Refurbishment Process

Purpose

• The refurbishment of repairable spares is important for companies, for which system availability is a
critical factor (for example, the process industry, oil producing and processing, steel processing) and for
which repairable spares guarantee a high level of system availability. The refurbishment of - usually high
value - faulty repairable spares is of considerable economic importance for these companies and is often
a core process in Plant Maintenance. It is often much more cost-effective than a brand new purchase.

• In production plants or other technical objects, high value components are often used (pumps, motors
and so on) which are replaced in case of damage by a functional repairable spare and then refurbished
using a separate order.
 Refurbishment Process
Prerequisites
• A material master record must be created in the system for the repairable spares.
• Unique identification is only possible if the individual pieces of material have been serialized.

Process Flow
 Rotable Management Cycle
Motor

Stock

Procurement
Scrapping
Serviceable Unserviceable

In-house Repair Subcontracting

Refurbishment of Spare Parts: Process
Valuation Based on Parts Condition

Material
with valuation type A
(condition-based
valuation)

Valuation type Valuation type Valuation type

NEW REFURBISHED DAMAGE
EUR 1,500.00 EUR 1,200.00 EUR 100.00
 In House Repair Process

Removal of part Shipment of part

In-house
Warehouse
Workshop

Replacement part Return of serviced part

(1) Rotable exchange (2) In-house repair

process process
 Refurbishment Order
Goods issue Stock
with movement Plant 0001
type 261
SLoc 0002

Maintenance order 800175

Order type: PM04
DAMAGE
Material P-2001 Motor
Quantity 3
Serial number SER53, SER81, SER27

From DAMAGE
Plant:0001 SLoc: 0002

To REFURBISHED
Plant: 0001 SLoc: 0001 REFURBISHED

Goods receipt Stock

with movement Plant 0001
type 101
SLoc = Storage location
SLoc 0001
Automatic change of valuation type during goods movement

Stock Stock

DAMAGE REFURBISHED
Material P-2001 Material P-2001
Serial number SER53 Serial number SER53

Plant 1000 Plant 1000

Storage location0002 Storage location 0001
Batch DAMAGE Batch REFURBISHED

Proposal of serial numbers during goods issue

Refurbishment Goods
order issue

Object list:
- Serial number 1 Object list:
- Serial number 2 - Serial number 1
- Serial number 3 - Serial number 2
- Serial number 3
Inventory Management : Example
 Refurbishment Process
The process flow can be broken down as follows:

1) Procurement of new repairable spares

2) Exchange of defective and functional repairable spares
3) Creation of the refurbishment order
4) Releasing and executing the order
5) Withdrawal of repairable spares to be refurbished from the warehouse
6) Completion confirmation
7) Return of refurbished repairable spares to the warehouse
8) Order completion
9) Order settlement
 Refurbishment Process
Steps for creating Refurbishment Order
For creating refurbishment order for material, you should have 3 valuation types for material, e.g C1-New, C2-
Refurbished, C3-Defective, these valuation types are defined in system by PTP team.

1) The order use for repairable spares ( combination of material and serial number, for which an equipment
master record can also be created)

2) The repairable spares disentail first & change the valuation type Defective. ( In case of valuation types are
new, refurbished, defective)

3) Creation a Refurbishment Order

a) The header data screen appears for the refurbishment order, enter the material number.

b) In the section Quantities, enter the total number of repairable spares which should be refurbished for this
order.

c) The plant and storage location from which you want to withdraw the repairable spares to be refurbished (
Valuation Type : Defective )

d) The plant and storage location to which you will return the repairable spares to be refurbished. (Valuation
Type : Refurbished )

e) Save the refurbishment order.

 Refurbishment Process
4) The employees responsible for the refurbishment withdraw the repairable spares to be refurbished from
the warehouse, along with all the other materials scheduled in the order that you require for the
refurbishment. The goods issue is entered. ( Movement Type 261)

5) The employees responsible for the refurbishment enter completion confirmations for the refurbishment
order. These completion confirmations provide an indication of how much work has been done.

6) A goods receipt ( movement Type 101 ) is posted for the refurbished repairable spares. This automatically
updates the valuation type (Refurbished) in the serial number master record. The repairable spares are
now in full working order again and can be used.

7) The quantity delivered is displayed in the order header.

8) Refurbishment orders can be settled to the material to be refurbished.

9) The order balance is subsequently settled to the material account according to the current price. ( The
material price for that valuation type i.e. refurbished is update )