AEROSPACE & MARINE FEATURE Improving management efficiency


Barloworld’s Supply Chain Software (SCS) is improving efficiency at AgustaWestland, an Anglo-Italian helicopter company, offering a wide range of advanced rotorcraft available for both commercial and military applications


A


gustaWestland had been contracted by the UK Ministry of Defence (MoD)


to provide a cost effective, through life, integrated operational support solution for all variants of the SeaKing and Merlin rotary wing fleets. This task was historically managed by the various rotary wing Integrated Project Teams (IPTs) in the Defence Procurement Agency (DPA) and Defence Logistics Organisation (DLO). In order to discharge this contract


AgustaWestland was required to take ownership of the entire management, planning, procurement and maintenance process from Front Line Squadrons to Third Tier Suppliers. Under the new integrated operational support (IOS) contracts, the AgustaWestland service provision has also been extended to include supply of aircraft parts to all MoD operating bases, including deployed units. For the Merlin fleet the requirements are extended to ensure the availability of a prescribed number of aircraft flying hours, not just ‘off-the- shelf’ availability of spares. The Merlin contract is the first availability type contract awarded by the MoD.


THE CHALLENGE In order to operate these contracts profitably AgustaWestland has had to change a number of key processes at the interface with the MoD, including: 1. Changing the total approach to spares


from ‘make to order’ to the provision of ‘contracted platform service availability’. 2. Providing a ‘single point of contact’


between the MoD and industry, including the management of Tier 2 and 3 suppliers. 3. Building the capability to deliver these contract services through integrated logistics solutions and the use of sophisticated demand planning, inventory and network management and modelling tools. 4. Optimising supply pipelines for long


lead time items to ensure availability of critical high value components in line with contract requirements. 5. Re-organising and integrating legacy organisations and systems, within the MoD and industry.


RESULTS The tangible benefits realised by AgustaWestland (and the MoD customer) to date include an increase in off-the- shelf availability of spares by eight percent and forecast reduction in stockholdings of 50% subject to ‘MoD burn down’ (by value). The OPTIMIZA installations at Yeovil


monitor both customer systems (MoD’s USAS 2 MIS) and the AgustaWestland enterprise resource planning system (SAP R/3). It takes forecast consumption and stockholding requirements from logistics simulations of helicopter fleet operations (HALOS) and compares these at the line item level with ‘live’ statistical forecasts based on the consumption and supply chain performance data provided. Current stockholdings and committed work in progress streams are also monitored, as is the potential for recovery of items by repair and overhaul. The resulting net procurement and


THE SOLUTION AgustaWestland, in common with other aerospace manufacturers faced with long material lead time realised that it was critical for the company to improve its supply chain and management processes. As a result AgustaWestland selected


Barloworld Supply Chain Software (SCS) as a partner based upon the ease of integration between its OPTIMIZA solution and its existing enterprise systems. OPTIMIZA offers planning, monitoring and management of supply, as well as reinforcing the cultural and procedural changes which were fundamental to the creation of a more effective supply pipeline. Barloworld SCS evolved its service


offering to meet the challenge of AgustaWestland’s unique business


environment to deliver: l


Data acquisition and integrated


validation from multiple sources. l


planning solutions. l


Integrated demand and repair cycle


Evaluation of optimum stock levels to deliver contract service requirements under


varying demand and supply scenarios. l


Identification and redistribution of


excess stock items. l


Purchase order management and


optimisation of supply chains. l


supply failures. l


Quantification of the impact of Quantification of the benefits available


from product reliability re-engineering. l


/AUTOMATION Network modelling and optimisation.


Above: AgustaWestland realised that it was critical for the company to improve its supply chain and


management processes


distribution plans reflect the quantified demand and supply risk on each individual stock item, establishing optimised stock levels at each service delivery location and covering anticipated re-supply needs. Economic order recommendations are passed, together with long range forecasts of future need (usually a three year planning horizon), to the Operations Division for purchasing. Suppliers, faced with stable plans and emphasis on schedule adherence, are able to devise the most economic solution - usually resulting in additional cost savings to WHL and, ultimately, to the customer. The distribution of stockholdings within


the MoD system can be controlled through OPTIMIZA, an automated interface forcing items forward and excesses being withdrawn manually to depot (or disposed of) as a result of reports available from the system. Exception management screens are used


to prioritise routine replenishment and repair. The system also allows ‘what if’ scenarios to be tested, for example, where a supplier is unable to meet the programmed needs or delays are identified - adjustments can be made to the schedule and a new action plan released before the impact of the non- conformity is felt, thus keeping everything firmly on track.


Barloworld SCS www.barloworldscs.com T: 0121 746 5350


Enter 238 AUTOMATION | JULY/AUGUST 2014 37


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