Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Parts by the Hour – How to Increase Availabiliy for the Customer Spare Parts Business Platform 2013 Dr. Holger Voss
May 22, 2015
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Parts by the Hour –How to Increase Availabiliy for the Customer
Spare Parts Business Platform 2013Dr. Holger Voss
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Agenda
Spares Logistics at Eurocopter
Eurocopter Facts & Figures
Parts by the Hour – An Overview
Success Factors for PbH Contracts
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Agenda
Spares Logistics at Eurocopter
Eurocopter Facts & Figures
Parts by the Hour – An Overview
Success Factors for PbH Contracts
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Eurocopter an EADS Company
Cassidian AstriumEurocopterAirbus
Eurocopter Germany
(5000 Emp.)
Eurocopter France
(8500 Emp.)
Eurocopter Subsidiaries(5000 Emp.)
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Eurocopter – Facts & Figures
Turnover Group 2011: 5,4 Bio. €
… thereof Commercial: 53% Governmental: 47%
Kundendienst
Hubschrauberproduktion
F&E und sonstiges
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EC135 (1996)
AS350 (1976)
AS355 (1982)
AS365 (1980)Single
Light Twin
Twin medium Medium/Heavy
AS332 (1985)
EC225 (2004)
EC145 (2002)
EC130 (2001)
EC120 (1998)
EC155 (1999)
Eurocopter’s Commercial Range
EC175
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Agenda
Eurocopter Facts & Figures
Spares Logistics at Eurocopter
Parts by the Hour – An Overview
Success Factors for PbH Contracts
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Spares Logistics Processes
Back OfficeMaking parts available (defining collections and ensuring availability)
HandlingPhysical flow of parts in warehouse and transportation
Front OfficeInterface to customer and following orders in the system
SupportAccompanying flow to ensure system availability and performance
Key Elements in Eurocopter‘s Spares Logistics Systems
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Eurocopter‘s Global Network
Hong Kong
USA
Paris
MARDON
ALB
Logistics Platform
Mother Company
Subsidiary
Chile
Brazil
Mexico
Canada
UK
South Africa
Russia
Romania
Japan
Australia
Indonesia
Philippines
Korea
Singapore
Malaysia
China
Saudi Arabia
Germany
France
2247 HC
4116 HC
565 HC
1163 HC
405 HC
690 HC
965 HC
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Specifics Characteristics for Eurocopter
Spare Parts Collection Impected by
� Size of Fleet by HC Type
� Variety of Customer Missions
� Age of Fleet (up to > 40 years)
Logistics Capability of Micro Operators
Scheduled & Un-ScheduledDemand
Specific Aviation Regulations� Need of Documents
62,3%
24,3%
10,4%
2,8%0,2%
0%
10%
20%
30%
40%
50%
60%
70%
1 2 bis 4 5 bis 19 20 bis 99 > 100
Helicopter Number per Customer%
of
Cu
sto
me
rAnzahl Hubschrauber je Kunde
An
teil K
un
den
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Helicopoter Types & After Sales
Overview of HC types relevant for Spares Logistics (ECD)
… whereat: 1 HC Type = Multiple Variants!
1970 1980 1990 2000 2010
Bo 105
EC 135
BK 117
EC 145
EC 145 T2
Production Phase
After Sales Phase
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Agenda
Eurocopter Facts & Figures
Spares Logistics at Eurocopter
Parts by the Hour – An Overview
Success Factors for PbH Contracts
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Premium Services at Eurocopter
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Services Offered by Eurocopter
Premium Service
Standard Service
Cu
sto
mer
Exp
ecta
tio
n
Spares Business
Warranty RbH**
* Repair & Overhaul** Repair by the Hour*** Parts by the Hour
R&O*PbH***
ComponentsPbH
Nose2TailPremium
PBH
AOGRush
Routine
Premium Services
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Premium Service – Overview 1/2
Service Concepts in Spares Logistics
RbH (Repair by the Hour) Contract
• Contract for repair of selected components � guarantied lead times
• Covering scheduled & unscheduled events
• Service paid by flight hour � monitor budget
PbH (Parts by the Hour) Component Contract
• Contract for availability of selected components � guarantied lead times
• Covering scheduled & unscheduled events
• Service paid by flight hour � leveling of cost
PbH Nose to Tail Contract
• Contract for availability of all parts (components, hardware, consumable, …)� guarantied lead times / availability of Helicopter
• Service paid by flight hour � leveling of cost
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Premium Service – Overview 2/2
Service Concepts in Spares Logistics – Next Step
Premium PbH Contract
• Target:Improve customer satisfaction
• For selected customers only
• Provide Value Added Services
• Full coverage – Nose to Tail
• Service paid by flight hour
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Agenda
Eurocopter Facts & Figures
Spares Logistics at Eurocopter
Parts by the Hour – An Overview
Success Factors for PbH Contracts
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PbH Success Factors – Overview
PbHSuccess Factors
Parts Pool
MonitoringOrganization
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Differentiation between Repair & Rotable Pool Processes
Repair of Non-Pool Part
• Specific part (a) is being returned
• Estimation of cost and time for repair
• Repair of defect part (a) after customer agreement
• Repaired part (a) is sent back to customer
Part a
Part a
EurocopterR&O
Customer
defe
ct
rep
air
ed
Part a
Part c
Part ePart d
Part b
Part f
Eurocopter Pool
Customer
Premium Services & Parts Pooling
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Allocation of Parts Pool
Reactivity Requires Balanced Allocation of Parts
Customer Demand Availability of Parts
• Rotable Pool is not dedicated to single customer, but all contract customer
• Synergies help all pool customers
Allocation of Pool Parts in the Network – Reaching Customer Proximity
• Consideration of different stocking locations (incl. Consignment Stocks)
• Global optimization instead of local planning
• Reduction of global stock level
• Right balance between central and de-central pool parts
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Pool Sizing & Planning
Prerequisite for Availability – Pool Sizing
Rotable Pool Management requires dedicated forecast & planning
• Having the right amount of parts (new or used) available is crucial
• Having too many parts is a waste of money
• Considering specific parameter (TAT, MTBUR, Penalties, …)
• Considering unscheduled repair & scheduled repair events
Data Quality is key for Pool Sizing
• Availability & Reliability of data
• Choosing the correct parameter setting & forecasting algorithm
Forecasting Tool to Fit Needy
• Integrate Pool Planning & Forecasting in dedicated Tool
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Parts Pooling – Relevance
Rotable Pool is Key for Premium Services
Reduction of Cost• Cost advantage for Customer � Repaired or used part is cheaper than new part
• Cost advantage for Eurocopter � Provide cheaper used part (PBH), reduced inventory
Reduction of Lead Times• Lead time reduction for replacement part � much shorter for rotable pool than repair
Increase Availability • Short term reaction on part request
• Pool parts as additional resource for critical items
… and for which parts?• High value items (> 500€)
• Reparable items
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Performance Monitoring in PbH
Monitoring of PbH Performance
KPI enable Performance Monitoring
• Performance towards customer � e.g. On Time Delivery (OTD)
• Internal Performance � e.g. Turn Around Times (TAT), Open Cores, New-Used-Ratio
Tools for Performance Monitoring
• Centralized KPI Dashboard for all sites
• Utilize Additional Information �Specific Tracking for Rotable Pool
Definition of Performance Targets
• Service Level Agreements between EC and Repair Station on TAT
• Targets on KPI to push effort
Open Cores
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Rotable Pool Monitoring
Specific Importance for Rotable Pool Performance
Reverse Logistics to refill the rotable pool
• Core Unit return from Customer to EC pool
• Often long period between order and return
Monitoring of Rotable Pool Parts Flow by using Transport Tracking
• Visual Management Tool for Customer and Eurocopter
• Monitoring of Transport from Customer to Eurocopter
• Monitoring of Transport from Eurocopter to Customer
• Flow to & from Repair Station to follow up internal TAT
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Organization for PbH
Organizational Set Up to Provide Premium Services
One Customer Interface for all Orders
Dedicated Team for Premium Service Customers ���� 1 Face to the Customer
Reduction of Interfaces ���� Improved Communication Internally
Introduction of Customer Manager ���� Clarification of Critical Issues with Customer & Priority Setting
… in Addition: Building up of Contract Know-how
Order Admin
Segment Premium
Order
Manager
Customer
Manager
Segment End Customer
Segment Network
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Eurocopter‘s PbH Services
Efficient PbH Services help to Improve Customer Satisfaction – 3 Dimensions lead to Success
PbH Services require Service Contracts
Success Factor 1: Rotable Pool Management including Specific Planning
Success Factor 2: Organizational Set Up must match Customer Requirements
Success Factor 3: Reporting & Monitoring of Rotable Pools is mandatory
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Contact:
Dr. Holger Voss
Thanks for Your Attention!