Evaluates the total cost incurred from replacing spare parts in service operations.

What it Measures ?

How much we spend on replacing parts.

Relevant StakeHolders 

Finance, Procurement

In-depth Use Case / Real-world Example

This KPI tracks how much is spent on parts replacements over a defined period. For example, if ₹1.5 lakhs is spent in a month replacing damaged parts across service calls, this figure helps evaluate cost-effectiveness in field operations. It’s particularly relevant in manufacturing where frequent replacements can signal issues in equipment quality or service planning. Monitoring this helps control service costs, renegotiate supplier contracts, or initiate design improvements in equipment.