Optimization of Dolphin Drillings spare part management

Master's thesis in Offshore technology : Industrial asset managementThe aim of this thesis is to analyze and improve Dolphin Drillings spare part management. That is done by conducting a current situation analysis, and proposing a framework for determining necessary spare part stock levels. Chapter 3 presents a review of elements in an RCM analysis, and classification of spare parts. It is proposed to use the analytical hierarchy process to determine the importance of parameters influencing spare parts needs. Chapter 4 presents the current situation analysis of Dolphin Drillings spare part management. An important result of the current situation analysis is the overstocking tendency. For the current situation analysis and developing a framework for determining spare part stock levels, a Microsoft Access database was built. In chapter 5, the development of the database and framework is presented. The decision framework is divided in two parts. The first part consists of deciding if the spare part should be stocked, or purchased when required. The second part is determining stock levels. The framework resulted in potential savings of up to 46%. Chapter 6 presents the results of the proposed framework, by utilizing it to determine spare part stock levels for a selection of equipment. In chapter 7 results of the current situation analysis and development of the framework is presented and discussed. Results of the current situation analysis include lacking information about materials in the computerized maintenance management system, incomplete and missing bill of materials, and overstocking. By addressing the proposed improvements Dolphin Drilling will in the future have a better maintenance and material management system as well as improved cost control. The proposed framework is based on comparisons of costs of stocking, and purchasing when required, and using relevant parameters such as consequence classification, redundancy, lead time, number identical parts installed, and expected consumption to determine spare part stock levels