optimized planning of repairable & consumable parts inventory

Webinar June 25th, 2013

Optimized Planning of Repairable Parts Inventory

Ulrika OlssonPhone: +49 173 710 90 [email protected] Syncron International ABPostfach 14 03 2940073 Düsseldorf, Germanywww.syncron.com

Nicole HeinzePhone:+46 709 822 [email protected] Syncron International ABÅngbåtsbron 1SE-20123 Malmö, Swedenwww.syncron.com

COPYRIGHT © SYNCRON INTERNATIONAL AB 2013

Table of contents

• Introduction

• Repairable Parts – Background

• Project ODIN Deutsche Bahn

• Closing words / Q&A


About Syncron

• We deliver solutions for optimize joint pricing and supply chain performance, easily.

• Our customers are multinational companies in manufacturing and distribution.

• We have active users in more than 90 countries around the world.

• Our customers are supported on every time zone by offices located in:

– America Chicago & Atlanta

– Europe Birmingham, Düsseldorf,

Malmö, Stockholm (HQ) &

Warsaw

– Asia Tokyo

Some Partners

Awarded 3 consecutive years

Awarded 5 consecutive years


We are trusted by leading global companies

http://www.global-toyotaforklifts.com/index01.html


Syncron product footprint

Right stock in the right amount at the right place at the right time


One Integrated Suite for Global Inventory Management

ManagementReporting

ReplenishmentPlanning

DemandForecasting

GlobalPlanning

Life cycleManagement

SeasonalityAnalysis

StatisticalForecasting

Forecast Alerts

Forecast Adjustments

Market Knowledge

InventoryOptimisation

StockReplenishment

InventorySimulation

OrderScheduling

Rotables Planning

InventoryAlerts

Supply Chain Visibility

VirtualPlanning

Buy Back Ordering

StockRedistribution

StockAllocation

Multi-EchelonOptimization

Key Performance Indicators

SystemConsole

EmbeddedAnalytics


Table of contents

• Introduction





Supply Chain for Durable Goods and Spare Parts

• Dependent demand is influenced by new product introduction, marketingcampaigns, economy, etc

• Make or buy

• Forward logistics process

SupplierCustomerDistributions

CenterPlant

Durable Goods

Plant

Supplier

Repair Facility

Central Warehouse

Stock Location

Stock Location

Stock

Stock

Stock

Stock

Installed Base of

Customers, Service

Providers or Service Engineers

Local stocking locations

Regional stocking locations

Spare Parts

• Erratic and independent as well as dependent demand due to unscheduled maintenance and repairs

• Multiple sources of supply such as make or buy, overhaul, repair and alternative items

• Forward and reverse logistics processes


Where, when and how to source required inventory

• The customer demand for spare parts can be fulfilled by either:

– Repairing a broken item in the repair workshop at a repair lead time

– Purchase a new item from an external supplier at a purchase lead time

• Repairable parts are sometimes scrapped, this takes place either when customers buy new items or when the items are being repaired

• In the repairable parts case we need to take different lead times, return and repair efficiency as well as availability of items that can be repaired into account


Table of contents

• Introduction





Project ODINGlobal Inventory Management at DB AG

T.WVM 1, 11.06.13 15

OBJECTIVES

Realization of individual levels of availability

Improved demand forecast

Daily calculated parameters for distribution (based on forecast, lead time, service-level, order quantity) for approx. 1 mio. SKU*

Optimization of stock balance by rule-based redistribution

Virtual central warehouse

*) stock keeping unit

The tasks of an optimized spare parts planning can be achieved by modern tools

T.WVM 1, 11.06.13 17

DB SPECIFIC SUPPLY CHAIN

GIM supports the core elements of our supply chain

purch.requisitio

n

"Materialdisposition" ("distribution & supply) w/ DB Fahrzeuginstandhaltung

Stock management

purchaseorder

procurement & delivery

parameter

calculation

stockmanage-

ment

incoming

ordersforecast

supplymonitori

ng

ordersuggest

demandhistoryAND/ORmanualdemandplanning/reservations

statistic based forecast

to support manualdemand planning

Optimized buffer stock and order level. Updated

monthly for~1 mio. SKU

Rule based redistribution

proposal;optimized order

quantity

Warning in case of runout, changes in demand structure,

etc.

at start:manual check of

all orders by planners

GIM s u p p o r t

T.WVM 1, 11.06.13

The new software has been integrated into the existingIT-landscape

SYSTEMS

R/3K Host

R/3-LVS

R/3 AAR

DB Network

R/3 ISI

"Klick-Shop"

to come:PLS

Changes to material master dataRegistered movementsStock levelOpen PO ordersContracts (Supplier agreements)

Accepted orders /redistribution orders

Order proposalsOpen reservationsOpen repair orders

GIM/"ODIN"

KLÜ MBP

T.WVM 1, 11.06.13


purch.requisition


Stock management

purchaseorder


parametercalculation

stockmanage-ment

incomingorders

forecastsupplymonitoring

ordersuggest


GIM system forecast+DB specific planningtotal forecast

T.WVM 1, 11.06.13 20

Items are classified into different demand types – individual forecasts & levels for availability are calculated

Lumpy Slow

ErraticFast Negative Trend

New Dying Obsolete

Positive Trend

DEMAND TYPES

T.WVM 1, 11.06.13 21

Manual demand planning has been established beforeusing specific adjusted specific demands per vehicle & event

FZI

Werk SAP# Menge Monat1312 1232456 1 01.101312 1232456 1 02.10

…1312 345728 5 01.10

Result (updated monthly)

shown in SAP

but no automatic processing

drill down of BOMfor rotables secondary demands

WorkshopLong Distancetrains

Regio SCHENKERRAIL

FZIRevision

E x t r a p o l a t i o n f o r p r i m a r y d e m a n d s :

TOTAL OF ROTABLES

based onkilometers per fleet

based on plannedmaintenance events

per vehicleseasonal demands


per vehicleseasonal demands

only availablefor DB as a whole


i.e. number of revisions

PURCHASE PARTS

T.WVM 1, 11.06.13


purch.requisition


Stock management

purchaseorder



stockmanage-ment

incomingorders


ordersuggest


service level

buffer stock

order level

T.WVM 1, 11.06.13

Spare parts are classified depending on number of picks and valueof annual usage

STRATEGIC MATRIX PER WAREHOUSE OR CLASS OF PARTS

23

T.WVM 1, 11.06.13


purch.requisition


Stock management

purchaseorder



stockmanage-ment

incomingorders


ordersuggest


daily check:

stock levelvs.

order level


Standard principles applies for all spares

• Redistribution is used to balance excess stock in warehouse with shortfalls in other warehouses

• Virtual planning can be used for efficient management of slow

moving items in specific regions

T.WVM 1, 11.06.13


purch.requisition


Stock management

purchaseorder



stockmanage-ment

incomingorders


ordersuggest


Order quantity

Daily orders


Integrated view of all Recommended Orders

Indication for different order types

Reparable item icon


Repairable Parts Pop-up

New or repaired parts info Defective parts info

Supplier info Repair workshop info

Scrap rates


Stock Details Pop-up

Stock information during the supplier and workshop lead times respectively


Stock Details Pop-up, contd.

Prediction of total stock

Prediction of serviceable stock


System console – Summarized view of your spares

Summarized view of the status of all

your items


Table of contents

• Introduction





Interested in more information?

• Read & Download:

– Spare parts inventory optimisation is vital for high rail fleet operational availabilitywww.syncron.com -> Resources -> Articles

– Deutsche Bahn AG case studywww.syncron.com -> Resources -> Success Stories


End of presentation / Q&A

Thank you for Your attention !

Syncron International ABPostfach 14 03 2940073 Düsseldorf, Germany

[email protected]: +49 173 710 90 04www.syncron.com

Ulrika Olsson

Syncron International ABÅngbåtsbron 1SE-20 123 Malmö, Sweden

[email protected]+46 709 822 228www.syncron.com

Nicole Heinze

mailto:[email protected]

mailto:[email protected]

optimized planning of repairable & consumable parts inventory

Technology

spare parts dependent

right time

required inventory

repair lead time

supply chain performance

new items

right place

new product introduction