Service Part Planning

Service Parts Planning (An Overview)

By

Amit Kumar Singh

Service Part Planning Business Need Repair service operations need service parts planning systems to ensure that the right parts are at the right locations, at the right times, and in the right (usable) condition, while being consistent with inventory budgets and service level targets. Service parts inventory management differs from product inventory management; hence the need for functionality designed to handle special service parts situations such as: reverse flow of potentially repairable parts, combinations of stock-keeping units (SKUs) and locations, mission-critical parts, and intermittent demand. Also, forecasting for service part planning doesn’t use BOM, forecasting is Item wise.

Supply Chain Modelling

Supply Chain Organizations Modelled by SPP Based on the example supply chain, service part plans cover the following organizations: • External supplier of new parts (new buy) • External supplier of repair services • Internal Depot Repair • Central spares warehouse • Central defective warehouse, if any

Modelling Repair Supplier Organizations

In the service supply chain, the repair supplier can be managed as a: • Push – preposition relationship In Push relationships, all defectives are prepositioned at the repair supplier site, based on (monthly or quarterly) contract agreements. • Pull – On demand return or repair return relationship In Pull relationships, the defectives are moved for repair only when a demand occurs at the replenishing organization.

Service Supply Chain Forecasting Modes

Traditional

Inline

Solution Integration The Service Parts Planning solution integrates with the following Oracle products: • Oracle Demantra Demand Management (SPF) • Oracle Order Management • Oracle Procurement • Oracle Inventory • Oracle VCP Inventory Optimization – optional

Setup Sequence

Source Instance Item Attributes

Items > Organization Item > (T) MPS/MRP Planning

Repair section is important for service part planning.

Repair Program

Repair programs are chosen based upon the lead time that should be accounted for that

particular item.

Different type of lead times for Service part planning are as follows.

Repair Return (Pull)

All three lead-time elements are considered to offset repair purchase orders. Repair Return with prepositioning (Push)

Because the defectives are already on-hand at the repair organization, only the repair and the receiving lead-time elements are considered.

Advanced Exchange without prepositioning

Advanced exchange on purchase order approval Only the receiving lead time is considered, but all the ordering documents are

generated. In this case, planning considers the transfer lead time and the repair lead time to be zero.

Advanced exchange on defective receipt

Both the transfer and the receiving lead times are considered. All the order documents are generated. In this case, planning considers the repair lead time to be zero.

Advanced Exchange with Prepositioning

Repaired items are prepositioned and visible to planning. Only the receiving lead time is considered, but all the relevant documents are generated. In this case, planning considers the transfer lead time and the repair lead time to be zero.

Repair Yield This attribute, expressed in percent, represents the proportion of the item quantity sent to repair that is successfully repaired to specifications for usable parts. Repair Lead Time This attribute represents the amount of time that the repair organization requires, in days, to process a defective part into a usable part. Defined for usable part. Prepositioning Point This item attribute check box is used in the Push type of relationship with the repair supplier to indicate that the item's defectives are physically stored in advance of actual need at the repair supplier's site.

Defining Organization Type Field technicians and internal repair depots are both modelled as inventory organizations, the Organizations form provides an organization type drop down field with values including None, Field Technician, and Depot Repair. This information helps the collection process identify and collect the correct data streams for Service Parts Planning. Advanced Planning Administrator Responsibility Admin > Instances > Organization

Sub inventories For the reverse logistics planning, it’s very important to distinguish usable and defective Inventory of the same part. In Spares Management, technicians are modeled as external organizations. These organizations contain separate subinventory locations for defective and usable parts. Setting up sub-inventory conditions: Inventory > Set Up > Organizations > Sub Inventory

Assign Sub inventory to Defective/Usable condition Field Service Manager Set UpAddresses and Sub inventories

Product – Part Relationships Supersession. Spares Management uses the inventory item relationship called supersession to capture the supersession chain. The supersession definition defines global supersession and repair capability.

These relationships should be modelled in the following way in EBS : Inventory > Items > Item Relationships

The principle that guides search logic is: the demand must be satisfied locally before using the supply from other nodes in the supply chain. When multiple item revisions have demand occurring on the same day, for the same order type, then the search logic tries to satisfy the demand for a lower revision item prior to moving to demand for a higher revision item. For example, if the supersession chain is A1 -> A2 -> A3, and forecast demand for A1, A2, and A3 exist on the same day, then satisfy demand of A1, then A2, then A3.

Sourcing Rule Circular Sourcing Rules To improve customer satisfaction, service supply chains hold inventory at strategic locations, such as regional warehouses. Due to varying demand, rebalancing inventory across warehouse locations may become necessary. The key difference between circular sourcing and normal sourcing is that a circular source participates in the supply chain replenishment only in case of excess (or surplus) inventory that will not be needed within a given time fence.

Transfer from Sourcing rules can be made circular. Return to You assign the Return to sourcing rule to the global forecast assignment set so that it is appropriately considered for pushing down zonal demand to the organization-specific demand. You can specify organizations only for the Return to sourcing rule, hence a user interface validation has been built into the LOV. The Return to sourcing rule is also used to transfer the defectives all the way to the repair organization. Thus, Return to is not used only in the global context, but also in the context of transferring defectives from organization to organization. Therefore, both the All Org (global) level and the Org (local) level sourcing rules are supported with the Return to sourcing type. This is a destination-instance only form, and can be assigned to the assignment set.

Repair at Repair at designates the supplier or organization as a repair organization for that part. The Repair at sourcing rule is valid for both internal and external repair. For example, consider the following service supply chain:

The Central spares warehouse has Repair at sourcing for both the external repair and the internal repair depot. The sourcing rule is defined as shown in the following table:

Repair at sourcing applies only in a service supply chain plan. Service supply chain plans do not use Make at sourcing, and disregard Make at sourcing rule entries from sourcing rules assigned to a service plan. Similarly ASCP and DRP plans disregard the Repair at sourcing rule.