CRITICALITY ANALYSIS OF SPARE PARTS USING THE ANALYTIC HIERARCHY PROCESS

Spare parts constitute a significant portion of the inventory in any m anufacturing organisation. Specifying optimal inventory control polici es for spares requires the use of forecasting techniques, ABC analysis , FSN analysis, VED analysis, etc. While the ABC and FSN analyses are straightforward, evaluation of the criticality of spares by using quan titative measures is difficult and problematic while performing VED an alysis. This paper describes the use of Saaty's analytic hierarchy pro cess for evaluating the criticality of spares. A three-level hierarchy has been suggested. Criteria influencing the criticality of different spare parts have been identified and the alternative modes for each c riterion have been specified. The model has been used to obtain absolu te measurements of criticality which can be compared with prespecified numerical limits for classifying spare parts as Vital, Essential, or Desirable. The model's working has been demonstrated through an illust ration involving a spare part in the inventory system of a large manuf acturing organisation.