aerospace manufacturing transfer systems
TRANSCRIPT
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
Aerospace Manufacturing Transfer Systems
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
Aerospace Manufacturing Transfer Systems
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 Manufacturing Transfer Systems
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
Aerospace Manufacturing Transfer Systems
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%
Aerospace Manufacturing Transfer Systems
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
Aerospace Manufacturing Transfer Systems
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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Aerospace Manufacturing Transfer Systems
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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Aerospace Manufacturing Transfer Systems
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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Aerospace Manufacturing Transfer Systems
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.
Supplier Selection and Relationship
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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Aerospace Manufacturing Transfer Systems
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.
11 | www.wipro.com
Aerospace Manufacturing Transfer Systems
1 2 3
Strategic Planning and Scenario Analysis
Supplier Selection and Relationship
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
12 | www.wipro.com
Aerospace Manufacturing Transfer Systems
Aerospace Manufacturing Transfer Systems
13 | www.wipro.com
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