I. Andrada B. MSc


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A PROPOSAL OF IMPLEMENTING READINESS BASED SPARING MODEL IN THE CHILEAN NAVY 

Student: Ignacio Andrada B.
Scientific Supervisor: Michel Kuijer MSc
Date: 23 of May, 2011.

The goal of this research is to present a proposal of implementing Readiness Based Sparing (RBS) methodology in the Chilean Navy with the objective to maximize asset´s availability, within imposed budgetary constraints, by optimizing the selection of spares mix and allowances.

One of the most important benefits of RBS model is its systemic approach to analyze inventories decisions. On traditional Demand based sparing models, as the Chilean Navy actual model, spare inventories decisions are made independently of other spares’ stock, without clarity of how it impacts the rest of the system and its final availability.

RBS model has been used on US Armed Forces for the past 20 years with successful results. Different reports show that after this implementation backorders decreased until 44% with 46% less investment.

Knowing those benefits, the objective of this research is to evaluate a possible implementation of this methodology on Chilean Navy for spares management process. To do it will be necessary to analyze current management model of spare parts for Chilean Navy, to present Readiness Based Sparing model and its implementation on US Armed Forces and present a proposal of how can RBS be implemented into CN for spare parts selection adding into it several concepts taken from AMC theory.

After the analysis made of the current sparing model of Chilean Navy and knowing the experience of USA Navy implementing RBS model, this research concludes that it is possible to implement RBS model on CN.

In order to implement this methodology CN should develop a software application with the functionalities describe in this model (calculate optimal spares mix, calculate availability curves, etc.), and a portal to facilitate the communication of the LCM team that is also an important element of the proposal model. Previous such implementation CN Navy has to assure the quality and reliability of SALINO´s data, otherwise the whole implementation would be useless.

A rough estimation of the benefits that CN may have implementing this model can be taken extrapolating the results obtained by US Navy. According with that information Chilean Navy could achieve the same availability levels than actual with about 10 Million USD less of budget, generating about 7.814 less backorders and about 13.000 less spares items required. With the same budget that CN spent on year 2010, by implementing RBS model it could have achieved about 10% more availability on the same period.

On future researches may be analyze better the design of those software application, how to assure SALINO´s data quality and how to integrate other useful parameters for asset’s effectiveness calculations as capability and reliability variables.

The Thesis is shown here.

The Thesis presentation is show here

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