Service Parts Planning Training Program

1. Overview and Course Summary:

1. Background to Service
2. How Service differs from production
3. The value of Parts Planning
4. Service Management – research findings
5. The strategic value of Service
6. 2. Unique Attributes of Service Parts.

2. Clarifying the difference between manufacturing and service supply chains:

1. Product Life Cycles – Demonstrates the impacts of “Lag”
2. Future Variability
3. Replacement Causes
4. Multiple Locations – The impact of a Multi Echelon distribution network
5. Demand and Supply Variability – With impacts on Procurement
6. Criticality
7. Repairables
8. Diagnostics

3. Performance KPIs

The role of KPIs and benchmarking (internally and externally)

1. Parts Primary Targets - Uptime, First Call Fix Rate, Restore Time, Part Fill Rates
2. Financial Targets – Inventory Turns, Return on Asset
3. Other Part Measures – EO rate, DOA, etc
4. Repair Measures – Repair Rates, Scrap rates, etc
5. Planner Metrics
6. The basic Trade-off

4. Control Techniques.

Looking at techniques that optimise inventory and segregate planning data.

1. Average Inventory
2. Carrying Costs – Breakdown and discussion
3. Order Costs – Breakdown and discussion
4. Economic Order Quantity – Calculation use and risks
5. Inventory Reduction Techniques
6. Pareto
7. 5. New Product Part Provisioning.

5. Optimising the forecast and balancing spares inventory.

1. Service Parts Selection
2. FRU Approach
3. Kits
4. Where to Stock
5. Pipeline Requirements

6. End of Life Parts.

End of Life items/products can have similar challenges to those seen in NPI.

1. Implication for Service Parts
2. How Long to Support a Product
3. EOL Parts Planning
4. Sourcing EOL items
5. Management Visibility

7. Asset Recovery.

Excess generation and opportunities for reduction after creation.

1. Control Excess
2. Value for Excess
3. Reverse Logistics

8. Forecasting.

Fundamental of forecasting and a detailed look at statistical methods and their use.

1. Overview and Terms
2. Forecasting Methods
   1. Moving Average
   2. Weighted Average
   3. Single Smoothing
   4. Double Smoothing
   5. Linear Regression
   6. Seasonality
   7. Poisson Distribution

9. Level Setting.

Achieving the right balance between financial investment and customer service

1. Why Safety stock levels are needed
2. Pipeline Levels
3. Order Quantity Level

10. System Considerations.

The role of specialist planning tools and integration with the business

1. Logistic Systems History
2. Service Parts Computerization issues
3. Basic System Requirements
4. Planning Capabilities
5. Database Requirements
6. Off the Shelf system selection