(12)
`
`United States Patent
`Scheer
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 7,313,534 B2
`*Dec. 25, 2007
`
`US007313534B2
`
`(54) SYSTEM AND METHOD FOR PREDICTIVE
`MAINTENANCE AND SERVICE PARTS
`FULFILLMENT IN A SUPPLY CHAIN
`
`(75) Inventor: Robert H. Scheer, Chicago, IL (US)
`(73) Assignee: W.W. Grainger, Inc., Lake Forest, IL
`(US)
`
`(*) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 1138 days.
`This patent is subject to a terminal dis-
`laimer.
`Clal Inner
`
`(21) Appl. No.: 09/867,068
`(22) Filed:
`May 29, 2001
`
`s
`
`-
`
`(65)
`
`Prior Publication Data
`US 2002/0143598 A1
`Oct. 3, 2002
`
`Related U.S. Application Data
`(60) Provisional application No. 60/263,317, filed on Jan.
`22, 2001.
`
`58 Fi id ic- - - - - -efeat - - - - - -s - - - - - - - h- - - - - - - - - - - - - - - - - - - - - - - 705/8
`
`(51) %V46
`(2006.01)
`(52) U.S. Cl
`-
`705/9
`(58) Field of Classification Search ..................70 5/9, 1 o
`See application file for complete search history s
`-
`References Cited
`|U.S. PATENT DOCUMENTS
`
`(56)
`
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`(Continued)
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`Andel, Tom, Maintenance Keeps Supply Chains Stong Transporta
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`
`(Continued)
`Primary Examiner–Tariq R. Hafiz
`Assistant Examiner–Scott L. Jarrett
`(74) Attorney, Agent, or Firm—Greenberg Traurig, LLP
`(57)
`ABSTRACT
`
`customer agents for interfacing with and extracting infor
`
`A supply chain transaction network. The network includes a
`customer agent server hosting a collection of intelligent
`mation from one or more of a condition monitoring system,
`a computer maintenance management system and a procure
`ment system and a distributor agent server hosting a collec
`tion of intelligent distributor agents for interfacing and
`communicating with one or more of a supply chain planning
`system, an inventory management system, a logistic man
`agement system, an order management system, an intelligent
`order fulfillment system, and an equipment knowledge base.
`An agent network manager and broker routes messages
`between the distributor agent server and the customer agent
`server to effect a movement of items within the supply chain.
`
`11 Claims, 14 Drawing Sheets
`
`Intelligent Agent and Transaction Network
`
`?ustomer &ite
`
`nots-Aff of the ºgºcysystems thº? are shºw?:
`on this diagram és representative of the kinds ºf
`systäms that might be interfaced at the
`cºstom9, distributor, and supplºrsºs. The
`actual ?egacy systems that will be ºst?ecedars
`very much dependent ºneschikºk?a ?
`
`
`
`53
`
`note. This is just 3
`sample of the kinds of
`data bases that may $8
`assity the Brºker
`
`
`
`Master AIP Directory
`
`Agents and Rº?as
`Directory
`
`Brºkerags Bºhus
`
`Agent Network Manager
`and Broker
`
`Transacian Integrity Servica
`
`tºparats publish subscribe
`ate bºwest different Knowledge Exchange Protocols
`{e between differeºtyocabularles
`a?id montor reliable message delivery (bºth
`ronous and synchrºnous)
`
`CiM Ex. 1050 Page 1
`
`

`
`US 7,313,534 B2
`Page 2
`
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`... 705/7
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`
`
`FOREIGN PATENT DOCUMENTS
`
`WO
`
`WO 98/24042
`
`* 11/1997
`
`OTHER PUBLICATIONS
`Songini, Marc L, Navy embarks on supply-chain mission
`Computerword, Jan. 15, 2001, vol. 35, No. 3.”
`Weiss, Gerhard, Multiagent Systems: A Modern Approach to Dis
`tributed Artificial Intelligence The MIT Press, Jul. 31, 2000, ISBN:
`026273 1312.*
`Dilger, Karen Abramic, To Protect and Serve Manufacturing
`Systems, Jun. 1997, vol. 15, No. 6., pp. 22-28.*
`MRO.com Delivers Buy-Side Online Procurement Solution for
`Purchasing MRO Materials and Services PR NewsWire, Jun. 24,
`1999.”
`Griffin, Kate, Grainger adds Web to Arsenal National Home Center
`News, Aug. 9, 1999, vol. 25, No. 15.”
`
`Avery, Susan, Electronic Tools help distributors meet service
`demands Purchasing, May 4, 2000.*
`McColm, Neal et al., Simulation Model for Multi-Level Distribu
`tion System Planning IEEE 1982.”
`Graves, Stephen, A Multiple-Item Inventory Model with Job
`Completion Criteria Management Science, vol. 28, No. 11, 1982,
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`Gullinan, Gregory F., Tracking work orders with a microcomputer
`Plant Engineering, vol. 38, Apr. 12, 1984.”
`Mamer, John W. et al., Job Completion Based Inventory Systems:
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`Katzel, Jeanine, Maintenance Management Software Plant Engi
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`Cohen, Morris et al., Optimizer: IBM’s Multi-Echelon Inventory
`System for Managing Service Logistics Interfaces, Vo. 20, No. 1,
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`Parts and After Sales Service Sloan Management Review, Winter
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`Lahiri, Santi B., A Decision-Support Modeling System for Mini
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`Langan, George, Maintenance Automation: Out of the broom closet
`and into the boardroom IIE Solutions, vol. 27, No. 7, Jul. 1995, pp.
`14–17.*
`Agrawal, Vipul, Planning Models for Multi-Level Distribution
`Systems University of Pennsylvania, AAT 96.15007, 1995,
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`Dilger, Karen A., Asset Management Exchange Bound Manufac
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`Michael Bittner, E-Business Requires Supply Chain Event Man
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`Supply Chain Management, Jan. 2001, pp. 29-31, AMR Research,
`Inc.
`
`CiM Ex. 1050 Page 2
`
`

`
`US 7,313,534 B2
`Page 3
`
`Charles C. Poirier and Stephen E. Reiter, Supply Chain Optimiza
`tion, 1996, pp. 224-259, Berrett-Koehler Publishers, Inc.
`Charles C. Poirier, Advanced Supply Chain Management, 1999,
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`Aimo Hinkkanen, Ravi Kalakota, Porama Saengcharoenrat, Jan
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`Maincor Maintenance Management Software, Brochure, 6 pgs.
`Eryn Brown, 9 Ways to Win on the Web, Fortune, May 24, 1999, 2
`pgS.
`Christopher Carlson, Pitney Bowes Gets the Message, Electronic
`Commerce World, Apr. 1999, 5 pgs.
`A Management Briefing on Vendorsite, Prepared for W.W.
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`Your Window Into Your Supply Chain, Eventra, 1998, 4 pgs.
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`Larry Lapide, Focus Group on Supply Chain Collaboration, The
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`
`Scott Lundstrom, Business Community Integration—The Next
`Wave, The Report on Enabling Technologies, Aug. 1999, pp. 3-17,
`AMR Research, Inc.
`Bob Parker, Should Internet Procurement Be a Priority for The
`Enterprise?, The Report on Enabling Technologies, Oct. 1998, pp.
`3-24, AMR Research, Inc.
`Susan Avery, Distribution Redefines Itself, Purchasing online, May
`7, 1998, pp. 1-17.
`Demand Activated Manufacturing Architecture, DAMA Project,
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`Chris Newton, Warehousing Isn't Just About Storage Anymore, The
`Report on Supply Chain Management, Oct. 1999, pp. 1-28, AMR
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`Mark Bittenbender, AlliedSignal balances Inventory and service
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`LPA Vision, Supply Chain Management Software, 26 pgs., LPA
`Software, Inc.
`* cited by examiner
`
`CiM Ex. 1050 Page 3
`
`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 1 of 14
`
`US 7,313,534 B2
`
`MRO Integrated Supply Chain Management Overview
`Distributor
`A.
`
`Customer
`
`
`
`
`
`
`
`Created At
`Customer Site and
`Entered into
`CMMS
`
`Work Order Data
`Extracted From
`CMMS
`
`Advance Demand
`Notice Created
`From Data and
`Sent to Distributor
`
`-3s)
`
`|
`
`Monitor The
`Progress Of The
`Fulfillment Pian
`
`Start Maintenance
`and Inspect
`Equipment to
`Determine Actual
`Need
`
`
`
`
`
`
`
`Probability of Need
`for Line Items |
`Determined Using
`Equipment
`Knowledge Base
`
`Intelligent Order
`Fulfillment Plan
`Created Based on
`Level Of Service
`Specified by
`Customer
`y
`Initiate The
`Fulfillment Plan
`
`|
`
`Release Product
`Reserved for the
`Advance Demand
`Notice
`
`De?iver Product
`
`
`
`
`
`
`
`No
`
`Create PO for
`Real Need
`
`Complete
`Mainteance
`
`Update Equipment
`Knowledge Base
`
`Document
`Maitenance Work
`Performed
`
`Figure 1
`
`
`
`
`
`
`
`CiM Ex. 1050 Page 4
`
`

`
`U.S. Patent
`U.S. Patent
`
`Dec. 25, 2007
`Dec. 25, 2007
`
`Sheet 2 of 14
`Sheet 2 of 14
`
`US 7,313,534 B2
`US 7,313,534 B2
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`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 3 of 14
`
`US 7,313,534 B2
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`

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`U.S. Patent
`U.S. Patent
`
`Dec. 25, 2007
`Dec. 25, 2007
`
`Sheet 4 of 14
`Sheet 4 of 14
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`US 7,313,534 B2
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`CiM Ex. 1050 Page 7
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`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 5 of 14
`
`US 7,313,534 B2
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`U.S. Patent
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`Dec. 25, 2007
`
`Sheet 6 of 14
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`US 7,313,534 B2
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`CiM Ex. 1050 Page 9
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`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 7 of 14
`
`US 7,313,534 B2
`
`Intelligent Order Fufillment Planning
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`Cost
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`CiM Ex. 1050 Page 10
`
`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 8 of 14
`
`US 7,313,534 B2
`
`Inventory Management
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`CiM Ex. 1050 Page 11
`
`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 9 of 14
`
`US 7,313,534 B2
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`CiM Ex. 1050 Page 14
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`U S. Patent
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`Dec. 25, 2007
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`Sheet 12 of 14
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`US 7,313,534 B2
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`CiM EX. 1050 Page 15
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`CiM Ex. 1050 Page 15
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`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 13 of 14
`
`US 7,313,534 B2
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`CiM Ex. 1050 Page 16
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`

`
`U.S. Patent
`
`Dec. 25, 2007
`
`Sheet 14 of 14
`
`US 7,313,534 B2
`
`First Tier
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`CiM Ex. 1050 Page 17
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`

`
`US 7,313,534 B2
`
`1
`SYSTEM AND METHOD FOR PREDICTIVE
`MAINTENANCE AND SERVICE PARTS
`FULFILLMIENT IN A SUPPLY CHAIN
`
`This application claims priority to U.S. Provisional Appli
`cation Ser. No. 60/263,317 filed on Jan. 22, 2001 which is
`incorporated herein by reference in its entirety.
`
`BACKGROUND OF THE INVENTION
`
`10
`
`20
`
`This invention relates generally to supply chain manage
`ment and, more particularly, relates to a system for providing
`integrated supply chain management using networked com
`puter systems.
`In the global economy of today, supply chains are com
`15
`monly used to deliver goods reliably and at affordable
`prices. A supply chain typically involves the flow of mate
`rial, information, and money between customers, suppliers,
`manufacturers, distributors and, possibly, financial institu
`tions. Material flow includes, among other things, the physi
`cal product flows from suppliers to customers through the
`chain and reverse flows via product returns, servicing,
`recycling, and disposal. Information flow involves order
`transmission, order confirmation, and delivery status. Mon
`etary or financial flow includes credit terms, payment sched
`25
`ules, payments, and consignment and title ownership
`arrangements. These flows cut across multiple functions and
`areas both within an organization and across organizations.
`In this regard, supply chains exist in service, retail, and
`manufacturing organizations, although the complexity of the
`supply chain may vary greatly from industry to industry and
`organization to organization. The coordination and integra
`tion of the material, information and financial flows within
`and across organizations is critical to effective supply chain
`management. Thus, in order for the supply chain to work for
`its intended purpose, all organizations involved in the supply
`chain must coordinate their activities with one another so
`that efficiency throughout the supply chain is achieved.
`To coordinate activities within a supply chain, Manufac
`turing Resource Planning (“MRP”) and Enterprise Resource
`Planning (“ERP”) tools have been employed by organiza
`tions in an effort to gain control of the flows, plant opera
`tions, and to provide management with timely and useful
`reporting