Description

This curriculum spans the design and execution of service parts networks, forecasting for intermittent demand, multi-echelon inventory control, supplier collaboration, repair logistics, system integration, performance monitoring, and lifecycle transitions, comparable in scope to a multi-phase operational improvement initiative in a global after-sales service organisation.

Module 1: Strategic Inventory Network Design

Selecting optimal warehouse locations based on service level requirements, transportation costs, and regional demand variability.
Deciding between centralized versus decentralized inventory models for high-cost, low-turnover spare parts.
Implementing multi-echelon inventory policies that balance stock availability across field depots, regional centers, and central warehouses.
Evaluating the trade-offs between leasing third-party logistics (3PL) facilities versus owning and operating dedicated service parts hubs.
Integrating service-level agreements (SLAs) with network design to ensure compliance with mean time to repair (MTTR) targets.
Adjusting network configuration in response to product end-of-life cycles and legacy equipment support demands.

Module 2: Demand Forecasting for Intermittent Parts

Choosing between Croston’s method, Teunter-Syntetos-Babai (TSB), and bootstrapping techniques for slow-moving parts with erratic demand.
Calibrating forecast models using historical repair data while adjusting for known events such as field campaigns or recalls.
Handling zero-demand periods without over-smoothing forecast outputs that lead to chronic understocking.
Integrating engineering inputs on expected failure modes and mean time between failures (MTBF) into statistical forecasts.
Managing forecast accuracy metrics (e.g., WMAPE, service level attainment) when traditional MAPE is misleading due to sparse data.
Updating forecasting models dynamically in response to changes in equipment fleet size or operating conditions.

Module 3: Inventory Optimization and Stocking Policies

Setting min/max levels for repairable versus consumable parts based on lead time, criticality, and repair cycle time.
Implementing service-level differentiated stocking strategies (e.g., 95% vs. 99% fill rate) by part criticality and revenue impact.
Calculating optimal safety stock levels under variable supplier lead times and uncertain demand during supply disruptions.
Managing stocking decisions for parts with long obsolescence risk due to product platform transitions.
Using expected backorder and expected number of backorders (EBO) models in multi-item, multi-location environments.
Enforcing inventory classification rules (e.g., ABC-XYZ) that reflect both value and demand volatility, not just historical spend.

Module 4: Supplier and Procurement Integration

Negotiating consignment or vendor-managed inventory (VMI) agreements for high-cost, low-usage components.
Establishing minimum order quantities (MOQs) and lot-sizing rules that account for shelf life and obsolescence risk.
Managing dual-sourcing strategies for single-source components to mitigate supply chain disruption risks.
Integrating supplier lead time reliability data into procurement planning cycles and safety stock calculations.
Enforcing contract terms that include penalties for late delivery on critical service parts with SLA dependencies.
Coordinating end-of-life (EOL) buy decisions with suppliers based on forecasted retirement of legacy equipment.

Module 5: Reverse Logistics and Repair Management

Designing repair loops for rotable parts including inspection, repair, and re-certification workflows.
Setting thresholds for repair versus scrap decisions based on cost, turnaround time, and part availability.
Tracking repair cycle times across internal and external repair vendors to maintain asset uptime commitments.
Managing core deposits and return authorizations (RMAs) to ensure consistent return of repairable assets.
Integrating repair status visibility into field service systems to reduce unnecessary new part issuance.
Optimizing spare pool size for rotables by modeling repair turnaround variability and cannibalization rates.

Module 6: Service Parts Planning Systems and Data Governance

Selecting between ERP embedded planning, advanced planning systems (APS), and standalone service parts optimization tools.
Defining master data standards for part numbering, bill of materials (BOM), and service bill of materials (SBOM) accuracy.
Reconciling discrepancies between engineering BOMs and as-maintained field configurations in parts planning.
Implementing data validation rules to prevent incorrect lead time, MOQ, or stocking policy entries in planning systems.
Establishing roles and responsibilities for data ownership across engineering, supply chain, and service operations.
Automating data feeds between CMMS, ERP, and field service management systems to maintain planning integrity.

Module 7: Performance Measurement and Continuous Improvement

Defining and tracking key performance indicators such as parts availability, inventory turns, and obsolescence write-offs.
Conducting root cause analysis on chronic stockouts or excess inventory by part family or service region.
Aligning incentive structures for planners with balanced metrics that discourage overstocking while ensuring service levels.
Implementing periodic inventory health checks to identify obsolete, excess, or dormant stock for disposition.
Using benchmarking data to evaluate performance against industry standards for service parts operations.
Integrating lessons learned from field service feedback into parts design and provisioning processes.

Module 8: Change Management and Lifecycle Transitions

Planning parts provisioning strategies during new product introduction (NPI) when historical demand is unavailable.
Managing parts support for legacy systems with diminishing supplier support and increasing obsolescence risk.
Executing phase-out plans for discontinued parts including final buy, repair stock build-up, and customer notification.
Coordinating with engineering on design-for-serviceability to reduce the number of unique spare parts required.
Updating inventory policies in response to changes in service contracts (e.g., moving from time and materials to uptime-based).
Transitioning parts support responsibilities across business units during mergers, divestitures, or outsourcing events.