Holger Voss, Eurocopter presenation at Spare Parts 2013
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"Parts by the Hour – How to Increase Availabiliy for the Customer" Holger Voss, Eurocopter presenation at Spare Parts Business Platform 2013. Fin out more http://www.sparepartseurope.com/
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Holger Voss, Eurocopter presenation at Spare Parts 2013
- 1. 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
- 2. 2 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Agenda Eurocopter Facts & Figures Spares Logistics at Eurocopter Parts by the Hour – An Overview Success Factors for PbH Contracts
- 3. 3 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Agenda Eurocopter Facts & Figures Spares Logistics at Eurocopter Parts by the Hour – An Overview Success Factors for PbH Contracts
- 4. 4 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Eurocopter an EADS Company Airbus Eurocopter Cassidian Astrium Eurocopter Germany (5000 Emp.) Eurocopter France (8500 Emp.) Eurocopter Subsidiaries (5000 Emp.)
- 5. 5 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Eurocopter – Facts & Figures Turnover Group 2011: 5,4 Bio. € … thereof Commercial: 53% Governmental: 47% Hubschrauberproduktion Kundendienst F&E und sonstiges
- 6. 6 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved EC135 (1996) AS350 (1976) Single AS365 (1980) AS355 (1982) Light Twin Twin medium Medium/Heavy AS332 (1985) EC225 (2004) EC145 (2002) EC130 (2001) EC120 (1998) EC155 (1999) Eurocopter’s Commercial Range EC175
- 7. 7 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Agenda Eurocopter Facts & Figures Spares Logistics at Eurocopter Parts by the Hour – An Overview Success Factors for PbH Contracts
- 8. 8 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Spares Logistics Processes Key Elements in Eurocopter‘s Spares Logistics Systems Back Office Making parts available (defining collections and ensuring availability) Handling Physical flow of parts in warehouse and transportation Front Office Interface to customer and following orders in the system Support Accompanying flow to ensure system availability and performance
- 9. Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Eurocopter‘s Global Network China Hong Kong Canada USA Paris MAR DON ALB Mother Company Subsidiary Logistics Platform Chile Brazil Mexico UK Russia Romania South Africa Japan Philippines Malaysia Indonesia Australia Korea Singapore Saudi Arabia Germany France 2247 HC 4116 HC 565 HC 1163 HC 405 HC 690 HC 965 HC
- 10. Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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-Scheduled Demand Specific Aviation Regulations Need of Documents % of Customer Anzahl Hubschrauber je Kunde Anteil Kunden 62,3% 24,3% 10,4% 2,8% 0,2% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 bis 4 5 bis 19 20 bis 99 100 Helicopter Number per Customer
- 11. 11 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 12. 12 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Agenda Eurocopter Facts Figures Spares Logistics at Eurocopter Parts by the Hour – An Overview Success Factors for PbH Contracts
- 13. 13 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Premium Services at Eurocopter
- 14. 14 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Services Offered by Eurocopter Premium Service Customer Expectation Standard Service Spares Business Warranty RbH** * Repair Overhaul ** Repair by the Hour *** Parts by the Hour RO* PbH*** Components PbH Nose2Tail Premium PBH AOG Rush Routine Premium Services
- 15. 15 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 16. 16 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 17. 17 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Agenda Eurocopter Facts Figures Spares Logistics at Eurocopter Parts by the Hour – An Overview Success Factors for PbH Contracts
- 18. 18 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved PbH Success Factors – Overview PbH Success Factors Parts Pool Organization Monitoring
- 19. 19 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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 Customer Part a Part a Customer Part b Eurocopter RO defect repaired Part a Part c Part e Part d Part f Eurocopter Pool Premium Services Parts Pooling
- 20. 20 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 21. 21 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 22. 22 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 23. 23 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 24. 24 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 25. 25 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Organization for PbH Organizational Set Up to Provide Premium Services One Customer Interface for all Orders Order Admin Segment Premium Order Manager Customer Manager Segment Network Segment End Customer 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
- 26. 26 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 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
- 27. 27 Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Thanks for Your Attention! Contact: Dr. Holger Voss holger.voss@eurocopter.com