Você precisa adicionar a condição where à consulta interna que é usada como fonte para piovot e a consulta da lista de colunas
DECLARE @columns NVARCHAR(MAX)
,@sql NVARCHAR(MAX)
SET @columns = N''
--Get column names for entire pivoting
SELECT @columns += N', ' + QUOTENAME(SpreadCol)
FROM (select distinct Part_Number as SpreadCol
from test WHERE Quantity IS NOT NULL
) AS T
--select @columns
SET @sql = N'
SELECT SubPart, ' + STUFF(@columns, 1, 2, '') + '
FROM
(select SubPart , Part_Number as SpreadCol , Quantity
from test WHERE Quantity IS NOT NULL ) as D
PIVOT
(
sum(Quantity) FOR SpreadCol IN ('
+ STUFF(REPLACE(@columns, ', [', ',['), 1, 1, '')
+ ')
) AS Pivot1
'