aerospace manufacturing transfer systems

Aerospace Manufacturing Transfer Systems

WIPRO TECHNOLOGIES

Wipro Thought Leadership

Table of Contents

Aerospace Industry

Aerospace Manufacturing Outsourcing

01

03

06

10

12

Aerospace Manufacturing Transfers Process

Transition Management Platform

Appendix

1.0 Aerospace IndustryGlobal Aerospace and Defence Market has reached a value of

USD 674.6 Billion in 2008 and reports forecast that this

figure would go up to USD 910 billion in 2013 based on a year

on year increase of 6.17%. Within the aerospace and defence

market the defence market accounts for almost 70% of the

market value.

Aerospace is a highly globalized industry since customers are

geographically dispersed (airlines, governments) and have

similar product needs and are able to look globally for

suppliers who can meet their needs.

1. 1 Industry StructureWithin the aerospace industry players broadly include

airframe manufacturers, engine manufacturers, system

manufacturers (avionics, air management systems, control

systems etc), components manufacturers (castings, harnesses,

transformers, machined parts etc.)

The global commercial aerospace market has few prime

contractors who manufacture aircrafts and engines. There

are numerous small and medium sized firms who supply

components and subsystems. Typically the aerospace value

chain is characterized by engine manufacturers and system

suppliers firms who are in exclusive supplier contracts with

aircraft manufacturers.

Earlier these life contracts were not provided to component

manufacturers as the prime contractors would want to retain

the opportunity to reduce costs later. However with

increasing globalization the risk sharing ability and supply

chain capabilities have increased as a result the system

manufacturers are outsourcing more and more of the sub-

system value chain since they want to shorten development

time by increased focus on higher value added portion.

Buyers have a great deal of bargaining power and airlines or

even countries can combine orders and ask for concession

from the prime contractors. Since the switching cost for the

buyer of airplanes is low the buyer power in the market place

is increased. Interestingly, sub component manufacturers who

have carved a niche for themselves have the best margins in

the value chain.

The lead times in aircraft manufacturing are typically very

long. According to Boeing, building a commercial jet aircraft

takes about a year on an average. Since aerospace industry is

very design intensive, on an average an OEM takes about five

years to design a completely new model. The tooling

requirements are very critical and can be almost one third to

two thirds of the total development costs. The recurring cost

thereafter for the aerospace companies comprises of

maintenance costs including tool replacement. The life cycle

of a typical commercial aircraft spans about 30 years.

Trend #1: Globalization of Aerospace Manufacturing:

It is estimated that the amount of manufacturing outsourcing

in the aerospace industry is close to about 80% of the

airplane. EADS sourced aircraft components worth USD 43

Billion from various parts of the globe. They use European

suppliers and do the final assembly in France. Bombardier

uses North American suppliers and does the final assembly in

Montreal.

1.2 Product Life cycle

1.3 Key Trends in Aerospace Industry

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1000

900

800

700

600

500

400

300

200

100

02008 2009E 2010E 2011E 2012E 2013E

Defence Market1

USD

Bill

ion

6.17%

Aerospace Market1

Projected Global Market


Thus the aftermarket services are being pushed back to the

suppliers since the OEMs increasingly understand that this is

not their core competence. The services technologies are

also becoming increasingly advanced which means that a

specialist in this area would be able to manage this area much

more competently.

Trend #5: Offset Conditions:

Governments are increasingly applying off set conditions on

the procurement of aircrafts and defence items from various

suppliers. For example, Boeing 787 is being built by a

consortium of local companies including the likes of

Mitsubishi to fulfill Japanese government orders.

Increasingly OEMs like Boeing, EADS think of themselves as

large scale system integrators rather than airplane

manufacturers.

Trend #2: Global Product Development:

Product designing is becoming a globally collaborative activity

as a result of increasing pressures for design improvement.

The time to market is also reduced drastically by shifting the

design process closer to the potential markets and the

production facilities.

Boeing for example often just provides suppliers with an

engineering drawing and the stated component price. The

suppliers are then allowed to alter the design to meet the

price point and the new designs are shared online with the

OEMs for virtual testing and approval.

Trend #3: Technical Specialization:

Airplanes have got increasingly complex and it is not

expected that a single company would have the technical

expertise to meet the myriad requirements. For example,

specialized systems like “mechatronics” which require the

integration of automation controls, hydraulics, computer

systems are required by pilots to fly. Consequently OEMs are

dependent on suppliers like Collins and Hughes that

specialize in such systems to meet these technological

requirements.

Trend #4: Shift of (Maintenance Repair and Overhaul) MRO

Base:

Compared to the 1970-80s when US carriers used to

manage more than 80% of their aircraft maintenance in-

house; the current comparable figure is closer to 20%. Given

the thin operating margins of the airliners this trend for cost

cutting is expected to continue.

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ComponentManufacturers

SubsystemManufacturers

Engine manufacturers

AirframeManufacturers

Airlines

Capacity Demand Control

Competition/Market Absorption Competition/Market Absorption

Survival


Value chain of Aerospace Industry and Competitive position of value chain partners (Source: Zinnov Analysis)

2.0 Aerospace Manufacturing

OutsourcingAs a result of the trends discussed in the last section a large

part of the aero space manufacturing is being outsourced and

it is estimated that almost 140 Billion USD of aerospace

manufacturing was outsourced in 2008.

Aerospace manufacturing is complex and involves

production of various parts requiring different technical

competency. The value of various components also varies

substantially. The decision to source various parts to different

locations has to take into account the technical complexity of

the part and the degree of globalization (Logistics involved in

getting final product to the market)

An analysis of various parts of the aerospace parts family

reveals various interesting patterns in geographical dispersion

of aerospace manufacturing. Aerospace manufacturing that

has low technical complexity is typically outsourced to low

cost destinations that are away from the OEM.

However with increasing competency of suppliers even high

end and critical parts are slowly being outsourced to

locations like India and China.

A cross industries (including aerospace) survey of Chief

Procurement Officers and related financial officials reveals

various reasons cited for outsourcing an activity. The survey

revealed that manufacturing and operations were areas

where the companies were contemplating the greatest

growth in outsourcing.

2.1 Trends in Outsourcing

Clearly across industries common themes for outsourcing

include cost reduction (89% of respondents), ability to focus

on core business (81% of respondents) and increased speed

to market (46% of respondents).

Despite the need to remain competitive by outsourcing

activities including manufacturing, there were certain key

concerns which limited the outsourcing of an activity.

The most critical reasons for not out sourcing include loss of

control (72% of respondents). However this concern can be

addressed through adequate systems in place supported by

an information technology back bone which provided

transparency and governance.

Similar a technology transfer platform and careful selection of

outsourcing partner and country can mitigate the concerns

around intellectual proper ty protection (68% of

respondents).

Expectedly with the increase in electronic connectivity and

collaborative support and tools the concerns around physical

distance is much reduced (only 17% of the respondents).

The aerospace industry is neither fully integrated nor fully

modular in structure. The nature of the supply chain in the

aerospace industry varies greatly according to the

component. They would be at different stages depending on

whether we speak of engines, frames or sub-systems. Ability

to collaborate remotely has driven the modular approach

and has significantly increased the globalization of aerospace

supply chains.

2.2 Manufacturing Outsourcing in Aerospace

Industry

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Airframe37%

Systems14% Avionics

11%

Engine26%

Interior6%

Fuse lage19%

Wing15%

Empennage3%

Landing Gear4%

Value of component as % age of total aircraft value

0

50

100

150

200

20082009E

2010E2011E

2012E2013E

USD

Bill

ion

Global Manufacturing Outsourcing(Low)

Global Manufacturing Outsourcing(High)

Project Global Outsourcing Market


Aerospace customers are able to look for the best deal that

they can get across the world. The resulting pricing pressures

on OEMs result in companies having to source their product

in the most cost competitive manner without compromising

the high quality and compliance needs of the industry.

The cost driver for globalization is the most significant one

since the cost of product development is very high and these

costs need to be amortized across the various markets

around the globe. The industry is characterized by high level

of exports and competitors are present all across the globe.

A 2008 survey of Aerospace and Defence companies reveals

that customer pressures (including cost and product life cycle

management needs) are the most critical factor that

influenced the decision to competitively out source instead of

relying on a sole supplier (High driver for 43% of the

respondents). The survey reveals the competitiveness of the

market as the second most dominant factor with 36% of the

respondents revealing it to be high driver for them

The surveyed Aerospace firms were asked to select criteria

that they thought was most important partner capability

across the value chain of aerospace manufacturing. 85% of

the respondents selected technical expertise as the most

important supplier capability.

The areas of innovation and new product development was

found to be most critical which indicates the need for

technology transfer platforms to enable product life cycle

management across a globally dispersed supplier base.

Product Lifecycle Management solutions allows companies to

collaborate remotely with their supplier on various design-

related issues.

2.2.1 Trends in Aerospace sourcing decisions

In the production process of the value chain, technical and

process expertise were found to be critical capabilities for the

A&D companies to select a partner. Management of

production processes and technology is a critical area for this

industry and hence the need for a platform which ensures

that the process and technological transfers are carried out in

a systematic manner and monitored carefully.

The ability to meet the stringent aerospace compliance

requirements are a critical need for the A&D companies.

Compliance management across the aerospace value chain

including new product development, production and delivery

remains a critical area and clear documentation management

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Major Systems

DS/SX InvCastings(turbines)

Sub-SystemsElectricalSystems

Assembly, Aerostucture, Fuselage

Composites

Metal Bending

Degree of Globalization

MediumSingapore

Korea HighChina,India,Malaysia,East Europe, Thailand

JapanLowUS/Europe

ElectronicsComponent

Design

Tech

nolo

gica

l Com

plex

ity

Increase speed to market

Focus on Core business

Increase flexibility and responsiveness

Gain access to technology not in company

Reduced capital investments

Reduced operating costs

Reasons Cited for Outsourcing an Activity

46%

60%

60%

81%

81%

89%

Innovation/NPD

Demand Generation

Sourcing Make Delivery Return Lifecycle

Technical Expertise

Process Expertise

Resources

Information Tech

Risk Sharing

Compliance

Access to Markets

Political Influence

Critical

PARTNER CAPABILITIES

Not Critical


systems which allow tracking of product parts are needed.

The ability to tap the market by developing supplier base in

the target market also proves to be an important

consideration in selection of supplier. This is possibly due to

the offset clause in many large aerospace and defence deals.

Since the buyer power is substantial in this market, buyers

often dictate that certain amount of production is carried out

in the home nation.

The survey reveals that technology development and

strategic alignment are the key threshold criteria that the

supplier must meet. Other criteria become important once

these threshold criteria are met.

Interestingly the Information technology capabilities of

supplier are not the core requirement areas for the A&D

firms to select or reject a supplier.

The need of the aerospace industry is to develop an

integrated value chain which is aligned to the OEM's current

business strategy in the existing business environment. Thus

supplier performance management becomes a key

competency for the firm.

The relationship of the Original Equipment manufacturer

(OEM) with the supplier can be strategic or transactional. A

transactional relationship would not be very reactive to the

changing need of the OEMs and would only assure reliability

of transaction.

Strategic alignment with supplier firms result in greater

information sharing, technology enablement and increased

need for clear communication and collaboration. The typical

2.2.2 Integrated Supply Chain

approach of Original Equipment Manufacturers in the

Aerospace and defence industry is to outsource substantial

amount of the value chain to third party suppliers and

structure all the agreements in a standardized manner using

Service Level Agreement (SLAs). As discussed earlier the

value and complexity of various parts that go into an airplane

assembly is variable, hence a standardized arrangement with

various suppliers can lead to sub optimization of the value

chain.

Information Technology Solutions can allow simplified

transactions processing between OEMs and their suppliers.

The strategic alignment of suppliers can be enabled through

IT solutions which allow greater collaboration between

various stake holders across critical areas including process

technology, compliance management, engineering design

transfers.

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Activities not outsourced are Core

Loss of Control

72%

Previous lack of success with outsourcing

Inadequate business case

Physical Distance

Concern-dependency on Supplier

Company Policy

Protection of intellectual Property

Reasons Cited for not Outsourcing an Activity

11%

17%

38%

42%

53%

68%

72%

14%

Competitive Market Intensity

Avalibility of substitute products

Supplier Pressure(e.g. volume, cost, quality)

Customer Pressure (e.g. cost pressure, changing.)

Ease of Market Entry from Competitor

High Driver

Drivers for Global Competitive Sourcing

14%

43%

43%29%

57%

21%

21%

36%

36%

Medium Driver

29%

14% 14%

Second Most Important Third-most Important

Forecasting and Planning

Most Important

21%

Strategic Alignment

Information Systems

Compatibile Culture

Transaction Processing

Technology Development

Operating Processes

Top Three Partner/Supplier Intergration Requirements

29%

29% 29%

38%

7%

7%

7% 7% 14%

14%

14%

14%

43%


3.0 Aerospace Manufacturing

Transfers Process

Given the trends in global aerospace manufacturing and

technology transfers, there is a new set of management

challenges for aerospace companies. While the need for

outsourcing is clearly understood the transitioning of

manufacturing from one location to another is a high

complex process especially in a highly regulated industry like

aerospace.

The survey of Chief Procurement Officers reveals that many

firms fail to meet their outsourcing targets in areas like Quality,

increased flexibility and responsiveness and cost targets.

Many of these shortfalls are due to the inherent complexity of

moving product manufacturing capabilities to offshore

locations. However the reliability of transfers can be

improved through having systems in place to manage the

entire complex process of manufacturing transfer.

Firms often under estimate the complexity involved in

transitioning of manufacturing which as a rule would always

be more complex than it first seems. Project management is

critical in managing the transition process however the

budgets and schedules that are allocated for the transition

process need to be flexible.

It has been observed that the transfer process can be clearly

divided into three phases and each present unique challenges

and risks which can be reduced through following systematic

transfer management practices within organizations.

Transferring of manufacturing is a complex project and

requires good project management skills to execute well and

derive expected benefits.

3.1 Transfer Process

While the broad challenges for most aerospace

manufacturing transfers are similar it is not possible to have a

one size fit all solution for transfer since the value and

technological complexities of each component vary

significantly.

The interviews with OEMs reveal that improving the

reliability of transfers was a key concern along with reduction

of transfer time and the approach of this paper is to divide

the entire transition process into the three critical phases and

then subdivide the same into sub processes which have to be

carried out in each phase. The figure above aims at capturing

the criticality of the various sub processes in relation to the

entire transfer project.

Once the decision to outsource is made the transition

process should be carried out at the earliest since the

opportunity cost of savings lost keep increasing with a long

drawn transition process. The time taken in a typical

transition process from the point the decision to transfer is

made (Phase 2 onwards) is 1 year. This varies as per the size

and complexity of transfer. The number of people involved in

the transfer project could be as low as 3-4 to over 10 people

from each the supplier and the OEM side. In some cases, it is

not unusual to see external consultants being brought into

the transition process for specific technical or management

requirements.

Business Case for Transfer

The high level decision to outsource is typically driven by cost

and the need to focus on core competency of the firm. The

offset clause is an additional driver in the aerospace domain

3.1.1 Phase 1: Strategic Planning and Scenario

Analysis

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15%-31%

-29%

-21%

-32%

-13%

-19%

-9%

-40%

22%

19%

25%

25%

26%

30%

-30% -20% -10% 0% 10% 20% 30% 40%

Exceed Fall Short

Gain Access to Market

Increase Flexibility and responsiveness

Increase Speed to Market

Improve Quality

Reduced Devlopment Cost

Reduced Operating Cost

Reduced Capital Investments

%age of Respondents falling short of Outsourcing Goals


which often dictates the need for off shoring particular items

in the value chain.

Regardless of the out sourcing driver the business case for the

same needs to be very clear at the top management levels.

This has to be based on objective measures.

Fitness for Transfer

Frameworks for managing transitions include deciding the fit

between the capabilities of the potential transferring and the

receiving sites. For example unless the manufacturing

processes and knowledge used by the transferring site is

documented and transferred the receiving site may not be

able to meet process and quality requirements. Often the

transferring site has tacitly held skills in areas like tooling,

problem solving which are people centric and hence not

documented. The fitness for transfer assessment has to be

carried out which evaluates multiple factors including the

home fitness to transmit, technology fitness for transfer and

host fitness to receive.

Typically the transition process is people driven and there are

project managers who have the transition knowhow and

shoulder the responsibility. OEMs rarely have the knowledge

codified in the form of set processes which can be relied on

and repeated consistently over multiple transfers.

Evaluating the fitness of the host to receive the transfer is a

large part of the second phase of the transfer process,

however even at the strategic level the fitness of the host

country and the OEMs understanding of the local conditions

and dependencies is critical to managing a successful transfer.

Scenario Planning and Analysis

Scenario planning has to be carried out to ensure that the

risks and hidden costs that are part of the decision to

outsource are adequately balanced by the potential benefits

of outsourcing. For example incorrect analysis could lead to

unnecessary outsourcing to a location where the lower labor

costs are offset by higher freight costs. Also in case of quality

risk, losses in case of product failure in terms of replacement

and reputation costs could negate the savings of outsourcing.

Scenario analysis has to be carried out to test the effects on

business in case of various changes in the supply chain.

Information Technology systems allow modeling of various

evolving macroeconomic situations and its impact on the

supply chain. Since Aerospace OEMs are moving towards an

i n t e g r a t e d s u p p l y c h a i n t h e i m p a c t o f

failure/underperformance of one supplier on the entire

supply chain has to be evaluated.

Product Selection:

The selection of which product to outsource should take into

consideration the competitive price pressures on the

product in a market as well as the stage of product lifecycle.

In case of joint product development along with the supplier

the supplier capability and the need for technology transfer

has to be factored into the decision making process. The

savings on the product have to be calculated over the useful

life of the product.

Supplier/Location Qualification:

Companies looking at benefiting from outsourcing need to

have a clearly thought out and transparent method of

supplier selection. The first decision to be made is whether to

single source or use competitive multi sourcing.

3.1.2 Phase 2: Supplier Selection and Relationship

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Strategic Planning and

Scenario Analysis

Supplier Selection and Relationship

Implementation and evaluation

Business Case for TransferSupplier/Location Qualification

Scheduling

Fitness to transfer Request for Proposal(RFQ) Data Transition

Scenario Planning and Testing

RFQ Evaluation First Article Production

Prodcut Selection Contract Management Project Evaluation

Process Criticality in Aerospace Manufacturing Transfers

Standardized Important

Critical Very Critical

1 2 3

The suppliers need to undergo a qualification process which

ensures that the performance expectations are met. There

have been cases in the high technology manufacturing

industry that contract manufacturers have not been able to

meet capacity and resource requirements after being

awarded contracts. This situation can be negated by proper

due diligence including plan tours and detailed audits, prior to

contract.

Thereafter the selection of suppliers can be done through

various mechanisms including competitive bidding, reverse

auctions, or direct negotiations. The selected mechanism

should take into account the total cost of using the supplier

and not just the per unit purchase price.

Most existing suppliers to aerospace OEMs like Boeing are

periodically evaluated and rated using a predetermined

performance matrix. The existing ratings of suppliers would

play a role in their bid for new sourcing contracts. The extent

and speed at which the transfer can take place would depend

a great deal on whether the supplier is pre-qualified (existing

contracts). The size of contract would also take into account

the current turnover of the firm as well as its ability to scale up.

Request for Proposal (RFQ):

Decision making can be speed up by careful planning at the

RFQ stage. The information requested should be clear and

facilitate objective responses. If the supplier has to come back

and forth for clarifications this will slow down the transfer

process substantially hence increase the costs associated with

the same.

The response templates should aim at capturing all the

relevant product and fixed costs including freight, taxes, duties,

tooling etc.

RFQ Evaluation

Using standard templates across suppliers will help speed up

and ensure fair evaluation of the suppliers. Sensitivity analysis

has to be performed for variations in product demand and

costs. The final decision to outsource should be made only by

a cross functional team which reduces bias towards selected

suppliers. This also ensures that all the factors are taken into

account.

Scheduling

The transferring and the receiving firms should jointly

develop a high level schedule for pilot and production build

schedules and equipment and technology transfers to

support those builds. The time requirements to complete

first article production and meeting product qualification and

compliance requirements should be kept realistic. A phased

approach whereby the number of products transferred is

increased gradually allows the new sources to learn the

products and manufacturing processes and overcome

challenges. The grouping of products can be as per

commonality of materials, processes, or test equipment used.

The time frame for a prototype development in aerospace is

typically 6 months depending on the part in question.

Scheduling should allow for some flexibility for undesired

outcomes like failure of pilot build.

Managing Data Transition

The key success criterion for the success or failure of any

manufacturing transition is the accuracy of data transferred to

the new location. This includes documenting and creating a

knowledge database of the existing processes and

technology from the transferring site. Collaborative systems

between transferring and receiving sites are critical to ensure

3.1.3 Phase 3: Implementation and Evaluation

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smooth transition. The engineering changes have to be

synchronous across both sites. The initially transferred bill of

material (BOM), production data have to stay synchronized

with the source data and also incorporate any subsequent

changes. There have been instances during transfers that the

changes in BOM and production data have been corrected by

the original site but not been updated at the source data. This

would render the synchronization of receiving site with the

original transferring site invalid and could result in rework and

wastage.

Documentation that were developed at the original site

including written procedures and visual aids used on the

assembly line and these need to be transitioned to the new

source. Failure to do this can significantly increase the time for

first build. Electronic transfers are quicker and allow for quick

customization to meet the needs of the receiving site.

Actual designs have to be transitioned to the offshore site and

the design would have to be reviewed by both parties.

Equipment Transfer

In the aerospace industry the tooling and equipment

requirements are very high and the logistics to move such

equipment across continents can be particularly complex

and unpredictable. The time taken to transport, clear national

procedures (customs etc) and finally commission the

equipment in new location can vary greatly and can throw

transition schedules in disarray.

First Article Production

The first article production is an important phase in the

transition process and each new product being transitioned

has to go through the pilot and qualification process to ensure

that it is being built correctly. The first article built has to go not

only through the standard quality tests but also through

additional testing. The ramping up of operations from the first

article production to full demand capacity could thereafter

take 6 months or more depending on the performance of the

supplier.

Performance Evaluation

Aerospace projects have become increasingly complex and

involve collaboration with multiple partners. There is a need

to have a clear matrix which determines how various

partners would be evaluated.

The nine nations development of Joint Strike Fighter (JSF) F-

35 (USD 25 Billion) is a case in point. The performance matrix

measures three critical supplier metric – Supply delay time,

Maintenance Delay time, and Uptime, over the JSF

development and product lifecycle. At the initial stage the

suppliers are provided with key qualitative evaluation criteria

to evaluate their individual performance. With maturity in

product development cycle stage the qualitative criteria are

replaced by quantitative ones.

A clear performance evaluation methodology allows each

partner in such a large collaborative project measure its

success or shortfalls and hence addresses the same.

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4.0 Transition Management Platform

Best practices can be mapped across the transition value

chain. These best practices have evolved over multiple

transfers in various industries including aerospace.

Manufacturing Transfer System (MTS) is a transition

management platform that maximizes reliability of transition

while lowering transition costs and shrinking time schedules.

The solution is aimed at Aerospace OEMs and Tier 1

companies. MTS enables Manufacturing, Engineering Design,

Technology Transfer, Testing Transfer and MRO Outsourcing

transitions. The platform enhances reliability by incorporating

standardized business processes, lean techniques, effective

risk management, transition cost tracking and optimization

and supporting regulatory standards.

The solution provides aero specific domain templates and

checklists for transition planning, supplier selection &

development which include features like

4.1 Manufacturing Transition Best Practices

4.2 Wipro's Manufacturing Transfer System

(MTS)

The interviews of various stakeholders in the aerospace

manufacturing industry reveal the importance of such

features to support the transition process. The solution

features have been mapped across the transfer process flow.

The extent to which an information system like MTS can

support the transfer process has been evaluated across the

manufacturing transfer management phases introduced

earlier in the paper.

Strategic Planning and Scenario Analysis

At the strategic level the business case for transfer can be

evaluated through comparison to various strategies including

Intra-Company Transfer (Make-to-Make), Outsourcing

(Make-to-Buy, Buy-to-Buy), In sourcing (Buy-to-Make).

The fitness to transfer can be greatly enhanced through

having a repository of knowledge which can be referred to

over multiple transfers, hence increase the organisation skill at

transferring. Critical decision support tools which allow

scenario testing, critical path analysis would help make good

objective business decisions at this stage.


The solution can help achieve collaboration between

Suppliers, OEMs, Airliners, Sub suppliers and Logistics

through features like live Meeting Integrated, Video Recording

and Playback.

Management of the RFQ process and the critical vendor

evaluation can be made more systematic and transparent.

Implementation and Evaluation

The greatest value of the MTS is transition project

management framework that it provides. It makes easily

Compliance to Aerospace compliance standards like AS

9100 rev c and AS9102

Collaboration Tools for effective transition

Role based Transition Dashboard

Approval Workflows

Analytical and Reporting features

Integration with ERP, PLM systems etc

Comprehensive risk assessment tools

Tools for lean transition planning

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Strategic Plannging and Scenario Analysis

Supplier Selectionand Relationship

Implementationand evaluation

1 2 3

Clear business case for procurement outsourcingStrategic Alignment of sourcing strategy with business goals

Select Supplier whose business philosophy are alignedwith your firmPrefer suppliers proven track record

Measures to track the performance of both the outsourcing team and outsource partner would ensure that accountability is shared Good collaboration is critical across the transfer process

Business Case for Transfer Supplier / Location Qualification Scheduling

Fitness to Transfer Request for Proposal (RFQ) Data Transition

Evaluate source Fitness to transfer and suppliers fitness to receive Provide a clear template wich capture all relevant information A transition strategy and detailed plan has to ensure the transition of all the critical information from the original site.

Scenario Planning and Testing RFQ Evaluation Firt Article Production

Evaluate source Fitness to transfer and suppliers fitness to receive Provide a clear template which capture all relevant information Rigorous testing of first article to ensure that it meetscompliance/ quality requirements

Production Selection Contract Management Project Evaluation

Ensure that the total cost of product over its usefull life cycle istaken into account

Establish clear roles, responsibilities, and measurements totrack current and future productivity

Effective change management policies and procedures have to be in place

Clear communication of the scope of the work, performance expectations, governance model, and project plan is a critical succuss criteria

available features like transitions project cost management,

multi-level scheduling, program management, key

performance indicators for all stakeholders, role-based

information access. These project management features

makes it much easier to plan and track complex multi-track

transitions project.

Transfer Scenario based business processes & workflows

increases productivity & efficiency of transition. Risk

management features like Failure Modes and Effects Analysis

(FMEA) and constant tracking of transitions with alerts and

Early Failure Warnings greatly increase the reliability of the

transfer.

Since aerospace is a highly regulated industry the

management of rigorous compliance and audit mandates is

made fail safe through out-of-the-box aerospace specific

checklists, templates, guidelines and forms. This ensure zero

compromise on airworthiness, safety and security of critical

systems, platforms and data, hence 100% compliance to

standards.

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1 2 3

Strategic Planning and Scenario Analysis


Implementation and evaluation

Business Case for TransferSourcing Strategy

Intra Company Transfer Outsourcing Globalization In-sourcing

Supplier/ Location QualificationCollaboration

Live Meeting integratedvideo Recording and Playback

SchedulingTransition Risk Management

Failure Modes and Effects AnalysisMulti-Level Scheduling Program management Stakeholder Roles/ Access

Fitness to Transfer

Online Best Practices Repository/ Knowledge Management

Request for Proposal (RFQ)

Transition Project Management

Data Transition

Transition Project Cost Mangement: Planning and tracking of complex multi track transition

Scenario Planning and Testing

Transfer Scenario based Business process and workflow

RFQ Evaluation

Decision Support System

First Article Production

Check list/ Forms Templates/ Guidelines

Supplier Scorecard

Compliance Management

Product Selection

Critical Path AnalysisAny Time BOM comparison

Contract Management Project Evaluation

Contract Management and IP Export enforcement

Dash Board for KPI of various stakeholders

Decision Support System

Value of Manufacturing Transition solution (MTS) in enabling Transfer Processes

low Value Medium High Value Very High Value

Appendix

Datamonitor's Aerospace and Defence: Global Industry

Guide 2008

Outsourcing Strategically for Sustainable Competitive

Advantage – AT Kearney Report

A.T. Kearney and Aviation Week survey of Aerospace and

Defence (2008)

Manufacturing Mobility: Learning from International

Manufacturing Transfers - Professor M Gregory

Dr. David Pritchard University at Buffalo: Globalization of

Commercial Aircraft Manufacturing

Frost & Sullivan research “The Proliferation of Aircraft

Maintenance Outsourcing in the United States”

Case: 3Com Corporation - Damian Kieran Director of

Customer Operations and Distribution

Zinnov interviews with Aerospace and Defence OEMs,

Suppliers, Solution Providers, Researchers , Analyst

Market Sizing Modeler

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