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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 
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 
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 
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 
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 
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 
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 
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
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
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 
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 
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 
Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved Premium Services at Eurocopter
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 
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 
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 
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 
Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved PbH Success Factors – Overview 
PbH 
Success Factors 
Parts Pool 
Organization Monitoring
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 
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 
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 
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 
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 
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 
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 
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 
Dr. Holger Voss 11.02.2013 © Eurocopter rights reserved 
Thanks for Your Attention! 
Contact: 
Dr. Holger Voss 
holger.voss@eurocopter.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