Logistical impactof

Additive Manufacturing on

after-sales service supply chains

A Quick scan at JLG Ground Support

Stijn Verputten, TU/e

Table of contents1. JLG Industries

2. Ranking method

3. Promising parts

JLG Industries

• JLG is a $3 Billion global Company• Part of $9 Billion Oshkosh Corporation

• Distributer of access equipment • Work platforms • Tele-handlers

• JLG Ground Support• Aftermarket

• Operating all around the world• Project done in Maasmechelen, Belgium

Benefits of Additive Manufacturing

Benefits1 for JLG Ground Support

• Simpler supply chain• Shorter lead times Lower inventories

• Small production batches

Company goal: Reduce inventory while maintaining a fill rate of 98%

Company goal in combination with AM benefits• In our project we investigate how we can use AM to meet this goal

• We need to know which parts are eligible and what criteria they must meet

[1] Holmström, J., Partanen, J., Tuomi, J., & Walter, M. (2010). Rapid manufacturing in the spare parts supply chain: alternative approaches

to capacity deployment. Journal of Manufacturing Technology Management,21(6), 687-697.

Ranking method

• We follow Knofius’ framework as conducted at Fokker and Royal Netherlands Army

• Ranking method made in 3 phases

Data FilteringSpare Part attributes

assortmentData Scoring

OverallScore

Phase 1 Phase 2 Phase 3 Result

Data Filtering

• Start with 74 882 parts

• Go/No-Go attributes

• Data unavailability

• 803 promising parts

ID Field Restriction Remaining parts

1 All parts JLG Ground

Support

74,882 parts

2 Superseded/obsolete =’(Blanks)’ 71,805 parts

3 Buy level =’buy level’ 17,064 parts

4 Sales 2007/2016

Yes/No

=’Yes’ 5,284 parts

5 Std price > 20€ 2,600 parts

6 Commodity code Min {irrelevant

keywords}

883 parts

7 Printable Material

type

Min {irrelevant

keywords}

868 parts

8 Total Size printable =1 853 parts

9 Printable Weight < 22 pounds 803 parts

Spare part attributes

• Determine spare part attributes• Demand

• Lead time

• Cost

• Batch size/sales

• Inventory Turnover Rate(ITR)

Spare part attribute weight

19%

22%

19%

18%

22%

Demand Leadtime Batchsize

ITR Cost

• Analytical Hierarchy Process

• 5 Decision makers

• Pair-wise comparison

Data scoring

• All candidate parts receive a score from ‘0’ to ‘1’ for every spare part attribute

• Normalize scores based on extreme values

• Linear scoring:• Lead time• Batch size/sale• ITR

• Logarithmic scoring:• cost

• Other scoring:• Demand

Final results

Very promising parts:

• Parts with score >0.6

• 122 parts

0

50

100

150

200

250

0-0.1 0.1-0.2 0.2-0.3 0.3-0.4 0.4-0.5 0.5-0.6 0.6-0.7 0.7-0.8

1

34

88

177

220

161

89

33

Nu

mb

er o

f p

arts

total scores

Total scores

Promising parts

• Manual check for the 50 best parts

• 4 parts are selected in collaboration with the company.

• Based on: - Suitability to manufacture with AM- Favorable for AM- Kind of part

Stop, Lift cylinder

Specification:• Material: Metal • Size:• Weight: 0,700 kg

• Lead time: 25 days • Cost: € 30,63• Demand: 2 a year• Batch size/sales: 12.50• ITR: 0.08

0,190

0,049 0,190

0,174

0,026

Total score:0.629301

Score demand

score leadtime

score batchsize

score ITR

score Cost

Mount, Rear window latch

Specification:• Material: A36 Steel• Size: 52 mm• Weight: 0,067 kg

• Lead time: 77 days • Cost: € 34,04• Demand: 1 a year• Batch size/sales: 1• ITR: 0,14

Pin, Kingpin (1001130160)

Specification:• Material: Metal (4150101).• Size: 150 mm

• Weight: 0,400 kg

• Lead time: 59 days • Cost: € 95,36• Demand: 2 a year• Batch size/sales: 0,5• ITR: 0,15

Valve, Heater water

Specification:• Material: Metal • Size: 106,0 mm• Weight: 0,450 kg

• Lead time: 81 days • Cost: € 106,41• Demand: 0 a year• Batch size/sales: 1• ITR: 0

Future steps

• Next steps with these parts are, with Westerweel’s model:

• Determine minimum Quality of the AM parts

• Determine maximum cost of the AM parts

• To determine definit Go/No-go for the selected parts

Conclusion

Questions?

Pin, Axle Pivot

Specification:• Material: Metal (4150101)• Size: 222,5 mm

• Lead time: 79 days • Cost: € 21,72• Demand: 2 a year• Batch size/sales: 5• ITR: 1

Valve, Fly boom

Specification:• Material: • Size: 153,7 mm

• Lead time: 59 days • Cost: € 150,60• Demand: 0 a year• Batch size/sales: 5• ITR: 0

Valve, Counterbalance

Specification:• Material: Metal (4150421)• Size: 134,8 mm

• Lead time: 111 days • Cost: € 73,34• Demand: 1 a year• Batch size/sales: 1• ITR: 0,5