supply chain modeling for an go to -...

22/10/2012

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Supply Chain Modeling for an Enhanced Go‐To‐Market Plan

Annie SaillardIndustrial & Supply Chain VP, Alstom Transport TLSIndustrial & Supply Chain VP, Alstom Transport TLS

Sonia Daviaud Managing Director, Decision Value

Annie Saillard bio• Annie began her career in 1990 in the automotive industry for AUDI in

Germany as a Fluid Mechanics engineer, Head of a Production unit and Head of Supply Chain for pre‐series car programs.

• She joined ALSTOM in 2005 as Supply Chain Director for Rolling Stock and Component manufacturing sites. She is now Industrial&SC VP for ALSTOM Transport Train Life Services.

• Annie is in charge of Industrial and Supply Chain for all Service activities g pp yworldwide.

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Sonia Daviaud bio• Sonia Daviaud created Decision Value in November 2008 in order to offer

high value niche consulting services in Supply Chain to manufacturing companies willing to take benefits from extended supply chain optimization.

• Prior to Decision Value, Sonia acted as Senior Executive in large consulting companies from 1995.

• She began a career as project manager for a high‐tech engineering g p j g g g gcompany in the space and medical industry. She holds an Engineering degree and a PhD in Physics.

Agenda of the presentation

• What we are going to talk about :S l Ch i M t h ll i MRO– Supply Chain Management challenges in MRO

– Why reengineer a global SC model– The approach for SCORE project– AT TLS worldwide Supply Chain vision– Case study on a full maintenance deal deployment– Return on experience and lessons learnedReturn on experience and lessons learned

• Question and Answers

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• What we are going to talk about :S ppl Chain Management challenges in MRO– Supply Chain Management challenges in MRO



What MRO is about …

• MRO = Maintenance, Repair and OverhaulS t R lli St k f i ti– Support Rolling Stocks performances in operation

– Maintenance : Corrective, Preventive, On Condition– Configuration management– Standard exchange pool management– Sub‐system repair– Spare parts supplySpare parts supply– Obsolescence management– Industrial operations for modernization

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MRO key succes factors

• Technical expertiseMaintenance plans, repair know‐how, train health monitoring

• AssetsSpare parts, exchange pool, repair workshops, depots

• Supply Chain skills• Supply Chain skillsPlanning competencies to ensure reactivity and flexibility at optimized costs

SCM challenges in MRONew Build MRO

Product from stockProduct from stockor under confirmed lead times Immediate Service Delivery of …

Future sales Failures, technical /legal milestonesForecasts on …

Overstock or over capacity/ Shortage and sales loss

Overconsumption / Stop of client operations

Risk linked toover / underestimation g p pestimation …

By building stock By anticipating repairs …i.e. over consumptionLoad balancing …

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MRO Supply Chain process mapPRODUCT

DEVELOPMENTSUPPLY PLANNING DEMAND

PLANNINGSourcing Execution LogisticsPurchasing Facility ContractDistribution

SCM

Return on experience

Installed Fleet Mgt

Ref Lib Mgt

and RepairStrategy

Facility Strategy

ContractMgt

Procure-ment

Fleet planning and return loop

Availability Mgt

Flexibility planning

Resource allocation

Mainte-nance plan

LCC target

DistributionStrategy

Line replenish-

ment

Distribution Planning

S&OP

Performance Measurement

Missing part Mgt

LCC gap analysis

Execution Follow up

Warehouse & Shipping

LOGISTICS

Mgt : stands for Management





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Services to Rolling StockA growing market…..• Expected 3.3 % growth year on year

… in a competitive environment• Low product captivity

• Maintenance outsourcing trends• Diversification of stakeholders

MaintainersOperatorsFleet Owners

• Some protected markets

Maintenance costsParts availabilityObsolescence

Fleet AvailabilityOperational Costs

Increase Revenues

Fleet AdministrationFleet Residual Value

Recycling

ALSTOM Train Life Services (TLS)The Rail Service Partner for Alstom and Non‐Alstom Fleets

MaintainersOperatorsFleet Owners

Modernization

Train Life ExtensionPerformance increase

New Regulations

ECM Entity in Charge of Maintenance

Maintenance

Franchise

Energy Management

Passenger Care

Train Health Management

Maintenance plan optimization

Obsolescencemanagement

Fleet AdministrationConfiguration

y g

Recycling

Technical Full Services

Accident and Vandalism

Parts & RepairsMaterial availabilitylead time

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ALSTOM Train Life Services (TLS)

25 years of delivering train availability

111 depots, distribution and modernization sites (#)

5000 rail cars in maintenance contracts (#)

6600 employees in 30 countries (#)

918 000 external sales in fiscal year 2011/2012 (b€)

2 500 000 distance covered daily with TLS support (km)

The 5 Key constraints for ourservice footprint

• Contractual commitment to Customer on RollingContractual commitment to Customer on Rolling Stock and/or Material availability

• Technical know‐how on world‐wide installed fleet and access to legacy technical files on OEM sites

• Supplier base and captivityl h i & l d i• Supply Chain costs & lead time

• Tax & Customs duties

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TLS Supply Chain modelS

• Parts & Repairs on Quote – Sales administration and distribution logisticsSales administration and distribution logistics

• Material Availability Service Contracts– Inventory management and service exchange for repairs

• Maintenance / Full Material Management long term contracts – Trains/Material availability on a price/mileage basis– Customized Supply Chain on Customer depots

Fleet and material planning for preventive corrective on condition– Fleet and material planning for preventive, corrective, on condition

• Modernization– Project driven re‐engineering and modernized trainset or kit delivery

The question to be answered

“Which Supply chain model to best execute ALSTOM Train Life Services current after‐sales

activities and support business growth successfully in green field zones?

synergies?synergies?lead time reduction ? anticipation of business growth ?

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SCORE Project challenges• 100 facilities to be considered : from very small to very large, with complex

flows between entities and high diversity of contractual commitments.

• 600 000 references and service specific typology to be taken into account :– Demand pattern– Commercial : show stopper, passenger comfort..– Maturity : In serial production, after sales, legacy, captivity– Valuation

• Existing beliefs:– Centralization is cost efficient– Synergies are limited to stock

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Approach for SCORE Project

SCORE : Supply Chain Organization for REactivity• Dedicated team : 1 Supply Chain developer + External assistanceDedicated team : 1 Supply Chain developer + External assistance • 1 year project including extensive data crunching, interviews and self

assessment questionnaire over 60 sites, workshops

Pareto ABC analysis per line or value

Pareto ABC analysis per line or value

60

45247

8

9

BKN_ SERVX : 167REP_SERVX : 224

6 082

555

33 767

4

82

303

19 199

345

231

287

BKN_ SERVX : 574REP_ SERVX : 348

5 754

14

First Step : Understand use of [Movement code – Gp. Valor]Repair flow : BKN_ SERVX / REP_SERVX

641 H

All External or Internal Repair centers

BKN_ SERVX

BKN_ SERVX

REP_ SERVX

REP_ SERVX

122 REP_ SERVX

3

2

For Internal Repair centers(& same Company code) only

301 H

301 S

Internal Customer(& same Company code)

161

161

Y01

Y01

REP_ SERVX

101

105

Subcontractor

541 H

2

2

3

21

Repaired part : REP_SERVX : 2 546Liquidation : BKN_ SERVX : 46

1 890

All External & Internal Customers

BKN_ SERVX

101

601

4

BKN_ SERVX

6531

1184

657162

BKN_ SERVX

22162

3’

2’

3’ ’

Legend

Flow in extraction F4


101

Timing indicator

Mvt code used

XXX Nb of lines shipped

2’

542 S

4’ REP_ SERVX

53657653

661

661 REP_ SERVX

BKN_ SERVX

NA

231301 S

BKN_ SERVX287

8 832

301 H

641 HREP_ SERVX

101

REP_ SERVX

TOTAL EXTRACTION SCOPE

16

Outbound flowsFRANCENew Parts : NEW or NEW_ MANUF

UK

4 4Ireland

America

Africa

10Spain

Australia

9

Sweden

1

Belgium

Luxembourg2

Italy

1

Switzerland

Netherlands

1 1

Germany1

Poland1

AsiaHungary

1

19

10k€

161

170k€

351

1M€

23

62k€

11

18k€

55

42k€

1 1

14

45k€23

4k€

7k€

4k€

17 1

2K€

65118k€

8

2,6M€

767

876362

12M€

14

S: 944C : 4149

S : 1,8M€C : 961k€

LegendFlow To an Alstom siteFlow To a non Alstom site

XXXX

Nb of Internal PODNb of External POD

Nb lines to an Int. POD(C : Local consum; S : Shipment)Nb lines to an Ext. PODAmount to an Int. POD(C : Local consum; S : Shipment)Amount to an Ext. POD

Europe Asia America Africa OceaniaContinents :

3

27

169k€ 89277k€

7 3

160

139k€ 1420k€

2 1

91

235k€

51

181k€

1

6,9M€

783

4 18

4,6M€

582240

426k€

9

2905 3,3M€

698 3,1M€

Venezuela, USA,Brazil, Chile

Malaysia, China, Singapore, South Korea, Taiwan, Turkey, Hong Kong, India, Myanmar

Morocco, Egypt, Guinea, Gabon, Tunisia

1

13

12k€

Analysis of transaction usedper valorization type per plant

IN/OUT flows per plant or per country and per valorization type

Inventory coverage analysis per DTR at different consolidation level

Variability analysis per DTR at different consolidation level

60

45247

8

9

BKN_ SERVX : 167REP_SERVX : 224

6 082

555

33 767

4

82

303

19 199

345

231

287

BKN_ SERVX : 574REP_ SERVX : 348

5 754

14

First Step : Understand use of [Movement code – Gp. Valor]Repair flow : BKN_ SERVX / REP_SERVX

641 H

All External or Internal Repair centers

BKN_ SERVX

BKN_ SERVX

REP_ SERVX

REP_ SERVX

122 REP_ SERVX

3

2

For Internal Repair centers(& same Company code) only

301 H

301 S

Internal Customer(& same Company code)

161

161

Y01

Y01

REP_ SERVX

101

105

Subcontractor

541 H

2

2

3

21

Repaired part : REP_SERVX : 2 546Liquidation : BKN_ SERVX : 46

1 890

All External & Internal Customers

BKN_ SERVX

101

601

4

BKN_ SERVX

6531

1184

657162

BKN_ SERVX

22162

3’

2’

3’ ’

Legend



101

Timing indicator

Mvt code used

XXX Nb of lines shipped

2’

542 S

4’ REP_ SERVX

53657653

661

661 REP_ SERVX

BKN_ SERVX

NA

231301 S

BKN_ SERVX287

8 832

301 H

641 HREP_ SERVX

101

REP_ SERVX

TOTAL EXTRACTION SCOPE

16

Outbound flowsFRANCENew Parts : NEW or NEW_ MANUF

UK

4 4Ireland

America

Africa

10Spain

Australia

9

Sweden

1

Belgium

Luxembourg2

Italy

1

Switzerland

Netherlands

1 1

Germany1

Poland1

AsiaHungary

1

19

10k€

161

170k€

351

1M€

23

62k€

11

18k€

55

42k€

1 1

14

45k€23

4k€

7k€

4k€

17 1

2K€

65118k€

8

2,6M€

767

876362

12M€

14

S: 944C : 4149

S : 1,8M€C : 961k€

LegendFlow To an Alstom siteFlow To a non Alstom site

XXXX

Nb of Internal PODNb of External POD

Nb lines to an Int. POD(C : Local consum; S : Shipment)Nb lines to an Ext. PODAmount to an Int. POD(C : Local consum; S : Shipment)Amount to an Ext. POD

Europe Asia America Africa OceaniaContinents :

3

27

169k€ 89277k€

7 3

160

139k€ 1420k€

2 1

91

235k€

51

181k€

1

6,9M€

783

4 18

4,6M€

582240

426k€

9

2905 3,3M€

698 3,1M€

Venezuela, USA,Brazil, Chile

Malaysia, China, Singapore, South Korea, Taiwan, Turkey, Hong Kong, India, Myanmar

Morocco, Egypt, Guinea, Gabon, Tunisia

1

13

12k€

Analysis of transaction usedper valorization type per plant

IN/OUT flows per plant or per country and per valorization type

Inventory coverage analysis per DTR at different consolidation level

Variability analysis per DTR at different consolidation level





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3 steps towards TLS new SC Model1/ Definition per business type (Maintenance, Parts, Modernization) of :

– Standard processes (Demand and Supply management, Planning, Logistics)St d d it t l– Standard sites typology

– Standard key functions (mission, local/global, skills)

2/ Definition of standard « Service Network Organizations » for a given contract or new geographic zone.

3/ Validation of golden rules by senior management to give – Simple and shared guidelines for addressing new business. – Standard roles and responsibilities– Interactions between entities.

Mapping of the key network actors

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3 sites typologiesTY

POLO

GYSITES

Installed Base Management Business Development Plan

Installed Fleet know‐how

Fleet approach for Business growth

Global Sourcing& Inventory

Management for common/critical

Parts

Master Data Maintenance Bill of Material

Technical Data Management

Parts

Maintenance Engineering,

Obsolescence, Safety

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Service Network OrganizationModeling tool

ASSETS

SITE TYPOLOGIESDesign and implementation of the

t d d S i N t k

FUNCTIONS

standard Service Network Organization to best serve a given new service contract or emerging

geographic zone

Site 1

ParticipativeUnit

Site 2

LeadingUnit

Material Planner

Custom ClearanceFleet Planner

Tender Team

Parts Technicians

Demand

Maintenance Engineers

Linereplenishment

Depot

FCoE

RegionalHub

Local RepairCenter

CustomerHub

Stand alonedepot

Material Planner


Tender Team

Procurement

PartsTechnicians

Demand Planner

Parts Bid Team

Sales force

SourcingFCoE

FCoE Reg. Hub

CUSTO

ROLES

TradingUnit

LeadingUnit

ParticipativeUnit

Repair Loop Controller


Tender Team

Transport

Procurement

Sourcing

Planner

Warehousing/Preparation

Operationplanning

depot

Local Storage

MER





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Minuetto Fleets in Italy

• Full Service Contract for corrective and preventive• Full Service Contract for corrective and preventive Maintenance of 214 trainsets in Italy

• Signature : December 2011• Start of Full Service Maintenance : 1st May 2012• 5 month mobilization before operational hand‐over

18 depots, inventory transfer, maintenance plan, staffing

Which Service Network Organization ?

• Service Level commitment : 94% trains availability on each depots daily

Commercial networkEMU DMU

SaviglianoCuneo 24Torino 10

49

Flotta

Area 1 Piemonte

Regioni Depositi

• 214 Trainsf l Novara 15

Veneto / Friuli V. G. Treviso 12 15

Trentino Alto Adige Bolzano 15

Firenze Osm. 6Firenze Rom. 14

Emilia Romagna Bologna 7

Sardegna Cagliari 8

Benevento 13Napoli 11

42

35

Area 2

Area 3

Toscana

Campania

• 13 Regions of Italy• 19 Local operations• 6 Service areas

Napoli 11Lazio Roma 8

Marche Ancona 4Abruzzo Pescara 4Puglia Bari 4

Palermo 15 10Siracusa 15

Calabria Reggio C. 4

100 114

Area 5

44

44

214

Area 4

Sicilia

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The Fleets

AREA 1

AREA 227 DMU12 EMU

AREA 3

110 Electric Multiple Units(EMU)

39 DMU10 EMU

AREA 413 DMU27 EMU

14 DMU20 EMU

18 Maintenance Depots

114 Diesel Multiple Units(DMU)

AREA 6

AREA 510 DMU34 EMU

8 DMU

FF Minuetto Fleet Center of Excellence

d

d

d d

C

C

Classification of the sites

d

d

d Depotsd

d

d

d Customer Hub per AreaCC

C

d

d

C

C

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F

d

d

d

C

C

Roles and Responsibilities

Minuetto Fleet Center of ExcellenceF

Supply Chain Interfaces

d d

d

d

d

d

d

dC

C

• Material Planning• Logistics Managers

• Fleet Planning• Quality

Customer Hub per AreaC

• Supply Chain Manager• Repair Management• Procurement• Logistics

• Project Manager• Technical Manager• Sourcing• controlling

Minuetto Fleet Center of Excellence F

d

d

C

C

d

• Local inventories

Depots• Depot Manager• Daily Maintenance

• Logistics Managers • Area Operations

Benefits

Benefits of using ALSTOM TLS “Service Network Modeling Tool “• Demonstrate dedicated Service Network capabilities to prospects• Demonstrate dedicated Service Network capabilities to prospects • Validate tender phase targeted Service Network • Align all functions on a clear road map

ERP set‐up and deployment, skills and staffing needs, stock allocation, freight request for quotations, depot hand over campaign, interfaces with maintenance operation, Sourcing, Engineering)

• Maximize global management synergies while securing daily performance commitment

• Successfully start Minuetto Full Service Operation

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Lessons learned to be taken away

• A robust Supply Chain Modeling strategy is key to support the Go‐To market plan in complex MRO business environment. p p

• Perform exhaustive review of existing practices, observed issues and business evolution. It is a prerequisite for building a sound / feasible vision

• Keep model simple to make it understandable • Plan targeted model at tender stage and align all stakeholders

O i S l Ch i i hi h i• Over communicate on Supply Chain within the company in 360°directions

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supply chain modeling for an go to -...

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