Parts Cost
Parts Cost is the total financial expenditure incurred to acquire, hold, and utilize spare parts and replacement components required for asset maintenance, including purchase price, shipping, carrying charges, and obsolescence risks, as tracked within a CMMS.
In a CMMS like ServiceGrid, parts cost is captured by linking inventory items to specific assets and work orders, automatically allocating expenses to cost centers as technicians consume parts during corrective or preventive maintenance. Maintenance teams use CMMS purchase history to validate current vendor pricing, track lead times, and establish price objectives to prevent overpaying for recurring components. Reliability engineers calculate landed cost (purchase price plus annual holding burden, typically 18–30%) to determine optimal spare parts holding levels, ensuring critical parts are stocked without inflating total cost of ownership.
How is 'Parts Cost per Unit' calculated in modern CMMS?
It aggregates technician labor hours and MRO spare parts costs, then divides total financial spend by the exact number of good units produced, delivering a real-time OEE-validated metric.
What is the difference between 'Purchase Price' and 'Landed Cost' for spare parts?
Purchase price is the sticker cost; landed cost includes purchase price plus the annual burden of holding (storage, capital, insurance), which can add 18–30% yearly.
How does CMMS data improve parts cost forecasting for corrective maintenance?
By averaging historical corrective maintenance work order data across several years, CMMS generates a baseline estimate for unpredictable part costs, enabling more accurate budgeting.