AIRBUS Case Study

Paris

5 May 2010

5th May 2010AIRBUS Case Study p. 2

Airbus Work-sharing

Wings

Horizontal Tail plane

Nose

fuselage

Pylon

Centre

fuselage

Belly fairing

AftFuselageVertical

Tailplane

Forward FuselageVertical

Tailplane

X

XX

X

X

X Out of scope

X

Scope of work = 2 final assembly lines, 11 design & manufacturing facilities in Europe

80 warehouses & +/- 20 major suppliers (>1mio €)

2007 Constraints…

5th May 2010AIRBUS Case Study

Product & Logistics segmentation

Flow chart

Initiative Portfolio Development

Ideal scenario identification and calculation

Cost calculation & Gap analysis

As is scenario identification calculation

Business case on Ideal and realistic scenario

Realistic scenario identification and calculation

Implementation plan

Constraint Assessment

Product & Logistics segmentation

Flow chart

Initiative Portfolio Development

Ideal scenario identification and calculation

Cost calculation & Gap analysis

As is scenario identification calculation

Business case on Ideal and realistic scenario

Realistic scenario identification and calculation

Implementation plan

Constraint Assessment

Phase 1“Stabilization”

Phase 1“Stabilization”

Phase 2“Transition”

Phase 2“Transition”

Phase 3“Preferred Solution”

(Continuous Improvement)

Phase 3“Preferred Solution”

(Continuous Improvement)

KN Business Migration Methodology

The bottom-up KN Value Proposition

5th May 2010AIRBUS Case Study

Key Value Drivers of the Kuehne + Nagel Solution

Deployment of a single WMS system to reduce complexity,

cost and enable standardization of processes

Leverage outsourcing opportunities for non-core services in a standard blueprint across all sites

Introduction of standardized processes based on best practices

Consolidation of Logistics Operations into

6 Regional Hubs in D, F, ES, UK

Consolidation of Service Providers / Implementation of a single Lead Logistics Provider

5th May 2010AIRBUS Case Study

Integrated Project Team taken from existing KN organiza tion

Local teams- Local surveys- As is flow design- Local scenario costing- Etc..

Re-engineering teams- Scenario build-up- To be scenario costing- Value proposal design- Road mapping

Central team (plateau)

5th May 2010AIRBUS Case Study p. 6

Airbus Work-sharing

Wings

Horizontal Tail plane

Nose

fuselage

Pylon

Centre

fuselage

Belly fairing

AftFuselageVertical

Tailplane

Forward FuselageVertical

Tailplane

X

XX

X

X

X Out of scope

X

6 Regional hubs in Europe120.000 sqm / 1500 FTEs

…Kuehne + Nagel transformation vision

5th May 2010AIRBUS Case Study p. 7

Kuehne + Nagel scope of work for AIRBUS

H&F Ordering +Stock management

Reception & Quality control Storage

Kitting & Order Preparation Cut to Size &Sealant mixing

Delivery to Point Of Use

Section Handling Delivery to FAL Delivery Center

5th May 2010AIRBUS Case Study

Kuehne + Nagel mirror AIRBUS supply chain organization

SteeringCommittee

Central Team LLP Control Tower

Stakeholders• Broughton• Nantes• St. Nazaire• Toulouse FAL• St. Eloi• Getafe• Illescas• Puerto Real• Bremen• Hamburg• Hamburg FAL

Operations

•UK Hub•Northern France Hub•Southern France Hub•Madrid Hub•Southern Spain Hub•German Hub

Central Level• Direction• Monitoring• Decisions

Local Level• Requirements• Execution

5th May 2010AIRBUS Case Study

SteeringCommittee

Individual Implementation & Re-engineering ProjectsIndividual Implementation & Re-engineering Projects

Operational SteeringCommittee

Engineering / IT / Method

Local Steering Committees

South France West France Broughton Hamburg/Bremen Central Spain South Spain

AIRBUS / Kuehne + Nagel Governance Model

5th May 2010AIRBUS Case Study

Transition Phase• Gradual Transition from

Commercial team to Go-Live

• Commercial team still in

charge of AIRBUS Key Account

Management & Operational

steering

Commercial Team

HR Review with Incumbent

Go-Live

Operational Team

Implementation

Transition phase from project team to operational team with a single target : Secure the operation

5th May 2010AIRBUS Case Study

September 2008

BLAGNAC

JLL

ST ELOI

SEOR

TIT

CLEMENT ADER

L. BREGUET ATHOS

HARDWARE & FASTENERS

7P2 BOOKING

EUROCENTRE

December 2009

BLAGNAC

JLL

ST ELOI

SEOR

TIT

CLEMENT ADER

L. BREGUET ATHOS

HARDWARE& FASTENERS

7P2 BOOKING

EUROCENTRE

p. 11

Transformation Plan during implementation (i.e Toulouse )

• Take over of over 360 employees (providers & AIRBUS) in one year with 4 different collectives agreement and 5 different HR policies• Smooth transition with 0 day of work stoppage

5th May 2010AIRBUS Case Study

Transformation Plan during implementation (i.e Nantes & St Nazaire)

« One to One to Many »

Tier1

AIRBUS SNZ

AIRBUS Prod NTE/SNZ

Log Suppliers

LogSuppliers

Truckers

AIRBUS Procurement

AIRBUS NTEAIRBUS NTE/SNZ

Supply ChainTeam

Tier1

� Sharing best in class processes & reapplying projects

� Strategies and Processes are standardized

� Quick Return On Investment is proven

� Centralization allows to create a central know-how repository (best practices, methodologies, statistics, KPIs..)

« Many to Many »

5th May 2010AIRBUS Case Study p. 13

Logistics Hub construction for line feeding in Nantes & St Nazaire : 18.000 sqm

Total surface

18.000 sqm(3 x 6.000 sqm)

Total surface

18.000 sqm 1.800 sqm

Final Project

Ground Mezzanine

5th May 2010AIRBUS Case Study

Linda Gascoin - Lean Logi stic project - SNZ Pa ge 1 0©AI

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Macro-planning

Mise en KB de p ièces

Thème Planning

A M J J A S O N D

Réorga nisa tion KB CM S

Divers

Nouveaux besoins?

98 k€ /an

Gains

11 k€ /an

n.c

Coûts

n.c

A320 POLAR IS

Lean Logistics Projects Central Coordination, supporte d by KN and Freelog

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Tableau de bord Lean Logistique 6 JUILLET 2009

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Gains

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Retard En cours Finies

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Agenda

1. Présentations : 8h00-9h00- TMT-logistique- lignes : qui paie quoi?

- Projet Hub + questions2. Avancement des actions en-cours : 9h00-10h00

- Revue par programme)- Actions coordination

- Actions identifiées lors du Lean Day n°1- Lexique

- A telier d ’amélioration de la gestion des m ises à jour de con tenant (USM…)

3. Pause : 10h00-10h304. Atelier : 10h30-12h00

- Flux secondaires (peut-être intéressant seulement pour Comète)

5. Prochaines étapes et conclusion : 12h00-12h306. Déjeuner

On going weekly flash report follow up

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�PA : �Formation à la modification des adressages kanbans�Partialisation des gammes par la prépa

�Pavillon : �Déploiement des mallettes visserie : 3eme vague de 4

opérations�Modifications des kanban pièces du poste 1361 lié aux

travaux d’installation des portes sur le poste �1391

�Remise à jour des panoplies CMS�Découpage des gammes par kit avec les TP

Flash Report A340 Polaris

Points en suspens et difficultés

Actions planifiées sur la semaine suivanteRésultats de la semaine écoulée

Responsable NC / JO 6/07/2009Date

Nouveaux sujets identifiés – A intégrer

�PA : �Préparation des kits au MSN à90%, reste la partialisation

des gammes�Réalisation du plan de réimplantation des kanbans par

opération�Pavillon :

�Déploiement des mallettes visserie: nombreux dysfonctionnements, corrections des mallettes

�Aide à la préparation des mallettes�Lancement de l’étude sur le circuit des ferrures de hissages

et transport�1391

�Présentation des axes du projet 1391

8125# actions

Avancement général

Mallettes CMS

PA/PAV���� Kits pièces ���� Kanban ����

Flux secondaires ����

�Passage des pièces en USM en Kanban�Livraison des mallettes visserie poste 1381

Steering committee management :� Planning validation� Cross fertilization � Savings tracking set up

Lean Day within Logistics organisation with 2 workshops :

� Bypass flew management� Hub project impact

5th May 2010AIRBUS Case Study

St Eloi Production Moving Line

AIRBUS & KN joined work to set-up the MOVING LINE project for pylons

• Optimization of logistics flow :

• From 11 static lines to 1 moving line

• MDUs optimizations

• Replenishment process based on tact times

• Reduction of missed item at line level

• Optimization of workers productivity –Bring correct parts at correct place and correct time -

Merci beaucoup – Thank you – Vielen Dank – Muchas Gracias – спасибо – 谢谢