www.ifsworld.com. paradigm shift in mro for aerospace using it solutions © 2009 ifs nilesh kumar...
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www.IFSWORLD.com
© 2009 IFS
PARADIGM SHIFT IN MRO FOR AEROSPACE
USING IT SOLUTIONS
NILESH KUMARPRACTICE HEAD – AEROSPACE & DEFENCEIFS SOLUTIONS [email protected]+91 9810050404
© 2010 IFS
INTRODUCTION
GLOBAL PRESENCE
© 2010 IFS
GLOBAL PRESENCE
COUNTRIES50
NET SALESUS$ 341 M
EMPLOYEES2,700
CUSTOMERS 2,000
LANGUAGES20
© 2009 IFS
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IFS AT A GLANCEOVERVIEW
IFS 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 ofIFS Applications™
Represented in more than 50 countriesStrong Knowledge, Skills and Technical transfer strategy for our solutions
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IFS APPLICATIONS
IFS OVERVIEW
Click icon to add picture (16:9)
IFS FOUNDATION1™— TECHNOLOGY AND ARCHITECTURE
BUSINESSPERFORMANCE
BUSINESSREPORTING
ECO-FOOTPRINTMANAGEMENT
DOCUMENTMANAGEMENT
BUSINESSMODELER
QUALITYMANAGEMENT
CASEMANAGEMENT
ACCOUNTINGRULES
IFSBUSINESS
ENABLERS™
SYSTEMINTEGRATION &WEB SERVICES
EVENTMANAGEMENT
MOBILE &WIRELESSSERVICES
PERSONALPORTAL
COLLABORATIVESOLUTIONS
IFS FINANCIALS™
GENERALLEDGER
CONSOLIDATEDACCOUNTS
FIXED ASSETS
ACCOUNTSRECEIVABLE
ACCOUNTSPAYABLE
CASH FLOW
BUDGETMANAGEMENT
eINVOICE
IFS DISTRIBUTION™
INVENTORY
PURCHASING
SUPPLIERSCHEDULES
CUSTOMERORDERS
CUSTOMERSCHEDULES
INVOICING
DEMANDPLANNING
IFS MAINTENANCE ™
EQUIPMENT
EQUIPMENTMONITORING
EQUIPMENTMETERING
OVERALL EQUIPMENT
EFFECTIVENESS
WORKORDER
PREVENTIVEMAINTENANCE
SCHEDULING& RESOURCEALLOCATIONS
PROCESSAUTOMATIONINTEGRATION
VEHICLEINFORMATIONMANAGEMENT
COMPLEX MRO
IFS HUMAN
RESOURCES™
PAYROLLADMINISTRATIO
N
TIME &ATTENDANCE
EXPENSEMANAGEMENT
TRAININGMANAGEMENT
EMPLOYEE DEVELOPMENT
&CERTIFICATIONS
RECRUITMENT
SELF-SERVICE
IFSMANUFACTURIN
G™
SHOP FLOORREPORTING
COSTING
SHOP ORDER
REPETITIVEPRODUCTION
BATCH PROCESS
MAKE | CONFIGURE
| ASSEMBLE TO ORDER
ENGINEER TOORDER
MAKE TOPROJECT
CONSTRAINT-BASED
SCHEDULING
MULTI-SITEPLANNING
IFSENGINEERING™
PDMCONFIGURATION
ASSET DATAMANAGEMENT
ENGINEERINGCHANGE
MANAGEMENT
PROJECTDELIVERY
IFSSALES & SERVICE™
SALES &MARKETING
WEB STORE
SALESCONFIGURATOR
CALL CENTER
FIELD SERVICE
SERVICE CONTRACT
MANAGEMENT
IFS PROJECTS™
PROJECTMANAGEMENT
PROJECTBUDGETING
PROJECTPLANNING
RISK MANAGEMENT
SUB CONTRACTMANAGEMENT
SALES CONTRACT
MANAGEMENT
PROJECTREPORTING
© 2010 IFS
IFS SOLUTIONS – FOCUS INDUSTRIES
IFS OVERVIEW
AEROSPACE & DEFENSE
AUTOMOTIVE CONSTRUCTION, CONTRACTING,
& SERVICE MANAGEMENT
MANUFACTURINGPROCESS
RETAIL & WHOLESALE
UTILITIES & TELECOM
8 EXAMPLES OF CUSTOMER SUCCESS STORIES
IFS IN AERSOPACEA FEW EXAMPLES
© 2011 IFS
Lufthansa Technic Qantas
© 2009 IFS
CRITICAL BUSINESS ISSUES / CHALLENGES
© 2009 IFS
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THROUGH LIFE SUPPORTTHE A&D CHALLENGEPotential for Cost Reduction
Initial Procurement reform - potential for major savings
Efficient in-use management - greatest potential
Improved ‘in-Service’ support - driver of Logistics efficiency/cost saving
Management Effort - equipment programmes spend most on in-service issues
‘Designed-in’ - embedded costs arecommitted well before equipment is delivered
Supportability - focus should be on designing supportability into equipment
Design Stage - best chance to reduce support costs is at the design stage
15% on Concept/Assessment/Design .....but.....85% In-Service
70% of whole life cost in support
Management Effort
Concept / Assess-ment / DesignIn Service
Equipment Lifecycle Costs
Concept / Assess-ment / Design
Support
Industry are best placed to design in Supportability’ into their equipment
© 2009 IFS
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CRITICAL BUSINESS ISSUESCOMMERCIAL 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
© 2009 IFS
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DEFENCE SPECIFIC CHALLENGESMAINTAINING OPERATIONAL EFFECT
Extended use of Defence equipments - Typically used from 10 to 30 years and significantly increased equipment complexityChallenging Defence Budgets- Problem enhanced through credit crisis
Need to manage resources better by integration of Finance and HR Capabilities - Defence resources (especially trained people) are scarce and increasingly expensiveNeed 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 taskingImpact of Operational tasking (Operational Readiness)- Increased need for high agility and operational readiness against unspecified forces
Increased demand for MOD/DOD process efficiency- Generally driven be government demand
© 2009 IFS
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Success depends on a partnership between Industry and an Operator/MOD/DODs
Information is key enablerInformation needs of Operator/MOD/DOD/Industry change
Shared Data is CriticalTo understand risks in contracting and biddingTo exploit benefits (improve availability & efficiency, cost savings & profit)
To establish trust
DERIVED CHALLENGESTCO AND THROUGH LIFE SUPPORT
© 2009 IFS
TRENDS & DRIVERS
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MARKET TREND FOR IN-SERVICE SUPPORTA&D TRANSFORMATIONAL STAIRCASE
MRO FOR AEROSPACE & DEFENCE
Contracting forCapability
Contracting forAvailability
Spares Inclusive
Traditional
Ind
ustry
Involv
em
en
t, Ris
k, b
ut
Sig
nifi
can
tly e
nh
an
ced
pote
ntia
lre
ven
ue
OperatorProvider 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
© 2009 IFS
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MARKET TRENDS FOR IN-SERVICE SUPPORTA&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
OperationsEngineering
Supply Chain Management
Quality & Compliance Control
LINE BASE SHOP
Maintenance Planning & Scheduling
Supporting Processes (ERP Backbone)
© 2009 IFS
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Success depends on a partnership between Industry and an Operator/MOD/DODs
Information is key enablerInformation needs of Operator/MOD/DOD/Industry change
Shared Data is CriticalTo understand risks in contracting and biddingTo exploit benefits (improve availability & efficiency, cost savings & profit)
To establish trust
A Common viewof performance
.....and this needs an e2e information capability for success
MARKET TRENDSTCO AND THROUGH LIFE SUPPORT
© 2009 IFS
IT SOLUTIONS
AEROSPACE & DEFENCE – INTEGRATED MRO
© 2010 IFS
BEST PRACTICE SOLUTIONS
CORPORATE PERFORMANCE MANAGEMENT
FLEET & ASSET MANAGMENT
APPLICATIONSOLUTIONS
OPERATEBUSINESSPROCESSES
ENGINEER PLAN MAINTAIN UPGRADE DISPOSE
SPARE PARTS MANAGEMENTDemand ForecastingSpare Part SalesSpare Part Catalog
Distribute Assets internallyManage InventoryManage Rotable Pools
Deliver to Customers Reverse Supply Chain
Supply Chain NetworkProcurement Receipt and QC
Manage Master ConfigurationManage Serial Configuration
Manage Maintenance ProgramsOperate Asset
Manage Line/Forward Maint.Plan Heavy/Depth Maint.
Perform Reliability Analysis
COMPLEX ASSEMBLY COMPONENTHEAVY MAINTENANCEPlan Maintenance VisitScope Maintenance VisitAsset inductionWork SchedulingExecute Visit Work ScopeAsset DispatchMaintenance Visit Closure
MAINTENANCE, REPAIR & OVERHAUL
Receive and DispatchMaintenance Level Work ScopesDisassembly and AssemblyDisposition and RepairConfiguration and ComplianceAgreements and Invoicing
Receive and DispatchRepair Order MgmtDisposition and RepairLoan and ExchangeAgreements and Invoicing
Finance & eInvoice
Human Resources
Document Management
Contract & Project Management
Call Center & Case Management
Facilities & Equipment Management
SUPPORTPROCESSES
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MULTI-MODE
MULTI-NATIONAL
MULTI-CURREN
CY
MULTI-DIVISION
MULTI-LANGUAG
E
MULTI-SITE
© 2009 IFS
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INTEGRATED SOLUTION – COMMON VIEW
WHAT IS WHERE – AN ASSET CENTRIC VIEW
CONFIGURATIONControl
OPERATIONS
FLEET MAINTENANCE
PLANNING
W/SHOP MAINTENANCE &SCHEDULING
W101Work Order
DISTRIBUTEMAINTENANCE
Reports
Maintenance Performance
&Supply Chain Performance
A54Master
Maintenance Schedule
Current & ForecastAvailability
Deferred FaultsMods
Maintenance
Supply Chain Materials
Operational RequirementsMaintenance
IntervalsFleet Mods Plan
EquipmentPerformance /
Statistics
Sub-Con Out
© 2009 IFS
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EUROFIGHTER TYPHOONIERS (INDUSTRIAL EXCHANGE & REPAIR SERVICE)
EXAMPLES OF CUSTOMER SUCCESS STORIES
Suppliers are paid for a ‘rotable’ exchange or repair service
Performance Related Payment linked to the supplier’s performance
RepairConsortium
Customer
Exchange Items
Repair Items
Maintenance Action Required
Customer Spares Stock
Contractor Support Facility
ExchangeStock
ExchangeFacility
RepairFacility
Limited RepairStock
Industry
Manufacturer’s RepairFacility
H
O
L
E
I
N
T
H
E
W
A
L
L
IFS Applications tracks critical assets both on the aircraft and through the industrial repair loop and transportation
system
A&D IN-SERVICE SUPPORT& ASSET
PERFORMANCE / AVAILABILITY
© 2009 IFS
22 VISIBILITY
Drill-Down toFigures/Graphs
PERFORMANCE / AVAILABILITY
© 2009 IFS
23 VISIBILITY
© 2009 IFS
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PERFORMANCE / AVAILABILITY
VISIBILITY
Contribution of disparate data.•Inventory•Learning – from HR/Training•Core Maintenance Costs
Scorecard Indicators & TrendsUser definable limits
Structure Data to Suit…•Fleet View•Asset Type View•Etc…
© 2009 IFS
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FLEET STATUS
VISIBILITY
Drill-down to view
Details of faults etc.
© 2009 IFS
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BENEFITSMRO 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, customersand 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 …
REDUCING COSTS
Materials/inventory management• Reduce lead times for parts and external services• Lower on-hand stock
Supply chainmanagement
IT Solutions provides tools to help lower costs in both areas.
Maintenance management• Eliminate nonproductive wait periods• Achieve faster turnaround times
Operations
Business intelligence tools (scorecards, cubes)
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 inventoryTracking purchased inventory and customer furnished inventory by condition code and owner code
e-Maintenance Management System
Confidential
E-MMS AT INDIAN AIR FORCE
Enterprise Service Bus
Business Process
Interaction Services (Portal)
Access Control Services
iCAT
IMMOLS
DFSM
RO
Ap
plic
atio
ns
Enterprise Management SystemEnterprise Management System
Security ManagementSecurity Management
Maint .,Engg .
& CAD IS
Maint .,Engg .
& CAD IS
MailSystem
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Ide
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Sys
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Da
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Bu
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Database, Warehouse & Content Mgmt. System
Multidimesional OLAP DatabasesUnstructured Documents
Kiosks
Mail Interface
Directory Services
HQ Monitoring
Control
e -Trolley
2. Solution Design 2.1 Architecture
© 2009 IFS
INDEPENDENT ANALYSIS
© 2009 IFS
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IFS A&D MARKET SHARE
INDEPENDENT ANALYSIS
EAM in EMEA
EAM in Aerospace & Defence
EAM for the Fleet asset type
EAM Field Service Management
Enterprise Asset Management Solutions Worldwide Outlook
Sourced from:
IFS holds the leading market position in the following market segments
www.IFSWORLD.com