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How does a Utility decide how many spare parts it needs for following year?

What business processes Utilities have for deciding how many spare parts they will need for maintenance and repairs the following year? For example, how many spare parts/materials they need for the following year for the Power Plants, for the Distribution business (cables, transformers etc) ? How do they do this in SAP?

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2 Answers

  • Mar 21, 2016 at 11:57 AM

    Hi Dimos,

    You can use the functionality of material requirement planning (MRP) for this.

    Regards

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  • Mar 22, 2016 at 11:32 AM

    Hi,

    As suggested by Amit, MRP is usually a criteria for Material planning in the utilities.

    They decide for Materials, what will be their minimum stock and what will be the maximum stock.

    They also decide what will be the re-order level for Materials based on which further Purchase Requisitions will be created in the system for procurement of items.

    Usually Utilities check what are the Materials which are fast moving items (gets consumed very frequently) and for them accordingly they decide their minimum stock level, maximum stock level and re-order level and then maintain this information in the Material Codes.

    Hope the provided information is helpful.

    With Best Regards

    MP Vashishth

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