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] Holmstrm, 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2 Superseded/obsolete =(Blanks) 71,805 parts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 Westerweels 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