Master of Business Administration
Faculty / School
Faculty of Business Administration (FBA)
Dr. Rameez Khalid
Committee Member 1
Dr. Rameez Khalid, Assistant Professor, Faculty of Business Administration, Institute of Business Administration, Karachi
MBA Research Project
Abstract / Summary
Spares management is one of the key areas of outage in Hub Power Station. It also constitutes a major portion of maintenance cost. Foreseeing increasing competitiveness in the power industry in Pakistan, the project is aimed to study existing process and identify the issues, improvement areas in the existing system through in-depth system analysis and industry best practices bench marking.
Research methodology employs qualitative and quantitative approach. Structured interviews have been conducted with Hub Power Plant key stakeholders including Maintenance Managers, Store Manage, Finance Manager, Procurement Manager and Shipping Officer which form part of qualitative analysis. Content analysis has been carried out afterwards to ascertain the key issues, vulnerabilities and solutions. Furthermore, a Karachi based electric utility reverse engineering department manager has been interviewed to ascertain the purpose, effectiveness and whether it can be pursued by Hubco.
The results of the analysis indicate that in order to improve the spares management in terms of cost, excess inventory built up following are the key areas to address:
- Carry out spares’ classification according to Kraljic’s classification approach
- Work on reverse engineering, alternate sourcing and Long-time parts agreements for strategic and bottle neck spares.
- Initiate spares requirements submission via CMMS by identifying spares required against work orders raised in CMMS. It will improve job cost tracking and increase process efficiency.
- Introduce Spares required versus consumed, procurement cycle time and cost stock required versus budgetary cost variance.
Rahman, M. N., & Rabbani, N. (2019). Outage spares management at Hub power station: Hub Power Company Ltd. (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/226
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