Business White Paper OEM Spare Parts 2014

8/12/2019 Business White Paper OEM Spare Parts 2014

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WRTSIL SERVICES BUSINESS WHITE PAPERHIGH QUALITY SPARE PARTS FOR RELIABLE OPERATIONS

HIGH QUALITY SPARE PARTS FOR RELIABLE OPERATIONSENHANCED PERFORMANCE, MINIMISED DOWNTIME AND INCREASED PROFITABILITY THE VALUE OF A RELIABLE AND GLOBAL OEM SPARE PARTS SUPPLIER

Quality par ts are the source of reliability ............................................................ 2

Prompt availabil ity of spare parts ........................................................................ 3Lifecycle optimization ...........................................................................................4

Summary ............................................................................................................... 6

Contents

Players in both the marine and the power sector are looking

for solutions to reduce their maintenance costs and increase

productivity in these increasingly competitive markets. On one

hand this has resulted in a tendency to look for quick short term

cost savings. But on the other hand it also means that owners and

operators are increasingly looking beyond the initial outlay and

searching for longer lasting and more reliable performance as well

as lifecycle cost efficiency.

Wrtsils Services offering is built around three main customer

needs regarding the continuity and cost efficiency of their business

(Preventive), their ability to tackle the unexpected (Responsive), and

lifecycle efficiency (Optimizing). High quality OEM spare parts play

an integral part in making sure these needs can be met.


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In a sense, the reliability of an installation or an operation is the sum of its parts,

including spare parts. Often all it takes for a major breakdown or a malfunction

to happen is the failure of a single part. The risk for such breakdowns can grow

if non-OEM quality parts or parts that are not of the latest revision are used. This

is why thoroughly checked and tested OEM spare parts that comply with major

quality standards and authority regulations are the most competitive choice in

the long run.

All in all, spare part costs account for a relatively small par t of the totaloperational expenditure of an installation. In the marine sector for example,

the average share of spare par ts is approximately 515%*. However, from a

lifecycle cost perspective, the use of OEM parts can offer value that goes far

beyond the spare part costs.

The shorter service life and possible unreliability of non-OEM spare parts may

lead to high repair costs over the installations lifecycle, far exceeding the spare

part costs. Due to possible revenue losses, the extra interruptions to operations

may quickly become extremely expensive. Also, using inferior spare parts instead

of OEM may result in higher lube oil or fuel oil consumption leading to a dramatic

increase in total operating costs.

New technology for all installationsAn installation should continue to deliver optimum performance throughout its

entire lifecycle, running without problems day in and day out. Thats why new and

old installations should all be managed in a modern way, using parts that are of

the latest applicable standards and specifications.

Original Wrtsil spare parts comply with the latest specifications and prolong the

lifecycle of the installation. On-going research and development and support from

Wrtsils global network ensure that customers always get the latest applicable

parts and ensured reliability. Tests have consistently proven that Wrtsil OEM

parts improve engine performance and reliability, and reduce overall owning and

operating costs.

Wrtsil OEM spare parts perform when the demands are highAll original Wrtsil spare parts have passed through extensive procedures for

laboratory and field tests in order to make sure that they comply with the required

specifications. Strict quality management ensures that all parts are of high quality

standards and are therefore delivered with full warranty.

Qualified for demanding areas like nuclear and naval

Several quality certificates such as ISO and Bureau Veritas

Class approval for the marine, naval, and nuclear business

Quality management systems regularly audited by internal and external auditors

QUALITY PARTS ARETHE SOURCE OF RELIABILITYOEM PARTS ARE CRITICAL FOR MAINTAINING OPTIMAL PERFORMANCE

Preventive ensuring the continuity and cost efficiency of customers businesses

In the marine sector the average share

of spare parts of the total operational

expenditure is approximately 515%*.

Saving in the wrong place can turn out

to be costly. A company saved roughly

500,000 EUR on maintenance and

spare parts costs. As a result two major

engine break downs took place within afew months, leading to estimated repair

costs of more than 2 million EUR on

a single engine.

* Depends on e.g. vessel type and scope of spare parts included. (Moore Stephens, OpCost 2011 Benchmarking vessel running costs , December 2011;

V.Ships, Opex The Ship Management View presentation, 2012)


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Taking a lifecycle view makes it apparent that maintenance and fuel costs are a key factor in

the installations total economics. Spare parts can play an important part in optimizing the

overall efficiency. By combining OEM spare parts with e.g. condition based monitoring and

smart maintenance planning, considerable enhancements to the planning and optimization

of the installations operation throughout its lifecycle can be achieved.

The flexibility of purchasing as well as the availability of services and expertise are all fac-

tors that should be considered when evaluating spare parts suppliers and their capability to

ensure optimized operations.

Expert services help optimize operationsKnowing what parts to use and how they fit to the installation as well as how the installation

has been modified over time is essential. Along with the physical spare parts, an OEM parts

provider can provide services for ensuring compliance with regulations and the compatibility

of parts with current engine specifications as well as future upgrades.

The intelligence and accumulated knowledge that Wrtsil has through research and devel-

opment and as an experienced OEM manufacturer and service provider make it possible to

offer additional services along with the parts, such as efficient trouble shooting, technical

assistance and performance analysis services as well as root cause analysis and compo-

nent traceability in breakdown cases.

Additional levels of support for the customers installations can also be provided throughWrtsils service agreements, ranging from technical management and maintenance to

complete asset management solutions.

Wrtsils one stop shop serves more than just the engineOne stop shopping makes the purchasing of spare parts considerably more efficient, saving

precious time as well as simplifying logistics. Wrtsil offers its customers one contact point

for all OEM spare parts and consumables for engines, gensets, propulsion systems, electri-

cal, control and automation systems as well as auxiliary equipment for all Wrtsil brands.

This improves the efficiency of spare parts purchasing in terms of time and money spent,

and also enables customers to benefit from services and support for better planning and

overall operational efficiency of the installation.

Wrtsil also offers different options, including efficient online channels, to customers in

terms of supplying spare parts. To simplify transactional ordering, there are pre-defined

spare part kits and sets available for a wide range of needs. Tailored packages for specific

needs can also be put together.

In many cases remanufacturing and reconditioning solutions are a cost efficient choice,

with the added benefit of reusing materials for a reduced environmental footprint. Through

combined use of remanufactured and new parts it is in some cases possible to achieve

20% cumulative savings in maintenance costs over a 10 year time span. Wrtsil keeps an

exchange part stock of reconditioned components and even complete engines at all times

to enable fast responses.

LIFECYCLE OPTIMIZATIONIMPROVED EFFICIENCY THROUGH SMART PLANNING AND EXPERT SERVICES

Optimizing enabling customers installations to operate at optimal efficiency throughout their lifecycle

OEM expertise is essential

for maintenance success.

A customer installed

non-OEM spare parts

and performed the

maintenance work without

Wrtsils specifications.

As a result they suffered

a major engine fai lure and

were forced to order a new

engine. Production was

down for the entire delivery

period of the new engine.



CASE: NESTE SHIPPING

Improved performance, easier forward-planning and lower costs

Need-based spare parts delivery as part of a maintenance agreement

In 2009 Neste Shipping set out to find a one-stop solution to ship maintenance and

performance optimization. Strict budgetary and operational requirements had to be

met, so it was clear that more than the usual solution was cal led for.

Acting on Wrtsils suggestion, Neste Shipping opted for a five-year maintenance

agreement including planned need-based delivery of spare parts and the option of full

buy-back and return on all spares not needed.

Need-based delivery frees up office and ship personnel to focus on their core work, as

spare parts deliveries are triggered by data reported to Wrtsi l based on the constantmonitoring of the engines. The arrangment has proved to be a success, and according

to Neste Shipping it is the most cost-effective way of following their strict spare parts

and maintenance policy.

It takes the right mix of

planning, policy and business

skills to get five-year price

stability, increase engine

performance and make

forward-planning easier

Sami Niemel

Neste Shipping, Finland

Comparison of injector seals for the

Wrtsil 26 engine

The Wrtsil OEM seal has perfect circumferential

uniformity, while the non-OEM seals pictured next to it

are unevenly cut. In addition to such immediately visible

deficiencies, there can also be differences in e.g. mate-

rial specifications. These non-OEM seals would have

had the potential of causing expensive damage if they

had been installed.

Spare parts and lifecycle cost optimization

Some points to consider

An OEM quality spare part can have up to 50% longer lifetime compared

to non-OEM parts.

Through good cooperation between the original engine manufacturer and

the customer, considerable savings in fuel costs and overall lifecycle costs

of the equipment can be achieved. Efficient maintenance planning as well as the expertise and recommenda-

tions provided by the OEM manufacturer regarding for example the stocking

of critical parts on board or on site can help avoid unexpected downtime

and shorten the time needed for emergency repairs.



What are your specific needs?With more than 17,000 MW under service agreements, Wrtsil is recognized

as the preferred service supplier by customers, ensuring the availability and

cost-efficient operation of their installations. We operate and maintain more than

500 installations covering a wide variety of land-based, marine and offshore

installations.

Wrtsil offers four types of standardized agreements ranging from supply

agreements to technical management, as well as maintenance agreements and

complete asset management. However, all agreements are customised to fulfill

each customers specific needs.

Want to know more?Please contact us:

www.wartsila.com/services

2014 Wrtsil Corporation All rights reserved

No part of this publication may be reproduced or copied in any form or by any means (electronic, mechanical, graphic, photocopying, recording, taping or other information retrieval

systems) without the prior written permission of the copyright holder. Neither Wrtsil Finland Oy, nor any other Wrtsil Group Company, makes any representation or warranty

(express or implied) in this publication and neither Wrtsil Finland Oy, nor any other Wrtsil Group Company, assumes any responsibility for the correctness, errors or omissionsfor information contained herein. Information in this publication is subject to change without notice.

No liability whether direct, indirect, special, incidental or consequential, is assumed with respect to the information contained herein. This publication is intended for information

purposes only.

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Business White Paper OEM Spare Parts 2014