Transcript Paradigm shift in mro for aerospace using

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PARADIGM SHIFT IN MRO FOR AEROSPACE
USING IT SOLUTIONS
NILESH KUMAR
PRACTICE HEAD – AEROSPACE & DEFENCE
IFS SOLUTIONS INDIA
[email protected]
+91 9810050404
© 2009 IFS
INTRODUCTION
© 2010 IFS
GLOBAL PRESENCE
COUNTRIES
NET SALES
EMPLOYEES
CUSTOMERS
LANGUAGES
50
US$ 341 M
2,700
2,000
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GLOBAL PRESENCE
© 2010 IFS
IFS AT A GLANCE
OVERVIEW
A leading global provider of end-to-end software
solutions
- applications: ERP, SCM, CRM, PLM, CPM, EAM, MRO, Projects
Founded in 1983 - headquarters in Linköping, Sweden
- Listed on the Stockholm stock exchange
Some 2000 customers and some 830,000 users of
IFS Applications™
Represented in more than 50 countries
Strong Knowledge, Skills and Technical transfer strategy for our
solutions
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IFS OVERVIEW
© 2009 IFS
IFS APPLICATIONS
eINVOICE
MULTI-SITE
PLANNING
COMPLEX MRO
CONSTRAINT-BASED
SCHEDULING
VEHICLE
INFORMATION
MANAGEMENT
MAKE TO
PROJECT
PROCESS
AUTOMATION
INTEGRATION
PROJECT
REPORTING
ENGINEER TO
ORDER
DEMAND
PLANNING
SCHEDULING
& RESOURCE
ALLOCATIONS
SERVICE CONTRACT
MANAGEMENT
SALES CONTRACT
MANAGEMENT
MAKE | CONFIGURE
| ASSEMBLE TO
ORDER
INVOICING
PREVENTIVE
MAINTENANCE
EMPLOYEE
DEVELOPMENT &
CERTIFICATIONS
FIELD SERVICE
SUB CONTRACT
MANAGEMENT
BATCH PROCESS
CUSTOMER
SCHEDULES
WORK
ORDER
COLLABORATIVE
SOLUTIONS
ACCOUNTS
RECEIVABLE
TRAINING
MANAGEMENT
CALL CENTER
PROJECT
DELIVERY
RISK MANAGEMENT
REPETITIVE
PRODUCTION
CUSTOMER
ORDERS
OVERALL
EQUIPMENT
EFFECTIVENESS
PERSONAL
PORTAL
FIXED ASSETS
EXPENSE
MANAGEMENT
SALES
CONFIGURATOR
ENGINEERING
CHANGE
MANAGEMENT
PROJECT
PLANNING
SHOP ORDER
SUPPLIER
SCHEDULES
EQUIPMENT
METERING
MOBILE &
WIRELESS
SERVICES
CONSOLIDATED
ACCOUNTS
TIME &
ATTENDANCE
WEB STORE
ASSET DATA
MANAGEMENT
PROJECT
BUDGETING
COSTING
PURCHASING
EQUIPMENT
MONITORING
EVENT
MANAGEMENT
GENERAL
LEDGER
PAYROLL
ADMINISTRATION
SALES &
MARKETING
PDM
CONFIGURATION
PROJECT
MANAGEMENT
SHOP FLOOR
REPORTING
INVENTORY
EQUIPMENT
SYSTEM
INTEGRATION &
WEB SERVICES
IFS
FINANCIALS™
IFS
HUMAN
RESOURCES™
IFS
SALES & SERVICE™
IFS
ENGINEERING™
IFS
PROJECTS™
IFS
MANUFACTURING™
IFS
DISTRIBUTION™
IFS
MAINTENANCE ™
IFS
BUSINESS
ENABLERS™
BUDGET
MANAGEMENT
SELF-SERVICE
CASH FLOW
RECRUITMENT
ACCOUNTS
PAYABLE
BUSINESS
PERFORMANCE
ACCOUNTING
RULES
BUSINESS
REPORTING
ECO-FOOTPRINT
MANAGEMENT
DOCUMENT
MANAGEMENT
QUALITY
MANAGEMENT
IFS FOUNDATION1™— TECHNOLOGY AND ARCHITECTURE
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IFS OVERVIEW
CASE
MANAGEMENT
BUSINESS
MODELER
IFS SOLUTIONS – FOCUS
INDUSTRIES
AEROSPACE & DEFENSE
UTILITIES & TELECOM
AUTOMOTIVE
PROCESS
MANUFACTURING
CONSTRUCTION, CONTRACTING, RETAIL & WHOLESALE
& SERVICE MANAGEMENT
IFS OVERVIEW
© 2010 IFS
IFS IN AERSOPACE
A FEW EXAMPLES
Lufthansa Technic Qantas
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EXAMPLES OF CUSTOMER SUCCESS STORIES
© 2011 IFS
CRITICAL BUSINESS ISSUES / CHALLENGES
© 2009 IFS
THROUGH LIFE SUPPORT
THE A&D CHALLENGE
Management Effort
Potential for Cost Reduction
Initial Procurement reform - potential for
Concept /
Assessment
/ Design
major savings
Efficient in-use management - greatest
In Service
potential
Improved ‘in-Service’ support - driver of
Logistics efficiency/cost saving
Management Effort - equipment programmes
15% on Concept/Assessment/Design
.....but.....85% In-Service
spend most on in-service issues
‘Designed-in’ - embedded costs are
committed well before equipment is delivered
Equipment Lifecycle Costs
Supportability - focus should be on designing
supportability into equipment
Concept /
Assessment
/ Design
Design Stage - best chance to reduce support
costs is at the design stage
Support
70% of whole life cost in support
Industry are best placed to design in Supportability’ into their equipment
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© 2009 IFS
CRITICAL BUSINESS ISSUES
COMMERCIAL AVIATION
Commercial aviation—A market of great volatility and tremendous
interdependencies.
In light of today’s increasing competition and mounting cost pressures,
operators need to:
Optimize aircraft utilization to maximize revenue
Contain operational and labor costs, including MRO activities, among others
Continue to ensure A/C safety and regulatory compliance
To meet these goals, operators demand consistently reliable service with
increasingly leaner budgets, resulting in two overriding CBIs for MRO shops:
Being able to provide quick turn times at competitive rates
Reducing their own operational costs
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© 2009 IFS
DEFENCE SPECIFIC CHALLENGES
MAINTAINING OPERATIONAL EFFECT
Extended use of Defence equipments - Typically used from 10 to
30 years and significantly increased equipment complexity
Challenging Defence Budgets
- Problem enhanced through credit
crisis
Increased demand for MOD/DOD process efficiency
- Generally driven be government demand
Need to manage resources better by integration of Finance and HR Capabilities
- Defence resources (especially trained people) are scarce and increasingly expensive
Need to manage resources and skills better due to increased regulatory requirements
- A particular problem with aircraft maintenance
Impact of Operational tasking (Increased)
- Major transformation in global Defence Forces with more flexible roles and increased
tasking
Impact of Operational tasking (Operational Readiness)
- Increased need for high agility and operational readiness against unspecified
forces
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© 2009 IFS
DERIVED CHALLENGES
TCO AND THROUGH LIFE SUPPORT
Success depends on a partnership between Industry and an
Operator/MOD/DODs
Information is key enabler
Information needs of Operator/MOD/DOD/Industry change
Shared Data is Critical
To understand risks in contracting and bidding
To exploit benefits (improve availability & efficiency, cost savings & profit)
To establish trust
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© 2009 IFS
TRENDS & DRIVERS
© 2009 IFS
MARKET TREND FOR IN-SERVICE SUPPORT
A&D TRANSFORMATIONAL STAIRCASE
Industry Involvement, Risk, but
Significantly enhanced potential
revenue
Contracting for
Capability
Contracting for
Availability
Spares Inclusive
Traditional
Provider
Operator
Decider
Moving up ‘staircase’ exploits Industry’s strengths by using Service Based
Contracting to deliver equipments as a capability - buying Performance, not transactional
goods and services
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MRO FOR AEROSPACE & DEFENCE
MARKET TRENDS FOR IN-SERVICE SUPPORT
A&D TRANSFORMATIONAL STAIRCASE
Move from isolated applications / islands of information for MRO, Supply
Chain, Quality, Engineering - To integrated IT solutions for end to end
business process
Outsourcing of various business processes to 3rd Party service providers
Engineering
Operations
Maintenance Planning & Scheduling
LINE
BASE
SHOP
Quality &
Compliance
Control
Supply Chain
Management
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Supporting Processes (ERP Backbone)
© 2009 IFS
MARKET TRENDS
TCO AND THROUGH LIFE SUPPORT
Success depends on a partnership between Industry and an
Operator/MOD/DODs
Information is key enabler
Information needs of Operator/MOD/DOD/Industry change
A Common view
of performance
Shared Data is Critical
.....and
thisrisks
needs
an e2e and
information
To understand
in contracting
bidding
To exploit benefits
(improve availability & efficiency, cost savings & profit)
capability
for success
To establish trust
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© 2009 IFS
IT SOLUTIONS
© 2009 IFS
AEROSPACE & DEFENCE – INTEGRATED MRO
BEST PRACTICE SOLUTIONS
BUSINESS
PROCESSES
OPERATE
ENGINEER
PLAN
MAINTAIN
UPGRADE
DISPOSE
CORPORATE PERFORMANCE MANAGEMENT
FLEET & ASSET MANAGMENT
Manage Master Configuration
Manage Serial Configuration
APPLICATION
SOLUTIONS
Manage Maintenance Programs
Operate Asset
Manage Line/Forward Maint.
Plan Heavy/Depth Maint.
Perform Reliability
Analysis
MULTIMULTISITE MAINTENANCE, REPAIR
MODE& OVERHAUL
HEAVY MAINTENANCE
COMPLEX ASSEMBLY
COMPONENT
Plan Maintenance Visit
Scope Maintenance Visit
Asset induction
Work Scheduling
Execute Visit Work Scope
Asset Dispatch
Maintenance Visit Closure
Receive and Dispatch
Maintenance Level Work Scopes
Disassembly and Assembly
Disposition and Repair
Configuration and Compliance
Agreements and Invoicing
Receive and Dispatch
Repair Order Mgmt
Disposition and Repair
Loan and Exchange
Agreements and Invoicing
MULTILANGUAGE
MULTINATIONAL
SPARE PARTS MANAGEMENT
Demand Forecasting
Spare Part Sales
Spare Part Catalog
SUPPORT
PROCESSES
Supply Chain Network
Procurement
MULTIReceipt and QC
DIVISION
Distribute Assets internally
Manage Inventory
Manage Rotable Pools
MULTICURRENCY
Finance & eInvoice
Contract & Project Management
Human Resources
Call Center & Case Management
Document Management
Facilities & Equipment Management
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© 2010 IFS
Deliver to Customers
Reverse Supply Chain
INTEGRATED SOLUTION – COMMON VIEW
Operational
Requirements
Maintenance Intervals
Fleet Mods Plan
Reports
Current & Forecast
Availability
FLEET MAINTENANCE
PLANNING
Equipment
Performance /
Statistics
Deferred Faults
Mods
Maintenance
OPERATIONS
DISTRIBUTE
MAINTENANCE
CONFIGURATION
Control
W101
Work Order
Sub-Con Out
W/SHOP MAINTENANCE &
SCHEDULING
Maintenance
Performance &
Supply Chain
Performance
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Supply Chain Materials
A54
Master
Maintenance Schedule
WHAT IS WHERE – AN ASSET CENTRIC VIEW
© 2009 IFS
EUROFIGHTER TYPHOON
IERS (INDUSTRIAL EXCHANGE & REPAIR SERVICE)
IFS Applications tracks critical assets both on the aircraft and through the
industrial repair loop and transportation system
Suppliers are paid for a ‘rotable’
exchange or repair service
Performance Related Payment
linked to the supplier’s
performance
Customer
Contractor Support
Facility
H
O
Exchange
Stock
L
Exchange
Items
Maintenance Action
Required
E
I
N
Exchange
Facility
T
H
E
Repair
Facility
Customer Spares
Stock
Repair Items
W
A
L
L
Repair
Consortium
Limited Repair
Stock
A&D IN-SERVICE SUPPORT
& ASSET
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Industry
EXAMPLES OF CUSTOMER SUCCESS STORIES
© 2009 IFS
Manufacturer’s
Repair
Facility
PERFORMANCE / AVAILABILITY
Drill-Down to
Figures/Graphs
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VISIBILITY
© 2009 IFS
PERFORMANCE / AVAILABILITY
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VISIBILITY
© 2009 IFS
PERFORMANCE / AVAILABILITY
Contribution ofStructure
disparateData
data.to Suit…
• Inventory • Fleet View
• Learning – from
HR/Training
• Asset
Type View
• Core Maintenance
• Etc…Costs
Scorecard Indicators & Trends
User definable limits
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VISIBILITY
© 2009 IFS
FLEET STATUS
Drill-down to view
Details of faults etc.
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VISIBILITY
© 2009 IFS
BENEFITS
MRO SHOPS
Improve operational efficiency and control by
Reengineering business processes, if needed
Optimizing planning and forecasting over the long term
Monitoring and adjusting daily maintenance operations
Collaborate in real time with employees, customers
and suppliers over web portals to
Increase customer satisfaction
Speed up internal and external processes
Ensure accurate and fast information flow across the entire enterprise by
Integrating shop-floor activities with material management, finance,
workforce management, and business intelligence
Ensure proper job assignments by keeping track of each employee’s
certifications and skill sets
And reduce costs …
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© 2009 IFS
REDUCING COSTS
Supply chain
management
Operations
IT Solutions provides tools to help lower costs in both areas.
Maintenance management
Materials/inventory management
• Eliminate nonproductive wait periods
• Reduce lead times for parts and external services
• Achieve faster turnaround times
• Lower on-hand stock
Cost Tracking
Tracking real-time labor costs
Tracking costs to each work order and aircraft,
identifying all man-hours spent, all materials
issued, all external costs accrued
Showing actual costs of materials in inventory
Tracking purchased inventory and customer furnished
inventory by condition code and owner code
Business intelligence tools (scorecards, cubes)
E-MMS AT INDIAN AIR FORCE
e -Trolley
Kiosks
Access Control Services
Directory
Services
Search
Applications
MRO
Knowledge Mgmt System
Data Minning
ETL
Business Intelligence &
Reporting
Team Collaboration
Collaborative e-Learning &
Identity Management
Web Content Mgmt.
Interaction Services (Portal)
Business Process
iCAT
Enterprise Service Bus
Mail Interface
Database, Warehouse &
Content Mgmt. System
Multidimesional
OLAP
Databases
Security
Security Management
Management
Enterprise
Enterprise Management
Management System
System
2. Solution Design  2.1 Architecture 
e-Maintenance Management System
IMMOLS
Unstructured
Documents
DFS
Maint
Maint .,.,
Engg
Engg ..
&
& CAD
CAD IS
IS
HQ
Monitoring
Control
Mail
System
Confidential
INDEPENDENT ANALYSIS
© 2009 IFS
IFS A&D MARKET SHARE
IFS holds the leading market position in the following market segments
EAM in EMEA
EAM in Aerospace & Defence
EAM for the Fleet asset type
EAM Field Service Management
Sourced from:
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Enterprise Asset Management
Solutions Worldwide Outlook
INDEPENDENT ANALYSIS
© 2009 IFS
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