40 day engine in 40 minuten for dglr engl 2004 pd f ... · pdf filerolls-royce deutschland aug...

Rolls-Royce Deutschland

Rolls-Royce DeutschlandAug 04

40 Day Engine –Turning visions into cash

Andy PagePurchasing and 40 Day Engine DirectorAugust 2004


Rolls-Royce Deutschland� The only German company fully capable of

developing, producing and servicing modern jet engines

� Largest Aviation Company of the State of Brandenburg

� >2.000 highly qualified jobs in Germany of which ~1000 have been newly created in the State of Brandenburg

� Competence Center for 2-Shaft Engines within the Rolls-Royce Group

� Investment > 1 Bill. �� Order book > 3,5 Bill. �

� Turnover in 2003 577 Million ��2002 660 Million �

2001 1.125 Billion �

� Management Axel ArendtChairmanDr. Norbert ArndtDirector Engineering, Purchasing & Logistics

� 20% Export-Share of State of Brandenburg

Oberursel: Component Manufacturing

Dahlewitz: HQ, R&D and final assembly


Activities

Programmes� BR710 14,000 to 17,000lb

� BR715 17,000 to 23,000lb� Tay 11,000 to 18,000lb

� Spey 11,030lb

� Dart 2,250 to 4,369shp

RSP partnerships� Trent 76,000 to 89,000lb� V2500 25,000 to 33,000lb� CFM56 18,000 to 34,000lb

Small gas turbines� T117 240lb� RE 220 APU 220kW� T312, T312-4 APU 114/136kW� RTM322 3,300shp

Repair & overhaul� BR700 Family� GRTS Larzac 04C6/04C 20� Lycoming T53 Series� Gnome Turboshaft Engine


Lockheed L-1011

Boeing 747

Fokker F28

Gulfstream III

1980’s

Fokker 100

Fokker 70

Boeing 717

RaytheonPremier

Tupolev Tu-204

Global Express

MD-90

L-100

IPTN N-250

SAAB 2000

EMB-RJ145

Citation X

Lightturboprops

Lighthelicopters

Airbus A321

Airbus A320

Airbus A319

Airbus A330

Airbus A340-500/600

Airbus A380

Boeing 727RE

Boeing 757

Boeing 767

Boeing 777

CitationJet SJ30

Gulfstream IV/IV-SP Gulfstream V

Boeing 747X

Boeing 747-400

Tupolev Tu-334

EMB-RJ135

TODAY

Portfolio Expansion


Increasing Market Share

0%

10%

20%

30%

40%

50%19

84

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000


Where is the problem?

��

��

��


Benchmark

Stockturn

Inventory(scaled to Rolls-Royce turnover)

Potential released cash

Potential profit increase(Interest effect)

��Billion

��M

�1,67Billion

��M

��Billion

3.4X

�0,84 Billion

GE

8.0X

��Billion

5.2X


The Goal

��


Where we were and have to be...

Build, Test & Despatch

Buy

Make

Lead time in calendar days

Figures in brackets = average

2000 (RRD)

end of year(126) 154(260) 490 (37) 56

2003(RRD)

1235

50

30 10

2004(RRD)30


40 Day Engine Key Performance IndicatorsSummary

Equivalent Product cost BR710 [T$]

RRD Operational Inventory [M��(Stock Turn)

On Time Delivery of Engines to Contract [%]

Quality[DPMO]

Critical Path Response Time [Calendar Days]

343 16080

40141 (4.7)95(4.6)

75(6)70(9,0)

52

100

100

100

102

7050

30

-6%

-11%

-11%

2001actual

2002actual

2003 2004

Supply chain flexibility must be aligned to market requirement


Focus on „STEP CHANGE“– 6 of them 1 2 3 4 5 6

��

��

��

�� !�

�� "� ��

#��$�

��

%� ��

&� ��

��

'�


Primary activities

� Single piece moving line, takted to customer demand with a 10 calendar day lead time.


Primary activities

� Rationalised supply chain

– 80% reduction in deliverables into assembly by kitting.

– 50% reduction in the number of direct suppliers

� SAP as back office system supporting pull systems with suppliers.

� Inbound parts collection system linked to SAP.


Primary principles

� 40 Day Engine is not a project. It is a goal, that unifies all the other

initiatives and improvement projects.

� KEEP IT SIMPLE


5 Year ScopeRRD BR700 Leadtime and

Delivery Performance

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005

Lea

d t

ime

(Day

s)

0

20

40

60

80

100

120

On

tim

e d

eliv

ery

(%)

Lead time (Days on critical path)

On Time Delivery (%)

��


5 Year Scope – RRD total

60% inventory reduction since 2000

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005

% a

nd N

o. e

ngin

es

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

Sto

ck T

urn

Inventory BR700 (%)

Number of engines made

Stock Turn BR700

Inventory Baseline 2000

40 day engine in 40 minuten for dglr engl 2004 pd f ... · pdf filerolls-royce deutschland aug...

Documents