Accurate forecasting of Spares requirement & Surplus identification
Industry Vertical and the Company:
An Aircraft overhauling company that services 500+ defense aircrafts.
The Aircraft overhauling company carried more than 3 years inventory and over 100,000 part numbers, given the uncertainty of supplies from OEMsbased abroad. The challenge was to accurately forecast spares requirement over next 20 years (useful life of Aircraft) and identify surplus, if any.
Using the data on mandatory flying-hours for the aircrafts, and replacement schedule (based on no. of flying hours for mandatory replacement parts and elapsed time for Lifed items), typical failure rates and quality scores for spare parts, we created a model that was based on Projected Aircraft Induction and Projected Flying Schedule.
Accurately classified spares-inventory into aircraft-sets, with FIFO principle to ensure availability and avoid wastage due to obsolescence.
A very reliable schedule was worked-outtill last of the Aircraft is phased out of active use.
Created a spares-stocking policy andalso identified USD 20 millionworth surplus-to-requirements (beyond useful life of the aircraft) spares inventory that could be potentially exported to other users of similar models of aircraftsin Asia & Africa.