Innovation, Technology & Engineering

• Nan Mattai, SVP Eng & Tech, Rockwell Collins

• Daryl Pelc, VP Eng & Tech, Boeing Phantom Works

• Jeff Wilcox, VP Eng, Lockheed Martin Corp.

Strategic Imperatives for the A&D Industry

• Improve the performance and predictability of large, complex programs

• Enhance the affordability of our products

• Preserve and foster the industry’s ability to continue innovating into the future

• Maintain world-class STEM capabilities

Globalization of R&D – Future Uncertainty

World Spending - $1.2 Trillion, U.S Spending $400B

A CHALLEN

GE FO

R THE AERO

SPACE & D

EFENSE

IND

USTRY

A&D INDUSTRY CONCERN…THE VANISHING ENGINEER….

4

“Without a workforce with engineering

skills, the U.S. aerospace

industry will lose its innovative and

productive edge. While the country

graduates about 70,000

engineers annually, only a small percentage

enters aerospace or the related defense

industry.…”

Wanted: Qualified Engineers to

Keep the Aerospace Industry

Flying: A Shortage of Engineers Threatens

the Industry – and National Security ---

Wharton A&D Report

“Baby Boomer Retirements could trigger an

A&D engineering crisis. Aerospace companies

aren’t attracting enough engineers to replace

the wave of baby boomers nearing retirement.

The gap could have profound impact on the

future of the industry - - and the nation”.

(Aviation Week)

“Our policymakers need to acknowledge

that the nation’s apathy toward

developing a scientifically and

technologically trained workforce is the

equivalent of intellectual and industrial

disarmament, and is a direct threat to our

nation's capability to continue as a world

leader…”

(Commission On The Future Of The

United States Aerospace Industry)

“The Aerospace industry faces declining workforce

numbers that could result in a disastrous loss of

intellectual capital for the industry if measures are not

taken to attract more skilled applicants”(Interagency Aerospace Revitalization Task Force)

Brain Drain Could Ground Aerospace

Production… “Industry task force offers dire

warning if workforce challenges aren’t met.”

(Industry Week)

“Second only to a weapon of mass destruction

detonating in an American city, we can think of

nothing more dangerous than a failure to

manage properly science, technology, and

education for the common good over the next

quarter century”…. “The harsh fact is that the U.S. need for the

highest quality human capital in science,

mathematics, and engineering is not being

met”…

(Roadmap for National Security)

“The Aerospace industry faces declining workforce

numbers that could result in a disastrous loss of

intellectual capital for the industry if measures are not

taken to attract more skilled applicants”(Interagency Aerospace Revitalization Task Force 2008)

“Our nation is not producing enough qualified

workers to fill important jobs in U.S. Aerospace

companies and the shortfall will increase as

retirements grow in the coming years’. To maintain

America's leadership in the global aerospace

marketplace in the 21st century, we must cultivate a

highly skilled workforce of scientists, engineers and

other technical specialists critical to our national

security, our economy and the strength of our

industrial base” (Marion C. Blakey AIA)

Innovation, Engineering – Findings from Roundtables

• Requirements exist for new ideas, capabilities, tools, invention and innovation

• Gaps in Technical Areas- Energy solutions/sustainability- Plug and play adaptability

- Cyber Security - Materials - Nano Science and Technology

• Gaps in Tools - Systems Engineering Tools to better manage complexity - Global Collaboration Tools

Innovation, Workforce – Findings from Roundtables

• The workforce is attracted by and does best in a climate that values/fosters innovation

• Incubator-like culture to assure continuous innovation and people development

• Strategic workforce plans for 5 to 10 year periods that parallel business and financial planning

• More innovative tools to increase attraction and retention (tuition forgiveness, selling the possibilities of the industry to current and future employees, apprentice-like opportunities)

• Work environment that engages

Innovation/Engagement – Findings from the Roundtables

• It is advantageous to overall enterprise for industry to interact directly with government customers prior to RFI/RFP

• Need to re-engage investment community in value of long-term R&D investment

• Create vendor-neutral entity for innovation– Leverage basic research into projects/programs– Immediately assist in addressing lifecycle cost issues

Innovation/Resources – Best Practices

• 20% time allocated for open-ended exploration, investigation, research, innovation

• Harvest – use portion of time/funds from Lean to support time/dollars for innovation

• Allowance – funding of time plus resources for in-house self-directed projects

• Hire based on curiosity/hobbies as indicators of innovation

The Innovation Index - Gauging the Health of the Industry Innovation Engine

Factors of Value• Organic R&D Funding• Programs/projects in development

• Ideation and development stages• Return on investment cycle• Speed/velocity in responding to all-new challenges• Breakdown of products by lifecycle quadrants

• New products/services over 5 year cycle• Ability to attract - % acceptance by best and brightest