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Case Study
AgustaWestland Uses Optimiza to Identify and Redistribute Excess Stock Company Profile
“The Optmiza solution will control the replacement and supply of these parts with the aim of achieving the highest availability possible.” Gerry Morgan, Technical Provisioning Systems Manager, AgustaWestland
AgustaWestland is an Anglo-Italian helicopter company owned by Italy’s Finmeccanica group and provides total rotorcraft capability to its customers worldwide. With the most modern range of products backed up by worldwide customer support and training network that enables military and commercial customers to maximise the effectiveness of their fleets of AgustaWestland helicopters. AgustaWestland has increased its global footprint by forming strategic partnerships and joint ventures with leading aerospace and defence companies in the United States, Russia, Japan, China, UAE, and Turkey, as well as establishing subsidiary companies in countries such as Malaysia and Brazil.
Challenge AgustaWestland was contacted initially by the MoD to provide a cost effective, Integrated Operational Support solution for all variants of the Sea King and Merlin rotary fleets with similar systems for the Apache and Lynx fleets to follow. This required step by step change to the existing process as under the new contract the AgustaWestland service provision had been extended to include supply of all aircraft parts to all MoD operating bases including deployed units. A common issue AgustaWestland faced was long material lead times, which made them realise they needed to improve their supply chain and management process and that is where Optimiza came in.
© 2016 Optimiza Limited. All rights reserved. v.04/04/16
Companies use Optimiza to maximise service levels, increase customer loyalty and protect margins. They do this not only by aligning demand and supply processes but also through building, managing and executing a dynamic, agile and responsive demand and replenishment plan. Optimiza customers align crossfunctional teams internally and externally using the continuous improvement framework, and formalise their processes into a structured auditable system. Demand Planning: Organisations know that forecast accuracy is able to yield a greater equivalent returns on company’s financials than any other planning activity. Inventory Optimisation: Unlike traditional inventory re-ordering systems, Optimiza Inventory Planner builds a business specific inventory model that takes into account the unique supply, demand and flow characteristics of each product.
Solution Optimiza was integrated into AgustaWestland’s existing system enabling theme to offer robust planning, monitoring and the management of supply as well as making sure the procedural changes which were fundamental to the whole project were taking place. The use of Optimiza was tailored to suit the exact needs of AgustaWestland including; data acquisition and integrated validation from multiple sources, integrated demand and repair cycle planning, identification and redistribution of excess stock items and Network modeling and optimisation.
Results AgustaWestland’s decision to adopt the Optimiza Software was based on its ability to utilise both an event-driven system as well as a time based one. The repair business is very low volume but with a very high inventory level. Optimiza’s ability to incorporate factors such as bills of materials and expected programmes gave AgustaWestland a technique they were familiar with. Enabling AgustaWestland to rapidly incorporate export repairs which had previously been supported entirely separately. A key factor in supporting the proposed Integrated Operational Support project is constant monitoring of actual usage of parts supplied. They were initially able to track sales but not usage. The Optimiza solution controls the replacement and supply of these parts with the aim of achieving the highest availability possible. Optimiza was successfully implemented into the AgustaWestland business and integrated well with their existing systems and processes.
Supply Planning: Busy inventory Planners have little time to validate supplier information, or monitor and prioritise existing orders. The direct results is that orders are placed based on what may be an over or under estimated lead time and potential issues are only identified at the back door.
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