INCREASE PRODUCTION THROUGH IMPROVED SPARE PARTS AVAILABILITY Robert Lamarre Gestion Conseil Robert Lamarre & Associés (GCRL) and IMAFS Inc.

Identify product family and demand stream Critical or not Stock or non stock New Inactives (no usage for X months) A B C D Based on Hits or usage value Updated Annually Monthly Manual Reparable or not Obsolete or not Classes 1. Parts Classification - Process

Measures existing levelsAllows service goals on part’ criticality level Allows service goals by class, by family, by warehouse Safety stock set in line with service goals Simulations to measure impact of service goals variations Dashboard to track service resultsTools to take corrective actions 2. Managing Service

3. Managing Demand Better data for accurate forecasts

4. Forecasting Demand Good solid statistical forecasts Forecasting methods that account for demand trends, seasonality and intermittence Best fit by item Possibility of manual adjustments Filters & alerts Can integrate maintenance planning data Better forecasts = better service + less stock

Bad lead time information result in stock outs or surplus stock 5. Managing lead times Lead time Dynamic calculation Dynamic calculation By vendor and transport mode Cleansing of extreme delays Internal lead time managed by components Possibility of manual control Compare real lead time with vendor promises

6. Optimizing Inventory Parameters $ Ordering Stocking costs costs DATA BASE ERP or CMMS Calculation SS Lead time Min Max Forecasting Lot sizes Service objectives per class / family/ warehouse Adjustments Simulation

7. Roles and Responsibilities  Clarifying roles and responsibilities  Who is responsible for inventory ?  What are the roles of Supply Chain Management ?  What are the roles of Maintenance ?  Change management is very important

8. Policies and Procedures  Service goals  Policies clarify roles and responsibilities  Procedures document how to address issues  Well documented policies and procedures are essential

9. Surplus Stock  Action plan to dispose of surplus stock  Clear responsibilities

10. A Good Inventory Optimization System  Scientific and dynamic calculation of Min-Max  Results:  Increase of service level  Inventory reductions  Minimization of downtimes  Increase of profit and throughput

11. Key Performance Indicators

12. Exception Reports Inventory analysis and exception reports should give full picture of inventory management results with pointers on necessary corrective actions with drill down possibilities

Thank you! QUESTIONS