A leading service provider was looking to optimize its sparing strategy. The enhanced process would need to improve visibility of available spares and maintain service SLAs that were in place.
- Developed framework to classify spares, failure rates, and associated cost
- Developed sparing plan that addressed two types of sparing requirements
- Material seed stock required to operationalize normal failures
- Emergency materials needed to address a catastrophic event
- Led model development that optimized quantity, location, and sparing cost
- Model based on confidence factor of having material when needed
- Model used MTBF, inventory replenishment times, and SLA data
- Quantity and stocking location defined based on material criticality
- Defined worst-case configuration to support catastrophic failure events
- Minimizing the cost of sparing all possible configurations
- Phased implementation used to reduce exposure and minimize cost
- Trained Supply Chain to use sparing model to support quarterly updates
- The client received a usable cost-effective sparing strategy in less than 3 months that also provided visibility to available spare materials throughout the organization.
- The client used the sparing model quarterly to maintain required stocking levels as deployments grew.
- $1M in initial savings was realized by staging sparing locations for plug-in module spares needed to support emergencies to back fill material spares.