Spend Analysis and Specification Development Using Failure Interpretation: 1st Edition (Paperback) book cover

Spend Analysis and Specification Development Using Failure Interpretation

1st Edition

By Michael D. Holloway

CRC Press

367 pages | 25 B/W Illus.

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Considering that the biggest machines that do the most work are made up of smaller machines and components, it becomes obvious that when a large machine breaks, it is normally due to small components acting antagonistically. Detailing a time-tested method for increasing productivity and lowering operational costs, Spend Analysis and Specification Development Using Failure Interpretation explains how to establish performance-based procurement specifications for the components, devices, and items that contribute the most to operational downtime and repair/replacement costs.

The book emphasizes the critical need to perform both spend and failure analysis in order to develop a procurement document, which will ultimately reduce overall costs. Accompanied by a CD with helpful material such as, specification checklists, case study worksheets, form letters, and return on investment (ROI) worksheets that you can customize to your needs, the text discusses how to:

  • Identify the products that will cost the most if they fail
  • Develop performance-based procurement specifications to reduce direct and indirect costs
  • Examine cost analysis as it relates to operations, maintenance, and production
  • Determine effective criteria based on properties, test results, and standards for each operation

Written by an industry expert with decades of experience giving seminars, training customers and associates, and authoring numerous papers and articles, the text provides the real-world understanding of the influential components and materials’ physical properties needed to engage in effective failure and spend analysis. It addresses product submission and monitoring and includes helpful tools so you can immediately get started on conducting your own cost-saving analysis.

Table of Contents

Buy Bye

Buying to Save—Cost and Value

Concerning Warranties

Defining Operation and Time Costs

Some Recent MRO Recall Items

On the Road to a Profit Return on a Purchase

Costs and Value

Manufacturing Costs

Material Costs

Labor Costs

Manufacturing Overhead

Additional Costs

Cost Behavior Patterns

Examples of "Wasted" Cost Overruns—The $600 Toilet Seat

Cost of Failure

Case Studies—An Effective Way Toward Change

Other Costs Defined

Determining the Return on Investment (ROI) of a Purchase

Applying the ROI Formula


Tools for the Specification Development Process

Source of Failure

Assessing the Situation

Failure Defined

Taking Advantage of Failure

Sources of Failure: Man, Materials, Methods, Machines

Manmade Failures—Failure of the Employees

Manmade Failures—Failure of Managers

Method Failures—The Failure of Business

Failure of Materials, Failure of Machines

Types of Forces


Creep (Deformation)

Fatigue (Material)

Rate of Fatigue


Brittle Fracture

Ductile Fracture



Thermal Shock Failure

Oxidation—Molecular Transitions and Chemical Influences


Deposit Formation

Factors That Affect Deposit Formation

Concentration and Pressure

Particle Size and Contaminant Type


Tools for the Specification Development Process

Failure Mode Work Sheet Key

Using the Information Gathered

Fact Finding and Documentation

Physical Properties and Standards

Obtaining Standards from ANSI

Adhesives and Sealants

Paints and Coatings

Coating Failures

Gaskets, Seals, and Belts


Wire Rope


Failure of the Fitting

Joint Failure



Fasteners—Screws, Bolts, Nails, Staples




Gear Oil

Electrical Wire


Light-Emitting Diode (LED) Failure Modes

Electric Motors


Tools for the Specification Development Process

Case Study Work Sheet

Finalizing the Purchasing Specification and Selecting Vendors

Writing the Purchasing Specification

Specification Further Defined

Product Application Requirements

Figures and Tables

Group Terms

General Operational Requirements

Functional Requirements

Performance Requirements

Design Requirements

Terms and Conditions

Price per Units, Payments, Incentives, and Penalties

Contractual Terms and Conditions

Requirements of the Reply

Evaluation Process

Contact Points


Specification Example

The Leon-Maxwell Performance Equation

Application Examples

Excessive Load Example

Excessive or Localized Heat


Green Procurement

Conclusion and Summary



About the Author

Michael Holloway has 25 years of industrial experience. His background includes organic and polymer synthesis as well as laboratory- to pilot-scale material manufacturing for Olin Chemical (Wilmington, Massachusetts), military and aerospace product development of sealants and coatings for Parker-Hannifin (Cleveland, Ohio), product engineering microelectronic photoresists for Rohm & Haas Electronic Chemicals (Midland, Michigan), technical marketing and application engineering for General Electric Plastics (Fairfield, Connecticut), sales and marketing management of automated dispensing systems for Graco (Minneapolis, Minnesota), and most currently as director of reliability and technical development of industrial and heavy equipment lubrication for NCH Corporation (Irving, Texas). Through the course of his career, Holloway has been involved in training customers and associates, giving seminars, as well as authoring numerous papers and articles as well as presenting novel concepts and case studies at national conferences. He has served as a contributing writer for Manufacturing.net, ASSEMBLY magazine, PlantServices magazine, Render magazine, and Lubrication and Fluid Power magazine.

Holloway has been master black belt trained in Six Sigma, served as an adjunct professor at the University of North Texas, and was managing editor for Porsche Club of America’s Slipstream. He holds a BA in philosophy and a BS in chemistry from Salve Regina University, Newport, Rhode Island, and an MS in polymer engineering from the University of Massachusetts.

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Quality Control
BUSINESS & ECONOMICS / Industrial Management
BUSINESS & ECONOMICS / Facility Management