Optimization of spare parts management for HAL - Overhaul division

Abstract

Spare parts forecasting and inventory management is one of the most difficult to handlechallenges of the maintenance and support functions as far as the Defence-aviation isconcerned. This gets very crucial due to high technology and specific nature of the industry. Theexpenditure that is incurred on spares can exceed the total cost of the aircraft if the entire lifeof the aircraft is taken into consideration. Stock outs of spares can lead to grounding ofaircrafts. And consideration the fact that the security of the country is at stack, spare partsmanagement at HAL assumes utmost importance.According to the Procurement function of the Overhaul Division of HAL, any improvement inthe efficiency of forecast towards meeting the desired service level will have to substantiallyreduce both overstocking and under stocking costs and have substantial economic advantageand operational efficiency.In lieu of the above and substantial lead times of procurement (one year), efficient forecastingof spare parts demand well before the probable actual use is very important in reducing thesupport costs.