In General, Supply Chain Management can be divided into three divisions: Inventory Planning, Procurement and Warehouse Management. Inventory Management consist of Cataloging Process, Inventory Control, and Material/Service purchase request. Inventory management is carried out by maximizing material service level and minimize inventory value accoring to the inventory policy that had been setup in IP Policy Directives The purpose of implementing Reliability Centered Spares (RCS) is so that the management or planning of materials or spare part plans is not only based on recommendations from manufacturers, or subjective assessments based on requests from users who determine how much to stock, when to buy, but inventory that is managed independently. Planned based on actual conditions in the field or based on purchase history, history of material use in warehouse, besides that, inventory planning parameters look at the criteria for each material starting from material criticality, availability and usage value.

One of the objectives of this Reliability Centered Spare study is to support all user needs with an appropriate and good inventory planning strategy, with the hope that all maintenance work that requires spare parts can be carried out with optimal planning, optimal from the user's point of view and optimal from the point of view of finance, because the interests between finance and maintenance are contradictory where from the user all the spare parts needed when needed must always be there because it relates to the availability and reliability of the factory itself and from the finance side it is reducing the value of inventory, reliability centered spare (RCS) ) plays a role in accommodating the interests of both so that the interests of both can be achieved, with the implementation of this RCS, it is hoped that the performance of the factory will be maintained with optimal and efficient inventory costs.

ABC Analysis

ABC Analysis is a ranking system for identifying and grouping items in terms of how useful they are for achieving business goals & ABC analysis is a method of categorizing inventory consisting of divides items into three categories (A, B, C)


Criticality: is the effect on the unit, if it is not available then the unit will experience tripping, derating or no effect



Availability: is the Lead Time needed by the material to arrive at the warehouse


Usage Value: This criterion reflects the financial importance of the part in terms of the annual amount spent on the item over a year


Benefit of Reliability Centered Spare (RCS) :

  • There are ABC criteria for all Material Items that are managed in the database system.
  • Ability to perform Demand Profile analysis both for materials with criticality criteria “A”, “B” and “C”.
  • Ability to identify high Demand materials, as candidates for Inventory Plan
  • Ability to analyze historical transaction data for each material that has a high demand, as well as validate and clean up incorrect/incomplete data.
  • Ability to make Inventory plans based on Safety Stock, Re-order Point (ROP) & Economic Order Quantity (EOQ) calculations, to calculate the average investment plan, maximum investment and safety stock value.
  • Interface patterns is better for UX than reinventing the wheel

Summary of Reliability Centered Spare (RCS) :

  • Inventory Policy (ABC Criteria, service level, service factor, cost of an order, holding cost, inventory control, equation SS, ROP & EOQ, moving criteria)
  • Material Criticality
  • Lead Time Calculation
  • Determination of usage value
  • Determination of the average material usage rate per days & material usage rate per month
  • Creation of demand profiles and proposed material lists for inventory planning
  • ABC analysis for each material / spare part
  • Safety Stock Value, Re-Order Point (ROP) Value & Economic Order Quantity (EOQ) Value
  • Calculation of average inventory and peak inventory values
  • Material Classification
  • Material Type
  • Moving Type (Fast, Slow, Dead Moving)