Spend Analysis and Specification Development Using Failure Interpretation  book cover
1st Edition

Spend Analysis and Specification Development Using Failure Interpretation

ISBN 9781439851074
Published February 7, 2011 by CRC Press
368 Pages 25 B/W Illustrations

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Book Description

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 downloadable resources 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



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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.