Download - 2005 Juan Zhao - Spare Parts Management
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 1/21
Doctoral Seminar
14-July-2005
Juan Zhao
University Mannheim, Chair of Information Systems III, Prof. Schader
Spare Parts Management
--Strategies and Processes
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 2/21
2
Content
1. Review on the last work
2. Objectives in Spare Parts Management
3. System Analysis
4. Logistics Strategies
5. Process Management
6. Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 3/21
3
Review on the last work
Spare Parts Management in Aerospace Industry
Definition
Business background
Literature Review
Business Models, Processes and IT systems
Review
Objectives
Analysis
Logistics StrategiesProcesses
Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 4/21
4
Objectives of Spare Parts Management
Customer Facing
Reliability
Responsiveness
Flexibility
Internal Facing
Cost
Asset Management
Visibility
Review
Objectives
Analysis
Logistics Strategies
Processes
Further Research
Supply Chain Council, SCOR 7.0, 2005
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 5/21
5
System Analysis
unsatisfying performance of Spare Parts Management
Avg. Numver of stockouts
and spares inventory turns per year
513,9
216,1
101,5
231
2724,11
5,25
4,62
76,75
0
100
200
300
400
500
600
Ae ro sp ac e A ut om ot iv e H ig h- te ch M et al s/ me ta l
products
Overall
0
1
2
3
4
5
6
7
8
Avg. Number
of stockouts
per year
Average
spares
inventoryturns per
year
Source: Aberdeen Group September 2003
Review
Objectives
Analysis
Performance
System Theory
Structure Mapping
Logistics Strategies
Processes
Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 6/21
6
System Analysis
System Structure and Behavior
time
stock
2. Order System
1. Order System
goal
Model of a Second Order System
Order Received
Goal
Order Rate
ShipmentRate
stock
Adjustment
gap
Shipment
Adjustmenttime
Adjustmenttime
Oscillation Reason: material and information delays
Review
Objectives
Analysis
Performance
System Theory
Structure Mapping
Logistics Strategies
Processes
Further Research
Over stock
Stock out
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 7/21
7
System Analysis
Spare Parts Management: complex dynamic system
Part Supplier
Customer
SalesManufacturing
Warehouse
Procure-
ment
Product
Engineering
Logistics
Repair
Center
Marketing
Field
Service
Producer
Review
Objectives
Analysis
Performance
System Theory
Structure Mapping
Logistics Strategies
Processes
Further Research
Dealer
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 8/21
8
Logistics Strategies
Transportation- Expediting
- Outsourcing
- Direct shipment by part supplier
Inventory- Forecast Method
- Purchase: design/manufacture for serviceability, VMI
- Inventory: part segmentation (Cost based , Movement based , Criticality based);
virtual inventories
- Outsourcing
Location
- Warehouse: Centralization/Decentralization; Hub- and Spoke; outsourcing- Repair Centre: outsourcing, leave it to supplier or customer
Other:- alliance, e-Commerce, m-Commerce
Review
Objectives
Analysis
Logistics StrategiesProcesses
Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 9/21
9
Logistics Strategies
The system becomes more complex.
Processes and IT systems must be adapted to the strategies.
Review
Objectives
Analysis
Logistics StrategiesProcesses
Further Research
Part Supplier Customer
producer
Dealer
3PLs
ServiceProvider
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 10/21
10
Process Management
Business Processfour perspectives: deterministic machines; complex dynamic systems; interacting feedback
loops; social constructs.
across functions within a firm - across firms in a supply chain
Business Process Re-engineering (BPR)
use the power of modern information technology to radically redesign our business
processes in order to achieve dramatic improvements in their performance. (Hammer
1990)
Business Process Modeling (BPM)the techniques for charactering and analyzing business processes
Business Process Management (BPM)
support business processes using methods, techniques, and software to design, enact,
control, and analyze operational processes involving humans, organizations, applications,
documents and other sources of information. ( Aalst, Hofstede, Weske 2003)
Business Process Outsourcing (BPO)
delegate one or more information technology (IT)-intensive business processes to an
external provider that, in turn, owns, administers and manages the processes based on
defined and measurable performance metrics. (Gartner)
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 11/21
11
Process Management
BPR - BPM - BPO
Re-engineering
Radical clean slate IT-Led Mechanistic Inspirational Future
Business
Process
Modeling
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
Process
Management
Total lifecycle new/ existing
processes IT-Enabled Holistic Systematic Past, present, future
Lessons from
Reality
Support
Business
Process
Outsourcing
Service Level
Management
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 12/21
12
Process Management
Business Process and StrategiesProcesses follow strategies.
Strategies follow processes.
Business Process and ITenabler, inhibitor, facilitator, implementer, supporter
Business Process and OrganizationFunctional, hierarchical structure - process-based, horizontal structure
Individuals manage the boundaries of processes.Matrix-based organization
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 13/21
13
Process Management
Business Process Management Procedures
1. Preparation of modeling
2. Strategy and business process framework
3. As-is modeling
4. To-be modeling
5. Organizational structure
6. Implementation
7. Continuous process management
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 14/21
14
Process Management
Business Process Modeling
Objectives
Communication, Analysis, Control
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
Standards
A conceptual Framework for Process ModelingCurtis et al.(1992)
- Functional, what activities, which data (information) flows;- Behavioral, when and how;
- Organizational, where and by whom, what physical communication mechanisms and
storage;
- Informational, entities flowing through the process, their structure and relationships.
Process Model
SCOR 7.0 Supply Chain Council
Aerospace and Defense, Automotive, Chemicals,
Electronics
PIPs RosettaNet Electronics, Semiconductor, Telecommunications, Logistics
eTom TM Forum Telecommunications
Process
Modeling
graphical IDEF0, EPML, UML, BPMN
executable XLANG, WSFL, BPML, BPEL4WL;ebXML BPSS, ebXML BP TC, WSBPEL; XPDL
proposal
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 15/21
15
Process Management
Field Service Repair Cycle
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
Time
Machinefails.
Customer calls
FSE arrives with
some or all of the
required parts
Repair jobcompleted.
Machine is up.
RemoteDiagnosis
On-siteDiagnosis
FSE orders parts,
if necessary
Partsarrive.
FSE returnsunnecessary parts.
Down time
Parts Delivery Time
Customer ServiceCentre (Regional)
Field Service(Local)
Logistics (Global)
Reference : Cohen 1999; Wolfrum 2004
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 16/21
16
Process Management
Logistics Processes in Spare Parts Management
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
Order
transmit
Order
accept
Order
prepare
Order
executePackaging Shipment Transport
Customer
Order
Delivery
received
Spare Parts Purchase
Spare Parts Warehouse
Documentation
Ester 1997
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 17/21
17
Process Management
Processes in Spare parts management
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
Life-Cycle-
Management
Spare Parts
Production
Supplier
Management
Disposition
/Purchase
Distribution
Management
Service Level
Management
Order
Processing
Retour
Management
Source
Deliver
Impuls 2003
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 18/21
18
Process Management
The business processes in spare parts managementcut across various classes of application.
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
Life-Cycle-Management
Spare Parts Production
Supplier Management
Disposition/Purchase
Distribution Management
Service Level Management
Order Processing
Retour Management
MES SCMPDM
Parts
Supplier
MES SCMPDM
Producer
TMS WMSCRM
3PL
ERPERP
Customer
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 19/21
19
Process Management
Summary Process Management is hot word in practices, but few academic
publications. Most articles describe how to implement BPR/BPM.
Existing process models of spare parts management map internal
processes and are rough.
Processes may be interrupted by diefferent systems. Information
are delayed and /or missed.
Problem:
Unique or common processes across companies and industries?
Customized or standard IT- Enabler? How can the standards help process management in spare parts
management?
Review
Objectives
Analysis
Logistics StrategiesProcesses
Theory
Modeling
Further Research
5/11/2018 2005 Juan Zhao - Spare Parts Management - slidepdf.com
http://slidepdf.com/reader/full/2005-juan-zhao-spare-parts-management 20/21
20
Further Research
Processes Modeling
Technique, Standards
Processes Management in Spare Parts Management
Modeling, analysis, optimization, implementation
Review
Objectives
Analysis
Logistics StrategiesProcesses
Further Research