Hydrocarbon Processing - December 2020 - 53

Plant Design, Engineering and Construction
the ERP for tracking and receiving them
into stock when they arrive.

TABLE 3. Packing tips for TYOSP
1

Packing list must strictly conform with the packing content, and the vendor will be
responsible for the accuracy of the weights, quantity and dimensions declared.

Packing cases and other shipping containers must be capable of giving adequate
protection to contents for a period of 1 yr after dispatch from the vendor workshop.

TYOSP must be protected and packed in such a manner as to ensure a minimum
shelf life of 4 yr in an un-airconditioned warehouse sited in an extremely dusty,
heavily industrial and coastal area with salt pollution, where the maximum shade
temperature may vary from 10°C-45°C and where relative humidity reaches 85%.

Consumable items, such as bolts and nuts, must be adequately oiled to prevent corrosion.

Electronic and instrument parts should be packed in sealed, clear plastic bags
along with a bagged amount of desiccant.

Special storage items are to be clearly labeled with storage instruction such as:
" 1) Store in a cool, dry place at XX°C, to be stored under cover, keep humidity
below XX%. " The label should be clearly marked outside the shipment, so it can be
taken directly with special care.

Any protection of stainless-steel parts should not contain chlorides or harmful metal
salts such as zinc, lead, copper, etc. Also, marking paint or ink shall not contain similar
harmful components.

Seaworthy packing. The spare parts

procedure outlines the required method
of packing, preservatives to be applied
and the number of copies of the packing
list. Typically, capital spares (e.g., rotors)
should be packed in metallic containers
filled with positive nitrogen pressure. The
spare parts should be packed in seaworthy
packing, properly sealed from the inside
and suitable for outdoor, open storage.
The various spare parts should be packed
separately and labeled as per accepted
norms. All boxes should have an individual packing list, and a copy of the packing list and approved SPIR sheet should
be kept inside the box, as well. Packing
requirement details are shown in TABLE 3.
Avoid double handling. Project spares

and equipment may be shipped together
or separately. However, spare parts packets/boxes are packed separately and not
mixed with equipment crates or boxes.
Spare parts boxes are directly unloaded
to the steady-state company warehouse
(main stores) and not stocked at the project warehouse. This avoids double handling and mixing project materials with
operational spares. The project warehouse handles consignments that are directly required for the project execution
(equipment, piping, cables, etc.).

inspected and binned. The SPC is responsible for inspecting the project spares and
authorizing stores for binning, if needed.
Retain vendor tag. Even if a company
has a policy of placing its labels on all items,
vendor tags should never be removed, as
they help in proper part identification.
Original packing. After inspection,
spare parts should be packed back in their
original packing to prevent damage and
deterioration, especially items such as
journal and thrust bearings, etc.
Binning. When the SPC is ready to in-

Consignment tracking. The SPC must

track received consignments by box number, weight, packing list number, base PO
number, spare parts PO number, vendor
number, etc. A simple spreadsheet may
suffice for proper tacking of spare parts,
but a more in-depth database program is
very useful (FIG. 3).
Capital spares management. Although ordered with the equipment, capital spares should be unloaded directly in
a steady-state warehouse-rather than
in project stores-for proper inspection
and preservation.
Spare parts inspection. Consignment

boxes should be kept in a closed warehouse and remain unopened until inspection. The vendor should tag each item with
company stock number, order number, order line item number, vendor part number,
etc., so that items can be easily identified,

spect the spare parts, the spare parts boxes
should be opened one at a time so that all
parts can be identified, tallied with the
spare part PO for quantities, labeled properly and accepted for binning.
If the steady-state warehouse is not
prepared for binning, the inspected spares
are again packed in the same box and segregated from the uninspected boxes. After inspection, the spare parts should be
stored as per the recommended storage
code and location updated in the ERP.
Status change. Once all the items of a

given spare parts PO are inspected and
accepted, payment to the vendor is processed by the company SPC. Necessary
changes in the tracking sheet are completed, and the status of the PO is updated as " received. "
Project surplus. At the end of the project, it is not uncommon to have surplus

construction material, such as cables,
fasteners, pipe and pipe fittings, gaskets,
etc. Often, the project team dumps everything in the operational warehouse
without proper labelling and packing
lists. Operational stores should insist on
proper labeling with company stock numbers and packing surplus material before
they accept anything into their custody.
If stock numbers do not exist for some
project surplus, the same is to be created
before transferring the surplus to the operational warehouse.
Simultaneous go-live of the PM
module. The plant maintenance (PM)

module of the ERP should also simultaneously go live so that the project equipment master, equipment bill of material
(BOM), etc., can be uploaded with the
material master.
LITERATURE CITED
Iyer, K. R., " Reduce inventory by eliminating multiple parts codes, " Hydrocarbon Processing, June 2004.
2
Iyer, K. R., " Shape up your system for stocking spare
parts, " Chemical Engineering, June 2004.
3
Iyer, K. R., " The secret of getting your inventory
under control, " Chemical Engineering, September
2005.
1

K. R. IYER is Head of
Manufacturing Excellence for
Indorama India Pvt. Ltd. and has
more than 36 yr of experience in
the areas of projects, reliability
and maintenance, and inventory
control of large refineries and
fertilizer and petrochemical plants. He has authored
numerous technical articles for various national and
international journals. Mr. Iyer holds a BTech degree
in mechanical engineering and an MBA degree from
South Gujarat University.
Hydrocarbon Processing | DECEMBER 2020

Hydrocarbon Processing - December 2020

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