• Sourcing an OEM part from an alternate manufacturer (aftermarket) who can produce to same/similar specs at lower cost than OEM.
• Going Aftermarket also solves long lead time issue from OEM and reduces/eliminates line down time due to not having part on-site (TCO benefit)

• Enforcement of purchasing compliance to lowest cost aftermarket vendor from Procurement. 
• Plan operations need to ensure utilization of the recommended aftermarket parts manufacturer/supplier. 

• Since this MRO tactic generates significant savings, can the productivity be counted already in year 1 of implementation where it is calculated based on lower cost vs buying new from OEM?
• If not full implementation in year 1, carry over to year 2?

Cost reduction per unit due to Aftermarket parts sourcing counts as Productivity if we can determine a sound baseline, there is YoY rate reduction, and the process is of recurring nature. 

Governance:

• Establish a process and policy to account for aftermarket fabricated parts, with reporting requirements in concert with Plant operations. 
• Record productivity based on cost of a new part vs. cost of aftermarket fabrication. 
• Use the TCO approach and consider impact on life of repaired part, additional expenses i.e. freight, supplier spend/margins, etc. 
• Use the formula (Baseline part cost - Actual cost) x current year volume.