can arise when
there is uncertainty about the demand for spare parts when there is large inventory
list that causes difficulty in predicting what will be needed (Roda et. l. 2012; Roda
et al. 2014).
Industries which aim for continuous mass production can face potential loss of
profits during unavailability of spare parts. A longer wait of spare part can cease to
a long unproductive downtime and stop on machines (Roda et. l. 2012; Roda et al.
2014; Hu et al. 2017). Mass production industries producing goods nonstop push
the limits of their machines to meet the demand. At the same time, the demand for
maintenance increases in order to restore machines to their original condition and
to continue operating on the required performance (Lopes et al. 2019).
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Research find general solutions for keeping units in stock instead of focusing on
spare parts (Hu et al. 2017). With the right identification and proper method of
spare parts classification the importance of spare parts can be conveyed effectively
(Antosz & Ratnayake, 2016). To minimize unavailability, and to improve
performance of machines with high utilization, a critical evaluation and ranking of
equipment can be performed. This way, those doing the maintenance will have a
better understanding of the most critical spare parts. Having the wrong
classification method can cause less prioritization of spare parts, increase
mechanical failures, and have a negative impact on production. This means an
appropriate classification assessment needs to be developed, used correctly, and
updated regularly to ensure good maintenance management (Lopes et al. 2019).
Industries are still struggling with integrated information systems in classifying
spare parts efficiently (Roda et al. 2014).
With there being a lack of research with the focus classification methods and their
properties this study will contribute to identify which integrated classification
methods and featured properties can be used for spare parts.
1.3 Aim and Research question

This study will investigate and find recommendations for mass production
industries on how integrated classification methods can be implemented to classify
crucial spare parts.
• What systematic classification methods for spare parts are more feasible for
a mass-production company?
1.4 Delimitations of the study

This study will be limited to a case study with the focus on mass production
industry where production needs to be continuous and in any extreme cases where
critical consequences might arise if production stops. Furthermore, the
methodology and conclusions in this study will be generally applicable in similar
industries.
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2 Theory
Following chapter will present the theory of this study and delve into deeper knowledge
surrounding this case study.
2.1 Spare parts management

Spare parts are potential replacements for working parts in machines that get
damaged. According to Roda et al. (2012), the management of spare parts can be
maintained as follow.
• The identification of spare parts can be done by part coding and

classification.
• Identifying and developing the stock management system and

managing and formulating inventory control policies and systems.
• Implementing a computerized maintenance management system

that can identify and manage spare parts.
• Implementing a processing and inventory control systems operation

that manages information and policy testing which will continuously
be improved according to its performance. The system determines
when to place an order and how many parts will be needed.
2.1.1 Spare parts characteristics

The maintenance staff is responsible for keeping equipment in operating condition
- if staff fails to do this there will be a delay in production. There are certain reasons
for the lack of controlling spare parts that exist within the maintenance. Sometimes
it is uncertainty in understanding when a part is required and sometimes in which
quantity it is needed. Usually, the maintenance has a too large inventory list of
spare parts which makes controlling and upkeeping a tedious job. A limited
number of suppliers for a spare part can cause the sourcing to be much harder
resulting in loss of lead time and cost. There is also a problem with having multiple
suppliers since the quality of the spare parts can variate which can affect the
lifespan of the spare part and in some circumstances increase costs. It is difficult to
determine the stock unit of spare parts because of the obsolescence machine (Roda
et al. 2012; Roda et al. 2014).
Wrong observations and characterization are normally determined. The company

can moreover have a lack of poor inventory data recordings, information visibility
by storing data in separated software, or bad description of how to manage the
process of tracking inventory (Roda et al. 2012; Roda et al. 2014).
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2.2 Spare parts classification methods

Molenaers et al. (2012) explain that industrial plants are late with implementing
new classification methods and they are still using old classical methods.
Classification is a step to bring attention on spare parts which are important and
enables decision-making process. Classification method allows to control spare
parts differently by making a criticality analysis. The term criticality has different
definition depending on how it is undertaken (Roda et al. 2014). Teixeira et al.
(2017) and Roda et al. (2014), mention that there does not exist any systematic or
well-structured procedure for evaluating criticality of spare parts. A lack of
systematic procedure can create a wrong criteria classification. In an industrial
plant, it is important to have a proper classification which can categorize and
organize spare parts. Having a useful tool that performs the mentioned tasks will
give better control of inventory and pay more attention to the critical spare parts
(Stoll et al. 2015).
There are several methods to be used when categorizing spare parts (Stoll et al.
2015). One of the methods are divide spare parts into process criticality and control
criticality. Process criticality is described to be anything related to production loss
and damage to the environment. Meanwhile, control criticality relates to the
immediate availability of spare parts and this part is difficult to control in case a
critical situation occurs (Teixeira et al. 2017; Molenaers, 2012).
Another categorization method is dividing the spare parts into three category
which are “high”, “medium” and “low”. This method considers the number of
machines that have a spare part installed with a critical criterion. A spare part can
be counted as critical when it is installed on multiple machines, when a spare is
unavailable it will affect all the machines (Stoll et al. 2015).
It is a crucial task to assort spare parts into relevant categories to control a wide and
highly diverse inventory. Spare parts as well as their assortment can differ based
upon their criteria from maintenance perspective and warehouse viewpoint.
Maintenance focus on parts that can have severe consequences for the company
and production in case any unavailability exists during their decision-making
process meanwhile the warehouse focus on assortment and control criteria of the
spare parts. (Molenaers, 2012; Roda et al. 2014).
2.2.1 ABC analysis

Activity based cost (ABC) analysis is a classification method known for its
traditional used in certain industries. ABC helps to simplify stock management and
allows for strict control of critical spare parts. It is further known for being a one-
dimensional criterion. This means the result might not be useful in practice
(Teixeira et al. 2017).
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ABC analysis is based on the Pareto principle which classifies inventory into A, B,
and C depending on item value and consumption value. The grouping of classes is
usually based on an 80/20 percentage rule, there does not exist any prevalence on
which specific percentage should be used in the classes of A, B, and C (Stanford &
Martin, 2007).
This method helps to group the inventory according to criticality and the items with
the highest value, see Figure 1 (Ayat, 2017). The consumption value, which is
associated with the higher class, will need to receive more attention than the rest of
the classes (Stanford & Martin, 2007).
Items in group A are the inventory with the highest consumption value with 80%
and inventory costs value of 20%. The inventory in class A receives the most
attention regardless of the other classes because items in this class have the highest
consumption value and need to be handled carefully. Class B includes 30% of the
consumption value with 15% of inventory costs value with moderate importance.
Items in class C include about 50% of consumption value with 5% inventory cost
value with low importance. Class B and C do not need the same attention as class
A, as those two classes can be monitored with a low safety stock policy (GunGöner
& Dagdeviren, 2017).
Figure 1 - Graphical illustration of ABC-analysis (Ayat, 2017).
2.2.2 VED analysis

Vital, essential, and desirable (VED), analysis is a commonly used tool in
maintenance. This method is known for being sorted practically by categorizing
and scoring which are done with the help of maintenance expert consultation
(Teixeira, 2017; Gajpal et al. 1994). Subjective judgment is used during expert
consultation, which can be problematic when all the experts has different
viewpoint on judgement (Teixeira, 2017).
There are three different critical classes: present Vital, Essential, and Desirable
(Ayat, 2017). “Vital” includes spare parts that have a more significant impact on the
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production process. Spare parts stock-outs in this class can result in substantial
losses (Teixeira et al. 2017).
“Essential” includes spare parts with lesser importance to the production process.
Stock-outs on spare parts do not affect these as much but can cause a moderate loss
(Teixeira et al. 2017). “Desirable” is the class with the least disruption and risk
during the production process (Teixeira et al. 2017). Machines can still be operable
without those two classes of spare parts; but in the long run, there could be serious
problems with the machine’s operational capabilities (Gajpal et al. 1994).
Table 1 presents an example from Teixeira et al. (2017) on the structure of VED
analysis. The example is a list of spare parts being evaluated according to criteria
such as “function” and “impact on production”. It is then scored according to
criticality. “Function” criticality has a score from 1 to 3, and “production impact”
has a score from 0 to 3. By taking the sum of each row, a grouping can be made
relative to VED analysis. All scores under 2 are “desirable,” scoring between 3 and
5 is “essential,” and the highest score is “vital.”.
Table 1 – List of spare parts with VED-analysis (Teixeira et al. 2017).
2.2.3 AHP analysis

Analytic hierarchy process (AHP) analysis is a decision-making tool “used in a
wide range of fields, mainly in operations management. It solves complex decisions
by prioritizing alternatives” (Teixeira et al. 2017). The method is based on expert
judgments that help the decision-maker to determine which decision alternatives
give the best solution to the problem and reach company goals (Teixeira et al. 2017).
It is designed as a hierarchy diagram with a goal on the top and consisting of such
levels as criteria, sub-criteria, and alternatives (Nurcahyo et. al. 2018).
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In Figure 2 there is an illustration of a hierarchical diagram about choosing the best

car. On the first level, the criteria are defined with a goal or requirements that must
be fulfilled. In the second level all the automotive alternatives are set out
(Andersson, 2016). A sub-criterion can be added in between criteria and
alternatives. The purpose of having sub-criteria is to expand preferences. For
example, color criteria compare the importance of different colors or price criteria
compare to the price of purchasing a new or old car (Andersson, 2016).
Figure 2 - Diagram of analytic hierarchy process (Andersson, 2016).
This tool has a basis for determining relative priorities or weights between the
criteria sharing the same predecessor in the hierarchy. Stakeholders will do a pair-
wised comparison between different criteria and determine the strength of the
criteria with help of Table 2 (Erdinc, 1996; Molenaers et al. 2012; Partovi & Burton,
1992).
Table 2 – Pairwise comparison scale.
A comparison matrix will then be performed to measuring each of the criteria

relative important toward decision making (Gajpal et al. 1994). Table 3 explains
how the comparison between the weights is being calculated. The results of the
weighting will then be summed up in each column to later be normalized and to
calculate the eigenvector, also called a priority vector, of each criterion.
Table 3 - Pairwise comparison between weights of criteria (Andersson, 2016).
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Normalization is calculated by equation 1, where the total summation of the criteria

column is divided with their origin weight, with the same calculation procedure
being done on all the criteria. The priority vector is then calculated by the mean of
the whole row for each criterion. Equation 1 explains that A is dimensional n of the
comparison matrix, w is the priority vector to eigenvalue λmax (Erdinc, 1996;
Nurcahyo et. al. 2018).
(1)
Further, the consistency index and consistency ratio are then calculated. The
purpose of calculating the consistency index ratio is to understand how consistent
the decision-maker or stakeholder is when the decision is being made. The
consistency index is calculated by equation 2 where λmax is the highest eigenvalue
and n is the number of criteria. Consistency ratio measures the coefficient degree of
homogeneity among the judgments issued from the weights. This can be calculated
through equation 3 where the consistency ratio is divided by the random index
from Table 4 (Erdinc, 1996; Nurcahyo et. al. 2018). AHP decision-making tool will
be furthermore explained in upcoming chapters.
(2)
(3)
Table 4 – Random index scale (Erdinc, 1996).
2.3 Integrated classification methods

Spare parts can be classified with different methods to enable proper control
without excessive work (Hagberg & Henriksson, 2010). Classification methods
have different purposes and combining a variety of methods can give a better result
(Hagberg & Henriksson, 2010). The principle of using multiple-criteria decision
analysis is to integrate different classification methods to create a limitation in the
selection of criteria (Stoll et al. 2015; Roda et al. 2014).
Figure 3 is presenting the process of how to perform multiple-criteria decision

methods. The first step is to understand the necessity and importance of the spare
parts for maintenance. Then identify the criteria based on maintenance and
inventory management opinions to classify and control the criticality of spare parts.
Classification methods will be integrated and group the spare parts that are sharing
the same stock management policy and with results give better control on critical
spare parts in the companies’ inventory management (Teixeira et al. 2017).
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Figure 3 - Forming of multiple-criteria classification method (Teixeira et al. 2017).
2.3.1 ABC analysis combined with VED analysis

A matrix will be performed when combining ABC analysis and VED analysis. The
purpose of this method is to give appropriate control over and supervision of spare
parts. The combination will be performed in three stages. In first stage the VED
analysis is performed by defining criticality of the spare parts by the expert
judgment. In the second stage the ABC analysis is calculated based on the inventory
criteria. Then both results are combined in one cross-joint to understand the ABC-
VED matrix analysis (GunerGönger & Dagdeviren, 2017).
The first category in the ABC-VED matrix is presenting items that are expensive
and vital, they are named AV, AE, AD, BV, and CV. The second category will
present the essential items that have an average value, which are named BE, CE,
and BD. The last category will only have one sub-category which is CD, see Figure
4 (GunerGönger & Dagdeviren, 2017).
Figure 4 - Combination of ABC and VED classification (GunerGönger &

Dagdeviren, 2017).
2.3.2 AHP analysis combined with VED Analysis

An absolute performance will be calculated when using AHP analysis and VED
analysis. AHP analysis will be calculating the expert judgment by pair-wise
comparison and weighting the different attributes. The result will give the decision-
maker the opportunity to determine which criteria are the most important
alternative. The method is designed in a hierarchical diagram with a goal on the
top level, while the first level below the goal statement is the criteria. A second level
is created in case a sub-criterion is included in the research. The third level will
contain a calculation of VED analysis (Nurcahyo et. al. 2018).
In the first level, a pairwise comparison is calculated in a matrix form between the
criteria. Pairwise comparison is arranged and compared through stakeholders or
decision-makers qualitative judgment. By calculating the matrix, a priority vector
will be given as a solution (Nurcahyo et. al. 2018).
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In case of a sub-criterion existing, the priority vector with the highest score will be
calculated. A second pairwise comparison is made with the sub-criteria that will
result in a new priority vector. The third level is computing VED analysis, see
Figure 5. Depending on which priority vector had the highest score in second level,
the stakeholder will be classifying spare parts according to Vital, Essential, and
Desired categories. Then the last pairwise-comparison is made between the three
categories. The Vital category with the highest appraisal will be the critical ones
(Nurcahyo et. al. 2018).
Figure 5 - Combination of AHP and VED classification (Nurcahyo et. al. 2018).
2.3.3 AHP analysis combined with ABC analysis

A standard AHP calculation will be carried out to rank and determine the weights
of the criteria. When the calculation is done an ABC analysis will be performed with
the priority vectors that have been calculated using AHP method (Partovi &
Burton, 1992).
As in chapter 2.2.3. a hierarchy diagram is designated that contains up to three

levels. The first level calculates the pairwise comparison between the criteria
chosen to achieve the goal. Stakeholders or decision-makers are scored by
qualitative judgment. All the measurements will then be mapped in a matrix model
and by calculating the matrix model, the priority vector will then be obtained. In
the second level with sub-criteria, another pairwise comparison will be calculated
using the matrix model and the criteria with the highest priority vector (Erdinc,
1996; Partovi & Burton, 1992; Flores et al. 1992).
In the final level, the criterion value will be multiplied with their corresponding
priority vectors that were calculated in AHP method. Spare parts data with
information for each criterion is then collected. Then it is calculated by a single
criteria value x divided by the total in criteria value x multiplied by the
corresponding priority vector, see equation 4. This calculation is made on each ith
spare part. Lastly, a total summation f of each criterion p for one spare part is
calculated which can be seen in equation 5. The total calculation will then be placed
in descending order to define the A, B, and C classes (Erdinc, 1996; Partovi &
Burton, 1992; Flores et al. 1992).
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(4)
(5)
In the example below, Figure 6 shows how to determine the best ABC analysis of
stock-keeping units for management. A qualitative and quantitative criterion is
chosen. The final score obtained from the AHP analysis will be classified according
to the A, B, and C categorizations (Partovi & Burton, 1992).
Figure 6 - Multiple-criteria decision method using ABC and AHP analysis

(Partovi & Burton, 1992).
2.4 Quantitative and Qualitative criteria methods

Inventory control plays a significant role in operations and manufacturing; two
areas companies often have problematic issued with. The inventory covers
anything related to purchasing of new items or, spare parts and anything needed
for the production process. Companies’ manufacturing activities will benefit from
having better inventory control (Wild, 2017).
Each classification method has support properties (i.e., what assessment criteria
they intend to operate on) and the classifying method can be based on quantitative
or qualitative criteria. For instance, a single classifying property cannot define the
entire criticality of a spare part (Teixeira et al. 2017). Roda et al. (2014) explained
that spare parts classification cannot be based on a single property. Integrated
classification methods which can perform multiple criteria can manage well-
structured classification of spare parts.
Roda et.al. (2014) investigated eighteen works of literature and concluded that each
classification method has different properties. Lopez. et al. (2019) has done a similar
investigation on AHP analysis with different literature reviews, which proposed
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the method using different properties. The authors highlighted that they cannot
find any relation or pattern among the chosen property to fulfill the main objective
with the help of the criticality assessment.
2.4.1 Qualitative criteria method

Qualitative criteria are determined from a maintenance viewpoint (Roda et al.
2012). Cavalieri et al. (2008) asserted that there are few assets to be considered
during a qualitative aspect. This method attempts to prove the importance of
keeping spare parts in stock. The authors mentioned further that it is important to
understand factors that are influence management such as on cost, downtime, or
storage considerations.
Classification methods such as VED and AHP analysis are qualitative criteria
methods identified through maintenance perspectives and experiences viewpoints
(Roda et al. 2012). The criterion for VED analysis can be identified through
criticality or loss of production (Madan & Ranganath, 2014). Application of VED
analysis task of controlling spare parts management and manufacturing equipment
(Madan & Ranganath, 2014). For literature analysis, the common properties can be
used out for the classification methods, see Table 5 to 8.
Table 5 - Classification criteria support properties for AHP, (Praveen et al. 2016).
Table 6 – Classification criteria support properties for AHP, (Perez et al. 2020).
Table 7 – Classification criteria support properties for AHP, (Hu et al. 2020).
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Table 8 – Classification criteria support properties VED, (Praveen et al. 2016).
2.4.2 Quantitative criteria method

Cavalieri et al. (2008) asserted that quantitative criteria are determined through
technical variables. This method is preferred when single criteria is being used such
as annual demand, annual purchasing cost, or obsolescence of spare parts.
ABC analysis is an example of a quantitative criteria method that has a single

criterion. The properties can be anything related to inventory management such as
unit price, annual demand, annual purchasing, or demand volume (Roda et al.
2012).
Madan & Raganath (2014) asserted that the properties for ABC analysis can be
identified through anything related to the production processes as purchasing,
selling, or costs. The levels of spare part criticality can be identified by annual
maintenance budget. (Cavalieri et al. 2008). Table 9 and Table 10 are featured
properties according to the classification method.
Table 9 - Classification criteria support properties for ABC (Roda et al. 2014.).
Table 10 - Classification criteria support properties for ABC (Partovi & Burton,
1993.).
2.5 Literature review

Ayat (2017) explained that managing spare parts inventory is a complex area, since
it contains varied numbers of spares with low demand. Further, it is important to
carry an inventory of spare parts, since a situation where spare parts are out of stock
can cause disruption in production and financial loss for the industry. The author
has analyzed the inventory management of a printing company with the aim of
implementing stricter management control by minimizing dead stock and
increasing the optimal availability of items. The paper used a combination of ABC
and VED analysis in a matrix form. They begin by calculating the annual values in
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ABC analysis, and then they classify the inventory with help of VED analysis where
they categorize items depending on their stock out cost, nature of the product,
source of supply, and lead time. Lastly, it is framed in a cross-tabulating matrix
form where they combine both techniques. Data has been collected through
interviews with the maintenance staff, production area, purchasing department,
supervisors, and workers. Based on results from the analysis an elimination of dead
stock, minimization out-of-stock situations, efficient decision making in
purchasing, and reduced capital investment has been conducted.
Teixeira, Lopez, and Figueiredo (2017) showed that inventory management and
management of spare parts can be a complex area of study. The authors explained
that there are difficulties in collecting data, since a large number of spare parts are
involved. It is important to understand factors that influence problems of
production loss, quality loss, and costly inventory levels in order to eliminate those
factors. The paper used a combination of VED and AHP analysis, starting with
defining production criteria by dividing it in two parts and defining different
levels: one criterion for function and one for impact. The results form a matrix
where VED analysis is used to classify spare parts. After validation of criteria, a
comparison is made with the help of AHP analysis, which used criticality, lead
time, and price as subcriteria to choose the most appropriate stock management
policies. Data has been collected through maintenance. The study has resulted in
helping the organization decide on the basis of quantitative information how they
can make decisions that will keep spare parts in stock.
Shashikumar, Sarkar and Sanyal (2017) explained that mass production industries
are facing global competition, which leads to increased productivity at reduced
cost. The paper has been analyzing facilities layout in a manufacturing industry to
tie in investment by using multicriteria classification methods combining ABC
analysis with AHP analysis. They begin with using AHP analysis to understand
the relationship between goals, activities, and costs to create the integration of
multicriteria classification methods. Later they use ABC analysis to understand the
relationship between costs and activities. Lastly, they combine both methods to get
a more specific result. The study has been formed around the management goal of
improving capacity, quality, productivity, and the flexibility to eliminate any
production stops or bottlenecks since it considers a mass production industry. They
conclude that management can make better decisions by integrating activities and
strategic goals into investment analysis.
2.6 Case Company

The case company’s process of fulfilling the need for spare parts arise when the
operator detects machine failure or production delay, see Figure 7. Then the
operator creates a faults report in the maintenance system, and the maintenance
supervisor reads it to conclude whether it is an emergency work or planned work.
14
Then supervisor informs maintenance staff to analyze further it is a mechanical or

electrical fault in the machine. It is important for maintenance staff to have the right
information so as to not cause delays by choosing the wrong spare parts.
When they have detected the fault, the supervisor will give the faults report to the
production planner. In a planned work, the production planner will do research on
which spare parts are needed and to see if they are registered in the business
system. By checking the business system, he will know if there are any spare parts
left in the warehouse. Then he will then create a pickup order on the spare parts
and send an email to the warehouse. The warehouse then saves the spare part for
the specific workorder. The planned work will then be scheduled and sent to the
responsible supervisor and department leader.
It is mandatory to have a workorder when repairing the machine and taking spare
parts from the warehouse. The maintenance manpower will receive the workorder
from their supervisor. Maintenance will then take the spare parts from the
warehouse and use them to restore the machine to working order.
Figure 7 - Process flowchart on repairing machine.
If the wrong spare part is chosen, maintenance will replace it with the right unit,
but if the correct unit is out of stock, they will devise a temporary solution and tell
the warehouse to order a new one. If a temporary solution is not possible, then the
machine’s restoration will be postponed until the spare part is delivered.
Minimum stock and order quantity of spare parts are decided on with the help of
information provided by the supplier of the machine or by the maintenance
department. The supplier can also provide information about alternative suppliers
in case a particular spare part is out of stock. To prevent a stockout, the warehouse
creates new orders each time a spare part hits its minimum stock. The business
system informs the warehouse automatically when they hit minimum stock level.
All the information about the supplier, minimum stock, and the price is in the
system.
15
3 Method
Following chapter will presenting the methodology of this study and order to fulfill the
research question.
3.1 Research strategy

There is various research strategy with different purposes which can be used in a
study. One of the strategies are case study which has the approach of study a
specific case. Empirical research is carried out within the research field include of
industries, municipalities, and other governmental organization (Denscombe,
2017).
A case study will be upheld in this study with the purpose of gain a deeper insight
on challenges the industry factor faces. The aim is to focus on detail the production
area whereas’ being business critical for the company. This research strategy
considered to be most suitable as it gives the flexibility to use different methods to
collect information. Other strategies will require to in the field sights to observe and
collect data (Denscombe, 2017).
3.2 Data collection method

Information will be collected based on answering the research question and
procedure. Denscombe (2010) explained that use of multiple method can
strengthen the research by having information from different perspectives. A
convergent parallel mixed method will be used in this study which entails the
researcher to collect qualitative and quantitative elements during the same research
process.
The approach of a convergent parallel mixed method is to collect both qualitative

and quantitative data and analyze these separately to find out if the findings can be
confirmed or disconfirmed on each other. Qualitative data can be any form of data
such as interviews, observation, or records. Quantitative data includes instrument
data, observational checklist, or numeric records as census data, see Figure 8 for
illustration of the steps (Creswell, 2014).
The purpose is to collect both forms of databases by using same or parallel

variables. Both methods use the same concepts during the data collection process.
Final procedure can be done by merging the two forms of collected data into one
table or graph. This method is called a joint display of data, where the idea is to
jointly display both forms of data in an effectively by merging them in a single
visual (Creswell, 2014).
16
Figure 8 - Illustration of convergent parallel mixed method (Creswell, 2014).
Interviews has the purpose of obtain detailed material and can be performed either
as structured, semi-structures or unstructured. Semi-structured interviews give the
opportunity for the researcher to create a predetermined question but with a
flexibility to add question during or after interview (Denscombe, 2017). Using semi-
structured interviews will allow the researcher during this study to gain valuable
insight on the inventory management and criterion the case company is living upon
when they classify criticality of machines and spare parts: how the company
identify spare parts, and which are the most crucial machines and units.
Interview questions will be formed through inspiration from previous research

within same subject and documents from the case company which are written
internal on how the process is carried throughout the departments. A better
research insight will be given by having access to information about the
documentations from the case company. Further information will be collected from
stakeholders with necessary experience within the production and spare parts
areas, concurrently information from the company’s software system will be
collected at the same time.
The participants for the interviews will be selected based on their knowledge and
experience to provide valuable information relevant to research question. To gain
a holistic view participant from different roles experienced within inventory and
spare parts management will be selected. If necessary, questions will be
reformulated to the participants role.
Numeric records will be collected during the research to test and observe if the
results from research confirm or disconfirm. The purpose is to reflect and gain
holistic explanation on attitude and decision-making. Concurrently information
from the company’s software system, connected to a database, will be collected
during the research.
All interviews will be transcribed into a text document to remain data order to
perform a data analysis. Transcription means that audio recordings are converted
into text format analyze the interview material. It is a valuable use since it enables
17
the researcher to find new information in an easier process and the opportunity to
pay attention to what the respondents say and how they express (Denscombe, 2010;
Bryman, 2011). All numeric record will be saved in Excel-documents to obtain an
easier analyzation of data.
3.3 Data collection procedure

A literature analysis will be done to understand which feasible classification
methods can be used for this case study, with a further analysis the qualitative and
quantitative criteria method can be identified. By understanding the purpose of
each classification method and their properties a delimitation can be done related
to mass production factory.
This study will only use one quantitative criteria method and two qualitative
criteria methods, see Figure 9. The reason for using two qualitative criteria methods
is because the results from qualitative interviews can differ from each answer. A
closer study will be done on the field of inventory management to understand
which properties each method is using and then portray them in a framework. This
will help to understand how to categorize the criterion and classification method
when portraying the criteria chosen from interviews.
Figure 9 - Method for spare parts analysis.
Interview questions will be tested on maintenance engineer with the knowledge of

spare parts in order to judge whether the questions are relevant, understandable,
or need to be changed or added to. Interview with the right stakeholder with
relevant experience and knowledge about machines and spare parts will be uphold,
see pre-determined questions in Appendix A to D. Participants of interviews will
be with six stakeholders consist of property owner, maintenance manager,
maintenance engineer, maintenance production manager, production planner and
warehouse manager. Before the interviews, stakeholders will be informed the
purpose of study and ensure they understand their rights according to ethical
aspects. All the participants will have the right to discontinue or disapprove
questions.
The interviews will be conducted in two parts; the first part will be an individual
interview with each participant, and the second part will be an interview with all
18
the participants together. The interviewer will have the opportunity to ask
additional questions depending on the participants’ answer. All interviews will be
held face-to-face and in Swedish to eliminate misunderstandings, further each
interview will be recorded with approval from participants and transcribed for the
opportunity to analyze the documentations and answers (Bryman, 2011).
All data will be collected and analyzed to understand the context of the company
and the production goals according to set criteria for each objective. A second
discussion will be set up with the participating stakeholders to get a final approval
of the findings. This is called respondent validation and is a confirmation that the
results and impressions on researchers’ part are consistent with the participants
answers (Bryman, 2011).
Participants will be ranking the machines depending on their criticality for the
production. Since the participants will have different views, ranking will be
calculated and the most common machine on the top three will be investigated. If
necessarily, further analysis of the interviews will be done to narrow the focus
down to one machine that has the most impact to the production. Critical spare
parts will be chosen with help of property owner and since one machine has
hundreds of units the focus will remain on the ten relevant ones with the major
dependency on different machines and related to production.
An inspection of historical data banks will be done together with maintenance

manager to eliminate collection of wrong numeric records. Data will be collected
through the maintenance, business and stoptime system. It will give an
understanding of which machine had the most faults report during 2019. By
focusing on the machine with the frequent stops a better monitoring can be done
before it affects the entire production line. A machine which stops frequently
require more attention, unnecessary man-hours and work which affects the whole
production and create bottlenecks (Dynamox, n.d.). A closer analysis will be done
to find out which machine units had the most breakdown.
The collected data will be displayed in the proposed framework and the results
validated to understand which integrated classification each machine will have.
When all the data is displayed in the relevant frameworks, a better understanding
will be available on which method is suitable for each machine. A clear comparison
can be made with the interview data and system data. See Figure 10 for an
illustration of the data collection procedure.
19
Figure 10 – Data collection procedure of research study.
3.3.1 Data classification procedure

The application of the research method consists of two parts. The first part will
conform to an analytical approach comprising the matching of classification
method support properties (i.e., what assessment criteria they intend to operate on)
with the properties of the machines at the case company. This is undertaken to
identify the most feasible classification method, and the intention is to enable this
based upon transparent informative arguments motivating its feasibility. As
previously mentioned, three classification methods have been selected to be subject
to this exercise, the AHP, the VED, and the ABC analysis. See Table 5 to 10 for a
summary of the properties previously outlined in Chapter 2.4. In Table 11, an
illustration of the assessment criteria for each spare part unit for a given machine
can be seen.
Table 11 - Classification method support properties.
The matching is then to be performed by assessing the criteria of the spare part
management of selected machines according to Table 12 below. At the end of the
columns a summation of the presence assessment criteria deemed crucial for the
unit and can rate the importance of having a classification method. It also
incorporates the most important assessment criteria, enabling for judging the
feasibility of the methods. It is important to note that the assessment of the
machines will be done by both interviews with machine operators and managers
as well as through an analysis of the operational data in the production and
maintenance system at the company.
20
Table 12 - Example of machine spare part unit criteria.
The second part of the application of method is to demonstrate the use of the
classification method deemed as the most feasible one in an illustrative case at the
case company. Based upon the demonstration, it is examined to what degree the
classification method fulfills the requirement set below and provide decision
information that may be acted upon.
3.4 Validation and reliability

The validation of this study is acceptable level because a mixed method approach
is used during data collection, which is then compared with qualitative and
quantitative data. The numerical methods and criterion used in this study need to
be analyzed in a way that accurately reflects the views of the company and
stakeholders. To make sure the criterion is chosen wisely, interview questions can
be discussed with someone in the company that has sufficient knowledge about the
subject. Finally, a group interview needs to be done with the participants who
attended the previous interviews to receive verification. The validation can be
called into question when author submits their subjective opinion about which
criteria should be selected for each classification method.
The reliability of this study will be such that anyone can use it as an example in
their company. Results will differ since stakeholders have different roles and
purposes in the fir company, which means that preferences, criteria, and answers
can change. The point is that anyone who utilizes this study in their field should
not get the exact same result as this study but rather a result that will suit their
working environment. All numeric data will be collected and calculated in
Microsoft Excel to ensure there are no calculation faults when using the framework.
21
3.5 Ethical consideration

During this study, all participants and the case company will remain anonymous.
Only citations from the interviews will be published regarding confidential
material. The purpose of this case study is to have anonymous participants which
means any mass production factory with a similar problem to be solved can apply
the results of this study to their organization. This study will remain neutral and
will not provide information about the case company. In case any information
about the machines or spare parts needs to be included they will be under different
names. Only ideas and recommendations will be presented during the conclusion.
Therefore, any ethical issues during this case study will not be considered relevant
to other cases.
3.6 Proof of concept

Proof of concept is a method to demonstrate a new application or technology. It is
used in different fields such as business, engineering, and practice. Kendig (2015)
described a proof of concept as a concept that works in a practical potential of a
framework or prototype. The proof can be found through modeling, experimental
investigation, and research. For this study, a proof of concept will be modeled by
an experimental investigation to understand if the new methodology of framework
is working or not.
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4 Results
In this chapter the results of the study will be presented through collected data from
interviews and results of calculated theoretical frameworks.
4.1 Interviews
Production area is a critical station where the customer’s product is being finalized
and where bottlenecks may occur depending on how careful the maintenance and
operators work. "The whole production line has a wide tolerance where the
accuracy is not very high, but in this station, we are very careful about the
quality". If the Producing machines stop for longer intervals they would lose
downtime, lead time, and quality.
The production staff can manage normal production without one machine for a
short period, but this would mean that they need to produce in smaller volumes
and frequently to meet the demand volume. Machine without a backup and whose
absence can halt the production line are considered to be critical. "Machines we
only have one of and have a key role in production is a critical machine.". Most of
the machines are linked which may result in a domino effect, if one machine stops
working the following machines will inevitably suffer. The machines are pushed to
their limits to manage with demand volume. Respondents concerns arises when
they are explaining on how the machines may have a faster breakage when they
are being pushed to their limits and how it may affect parts of the company. If
production line due to machine stop functioning will require longer lead times to
reach the costumers demand and may lose production. Another critical moment
arises when the machine cannot be repaired within 10-20 hours or requested spare
parts are not in stock in the warehouse.
The factory has machines that produce quality products and undergoes quality
checks. Quality requirements are set by customers and the company regulation
which needs to be achieved before the finished products can be shipped. Without
achieved quality, the product cannot be sent to the customer. In case they are
shipped away it would be resulting in reduced prices on the products and money
loss for the company. Extra work might also be to analyze the rest of the products
and understand reason for defects.
If two critical machines were to stop functioning due to a broken machine part,
maintenance and property owners will jointly decide on which machine to start
repairing. They will try to determine how important the machines are and whether
the machine part affects another unit.
The respondents have different views on which machine had the most stops in
2019. One of the machines mentioned was Homogenization furnace 1, this machine
has needed a lot of minor repairs. It is one of the critical machines for producing
23
quality products and has greater capacity for receiving volume of products. If this
machine stops, delivery to the customer will also stop. This is due to the Producing
machines, which means that if the Producing machines stop then the Homogenization
furnace 1 will be affected. These two machines are prioritized meaning that their
spare parts are critical, and quick delivery is required.
If one part of a machine stops working, it may be managed without affecting

production, but it might also affect the rest (or other parts within the machine),
meaning that some spares are dependent on others. Spare parts may age, if these
parts are not caught in time, the machine may lose its functionality. Spare parts are
considered critical if they affect the functionality of machine and if they belong to
a critical machine. Another consideration is whether spares may be substituted and
used to repair different machines. “Spare parts and critical spare parts may be
separated from each other depending on where in the machine they are installed
and what they are used for. You might say that they differ depending on their
functionality”. Various factors determine whether a spare part is deemed a regular
spare or a critical spare. “If it is possible to run with the broken part for a certain
time, or if we can make our own solution then it’s deemed a regular spare. If we are
completely dependent on it, with a long delivery time from the supplier, then it’s a
critical spare."
When a machine stops a troubleshooter conducts an analysis to understand where

the fault has occurred and what spare part needs replacing. If a spare is not in stock,
there may be financial consequences and loss of production. Depending on which
machine is affected, there may also be quality loss. The warehouse ensures spares
are replenished daily, depending on the order point location of the spares.
However, the respondents explained that some spares are not registered, which
means it takes longer determine whether the part is at the warehouse and enter
information into the system. Some machines have long service life (durability) and
may not have malfunctioned or caused a stop for several years. Thus, there has
been no demand for those parts. It may also be that the wrong spare has been
ordered and installed which leads to needless waste of work hours. When ordering
a critical spare part, the aim is to have a fast delivery time, without price being a
factor. Maintenance and warehouse only consider what downtime costs may arise
if they continue operating the machine without its proper functionality. They
believe these two issues may cost the company more than an expensive unit.
The company have no major problems with market availability or receive spare
parts from suppliers on time. They have different suppliers for each spare but if the
supplier does not have the spares, they either turn to other supplier or the supplier
may check with their own contacts for help. As a result, they do not experience
shortcomings in terms of suppliers. However, there is often a communication
24
problem between departments since they have different views on the matter which
create longer delivery times to receive spare parts.
The case company does not have a systematic method for identifying critical
machines and critical spare parts. Respondents declare they are not following up,
reporting, or measuring any data. All critical machines and spare parts are
managed by experience-based identification. In the maintenance system the
machines are registered along with spare parts, but it is not clear which parts are
critical and which are not.
25
4.1.1 Criteria observation

Table 13 is a summary of all the criteria that has been collected through interview
data. Criteria were defined according the impact on spare parts and productivity
stoppage. An explanation of each criteria has been done on how the participant
validated the meaning of each criteria.
Table 13 – Criteria summary from interviews.
Market availability The number of suppliers the firm

can buy spare parts from.
Lead time The volume of production that is
lost because of machine stoppage.
Durability The life span of a spare part.
Demand volume Volume the machine can produce
on customer demand.
Functionality One spare part can be suited to
different machines.
Quality Quality requirements on product.
Dependency One broken spare part can cause
another unit or machine to stop
working.
Downtime The time elapsed between
machine stoppage and its
restoration.
Unit volume The amount of spare parts is
needed in stock.
Availability The amount of spare parts in stock
until next machine stoppage.
The amount of profits the firm
Annual profit receives in a year. This can change
in the event of a drop in quality or
late delivery to costumer.
Delivery time The pf amount time takes for
spare parts to be delivered to the
warehouse.
Costs The costs the firm might accrue in
case a longer work stoppage
occurs.
Unit price The price of one spare part unit.
26
4.2 Experts design of mapping

The following table shows the results collected from interviews. The producing
machine was selected by comparing the top 3 machine rankings. Further, analyses
had to be carried out to understand which specific producing machine is the most
critical one. The case company has three different producing machines, but two of
them produce the same product. The participants explained that they identify the
criticality of a machine by considering issues related to duplication and if there is
risk of a stop in production if the machine fails. Thereby, producing machine 1 was
chosen on the basis of the foregoing criteria. The property owner could only
mention 8 critical units. Without these spare parts, there would be machine
stoppage and a stop in production.
Table 14 comprises information that is within the purview of maintenance staff.

Demand volume, downtime, unit volume, annual profit, durability and costs are
criteria with the highest total summation. This means those 5 criteria are the most
relevant when understanding which classification method to use.
Table 14 – Framework result of Producing machine 1.
27
4.3 Technical design of mapping

Homogenization furnace 1 is the machine that had the most downtime during 2019.
The spare parts were chosen according to which units affected the machine’s
efficiency and needed to be replaced. Table 15 shows the results that were taken
from the case company downtime. Only 8 units were chosen from the considered
collected units in Chapter 4.2. The summation shows unit price was the leading
criteria. This means that all the 8 spare parts have a unit price listed in their
purchasing system. Unit price is the information that the classification method can
is used on.
Table 15 – Framework result of Homogenization furnace 1.
28
4.4 Properties and criteria matching

Table 16 gives results that are similar to Table 3 to 9 and from the previous research
in Chapter 2. All criteria obtained in the interviews has been matched with the
properties from the classification methods. This means that crosses have been
added to the classification methods that referred to the identified criteria.
Table 16 – Summarized properties from previous works.
Table 17 shows what the mapping can look like by understanding the purpose of
the classification methods and that of the criteria. All the crosses within the bracket
refer to the mapping that is positioned according to the interpretation of the studies.
Meanwhile, only the cross is the result of previous research on Table 16.
Table 17 – Criteria concept according to the interpretation of the study.
29
4.5 Classification method support

The expertise design mapping gives results of the demand in volume, downtime,
unit volume, durability, and costs in different classification methods. Since all the
criteria are matched with different classification methods, the focus will be on the
ones that match. Demand volume and costs are the two criteria that are mutual
from the others. This means that AHP analysis and ABC analysis are the most
profitable integrated classification methods, see Table 18.
Table 18 – Classification method mapping of producing machine 1.
The technical mapping in Table 19 shows that costs are the only relevant criteria.
The multicriteria classification method that can be suggested for use is AHP
analysis and ABC analysis. By only working with historical data, an AHP analysis
and ABC analysis can be used to identify the most critical spare parts. Working
with these methods, the maintenance staff will have more control over what kind
of costs might occur in case the unit stops working or spare parts might not be
available in the warehouse.
Table 19 – Classification method mapping of homogenization furnace 1.
30
5 Analysis
Following chapter will present the analysis of the result and discussion of the experiment
will be presented.
5.1 Criteria observation

From the observations made via the interviews, 13 different criteria were found
regarding spare parts. These criteria are requirements that need to be met to be
classified as critical but to also achieve the company's goals and increase annual
profit. When analyzing the answers, criteria were discussed that could be used to
determine the most critical machine for production. All criteria are connected to
each other. The criteria are chosen in relation to the entire production line.
It is particularly important for the company to have market availability as they

work through emergency situations. Having access to several suppliers with fast
delivery is an advantage for warehouse staff and production planners. Other than
delivery time, longer durability, and availability of spare parts are required to keep
the machines running during a longer production period. The functionality of spare
parts with parts from different machines is another requirement that count as
critical criteria. To keep from falling behind in the maintenance of machines, the
unit volume is regularly updated when it reaches the order point. The unit price
only needs to be checked when the situation is not urgent. If the machinery
malfunction, it is better to buy inexpensive spare parts; however, parts will
probably not have long-term functionality and shorter durability.
Lead times are critical for the company, as these can result in a slowdown in
production and a longer wait for customer to get their products. The respondents
are aware that stops in production can contribute to less than economically viable
results. Quality is also a requirement before products are shipped to customers.
Without good quality, there will be adverse economic results.
Time is valuable in production and downtime is limited as much as possible.

Machines are repaired quickly to continue regular production. Sometimes these
machines are run with a spare part that is not working. A failed machine part
working without any other problems is not critical. Yet this flawer part might be
depended on other parts of the machine and need to be fixed sooner or later.
Maintenance staff have a common idea of what are considered to be critical parts
and regular parts. They also agreed on the criteria and the definition of the criteria
and they were similar to those in previous works. If the interview questions had
been more in-depth, then more criteria could have been discovered.
During the interview, it was mentioned that there is a lack of communication

between departments. Bad communication can cause delivery delays of spare parts
and have negative effects on production. Whether a situation is deemed critical or
31
not depends on the departments. It would seem that maintenance staff have more
experience dealing with the consequences of machine breaking down during a
narrow time interval, while other departments are only experienced with their own
employment.
This means that the case company need to develop a solution that makes the
purchasing department realize how critical it will be if a specific spare part is not
delivered in time for a machine. Therefore, classification methods are a necessary
implementation to explain numerical on how negative effects may arise. The
purpose of showing numerical values may create a simpler perspective on how the
company can be affected negatively and may reduce communication problem
within the departments.
It would have been interesting to also include the purchasing department in the
study to see how they set their criteria when purchasing spare parts. This would
have given a broader look at the company.
5.2 Classification and property observation

No extant research explains which properties belong to which classification
method. Previous works that have been analyzed in this study choose classification
methods and criteria that can achieve the company's goals. The properties included
in the studies are not self-explanatory and the reader needs to look up the
explanation. The definition of each criteria can perceive differently depending
factory area and the reader. By researching which methods exist and how
properties are organized one can gain some understanding of the purpose of the
methods.
The theory explains the different purposes of each classification method. By

analyzing the purpose of each classification method, the criteria can be determined
as they pertain to machines and spare parts. The properties listed in Tables 5 to 10
is taken from previous works that use classification methods with different criteria.
It gives an idea of what criteria each method can utilize.
In Table 16, a summary of properties has been created from the previous works
combined with the criteria drawn from the interviews. However, there was not
enough information to determine property of each classification method. By
analyzing previous works and their tables and interviews, a new table was created
that presents the properties of the classification methods according to the study.
Both tables were combined into Table 17 to include all content data in a single table.
The results can change if further analysis of previous works is carried out to
understand the properties used in the classification method. The reader’s
understanding on the criteria can also change the result, depending on what one
considers to be critical and which classification method can support the criteria.
32
The conclusion that one can draw from previous works is that the AHP analysis
focuses mainly on the machine included with spare parts. The ABC analysis focuses
on the finished product, purchasing spare parts, costs, annual profits, or delays that
can affect the company. The VED analysis focuses on spare parts and what effects
can occur if spare parts are missing or cause a machine to break down during pro-
duction.
5.3 Classification method observation
In Table 16, five criteria have the highest possible value, and this means that there
are five different combinations of integrated classification methods that can be
chosen. Two of them have the same combination of classification methods, which
means that the AHP analysis and the ABC analysis are considered to be the most
useful methods used in the case company for achieving an efficient identification
of critical spare parts. Furthermore, in Table 17 there is only one criterion with the
highest value with a combination of AHP analysis and ABC analysis. The
qualitative and quantitative data gave the same results. This will be demonstrated
in the form of proof of concept to explain how the result was generated.
Maintenance staff are often very efficient at identifying the most critical machines
by analyzing the interviews. The homogenization furnace is one of the most important
machines in production for creating quality products. The fact that this machine
may have the most production stops in 2019 is probably because it has the capacity
to produce such a large volume of products. Since it is part of a mass production
factory, the machine may run continuously and become inefficient with overuse.
Spare parts might have been out of stock as well, and this would have caused a
longer downtime.
33
6 Proof of concept
AHP analysis was implemented first and the priority vectors obtained from the
method were used in the ABC method. Both methods were perfomed in Microsoft
Excel, and all the data has been generated through the case company’s maintenance
system, purchasing system, stoptime system, and Key Performance Indicator (KPI).
The entire system is connected to a database which has been uploaded on an Excel
sheet.
The criteria from Table 13 were weighted in the form of pairwise comparison to
obtain the best ranking using Table 2. Prior to this work, the weighting was
determined together with the maintenance manager. This was further shaped into
a comparison matrix, see Table 20.
Table 20 – Comparison matrix on criteria.
Furthermore, a new matrix was created to normalize all values and calculate the
priority vector. The result that can be seen in Table 21 showed that costs have the
highest priority value between the criteria.
Table 21 – Result of priority vector.
By multiplying the dimensions from Table 20 together priority vector from Table
21 a weighted sum could be obtained in Table 22. Furthermore, the weighted sum
was divided by priority vector. This would help to understand the values of λmax,
consistency index, and consistency ratio, see Table 20.
34
Table 22 – Weighted sum and priority vector.
The calculated average values of WS / PS from Table 22 are given a λmax value of
16.08 which can be seen in Table 23. This study uses 14 criteria which give a ratio
index of n = 1.57, see Table 2. Furthermore, a consistency index of 0.16 is calculated
with a result of 0.1 consistency ratio which indicates that the assessed criteria are
considered reliable, see Table 23.
Table 23 – Consistency analysis.
When all numeric values are calculated from AHP, then the ABC method is
calculated. All values of the criteria for machines have been collected through the
case company database system. Each machine has over 3000 articles loaded,
however, only 224 items per machine were linked to fault stops and repairs carried
out during 2019. Furthermore, approximately 452 articles were removed because
they did not have all the required information, see Appendix E for how data for
criteria was assessed (Partovi & Burton, 1992).
All spare parts and data were collected on an Excel sheet. The classification of the
spare parts was calculated by Equation 4 by normalizing each value for each
criterion (Erdinc, 1996; Partovi & Burton, 1992). This was done on all 14 criteria and
further, a new column was created to calculate the total sum by Equation 5 for each
row. All items in the total column were sorted in descending order and then classes
of A, B, and C were calculated.
35
The results presented from the ABC and AHP method can be read in Table 24 for
Production machine 1 and Table 25 for Homogenization Furnace 1. Table 24 shows that
20% of the spare parts fall into class A which is extremely critical. It contains 45
spare parts out of 224 with a weighted score of 0.4315. This means that all spare
parts below the weighted score are considered critical. Furthermore, class B
contains 69 spare parts out of 224 which is 30% of the total inventory list. It has a
weighted score of 0.5003 and the spare parts falling into that group are less
important but are good to have control of. Class C is the group that is considered
least important compared to the others, it contains 110 spare parts and represents
50% of the total inventory list with a weighted score of 0.7366.
Table 24 – Result from Producing machine 1.
Table 25 gives results for Homogenization Furnace 1 with a total of 224 spare parts.
Class A contains 45 spare parts that classify as critical, and corresponds to 20% of
the total list and a weight score of 0.428809. This means all articles that have a
weight score below 0.428809 will be classified in class A. Class B contains 67 spare
parts that corresponds to 30% of the total inventory list and a weight score of 0.4990.
Class C contains 112 spare parts which are 50% of the total inventory list with a
weight score of 0.7323.
Table 25 – Result from Homogenization furnace 1.
A Pareto diagram was plotted for each machine, which can be seen in Figure 11 for
Production machine 1 and Figure 12 for Homogenization furnace 1. Both graphs are
almost equal since the inventory list of both machines had the same number value.
The graphs show the number of spare parts that fall into the different classes.
36
Figure 11 - Pareto diagram on Producing machine 1.
Figure 12 - Pareto diagram on Homogenization Furnace 1.
37
7 Conclusion
• What systematic classification methods for spare parts are more feasible for
a mass-production company?
In this study, for identifying the most critical spare parts for the critical machine
integrated classification method, AHP analysis and ABC analysis can be
recommended. Cost is one of the most significant criteria identified through
the framework and resulting from the proof of concept. Thereby, the case firm
should consider cost as a criterion when categorizing critical spare parts.
Due to limited time, some time-savings steps were taken to complete this
research study. Weighting for AHP procedure was only carried out with the
maintenance manager. In future studies, it would be interesting to include
other experts' opinions in different work areas related to the criteria.
A recommendation to the person who implements an integrated classification

method as AHP and ABC would be to minimize the number of criteria. As the
more criteria considered in the study the longer it takes to get a result,
especially if a longer inventory or spare parts list is studied.
38
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41
Appendix A: Case study interviews general
What is your job?

What goals do you have in your department?
What is your goal with spare parts management?
What result is expected of you? How? (What results are you expected to deliver?)
Based on the company's vision, how do you relate it to the organization's main process?
Which machine has had the most stops in 2019? (Technical error due to machine part)
Which machines have had the most stops in the last 5 years? (Technical error due to machine
part)
What effects occur when a machine is stopped due to a damaged machine part?
What impact does machine stoppage have on a damaged machine part towards production and
the company's vision?
What do you do to eliminate machine stops in the event of a damaged machine part?
42
Appendix B: Case study interviews machine
Can you rank machines from most critical to less critical?

How do you determine if a machine is critical?
What is it that determines that a machine is critical?
How often do machines break down?
How often does the most critical machine need to be repaired?
What is the first thing you do in case of error / stop?
How long can it take until you have identified an error / stop?
If two machines are broken, how do you decide which machine needs the "first aid"?
43
Appendix C: Case study interviews spare

parts
How does the spare parts replacement process work?

How do you decide if it is a spare part?
What makes a spare part important?
How do you identify critical spare parts?
How long can it take to identify which spare part is needed?
What effects occur if a spare part is not in stock? And what happens?
44
Appendix D: Case study interviews

inventory.
How often do you order spare parts?

What is it that determines that you order a specific spare part?
What determines how much spare parts you should have in stock?
Are there enough spare parts in stock to prevent stoppages in advance?
If a spare part is not in stock, what effects can occur?
What impact does it have on production and the company's vision when a spare part is not in
stock?
What is taken into account when you place an order for a spare part?
If a spare part is not available from the supplier, what do you do then?
If a spare part is not available from the supplier, what effects can occur?
How long can it take to find a supplier for the spare part you are looking for?
Do you have an idea of what it costs you in case of lack of stock for different items? If so, in
what way? If not, why not have it?
What kind of impact arises in relation to production and the company's vision when a spare
part is not with the supplier?
45
Appendix E: Estimation of data for each

criterion.
Criteria Dimension Number Explanation

Min-max
Costs Price (Kr) - The total costs per missing spare
parts has resulted in lost,
calculated by maintenance system
and KPI.
Annual profit Price (Kr) - The total annual profit by having
spare parts in advance, calculated
by maintenance system and KPI.
Demand Score 1-9 When a spare part is missing the
volume (1, not affected – demand volume can be affected
9, affected badly) operators report a score if the
volume changes, maintenance
system and KPI.
Quality Score 0-5 When a spare part is missing the
(0, missing – 5, production is reporting a score of
affected badly) the quality on each produced
product, maintenance system and
KPI.
Unit price Price/unit (Kr) - The price of one spare part,
calculated by business system.
Downtime Per/hour (h) 1-53 The amount hour the machine is
stop until fixed, calculated by
stop-time system.
Lead time Per/hour (h) 1-24 The amount hour the machine is
stop until fixed and done with
producing, calculated by
maintenance system.
Delivery time Per/hour (h) 4-216 The amount time until spare part
is delivered, calculated by
business system.
Durability Per/month 1-12 The suggested life span of the
spare parts, calculated by
business system.
Availability Per/hour (h) 24-216 Th actual life span of the spare
part until next stop, calculated by
maintenance system.
Unit volume Per/unit 24-230 Minimum- stock on spare parts,
calculated by business system.
46
Dependency Per/unit 0-3 Number of units the broken spare

part can affect, calculated by
maintenance system.
Functionality Per/Machine 1-7 Number of machines the same
spare part can suit, calculated by
maintenance system.
Market Per/supplier 1-4 The number of suppliers existing
availability on spare part, calculated by
business system.
All the data was collected through maintenance system, business system, stop-time system and
KPI. The systems are interconnected and saved in a database. Data can be transported to
EXCEL-file.
47

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Integrated classification methods for spare parts

A case study on a mass production factory

Integrated classification methods for spare parts

Document type: Independent degree project – second cycle

Keywords: Inventory management, maintenance, warehouse, production, AHP

Lagerhantering är ett komplext system som involverar olika intressenter från

Nyckelord: Lagerstyrning, underhåll, lager, produktion, AHP analys, ABC

4.1 Interviews ................................................................................................................ 23

AHP Analytic Hierarchy Process

VED Vital Essential Desirable

1.1 Research background

1.2 Research problem

1.3 Aim and Research question

1.4 Delimitations of the study

2.1 Spare parts management

• The identification of spare parts can be done by part coding and

• Identifying and developing the stock management system and

• Implementing a computerized maintenance management system

• Implementing a processing and inventory control systems operation

2.1.1 Spare parts characteristics

Wrong observations and characterization are normally determined. The company

2.2 Spare parts classification methods

2.2.1 ABC analysis

Figure 1 - Graphical illustration of ABC-analysis (Ayat, 2017).

2.2.2 VED analysis

Table 1 – List of spare parts with VED-analysis (Teixeira et al. 2017).

2.2.3 AHP analysis

In Figure 2 there is an illustration of a hierarchical diagram about choosing the best

Figure 2 - Diagram of analytic hierarchy process (Andersson, 2016).

Table 2 – Pairwise comparison scale.

A comparison matrix will then be performed to measuring each of the criteria

Table 3 - Pairwise comparison between weights of criteria (Andersson, 2016).

Normalization is calculated by equation 1, where the total summation of the criteria

Table 4 – Random index scale (Erdinc, 1996).

2.3 Integrated classification methods

Figure 3 is presenting the process of how to perform multiple-criteria decision

Figure 3 - Forming of multiple-criteria classification method (Teixeira et al. 2017).

2.3.1 ABC analysis combined with VED analysis

Figure 4 - Combination of ABC and VED classification (GunerGönger &

2.3.2 AHP analysis combined with VED Analysis

2.3.3 AHP analysis combined with ABC analysis

As in chapter 2.2.3. a hierarchy diagram is designated that contains up to three

Figure 6 - Multiple-criteria decision method using ABC and AHP analysis

2.4 Quantitative and Qualitative criteria methods

2.4.1 Qualitative criteria method

Table 8 – Classification criteria support properties VED, (Praveen et al. 2016).

2.4.2 Quantitative criteria method

ABC analysis is an example of a quantitative criteria method that has a single

2.5 Literature review

2.6 Case Company

Then supervisor informs maintenance staff to analyze further it is a mechanical or

Figure 7 - Process flowchart on repairing machine.

3.1 Research strategy

3.2 Data collection method

The approach of a convergent parallel mixed method is to collect both qualitative

The purpose is to collect both forms of databases by using same or parallel

Figure 8 - Illustration of convergent parallel mixed method (Creswell, 2014).

Interview questions will be formed through inspiration from previous research

3.3 Data collection procedure

Figure 9 - Method for spare parts analysis.

Interview questions will be tested on maintenance engineer with the knowledge of

An inspection of historical data banks will be done together with maintenance

Figure 10 – Data collection procedure of research study.