ignacio andrada bacademy.amccentre.nl/thesis/presentatie/thesis_a_ignacio.pdf · ignacio andrada b....

MASTER OF SCIENCE IN ASSET MANAGEMENT CONTROL

DISSERTATION:

“A PROPOSAL OF IMPLEMENTING READINESS BASED SPARING MODEL IN THE CHILEAN NAVY”

STUDENT: IGNACIO ANDRADA B.

PROFESSOR: MICHEL KUIJER

IGNACIO ANDRADA B

IGNACIO ANDRADA B.

AGENDAPROBLEM´S DEFINITION

PROBLEM’S CONTEXT

RESEARCH QUESTION. PRIMARY AND SECONDARY OBJECTIVES

CHILEAN NAVY ORGANIZATION

ACTUAL CHILEAN NAVY SPARE PARTS MANAGEMENT

ACTUAL CN MODEL FOR SPARE PARTS INVENTORIES MANAGEMENT.

CONCLUSIONS AND PROBLEMS OF ACTUAL MODEL

READINESS BASED SPARING MODEL (RBS)

RBS MODEL DESCRIPTION AND RBS KEY CONCEPTS.

RBS BENEFITS

US NAVY RBS IMPLEMENTATION

RBS PROCESS

COMPARISON OF RBS AND AMC CONCEPTS

A RBS MODEL TO CHILEAN NAVY

CN-RBS PARTICIPATING ENTITIES

CN-RBS PROCESS

CN-RBS TECHNOLOGICAL DEVELOPMENT

CN-RBS EXPECTED BENEFITS

CONCLUSION AND RECOMENDATIONS

AGEN

DA

IGNACIO ANDRADA B.

The amount of money that Chilean Government is assigning fordefense purposes has been historically decreasing in terms ofpercentage of national GDP

1. PROBLEM´S INTRODUCTION1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL

ACTUAL CN SPARING MODELCONCLUSIONS AND PROBLEMS

3. RBS MODEL

RBS BENEFITSRBS MODEL DESCRIPTION RBS KEY CONCEPTS.US NAVY RBS IMPLEMENTATIONRBS PROCESSRBS AND AMC CONCEPTS

4. A RBS MODEL TO CN

CN-RBS PARTICIPATING ENTITIESCN-RBS PROCESSCN-RBS TECH. DEVELOPMENTCNRBS EXPECTED BENEFITS

5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

1. PROBLEM´S DEFINITION

RESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IT IS NOT ONLY HAPPENNING IN CHILE….

BRITISH DEFENSE BUDGET SPANISH DEFENSE BUDGET

US DEFENSE BUDGET

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

Absolute increment of budget for Chilean Military Forces have been divided: 78% for increments on salaries and only 22% to operations and investments

Fiscal Contribution to Chilean Armed Forces.(Defense Ministry of Chile, 2010 p.306

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

Distribution among Chilean Forces …

(Defense Ministy of Chile, 2010) p.308

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

Deeping on Chilean Navy situation.Expenditure structure for the past five years…

Chilean Navy Expenditures. (Thouand of Chilean Pesos).(Treasury Ministry of Chile)

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

Distribution of CN Expenditures without salaries

SPARING BUDGET IT IS AROUND 30% OF “CONSUMER GOODS AND SERVICES”.I.E. 13.500.931 THOUSAND OF CHILEAN PESOS.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

On the other hand the cost of maintenance activities increases every year

70% of increment on 2010 version

Comparation of Generator Overhaul costs.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

CN IS CHALLENGED TO SEARCHWAYS TO BE MORE EFFICIENTAND IMPROVE THE WAY OFTHEIR ASSETS ARE MANAGED

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

ACTUAL CN MODEL FOR SPARING PROCESS IS

ITEM ORIENTED

INVENTORIES DECISIONS ARE TAKEN CONSIDERING EACH ITEM’S DEMAND.

ITEMS ORIENTED MODELS ARE FOCUSED TO ASSURE ITEMS AVAILABILITY.

THEIR MAIN CONCERN IS TO DEFINE THE MOMENT AND THE QUANTITY OF UNITS THAT AN ITEM HAS TO BE REORDERED TO ASSURE ITEM´S STOCK AVAILABLE ON THE WAREHOUSE

WHICH OTHER MODELS ARE ??

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

SYSTEM APPROACH MODELS

GRAVITATIONAL CENTER OF SPARING PROCESS IS NOT ANY MORE ON EACH SPARE´S NEED BUT ON ACHIEVE TOTAL SYSTEM READINESS

IT PRIORITIZES PURCHASE DECISIONS IN ORDER TO ACHIEVE SYSTEM READINESS AND IT EVALUATES HOW EACH ITEM CONTRIBUTES TO THIS GOAL.

ORGANIZATION DOES NOT NEED SPARES BUT READINESS OF ITS ASSETS

US NAVY HAS BEEN USING SYSTEM SPARING MODELS FOR THE PAST 20 YEARS (METRIC, VARIMETRIC, ETC…)

ACTUAL MODEL IS CALLED RBS MODEL (READINESS BASED SPARING)

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

RBS is a business process and decision support system that provides the capability to achieve specified weapon system Availability goals and minimize investment in spares inventories. It can also maximize readiness at a fixed cost.

(CACI Company)

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

RESEARCH QUESTION

How can Readiness Based Sparing modelbe implemented into Chilean Navy inorder to increment asset’s availability byfinding optimal spare mix for the assets?

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

PRIMARY OBJECTIVE

Define how Readiness Based Sparing model can be implemented intoChilean Navy as methodology to maximize asset´s availability, withinimposed budgetary constraints, by optimal selection of spares mixand allowances.

SECONDARY OBJECTIVES

Analyze current management model of spare parts for Chilean Navy.Present Readiness Based Sparing model and its implementation on

US Armed Forces.Present a proposal of how can RBS be implemented into CN for

spare parts selection.Present the benefits of such implementation.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

PROBLEM´S SUMMARY

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

CHILEAN NAVY ORGANIZATION

IGNACIO ANDRADA B.

2. ACTUAL CN NAVY SPARING MODEL1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

SPARING MODEL:

THE PROCESS IN WHICH SPARE´S STOCKS ARE DEFINED AND MAINTAINED IN ORDER TO ASSURE THE MAXIMUM ASSET´S AVAILABILITY.

IT MEANS TO ANSWER FOLLOWING QUESTIONS:

WHAT, WHEN HOW MANY SPARES TO BUY

IGNACIO ANDRADA B.

2. ACTUAL CN NAVY SPARING MODEL1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

Located on Services Directive particularly on Engineering and Supply departments

SALINO : CN ERP

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

PHASE 1: ASSET´S FUNCTIONALITY ANALYSIS (MISSIONS)

PHASE 2: ITEM´S PRIORITY CLASSIFICATION (WHAT)

PHASE 3. POLICIES DEFINITION

PHASE 4. SALINO CUSTOMIZATION AND SUGGESTIONS.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

PRIORITY CLASSIFICATION

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

EXAMPLE

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

SALINO CALCULATIONS

BASED ON “Wilson EOQ Model” …

Optimal quantity of spares to reorder

HOW MANY WHEN

SAFETY STOCK

MAD: MEDIA DEVIATION STANDARD

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

SALINO DEMAND PREDICTION OPTIONS…

Fixed Prediction: Simple method used when there is not predicted a deviation of the projection.

Floating Mean Prediction: The new consumption is calculated using the mean values of previous periods.

Average Smoothing weighted: Compares real historical consumption with historical predicted consumptions and averages them to get a weighted average.

Adaptive Smoothing: Uses Smoothing Exponential technique.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

PROBLEMS OF ACTUAL MODEL

HOW TO PRIORITIZE INVENTORY NEEDS FACING BUDGET RESTRICTIONS ??

WHICH SPARES DO I HAVE TO BUY? WHERE DO I HAVE TO ASSIGN PRIORITIES ??

ITEMS ORIENTED MODELS CANNOT ANSWER THAT QUESTION BECAUSE DO NOT HAVE A SYSTEMIC VIEW,

THERE IS NOT CLEARNESS HOW EACH SPARE CONTRIBUTES TO ASSET AVAILABILITY

BUDGET IS SPENT IN SPARES THAT PROVIDE LITTLE BENEFIT, TO FINAL ASSET´S AVAILABILITY

MISSION POLICIES AND SPARING POLICIES ARE NOT ALIGNED

EOQ, WAS DESIGNED FOR DEMANDS CONSTANT AND KNOWN BUT THE REALITY IN CHILEAN NAVY IS THE DEMAND IS UNPREDICTABLE AND FUZZY

IGNACIO ANDRADA B.

Historical US models: DRIVE, SESAME, ARROWS, METRIC, VARI-METRIC … RBS.

3. READINESS BASED SPARING MODEL (RBS)1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

“The traditional approaches to determining inventory levels and measuring supply performance have been related to the satisfaction of demands for items of supply. Such approaches do not normally identify the degree to which various secondary items contribute to the operational availability of weapon systems. We are now attempting to relate stockage decisions to the effect they have on weapon system readiness.”

(Kingman, 1982)

RBS DIRECTIVE: DOD 4140. (DEPARTMENT OF DEFENSE, 2003)

IGNACIO ANDRADA B.

The establishment of an optimum range and quantity of spares and repair parts at all stockage and user locations in order to meet approved, quantifiable, weapon system readiness, operational availability, or fully mission-capable objectives.

(DL1.1.56 ) (DOD4140.64-M, 2009)

RBS determines the marginal increase in operational performance per increase in unit spares cost, therefore the most cost-effective spares can be added until the operational performance requirement is adequately supported

(Spignesi, 1998)

RBS DEFINTION



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

RBS goes a step further of DBS models because, instead both use the same data and functions, it links the supply resources and their cost directly to the readiness of the individual assets. Specifically RBS does this one of two ways:

To meet a cost objective for maximum readiness.

To meet a readiness objective at the lowest cost

RBS DEFINTION



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

RBSOPTIMAL SPARE MIX AT

MINIMUM COSTDESIRED

REDINESS

RBSMAXIMUM REDINESS

POSSIBLEBUDGET

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

COST -TO-READINESS TYPICAL CURVE

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

RBS KEY CONCEPTS

READINESS: Readiness is the capability of a product to perform its intended function when it is called upon.

RELIABILITY: is the probability of failure free system performance under a given set of conditions.

MAINTAINABILITY: is the ability of an item to be retained in or restored to a specified operating condition when maintenance is performed

SUPPORTABILITY : is the effectiveness of the logistics support provided for a system. It represents the remaining downtime where no active maintenance is being performed.

Calculations on paper.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

INDENTURED STRUCTURE

MULTI INDENTURE STRUCTURE

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

MULTIECHELON MODEL

MULTIECHELON MODEL WITH LATERAL RESUPPLY

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

RBD (reliability block diagram)

RBD is a graphical representation of the reliability and maintainability of a system.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

RBS BENEFITS

AVCAL: AVIATION CONSOLIDATED ALLOWANCE LIST.DBS: DEMAND BASED SPARINGRBS: READINESS BASED SPARING

A DECREASE OF 26% ON SPARES COST AND 20% ON ITEMS QUANTITY

OBTAINNING SAME AVAILABILITY

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

OTHER REPORTS

FISP: Fly in support packagesCSP: Contingency support packages

Simulation of 160 aircrafts deployed on Middle East to 4 months war.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

OTHER REPORTS

Readiness to cost relationship for alternative MALSP packages MALSP = FISP + CSP

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

SUMMARIZING ESTIMATION OF RBS BENEFITS ARE:

An average decrease of 35% on spares cost to obtain same availability than DBS model.

20% of decrease on the amount of items required to obtain same availability than DBS model.

Increment of 10% on availability level using the same amount of money than DBS model.

An average decrease in backorders of 40% resulting in the same availability.

32 % higher fill rate.

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

RBS IMPLEMENTATION

MAJOR ILS ELEMENT CONTRIBUTORS

CONFIGURATION MANAGEMENT:•Design Reference Mission: (Operating Profile - System Utilization)•Configuration information: SCLSIS (Ship config. and logistic information system),CDMD-OA (Config. data managers database – open architecture), etc.

ENGINEERING:•Reliability and Maintainability: Reliability Block Diagrams with MTBF, MTTR, DutyFactors, Redundancies

SUPPLY SUPPORT:•Provisioning: LSA (Logistic support Analysis), ICAPS (Navy interactive catalogingand provisioning system), WSF Level, Unit Prices, Quantities

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

TECHNOLOGICAL IMPLEMENTATION

MERBS SOFTWARE APPLICATION

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

TIGER

ACIMACIM produces a ranked list of spares by cumulative cost and calculated supply (gross) effectiveness of the spares

Supply (or Gross) Effectiveness is the probability that the part is available in the storeroom to restore the equipment to operational condition when occurs a failure

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

MERBS PLATFORM

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

MERBS OUTPUT

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

DRM: Design reference mission MSC: Maintenance Significant ComponentsRBD: Reliability block diagramNSAF: Non Standard Allowance FileSNSL: Stock number sequence list

RBS PROCESS

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

COMPARISON BETWEEN RBS AND AMC CONCEPTS

Availability v/s Cost analysis.

CE= f(SE, Costs)

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

Multi indenture structure

AMC FUNCTIONAL ANALYSIS IS MORE COMPLETE

IGNACIO ANDRADA B.



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

ILS CONCEPT

SAME IN BOTH MODELS

IGNACIO ANDRADA B.

INTEGRATING RBS AND AMC CONCEPTS.

ADAPTING IT TO CN REALITY.

4. A RBS MODEL FOR CN (CN-RBS)1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

Single echelon1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

CN-RBS model proposal1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

Maintenance service department (SERVIMADA): This department is in charge of develop and coordinate maintenance plans and supervises all the maintenance information that is collected in SALINO from operational units.

Naval Operations personnel: They have to register each time that a failure appears and the maintenance activities developed. They are responsible to get failures and maintenances information into SALINO’s Databases.

Engineering department (DIRISNAV): They participate on assets requirements definition, technical buying process and the definition of the initial spare mix for the asset.

LCM Team (Organizational team): This concept has been taken from AMC

LCM Team portal

Supply Department.

SALINO

CN-RBS Participating Entities1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

Maintenance service department (SERVIMADA): Scheduled maintenances information.

Manufacturer maintenance information: used to

Naval Operations personnel:Failures information: Failure date, Down time, Causes, Labor Hours utilized,

Spares used to repair the failure.

Engineering department (DIRISNAV):Asset´s Functional breakdown

Reliability block diagrams

Spares’ map in blocks, allocation into RBD.

LCM Team:Design reference mission

Budget assign and constrains

Supply Department:Supply delay times (MSD). Utilized as another input for availability calculations.

CN-RBS DATA1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

CN-RBS PROCESS



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

CNRBSIS inputs and output1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

CN-RBS OUTPUT1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

CN-RBS OUTPUT: One or more assets1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

CNRBS EXPECTED BENEFITS1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

Same availability could be achieved with 10 Million USD less of budget, generating 7.814 less backorders, and 13.000 less spares items required.

With the same budget CN could have achieved 10% more availability (from 73% to 83% on fleet average).

Fewer items requested also will imply to diminish the need on personnel on acquisition department and less warehouse space and personnel.

CN-RBS EXPECTED RESULTS1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

It is possible to implement RBS model on CN organization because the main input data needed to develop readiness and availability calculations (SALINO)

Good quality of the data it is something that should be taken into account in a RBS implementation.

Chilean Navy could achieve same availability levels than actual with 10 Million USD less of budget, generating 7.814 less backorders and 13.000 less spares items required.

5. CONCLUSIONS1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

CONCLUSIONS1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

With the same budget it could have achieved 10% more availability on the same period by implementing RBS methodology.

Reduction of space and personnel on warehouses and acquisition department.

Increment of the capacity of being in control of the sparing process by knowing exactly the impact and contribution that each spares does to asset’s availability

IGNACIO ANDRADA B.

CONCLUSIONS1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

The implementation of RBS model on CN will required the development of a new software application

LCM team it will be highly beneficial that the implementation of RBS model will consider also the development of the LCM portal as a powerful tool to promote the Comunicación within this team.

IGNACIO ANDRADA B.

SALINO’s quality data is crucial issue in this project because if this data is no reliable the whole system will be useless.

Cooperation between entities that participate on RBS mode (DIRISNAV, DABA, SERVIMADA, OPERATIONS, etc) is also crucial because they have to build and use models that have to be agreed among them. To facilitate this communication process is recommended to implement a LCM team portal.

To analyze the case when spares can be delivered directly to the bases without passing through the main center. (NO single base supply center )

6. RECOMENDATIONS1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

Extend RBS model to an Effectiveness Based Sparing Model (EBS) which crosses cost of the spares with the total effectiveness of the asset. This model would be very interesting because it would consider more parameters than actual RBS.

Design the CN RBS Software application, how it can be really implemented, how it can be connected to actual SALINO system and databases, which technology it is necessary to use, user’s permissions, etc.

To evaluate carefully the cost of the possible RBS implementation on CN and estimate better the real benefits that it will generate.

RECOMENDATIONS1. PROBLEM´S DEFINITIONRESEARCH QUESTION. OBJECTIVESCHILEAN NAVY RGANIZATIONPROBLEM’S CONTEXT

2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

IGNACIO ANDRADA B.

AKNOWLEDGEMENTS

AND

QUESTIONS



2. CN SPARING MODEL


3. RBS MODEL




5. CONCLUSIONS

6. RECOMENDATIONS

THE END

MASTER OF SCIENCE IN ASSET MANAGEMENT CONTROL��dissertation:��“A PROPOSAL OF IMPLEMENTING READINESS BASED SPARING MODEL �IN THE CHILEAN NAVY” ��student: ignacio andrada b.��Professor: michel kuijer��AGENDASlide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34Slide Number 35Slide Number 36Slide Number 37Slide Number 38Slide Number 39Slide Number 40Slide Number 41Slide Number 42Slide Number 43Slide Number 44Slide Number 45Slide Number 46Slide Number 47Slide Number 48Slide Number 49Slide Number 50Slide Number 51Slide Number 52Slide Number 53Slide Number 54Slide Number 55Slide Number 56Slide Number 57Slide Number 58Slide Number 59Slide Number 60Slide Number 61Slide Number 62Slide Number 63Slide Number 64

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