Spare Parts Management. A practical deep dive

Transcription

1 Spare Parts Management A practical deep dive

2 The key-challenge We believe that physical assets do not have to be down due to a shortage of spare parts against reasonable costs! Hence, all our efforts focus on optimising the triangle Availability Working capital Operational costs 2

3 Agenda SPM as an emotional rollercoaster Many causes for bad performance and high costs Practical SPM principles Implementation challenges A successful case at the Dutch Railways 3

4 SPM as an emotional rollercoaster High stock holding costs Machine defect Controller SPARE PARTS MANAGEMENT Operations NO Spare Part available Material planning & Procurement No man s land Niemandsland Artisans Many material planners/buyers = High operational costs Store manager Store full with the wrong parts 4

5 There are many reasons for low performance levels and high costs Control level KPI measurements Inflexible supply constraints Poor parameter control Limited knowledge stock control No service level differentiation applied No adequate KPIs and no PDCA Supplier Procurement Warehousing and logistics Spare parts management Engineering and datamanagement Maintenance planning Maintenance operations A big amount of uncoded spend Poor delivery performance Incomplete BOM Limited proactive planning of maintenance Poor registration of spares used Too few fast moving spares under contract Low stock accuracy Bad management on component supersession No reliability figures available Uncertainty in spares to be used 5

6 Item price Practical SPM principles Our basic methodology Enhance demand Adequate modeling predictability Try to scale up Low High Reduce variation in supply lead times Medium/high service level LEAN Management by exception Fully automated process Apply risk management Low service levels except for critical parts JUST IN CASE Accept high safety stock Speed up phase outs High service level Working capital Availability LEAN Operational costs Very high service level WHOLESALE WHOLESALE (CLEAN) High Demand frequency Low 6

7 Practical SPM principles Wholesale example Demand variance OK? WHOLESALE Lead time OK? METHODOLOGY MANAGEMENT BY EXCEPTION 7

8 Practical SPM principles Lean example Develop supplier collaborations based on forecast & delivery schedules Essentials: Proper feed-in from maintenance & procurement Addressing the soft side of relations LEAN Faster and more flexible supply; net stock reduction PURCHASE ORDER WORK ORDER Parts are delivered with same service, but with lower costs Supplier Stock control/ warehousing Maintenance Operations Share demand forecast with suppliers & guarantee turnover 8 Share maintenance planning & demand forecast

9 Probability (%) Practical SPM principles JIC example -1 VIRM Bogie revision Type used in VIRM, designed and built by Bombardier In a project, 150 bogies need to be maintained and modified BOGIE JUST IN CASE Failure and demand data: Failure probability per bogie: 1% per part installed Number installed per bogie: 1 Number of bogies: 150 Statistical distribution: => Expected demand: 0.01 x 1 x 150 = 1.5 Supply data: Price: approx Lead time: 150 calendar days Minimum Order Quantity: 10 Demand (pieces) 9

10 Practical SPM principles JIC example -2 PROCUREMENT JUST IN CASE OPTION I Upfront Investment RISK MANAGEMENT OPTION II NO Upfront Investment A Extra maintenance research B Use spare parts from WIP C Other Investment: 250 K Surplus: 225 K Risks: Dead stock Pro: No stand still Investment:?? K Surplus:?? K Risks: Stand still?? Pro: No/Less dead stock?? 10

11 Implementation challenges -1 However, some kind of maturity already enables spares optimisation: Spares optimisation has LOW probability of success 11

12 Implementation challenges -2 Get the right mix of people on board COMPETENCES & SKILLS Ideal situation Higher education Outgoing, communicative Aiming for the exceptions Material planners are operational, transactional driven Is your material planning department a social work centre? In practice Product knowledge OK Damaged by experience Little SPM knowledge Solitary minded Treating every requisition the same way 12

13 Case study: NedTrain Brief introduction NedTrain is responsible for the maintenance, revision and overhaul of all trains of the Dutch Railways. In this case we focus on the department responsible for the maintenance of wheel sets and bogeys. The objective was clearly stated: Reduce the spare parts inventory with 35% while maintaining the current levels of parts availability. 13

14 Stock availability Stock value (million euro) Case study: NedTrain Project results % 99% 98% 97% 96% 95% 94% 93% 92% Target Total Scope Target Total Scope RESULTS 38% stock reduction 99% stock availability sustained 20% operational costs reduction High customer satisfaction:

15 Lunch 15