How is it decided using scientific approach?
Can there be an objective measurement of criticality? Yes, there can be a realistic objective measure of criticality. It is the consequences of non-availability in monetary terms! Using information about customer requirements, probability of failure, time taken to procure, time taken for repairs and cost of process stoppage and other consequential losses a cost structure for assessment of service failure is developed. The structure takes into account downtime and other losses including those upstream and downstream and assigns a cost to the failure. Limits identified for failure cost for vital, essential and desirable help define the criticality in objective monetary terms well understood by all concerned. Stocks to match service needs is the scientific approach Planners of spare parts often base their periodic plans on current and of near-past and near-future requirements, which may be a few months interval. It is known that probably 50 to 90% of the spares do not have consumption rat
