Decision Support for a Spare Parts Supply Chain Coordination Problem: Designing a Tactical Collaborative Planning Concept

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49-12 (2016) 1056–1061 Decision Support forIFAC-PapersOnLine a Spare Parts Supply Chain Coordination Problem: Decision Support for a Spare Parts Supply Chain Coordination Problem: Designing a Tactical Collaborative Planning Concept Decision Support for a Spare Parts Supply Chain Coordination Problem: Decision Support foraaTactical Spare Parts Supply Chain Coordination Designing Collaborative Planning Concept Problem: Designing aa Tactical Tactical Collaborative Collaborative Planning Planning Concept Concept Designing

Philipp Saalmann*, Carolin Wagner*, Bernd Hellingrath* Philipp Saalmann*, Carolin Wagner*, Bernd Hellingrath* Philipp Carolin Bernd Hellingrath*  Wagner*, Philipp Saalmann*, Saalmann*, Carolin Hellingrath* * Westfälische Wilhelms-Universität Münster  Wagner*, Bernd  * Westfälische Wilhelms-Universität 48149Münster, Germany Münster * Westfälische Wilhelms-Universität Münster 48149Münster, Germany * Westfälische Wilhelms-Universität Münster (e-mail: {saalmann; wagner; hellingrath} @ercis.uni-muenster.de). 48149Münster, Germany (e-mail: {saalmann; wagner; hellingrath} @ercis.uni-muenster.de). 48149Münster, Germany (e-mail: (e-mail: {saalmann; {saalmann; wagner; wagner; hellingrath} hellingrath} @ercis.uni-muenster.de). @ercis.uni-muenster.de). Abstract: The competitive advantage of today’s evermore complex production systems is characterized Abstract: advantage ofIntoday’s complex production is characterized by effectiveThe andcompetitive efficient maintenance. order toevermore ensure the availability of sparesystems parts and maintenance Abstract: The advantage of today’s complex production systems is characterized by effective andcompetitive efficient maintenance. orderthetoevermore ensure the availability of spare parts and maintenance Abstract: The competitive today’s evermore complex production systems is supply characterized personnel while operating atadvantage reasonableofIn costs, coordination and planning of spare parts chains by effective and efficient maintenance. order ensure the of parts and maintenance personnel while at monitoring reasonableIn costs, andintelligent planning of spare parts supply chains by effective and operating efficient maintenance. In ordertheto tocoordination ensure the availability availability of spare spare parts and maintenance based on machine condition information provided by maintenance systems (IMS) personnel while operating at reasonable costs, the and planning of spare partssystems supply based on machine condition information provideddecision by (IMS) personnel while operating at monitoring reasonable the coordination coordination andintelligent planning offor spare supply chains chains has become more important. Therefore, costs, this paper provides supportmaintenance the parts coordination of an based on condition monitoring information provided by maintenance systems (IMS) has become more important. Therefore, this paperdesigning provides decision support for theplanning coordination of an based on machine machine condition monitoring information provided by intelligent intelligent maintenance systems (IMS) IMS-enabled spare parts supply chain. It explains a tactical collaborative concept has become more important. Therefore, this paper provides decision support for the coordination of for an IMS-enabled spareimportant. parts supply chain. It this explains adecision tactical collaborative concept has become Therefore, paperdesigning provides support for theplanning coordination of for an planning the more maintenance capacities of the involved actors based on IMS-supported IMS-enabled spare parts supply chain. It explains designing a tactical collaborative forecast planninginformation. concept for planning the maintenance capacities of the involveddesigning actors based on IMS-supported IMS-enabled spare parts supply chain. It explains a tactical collaborative forecast planninginformation. concept for planning theSupply maintenance capacities of of the involved Control) actors based on IMS-supported © 2016, IFAC (International Federation Automatic Hosting by collaborative Elsevier Ltd. forecast All rightsinformation. reserved. Keywords: chain, maintenance, coordination, decision making, planning. planning the maintenance capacities of the involved actors based on IMS-supported forecast information. Keywords: Supply chain, maintenance, coordination, decision making, collaborative planning. Keywords:  decision Keywords: Supply Supply chain, chain, maintenance, maintenance, coordination, coordination, decision making, making, collaborative collaborative planning. planning.  autonomous decision makers (Dudek 2009a). It enables joint 1. INTRODUCTION  autonomous decision makersthe (Dudek It enables joint  decision-making without need2009a). to reveal private 1. INTRODUCTION autonomous decision makers (Dudek 2009a). It enables joint decision-making without the need to reveal private autonomous decision makers (Dudek 2009a). It enables joint 1. INTRODUCTION information. The designs of CP concepts differ significantly In nowadays high1. competitiveness INTRODUCTIONbetween production decision-making without the need to reveal private information. The designs of CP concepts differ significantly decision-making without the need to reveal private because they are dependent on the application context. In nowadays high competitiveness between production companies, the availability of machines is of high information. The designs of CP concepts differ significantly In nowadays competitiveness between because they aredesigns dependent the and application context. information. CPon concepts differ significantly anThe approach forofthe design evaluation of CP companies, thehigh availability of lead machines is production of losses high Therefore, In nowadaysFailures high competitiveness between production importance. of machines to production because they are dependent on the application context. companies, the availability of machines is of high Therefore, an approach for the design and evaluation CP because they are dependent on the application context. concepts is presented by the framework for intelligent supply importance. Failures of machines lead to production losses companies, the availability of machines is of high and related high costs. For this reason, effective and efficient Therefore, an approach for the design and evaluation of of importance. Failures machines leadeffective to losses is an presented by for the(Küppers framework for2015). intelligent Therefore, approach the designet and evaluation supply of CP CP chain operations (FRISCO) al. and related high costs.of this reason, efficient importance. Failures of machines to production production losses machine maintenance isFor crucial. Aslead a result, the and provision of concepts concepts is by framework for intelligent and related high this reason, effective efficient operations (FRISCO) et al. concepts is presented presented by the the(Küppers framework for2015). intelligent supply supply machine maintenance isFor crucial. As a result, the and provision of chain and related high costs. costs. For thisincluding reason, effective and efficient good after-sale services spare parts and (FRISCO) (Küppers al. machine maintenance is crucial. As a result, the provision of chain This operations paper presents designing operations (FRISCO) (Küppersa et ettactical al. 2015). 2015).collaborative good after-sale services including spare parts factor and machine maintenance is crucial. As a an result, the provision of chain maintenance demands influential paper presents designing a tactical collaborative good after-sale servicesbecomes including spare parts and This planning concept for the SPSC of Brazilian maintenance becomes an spare influential good after-sale services including parts factor and This paper presents designing a tactical manufacturer collaborative (Kutanoglu anddemands Mahajan 2009). planning concept for the SPSC of Brazilian manufacturer This paper presents designing a tactical maintenance demands becomes an influential factor automation solutions for the oil collaborative industry. It (Kutanoglu anddemands Mahajan 2009). maintenance becomes an influential factor producing planning concept for the SPSC of a Brazilian manufacturer producing automation solutions the oil manufacturer industry. It planning concept for the SPSC for of for amaintenance Brazilian (Kutanoglu and Mahajan 2009). considers IMS-based forecasts demand as In order to meet the requirements of good after-sale services, producing automation solutions for the oil industry. It (Kutanoglu and Mahajan 2009). considers IMS-based forecasts for maintenance demand as producing automation solutions for the oil industry. It well as the SPSC actors and their interdependencies to plan In order to meet the requirements of good after-sale services, the responsible spare parts supply chain (SPSC) needs to considers IMS-based forecasts for maintenance demand as In order to meet the requirements of good after-sale services, well as the SPSC actors and their interdependencies to plan considers IMS-based forecasts for maintenance demand as maintenance capacities. In order to achieve the desired results the responsible spare parts supply chain (SPSC) needs to In order to meet the requirements of good after-sale services, react efficiently to customer demand for maintenance. To well as the SPSC actors and their interdependencies to plan the responsible spare parts supply chain (SPSC) needs to maintenance capacities. order toThe achieve the desired results well as the SPSC actors and their interdependencies to plan FRISCO approach isIn applied. structure of the paper is react efficiently to customer demand formachine maintenance. the responsible spare supply chain (SPSC) needs To to the improve the forecast ofparts demands, current conditions maintenance capacities. order achieve the results react efficiently to customer demand for maintenance. To FRISCOchapter approach isIn applied. structure of thefor paper is maintenance capacities. In order to toThe achieve the desired desired results as follows: 2 summarizes the state-of-the-art spare improve the forecast of various demands, currentfor machine react to by customer demand maintenance. To the can beefficiently monitored sensors and futureconditions machine the FRISCO approach is applied. The structure of the paper is improve the forecast of demands, current machine conditions as follows: chapter 2 summarizes the state-of-the-art for spare applied. The structure of the paper In is partsFRISCO supply approach chains as iswell as supply chain coordination. can be monitored byof various and future machine the improve the demands,sensors current machine conditions failures canforecast be predicted intelligent maintenance follows: chapter 2 summarizes the state-of-the-art for spare can be monitored by varioususing sensors and future machine as parts supply chains well as supply chain coordination. Ina follows: chapter 2as summarizes the state-of-the-art for spare chapter 3, the FRISCO approach is explained. Following, failures can be This predicted intelligent maintenance can be monitored by information varioususing sensors and future machine as systems (IMS). enhances the forecasting supply as as supply chain coordination. In failures can be predicted using intelligent maintenance parts chapter 3,CP thechains FRISCO approach is explained. Following, supply chains as well well supply chain Ina suitable concept for asthe SPSC of coordination. the Brazilian systems (IMS). information forecasting failures can be aThis predicted usingofenhances intelligent maintenance quality enabling better planning the SPSCthe by improving parts chapter 3, the FRISCO approach is explained. Following, a systems (IMS). This information enhances the forecasting suitable CP concept for the SPSC of the Brazilian chapter 3, the FRISCO approach is explained. Following, manufacturer is designed in chapter 4. quality enabling better planning ofenhances the SPSC byforecasting improving systems (IMS).ofaThis information the the availability spare parts and responsible personnel at the suitable CP concept for the SPSC of the Braziliana quality enabling a better planning of the SPSC by improving manufacturer designedfor in chapter 4. CP isconcept the SPSC of the Brazilian the availability ofa spare responsible personnel at the suitable quality enabling betterparts planning of the The SPSC by improving required time (Espíndola et and al. 2012). resulting SPSC manufacturer is designed in chapter 4. the availability of spare parts and responsible personnel at the manufacturer is designed in chapter 4. 2. STATE-OF-THE-ART required time (Espíndola et al. 2012). The resulting SPSC the availability of spare parts and responsible personnel at the covers the production and sales of spare parts, the realization required (Espíndola et The SPSC 2. STATE-OF-THE-ART covers thetime production and sales of2012). spare parts,resulting the realization required time (Espíndola et al. al.the 2012). The resulting SPSC of maintenance activities, logistics infrastructure 2. STATE-OF-THE-ART covers the production and sales of spare parts, the realization 2. STATE-OF-THE-ART of maintenance activities, the logistics infrastructure covers the production and sales of spare parts, the realization including the transport and storage of the material as well as 2.1 Spare Parts Supply Chains of maintenance activities, the infrastructure including thesystems transport and storage oflogistics the material as well as 2.1 Spare Parts Supply Chains of maintenance activities, the2006). logistics infrastructure information (Cohen et al. including the transport and storage of the material as well as 2.1 Spare Parts Supply Chains information (Cohen et al. 2006). including thesystems transport and storage of the material as well as 2.1 Spare Parts Supply Chains information systems et al. In most cases those (Cohen functions are2006). implemented by different Spare parts supply chains differ to those for regular products information systems (Cohen et al. 2006). parts ways, supply due chains to those forinregular in several to differ the differences their products use and In most cases those functions by different Spare specialized actors in the SPSC, are e.g.implemented spare parts manufacturer Spare parts supply chains differ to those for regular products in several ways, due to the differences in their use and In most cases those functions are implemented by different Spare parts supply chains differ to those for regular products demand arising from machine failures instead of customer specialized actors in the SPSC, e.g.(Cohen spare parts In cases those functions are implemented by different andmost maintenance service providers et al. manufacturer 2006). Since in several ways, due to the differences in their use demand arising from machine failures instead of customer specialized actors in the SPSC, e.g. spare parts manufacturer in several ways, due to the differences in their use and and The resulting challenges for decision making in and service providers et al. 2006). specialized in the independent SPSC, e.g.(Cohen spare parts manufacturer thesemaintenance actorsactors are usually of each other andSince only demand. demand arising from machine failures instead of customer demand. The resulting challenges for decision making in and maintenance service providers (Cohen et al. 2006). Since demand arising from machine failures instead of customer SPSC are highlighted in the following. First, the demand for these actors are usually independent of each other and only and maintenance service providers (Cohen et al. 2006). Since share limited information along the SPSC, coordination and demand. The resulting challenges for decision making in SPSC are highlighted in the following. First, the demand for these actors are usually independent of each other and only demand. The resulting challenges for decision making in spare parts might be extremely sporadic and is very difficult share limitedare information along the SPSC, coordination and these actors independent of each other and only collaboration is usually excessively difficult. These networks of SPSC are highlighted in the following. First, the demand for spare parts might be extremely sporadic and is very difficult share limited information along the SPSC, coordination and SPSC are highlighted in the following. First, the demand for to predict (Huiskonen 2001). Demand arises either when collaboration is excessively difficult. These networks of share information along the heterarchical SPSC, coordination actors limited are commonly denoted as SPSCs.and In spare parts might be extremely sporadic and is very difficulta to predict 2001). itDemand arises when collaboration is excessively difficult. These networks of parts(Huiskonen might sporadic and iseither very component fails be or extremely when is scheduled for difficult regularaa actors are denoteddifficult. as heterarchical SPSCs. In spare collaboration is excessively Thesechains, networks of predict (Huiskonen 2001). Demand arises either when order to commonly manage heterarchical supply good actors are commonly denoted as heterarchical SPSCs. In to component fails or when it is scheduled for regular to predict (Huiskonen 2001). Demand arises either when replacement. Hence, a majority of spare parts has most of thea order are to commonly manage heterarchical supply chains, good actors denotedareas required. heterarchical SPSCs. In coordination mechanisms Collaborative fails or when it is scheduled for regular order to manage heterarchical supply chains, good component replacement. Hence, a majority of spare parts has most of the component fails or when it is scheduled for regular time a very low or even no demand at all (Martin et al. 2010). coordination mechanisms are solution required. Collaborative order manage heterarchical supplyto chains, good planningto (CP) is a promising overcome the replacement. Hence, a majority of spare parts has most of the time a very low or even no demand at all (Martin et al. 2010). coordination mechanisms are required. Collaborative Hence, a majority of sparedemands parts has is most of the Forecasting breakdowns and possible therefore planning (CP) is a decentralized promising to situations overcome the replacement. coordination mechanisms are solution required. Collaborative challenges of these planning with time aa very low or even no demand at all (Martin et 2010). Forecasting breakdowns and possible demands is al. therefore planning (CP) is a promising solution to overcome the time very low or even no demand at all (Martin et al. 2010). favourable, but difficult and often of a poor quality challenges of these decentralized planning situations with planning (CP) is a promising solution to overcome the Forecasting breakdowns and possible demands is therefore favourable, breakdowns but difficultandand often demands of a poor quality challenges possible is therefore challenges of of these these decentralized decentralized planning planning situations situations with with Forecasting favourable, but difficult and often of aa poor quality favourable, but difficult and often of poor quality Copyright © 2016 IFAC 1056 2405-8963 © IFAC (International Federation of Automatic Control) Copyright © 2016, 2016 IFAC 1056Hosting by Elsevier Ltd. All rights reserved. Peer review©under of International Federation of Automatic Copyright 2016 responsibility IFAC 1056Control. Copyright © 2016 IFAC 1056 10.1016/j.ifacol.2016.07.582

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(Hellingrath and Cordes 2014). In order to enable more precise forecasts, the incorporation of degradation information about machinery and parts has been proposed (Espíndola et al. 2012). This condition-based maintenance approach narrows down the expected lifetime of machinery based on sensor data that is provided by IMS and thus enables better planning.

to plan its business function and gives the calculated demands to its suppliers (Hellingrath and Böhle 2010). Several approaches for heterarchical coordination have been presented (Breiter et al. 2009):  Central collaborative planning: Seeks to coordinate actors through the exchange of private information to a central trusted organization. The organization is legitimized to make decisions for the entire supply chain.  Mathematic decomposition: Splits the global planning of all business functions into smaller sub problems for the local planning of each actor. The sub problems are solved separately, but need to be coordinated via a superior level in order to find an optimal supply chain wide solution.  Hierarchic anticipation: Distinguishes decision-making between a top and a base level. The top level makes decisions first and influences the decisions on the base level. It anticipates the reactions of the base level with the goal to increase the coordination between both levels.  Self-selection: Aims to coordinate under the light of information asymmetry based on contracts. Actors, which have less power to enforce decisions, develop a set of different options to choose from for the other actors.  Automatized negotiations: Are conducted iteratively between the actors to find a mutually accepted agreement. This provides the basis for heuristic-based concepts that rely in large parts on negotiation processes.

Furthermore, the criticality of spare parts is very high. Missing spare parts might lead to machine failures, worse quality or even production stops (Meier and Klimek 2009). This economic impact is much higher than the monetary value of the spare parts themselves (Huiskonen 2001). The resulting countermeasure to guarantee high service levels is to keep critical spare parts readily on stock in order to be able to quickly react to part failures (Moncrief et al. 2005). Moreover, some spare parts are expensive and difficult to obtain on the market. Due to the increasing complexity of end products, spare parts also continue to grow in complexity and costs (Kutanoglu and Lohiya 2009). Hence, stocking of all spare parts is economically not feasible due to high inventory costs and in some cases spare parts might be needed to be produced individually on demand (Martin et al. 2010). The various actors within a SPSC are specialized on one or multiple business functions and therefore have different knowledge about events influencing the demand for spare parts (Meixell et al. 2008). Hence, shared knowledge among the actors, e.g. condition-based forecasts, can improve the forecasting quality of individual actors and result in a more efficient SPSC planning (Moosavirad 2013). Due to the complex nature of the collaboration between the various SPSC actors, these decentralized supply chains with intermittent demand are still a considerable field of research (Li and Wang 2007). Since they resemble heterarchical supply chain structures, coordination mechanisms seem to be beneficial for managing decentralized SPSC. 2.2 Supply Chain Coordination

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However, all those approaches have individual shortcomings, they either need the implementation of a central decision making authority, exchange of private information, asymmetric power interactions or are still only of theoretic nature (Küppers et al. 2015). Therefore, current research in the field of collaborative planning addresses the coordination of heterarchical supply chains. Respective concepts take explicitly into account the aspects and peculiarities of heterarchical supply chains and are regarded as promising to improve their effectiveness (Dudek 2009a). 2.3 Fundamentals of Collaborative Planning

An actor of a supply chain is often not just part of one but of several different supply chains at the same time. Hence, each actor has to balance his commitments within the different supply chains he is part of and has to plan its own business functions (Calisusco et al. 2004). A traditional hierarchical planning model can therefore either describe only a part of a supply chain, a given actor or would need to encompass every linkage of every actor in a supply chain, which is infeasible in today’s complex production networks. Furthermore, actors are often unwilling to share strategic or sensible information, e.g. production capabilities or resources and do not want to surrender their local decision autonomy (Breiter et al. 2009). Therefore, supply chains including various actors need to be coordinated differently, while the internal planning for a single actor can be organized hierarchically (Dudek 2009a). For heterarchical structures, the planning is often done in succession throughout the different tiers. Each actor uses the inputs of the preceding tier

CP concepts are coordination mechanisms that are primarily used in heterarchical supply chains and aim at coordinating decisions between equally important decision making levels (Dudek 2009a). CP can be defined as “a joint decision making process for aligning plans of individual supply chain members with the aim of achieving coordination in light of information asymmetry” (Stadtler 2009). It enables to connect the planning of different business functions within a supply chain (Stadtler et al. 2015). Nowadays, CP is regarded as a general tool for coordinating collaborative supply chain operations and not only as a technical solution (Almeida et al. 2011). A CP concept has to be able to solve complex planning problems without the need to exchange sensitive data, while preventing opportunistic behaviour by its actors (Scheckenbach 2011). Mechanisms have to ensure the participation and commitment of all actors to CP as a planning solution might not always be beneficial for every actor of the supply chain and each actor aims to

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optimize its personal interests (Li and Wang 2007). Hence, a CP process typically consists of six underlying steps that are performed in continuous succession (Stadtler et al. 2015):  Definition: The scope of collaboration and CP needs to be defined in a collaboration agreement, which contractually specifies, e.g. the products or services to be coordinated, the time horizon as well as the coordination processes.  Local domain planning: An actor creates a set of different local plans and ranks them by preference. A plan describes a local planning situation and forms the basis for communication with the other actors.  Plan exchange: The previously agreed on information about the local domain planning results are exchanged between the actors, in order to facilitate an understanding of the coordination situation.  Negotiation and exception handling: In this iterative step, customer and supplier aim at finding a solution for the planning problem. Suppliers evaluate customer proposals to determine preferred supply plans, which in turn can be evaluated by the customers. Compromises and possible compensation payments are negotiated until an agreement is reached. Exception handling applies predefined rules that specify how possible planning problems are to be addressed, e.g. capacity overload.  Execution: After a plan has been accepted, the resulting replenishment-, production- and purchasing processes are executed.  Performance measurement: The effects of collaboration on the performance of the supply chain need to be measured. In this step, it is checked if the desired outcomes were reached. Each step can be supported by existing advanced planning systems, except for the negotiation phase. Thus, especially the negotiation phase of CP is still under development (Dudek 2009b). The effects of introducing CP to a specific supply chain have to be estimated and compared to the costs that arise from the implementation. If the positive results of collaboration do not pay off associated costs, CP should not be implemented (Dudek 2009b). Since there is a range of different CP concepts existing in the literature, guidance and tool support for the identification of applicable CP concepts for a specific coordination problem is required as well as means to assess their expected performance (Küppers 2013). 3. REUSE-BASED DESIGN APPROACH In order to develop a CP concept for the SPSC of the Brazilian manufacturer, the application of FRISCO – the aforementioned framework for the design and evaluation of CP concepts in heterarchical supply chains – has been chosen. FRISCO is the first framework providing continuous and integrated methodical and tool support for the design, modelling and scenario-based evaluation of CP concepts (see Fig. 1) (Küppers 2013). Other approaches, for instance the ones presented by Xu and Beamon (2006), Woelk et al. (2006), or Schumann (2010) are individually not capable of meeting all requirements for an

Fig. 1. Overview of FRISCO components integrated design, modelling and evaluation of CP concepts. They address goals that are partly similar, however, also reside on different levels of abstraction with respect to the analysed coordination mechanisms. The more generic frameworks, e.g. presented by Xu and Beamon (2006) or Schumann (2010), are not specific enough to allow the differentiation of coordination mechanisms of the same kind, e.g. different CP concepts. Hence, they do not fully support decisions for the development of suitable coordination mechanisms for a given supply chain. Furthermore, more specific frameworks, e.g. presented by Woelk et al. (2006), lack a degree of generalizability and focus for instance on solving specific coordination problems. The continuous development of CP-based coordination mechanisms for a given coordination problem is supported by the three components of FRISCO. The first phase of designing CP concepts is supported by the assessment component. It is based on the idea of reusing existing CP concepts for addressing a coordination problem by identifying available CP concepts that are entirely or partly reusable. Fig. 2 shows the four steps of the approach, which applies an attribute-based matching to transfer concepts and artefacts between application domains (Küppers et al. 2015). First, a given coordination problem is analysed by identifying its values for the attributes of the FRISCO classification structure. The classification attributes, e.g. the number of tiers of the supply chain, characterize the actors for each tier and their business functions. The resulting values for the attributes form the basis for the matching of the coordination problem with possible candidate CP concepts. The second step is the determination of the general suitability of CP for the coordination problem. Based on the attribute values it is verified, if a heterarchical supply chain and therefore the need for CP are present. Thirdly, the attribute values of the coordination problem are compared to existing classified CP concepts that are contained in the FRISCO library. If no full match – showing congruence of all attribute values – is found, the values of relaxation attributes need to be relaxed in a predefined order to widen the search for partial matching CP concepts. In the last step, the resulting identified candidate CP concepts are checked further, whether they need to be changed or expanded to fit them to the specialties of the coordination problem. The adaption of the candidate

Fig. 2. Steps of the FRISCO assessment component

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CP concepts is done by applying the FRISCO transfer rules that define the required changes based on relaxed attributes.

accept any concessions that will decrease their individual profits, they follow a greedy strategy.

The following phases of formally modelling CP concepts and evaluating their application in different scenarios are supported by the FRISCO modelling and evaluation components. The modelling component is split into the business and IS perspectives. The models in the business perspective create a shared understanding of the intra- and inter-organizational processes of a CP concept for all participating actors. Following a model driven development approach, the IS perspective provides corresponding multiagent models that are used in the subsequent evaluation component. The evaluation component provides a simulation environment based on multi agent systems in order to achieve an efficient evaluation of the simulated execution of the CP concept in different supply chain scenarios.

Furthermore, the decision situation is characterized by a coordination goal aiming at performance, because the SPSC is interested in providing good and effective service with perfect quality. Costs reduction is only seen as secondary priority. In order to determine capacities for future periods, the actors mainly plan according to the outcomes of (capacitated) lot-sizing problems CLSP as local decision models. Since planning with rolling horizons is not required by the actors, the value is specified as no enabling more dynamic planning. Currently, demand and action are triggered by the customer and implies further actions by the upstream actors of the SPSC. Thus, the initial planning solution is described as upstream planning.

4. DESIGN OF THE TACTICAL COLLABORATIVE PLANNING CONCEPT 4.1 Characterization of the SPSC Coordination Problem The analysed SPSC of the Brazilian manufacturer focuses on maintenance services for actuators. Besides the manufacturer, logistics service providers (LSP), maintenance service providers (MSP) and customers are involved. The tactical planning of maintenance capacities is based on forecasted maintenance demand. IMS-based forecasting methods have been developed in order to incorporate actuators’ condition information for more precise forecast results (Hellingrath and Cordes 2014). In order to improve the coordination between the different actors, the FRISCO assessment approach was followed to design a CP concept for this SPSC. First, the SPSC coordination problem was characterized (see Table 1). Regarding the SPSC structure, for the attribute number of tiers the value multi-tier was selected, because of the four tiers mentioned above. Starting from one spare parts manufacturer, the number of actors on each tier increases downstream the SPSC, thus the SPSC has diverging relationships. The relevant business functions of the actors are production and distribution. Since a very large LSP is involved that ships comparatively low volumes of small parts for the SPSC, it can be assumed that any requested transport will be executed with reasonable costs and time. Therefore, the business function of the LSP was still considered internally by the other actors, but not specified separately for the CP concept design, in order to simplify the business functions of the complex coordination problem to production / production / production. The actor relationship attributes describe a symmetric distribution of power among the actors, because the actors are independent and there is no dominant actor. For the level of self-interest the value team applies for all actors, because favourable decisions for the SPSC as a whole are accepted. So far no compensation payments are made in the SPSC, but since they would be accepted in the future the attribute value is specified as arbitrary. Since most actors are unlikely to

Potential constraints of the coordination problem for CP concepts are described by the solution attributes. The introduction of a mediator for certain coordinative tasks would not be accepted by all actors, because of trustworthiness. Moreover, no specific SPSC-wide actor relationships are currently present, but the concept of bilateral contracts between MSP and customers is widespread. The implementation of such agreements can be assumed although the value is specified as arbitrary. Highlevel information regarding demand and orders is already exchanged and the exchange of schedule proposals or possible compensation payments will be accepted. Regarding negotiation state logic, no specific logic is pre-required for the SPSC, so the value is specified as arbitrary. Since the actors are proactive while generating plan proposals, candidate CP concepts should support proactive SPSC roles. 4.2 Suitability Assessment and Matching Before searching for candidate CP concepts, step two of the assessment approach verifies the general suitability of CP for the classified SPSC coordination problem. In fact, the SPSC shows neither market-like structures (e.g. symmetric power, opportunistic behaviour, very limited shared information) nor hierarchical structures (e.g. asymmetric power, full actor compliance, sharing all relevant data). Therefore, a general suitability of CP can be assumed. Afterwards, the matching method (step three) was applied resulting in no perfect match for all attribute values for the 26 classified state-of-the-art CP concepts of the FRISCO CP concept library. However, it is highlighted that CP concepts, which address more complex supply chain structures than the classified problem, can also be applied. Hence, the value for the attribute number of actors on tiers was changed from diverging to complex. This resulted in the match of one candidate CP concept that is introduced by Hegmanns (2010). A comparison of the attribute values for the given SPSC and the candidate CP concept is provided in Table 1. The CP concept presented by Hegmanns (2010) aims to optimize the demand and capacity management of a production network. It continuously renegotiates capacity corridors bilaterally between the actors: built to stock

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Table 1. Attribute values of the SPSC and the candidate CP concept. Attribute Number of tiers Number of actors on tiers Business functions Power relationship Level of self-interest Compensation payments Concession strategy Coordination goal Decision models Planning with rolling horizons Initial solution Mediator Actor-relationship

SPSC Multi-tier Initially: Diverging Prod/prod/prod Symmetric Team Arbitrary Greedy Performance CLSP No Upstream planning No Arbitrary

Candidate CP Concept Multi-tier Complex Prod/prod/prod Symmetric Team Yes Greedy Performance MIP (capacity and adaption planning) No

which are provided by the supplier and demanded by the customer. These production capacities had to be partially transferred into maintenance capacities. The information being exchanged between the actors had to be connected to the adapted local decision models. The SPSC actors are expected to accept exchanging this information, because it does not contain potentially sensible information as it is only connected to specific changes in the interaction between the actors. The concept contains a sophisticated negotiation state logic and each state seems doable for the SPSC. 4.4 Models in the Business Perspective

Upstream planning

No Yes (bilateral capacity corridors) Type of exchanged Arbitrary on high- Demand, compensation information level payments, adaption requests and responses Negotiation state logic Arbitrary Yes Negotiation roles Proactive Proactive

supplier, built to order supplier and original equipment manufacturer. The actors agree on minimal and maximal capacities and demands for a certain planning horizon. Local planning accounts for the needs and capabilities of each actor, the coordination between the actors is done through bilateral negotiations. Costs resulting from capacity changes, e.g. costs for keeping and using reserve capacities, can be balanced and compensated among the actors. 4.3 Transfer and Specification Since the attribute number of actors on tiers has been relaxed and some attribute values were kept arbitrary, the candidate CP concept shows partial incongruity compared to the classified SPSC coordination problem. Therefore, the concept had to be further examined in order to transfer it to the requirements of the SPSC. First, it covers more complex supply chain structures than required. Hence, the synchronization of multilateral relationships is not necessary for the MSP while interacting with the manufacturer. The related unnecessary artefacts have been removed in order to reduce the complexity of the concept. Compensation payments were kept arbitrary and are required by the candidate CP concept. As already described in 4.1, the introduction of compensations is deemed to be feasible. Furthermore, the planning situation of spare parts manufacturer and MSP is approximated well by the candidate concept’s actor built to order supplier. However, the local decision model of the downstream actor original equipment manufacturer had to be exchanged for the SPSC customers in order to connect the IMS-based forecasts of maintenance demand. Moreover, the concept requires bilateral capacity corridors that represent the maximal and minimal capacities,

In order to achieve a shared understanding about the CP concept for all SPSC actors, the FRISCO modelling component was applied to specify the intra- and interorganizational processes of the CP concept in the Business Process Model and Notation (BPMN). BPMN models are used to define the processes and constitute the business perspective of the concept. The BPMN models of the candidate CP concept that are provided by Hegmanns (2010) have been modified in order to introduce the aforementioned adaptations that fit it to the SPSC coordination problem. Fig. 3 shows exemplarily the resulting local view for the spare parts planning of the MSP and its adaptations. The expected performance of the adapted CP concept is scenario-dependent. Therefore, the modelling of the IS perspective and evaluation of the CP concept has to be carried out in order to assess the expected improvements for the SPSC scenario. Furthermore, the design of the CP concept can be influenced by the evaluation results enabling an iterative improvement process. The modelling and initial evaluation in the SPSC scenario has shown promising results for improving performance. Contrary to an unstructured approach that would require time-consuming qualitative analyses to find a suitable CP concept, e.g. an extensive literature review, the applied approach enables the evaluation to be performed objectively. Applying the matching method based on the common classification structure for coordination problems and reviewed CP concepts results in promising solutions and improved solution design efficiency. 5. CONCLUSION In this paper, we presented the design of a CP concept that meets the requirements and constraints imposed by a given coordination problem in a heterarchical IMS-enabled SPSC. The design of the CP concept followed the reuse-oriented FRISCO approach. The FRISCO assessment approach was

Fig. 3. Local view of the process spare parts planning at the maintenance service provider

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applied in order to search for an existing CP concept that is transferrable to the given SPSC. This search was enabled by the classification of the coordination problem based on a detailed analysis. The resulting candidate CP concept was examined to identify adaptions that are required to fit to the coordination problem. Following the FRISCO modelling component, the business perspective of the CP concept was established by introducing the required adaptions in the BPMN models of the CP concept. Thereby, a possible solution for coordinating the given SPSC is provided. Future research will focus on in-depth assessment of the expected performance of the designed CP concept for the given SPSC scenario. Modelling the FRISCO IS perspective of the CP concept enables its simulated execution for the SPSC scenario in the FRISCO evaluation environment. Expected SPSC performance improvements of the designed CP concept will be quantified for this and other scenarios. 6. ACKNOWLEDGEMENT This research was supported by the German Research Foundation DFG (BRAGECRIM project “Integrating Intelligent Maintenance Systems and Spare Parts Supply Chains (I2MS2C)” – BRAGECRIM 022/2012). 7. REFERENCES Almeida, R., Toscano, C., Azevedo, A. and Carneiro, L. (2011). Collaborative planning approach for nonhierarchical networks environments. International Conference on Concurrent Enterprising, 17, pp. 1–8. Breiter, A., Hegmanns, T., Hellingrath, B. and Spinler, S. (2009). Coordination in Supply Chain Management. In Voss, Pahl and Schwarze (eds.) Logistik Management, pp. 1–35, Springer, Berlin. Calisusco, M. L., Villarreal, P., Arredondo, F., Zanel, C., Zucchini, D., Chiotti, O., et al. (2004). Decentralized management model of a partner-to-partner collaborative relationship. Second World Conference on POM. Cohen, M., Agrawal, N., and Agrawal, V. (2006). Achieving breakthrough service delivery through dynamic asset deployment strategies. Interfaces, 36 (3), pp. 259–271. Dudek, G. (2009a). Collaborative Planning. Zeitschrift für Planung & Unternehmenssteuerung, 20, pp. 239–246. Dudek, G. (2009b). Collaborative planning in supply chains, A negotiation-based approach. Springer, Heidelberg. Espíndola, D., Frazzon, E., Hellingrath, B., and Pereira, C. (2012). Integrating Intelligent Maintenance Systems and Spare Parts Supply Chains. 14th IFAC Symposium on Information Control Problems in Manufacturing, 14, pp. 1017–1022. Hegmanns, T. (2010). Dezentrales Planungs- und Prozesskonzept für ein kollaboratives Bedarfs- und Kapazitätsmanagement in Produktionsnetzwerken, Praxiswissen, Dortmund. Hellingrath, B. and Böhle, C. (2010). Integrierte agentenbasierte Produktions- und Logistikplanung in der Supply Chain, Künstliche Intelligenz, 24, pp. 115–122. Hellingrath, B. and Cordes, A. (2014). Conceptual Approach for integrating condition monitoring information and

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