Spares Management in Operations

In 2024, MRiAM presented a webinar series on managing spares, including guidance on quantities and related considerations. Since then, several forums have raised questions and prompted discussion about how to manage spares once they have been identified in the maintenance system and warehoused during the operational phase of a project. There has also been growing interest in related topics such as managing obsolete spares, “squirrel stores”, and maintaining spares holdings. The objective of this series is to address these topics and provide practical solutions from speakers who have identified these issues and can share proven approaches.

Squirrel Stores – why do they exist and options for removal

Tanya Viano

A “squirrel store” is, as the name suggests, a store of spares kept outside the main stores system and warehousing program. These stores are not measured or controlled for quantity and, depending on storage practices, may also be lacking in quality. The use of spares from these stores remains a hidden cost and can mask the true cost of maintaining plant and equipment.

There are many reasons squirrel stores come into being. These will be discussed, along with how these extraneous stores can be eliminated.

The webinar will also cover real-world examples and solutions that may assist others in addressing the issue of squirrel stores.

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Spares Analysis Process Review Supporting Capital Investment Program

Ian Bradley & Kevin Gray, Water Corporation

The review of the Capital Program Spares Assessment process identified significant gaps that led to incorrect outputs and, at times, incomplete assessments. These issues resulted in inadequate spares being handed over at project completion, placing additional pressure on Operations and Maintenance teams to identify and procure requirements post-handover, causing delays and increased operational costs.

To address these shortcomings, the process needed to be redesigned to improve:

  • accuracy

  • consistency

  • accountability.

Integrating reliability engineering principles and clarifying team responsibilities were critical to strengthening decision-making.

The objective is to establish a framework that enhances asset performance, reduces operational risk, and supports cost-effective outcomes across capital projects.

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Spares Management through Project Transition Phase

Craig Taylor, Casmat Engineering Pty Ltd

The webinar focuses on some of the typical challenges faced by Asset Engineers, Reliability & Maintenance Engineers, Maintenance Managers and Maintenance staff associated with Spares Management during the project transition phase into the project operation and maintenance phase.

The webinar will explore some of the key elements during this phase of a project and highlight a number of pivotal activities and drivers for successful spares management through the project transition phase including;

  • Contract Type – Understanding the framework and type of service contract as it will impact your Spares Management strategy i.e., PPP, Comprehensive, Pass- Through etc.
  • Risk Based Methodology – ensuring that there is an integrated approach to contract risk such as KPI’s, Financial, Reputation, WHS&E.
  • Project Phase – Which stage of the project lifecycle are you at?
  • Stakeholders – have you identified who the key stakeholders are for spares management,
  • Spares Selection – What level of maturity has been undertaken in relation to Spares requirements and associated analysis using FMECA, RAMS or other process?
  • Type of Site – Different spares management strategies for Greenfield Sites v Brownfield Sites
  • Multiple Storage Locations – How do you optimize effective Spares Storage with multiple storage facilities and multiple work sites?·      
  • Inventory Management – Selection of suitable process i.e., part of the CMMS?
  • Spares Procurement Lead Time – challenges with alignment to Asset Performance requirements.

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Managing Spares for Corrective Maintenance, Preventative Maintenance and End-of-Life

Alex Jarufe, Verbrec

Spare parts play a pivotal role in sustaining equipment reliability and availability, a fact that becomes obvious during both corrective and preventative maintenance activities. When spares are well‑managed and strategically utilised, maintenance work becomes faster, more effective, and more predictable — delivering measurable improvements in reliability, availability, and overall cost performance.

This session will explore the practical foundations of effective spare parts management across key focus areas:

  • Spares procurement and supplier engagement
  • Storage and preservation practices
  • Inventory holdings, control, and issuing processes
  • Access and availability during maintenance windows

Strong practices in these areas ensure maintenance can be completed within the shortest possible time, at optimum cost, and with minimal waste or rework.

We will also examine the challenges associated with spare parts discontinuation (obsolescence) and component end‑of‑life, which can create significant cost, risk, and engineering impacts for many facilities. The webinar will outline practical strategies to mitigate these issues to help maintain equipment availability while organisations navigate the risks of obsolescence.

Download slides here