MTU Detroit Diesel Australia
MTU Detroit Diesel Australia is located in Brisbane, Australia.  An SMS user since 1999, MTU-DDA uses SMS for replenishment stocking in all their locations throughout Australia and New Zealand.  Additionally, MTU-DDA utilizes a second copy of SMS to plan Engine Operations in Melbourne.  Each of these applications has differing characteristics.  The former has over 100,000 parts many of which are "lumpy" in nature.  The latter has far fewer finished parts (engines) which require extensive bill-of-material analysis to explode the components parts - and generate orders for these all of these component parts.

The distribution copy of SMS in use has reduced the MTU-DDA planner activity from a full week (3 staff members) down to a couple of hours each week.  SMS calculates all EOQ values and Safety Stock values - then loads them back to the host Stock Status System.  Appropriate parameters for the DRP implementation have meant huge inventory reductions in remote warehouses (lower Safety Stock) and improved customer service from the main distribution sites in Brisbane and Melbourne.

The "Engine" copy of SMS has brought the MTU-DDA production operation into the 21st century.  Prior to implementation of SMS, this operation was planned and schedule manually using several spreadsheets.  With SMS a file from the host Stock Status system provides detailed information on past usage and current availability.  Management sales strategies are entered into SMS at a finished good (i.e., engine level) - approved by committee - and processed through SMS.  The result is a comprehensive list of all parts (components) required by week for the coming 52 weeks.  Engine building moves through at a much smoother pace because the component part is always available when needed.

Eoin Dixon says " SMS improved our availability by over 10% while cutting unnecessary investment by millions.  Our planners can easily see what the schedule looks like for the coming year and this gives them a great deal of confidence in letting the orders go through.  SMS calculates orders - our planners review them - then the orders are automatically placed.  All this takes place once a week and it is done.  It's the way inventory should be managed."

Owen Champion says "Before SMS, I was working with a few scattered spreadsheets - and a lot of instinct.  Now SMS identifies our current status precisely.  I have a much more efficient way to add top management's sales plans.  When I hit the button, SMS generates a forecast for engines - explodes out all the parts we need to build them - and places the orders for me.  We have the parts we need when we need them."

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