Physical Asset Management Spares Requirements Determination - A Human Factors Perspective

Abstract

Spares determination is the process of determining what spare parts, in the right quantity and when they are required, to support the maintenance of a physical asset such as a ship. With an understanding of the configuration and mean time between failures of an asset’s components, organisations are able to determine the maintenance and parts required to keep it at the required level of availability. Feedback through use should further enhance asset knowledge leading to more efficient and effective spares determination. The thesis presents evidence that organisations are ignoring theory in acquisition and feedback loops in asset operation, rendering their spares determination inefficient and ineffective. A significant gap in spares determination knowledge was found that indicated that factors such as culture, leadership and demographics (human factors) may explain why the theory was not being applied. The project used a mixed methods approach. The quantitative phase consisted of a workforce survey conducted across 14 different business units (n=219) in the Australian Department of Defence. Responses were analysed through multiple regression with spares determination performance statistics. Statistical models supported the proposition, with approximately 50% of the sample’s variation explained by human factors. Surprisingly, the models indicated that theory was being applied to drive effectiveness not efficiency as it was designed. These unexpected results were explained by the qualitative phase of the project, which included a total of 25 semi-structured interviews of personnel from four business units. These found dominant military ‘can-do’ culture which emphasised effectiveness to drive asset availability at the expense of efficiency. Where transformational leadership existed, entrepreneurial behaviours where modelling, experimentation and planning provided more effective spares determination. These business units also overcame a series of organisational issues preventing better performance. The thesis quantified the large impact of human factors on spares determination performance. It found that organisational culture and transformational leadership were the factors that had the greatest influence on spares determination efficiency and effectiveness. These findings provide an opportunity for further theoretical and practical development of asset management and integrated logistics support that should yield a substantial increase in spares determination performance.