PrimeServ Addresses Spares Availability in a Booming Market

In early 2006, MAN Diesel reorganised its after-sales activities, creating MAN Diesel PrimeServ, a new integrated, company-wide organisation combining the after-sales activities of all the products of the whole MAN Diesel group. Headed by Dr. Stephan Timmermann, executive board member with PrimeServ responsibility at MAN Diesel in Augsburg, Germany, the new after-sales organisation has rapidly taken steps to develop all aspects of its activities. In the area of spare parts supply, measures have been taken to respond to a continuing boom in engine sales which is already noticeably increasing spares demand, Timmermann notes. “One of the most far reaching steps we have taken is a programme to sever the link between the production of original equipment and aftermarket components to reflect the differing quantities involved and that original equipment and after-sales activity are on completely different business cycles.” Inventories and Logistics At the same time, MAN Diesel PrimeServ has increased and optimised its spares inventories on the basis of delivery statistics. “Our spares stocks now more precisely reflect actual ordering patterns, especially of major customers,” Timmermann continues. “Simultaneously, stocks have been substantially increased and globalised - as our network of local PrimeServ hubs and service centres expands we are building spares inventories at strategic locations around the world. As we know, global after-sales activities are a business where distance means expense and PrimeServ aims to offer its customers the great advantage of maximum possible spare parts proximity.” With the same aim of improving the accessibility of spare parts and service to the customer, the PrimeServ organisation has rapidly increased its number of hubs -- 11 were established in 2006 alone and as many as 20 further locations are foreseen. On the logistics side, this is complemented by the appointment of a new partner to handle spare parts forwarding for four-stroke engines and axial and radial turbochargers manufactured at MAN Diesel’s works in Augsburg. This measure has also included handing over warehousing to the new partner. Spares kits MAN Diesel PrimeServ also reports an excellent market response to the spare parts kits it has recently introduced. The kits are rationally and attractively packaged and comprise all the parts specific to a given service or repair job. They aim to both simplify the customer’s ordering tasks and ensure that components essential to a job are not omitted from an order. Reconditioning A further new emphasis at PrimeServ is spare part refurbishment. “This is both a method of easing the pressure on component suppliers in a situation where demand is rising sharply for both components for new products on the one hand, and for spares and service for an increasing global population of MAN Diesel engines, turbochargers and propulsion systems on the other,” Timmermann says. “Hence, where previously remanufacturing and reconditioning was the preserve of the Hamburg service centre in Germany, these activities will be carried out at a number of locations around the world, including Dubai, Singapore, and Houston and New Jersey in the USA.” E-Commerce PrimeServ is also taking major steps in information technology with wide implications for spares availability. The E-commerce solution used at MAN Diesel in Copenhagen is to be implemented group-wide, while the spread of electronically controlled engines is having a noticeable effect on spares procurement. An increase in online engine monitoring allows more components to be replaced on an “on-condition” basis while the procurement of spares for an approaching service event can be better timed and coordinated to get parts to the right location at the right time. Single Point of Contact On the global communications side, PrimeServ has started the process of installing a single, global service telephone number which will be manned around the clock by staff with full access to all the engine, turbocharger and propulsion system customer data required for prompt order input and fulfillment. Finally, MAN Diesel notes that rationally assessing engine and turbocharger spares needs will be an important theme in the tuition and qualification it provides at its network of “PrimerServ Academies”. The latest academy at the Augsburg works was officially opened in May 2007 and offers courses aimed at qualifying both personnel from MAN Diesel’s customers and MAN Diesel PrimeServ technicians.