October   28-­29,   2015

Bob  Deragisch  -­ Parker-­Hannifin  Corporation

Managing  change  using  models  in  an  ever  changing  supply  chain  

3DCIC  and  the  CIMdata PLM  Road  Map  for  the  A&D  Industry

Agenda  (all  in  30  minutes  or  less!)• Where  we  fit  in  the  supply  chain  • What  is  driving  change  • But...  that's  now  how  we  did  it  on  the  last  program  • TANSTAAFL  (somebody  has  to  pay)  • Now,  multiply  by  40,  divide  by  the  square  root  of  the  parts  on  the  BOM,  add  the  platform  model  number,  raise  it  to  the  power  of  F#,  and  make  it  lighter

Agenda• Where  we  fit  in  the  supply  chain  • What  is  driving  change  • But...  that's  not  how  we  did  it  on  the  last  program  • TANSTAAFL  (somebody  has  to  pay)  • Now,  multiply  by  40,  divide  by  the  square  root  of  the  parts  on  the  BOM,  add  the  platform  model  number,  raise  it  to  the  power  of  F#,  and  make  it  lighter

Global  leader  in  flight  control,  hydraulic,  fuel  and  inerting,  fluid  conveyance,  thermal  management,  and  engine  systems  and  components

• $2.2  billion  in  annual  sales

• 6,100  employees

• Seven  divisions,  46  worldwide  locations

Parker  Aerospace

4

Engineering   Centers,  AmericasEverett,  WashingtonFort  Worth,  TexasIrvine,  CaliforniaMontreal,  CanadaPortsmouth,  New  HampshireSão  José  dos  Campos,  Brazil

Engineering   Centers,  EuropeBremen,  GermanyBristol,  England,Derby,  EnglandMoscow,  RussiaToulouse,  France  Wiesbaden,  Germany

Worldwide  divisions  and  facilitiesA  global  organization

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§ Aircraft  Wheel  &  BrakeAvon,  OhioGuaymas,  Mexico

§ Control  SystemsDublin,  GeorgiaIrvine,  CaliforniaOgden,  UtahXi’an,  China  

§ Customer  Support  OperationsIrvine,  California  -­ HQ

§ Fluid  SystemsElyria,  OhioGuaymas,  MexicoHauppauge,  New  YorkIrvine,  CaliforniaNaples,  FloridaNanjing,  ChinaTolleson,  Arizona

§ Gas  Turbine  Fuel  SystemsClyde,  New  YorkDevens,  MassachusettsLiberty  Lake,  WashingtonMentor,  Ohio

§ Hydraulic  SystemsKalamazoo,  MichiganNanjing,  ChinaWiesbaden,  Germany        

§ PowerGenMoncks  Corner,  South  Carolina

§ Stratoflex  ProductsApodaca,  MexicoCamarillo,  CaliforniaFort  Worth,  TexasJacksonville,  Florida

Engineering   Centers,  AsiaBangalore,  IndiaKomsomolsk,  RussiaNagoya,  JapanShanghai,  China

Manufacturing   Operations

Use   or  disclosure   of  data   contained   on  this  sheet   is  subject   to  the  restrictions   on  the  title   page   of  this  presentationUse   or   disclosure   of  data   contained   on   this  sheet   is   subject   to  the   restrictions   on   the   page   at   the   end   of  this   presentation

Customer  Service  Centers,  Asia

SingaporeKuala  Lumpur,  MalaysiaXi’an,  China

Worldwide  customer  service  centersStrategic  locations  for  lower  cost,  faster  service

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Repair  Administration  CenterSaó Jose  dos  Campos,  Brazil

Customer   Support   Headquarter s

Irvine,   California

Forward  Stock  &  Support  CenterDubai,  United  Arab  Emirates

Repair  Administration  CenterBeijing,  China

Customer  Service  Centers,  AmericasCamarillo,  CaliforniaDevens,  MassachusettsDublin,  GeorgiaElyria,  OhioFort  Worth,  TexasGlendale,  ArizonaHauppauge,  New  YorkIrvine,  CaliforniaKalamazoo,  MichiganNaples,  Florida

Customer  Service  Center,  Europe  Wiesbaden,  Germany

AustraliaBelgiumFinlandFranceGermanyGreeceItalyJapanKorea

NetherlandsSaudi  ArabiaSingaporeSwitzerlandTaiwanTurkeyUnited  KingdomUnited  Sates

MRO  Licensing  Centers

Parker  Aerospace  engineersEngineering  is  a  core  competency

7

43%

System  architectureMaterial  scienceEmbedded  softwareVerification/validationThermal  designReliability/maintainabilityB

RO

AD

SK

ILL

SE

TS

of  our  exempt  workforce  are  engineers.

Growing  trends  impacting  aerospace

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Emerging  market  air  traffic  growth

Department  of  Defense  budget

Aftermarket  and  services

Energy  &  environment

Technological  advances

Global  support

Mods  and  upgrades

Fewer  new  programs

• More   electric• Thermal  management• Intelligent   power  management• Fly-­by-­wire   flight  controls• Fuel   cells• System   integration• Fuel   tank   inerting

Energy-­optimized  aircraft

Asset    management

Serving  the  world’s  aerospace  leaders

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Parker  Aerospace

Agenda• Where  we  fit  in  the  supply  chain  • What  is  driving  change  • But...  that's  not  how  we  did  it  on  the  last  program  • TANSTAAFL  (somebody  has  to  pay)  • Now,  multiply  by  40,  divide  by  the  square  root  of  the  parts  on  the  BOM,  add  the  platform  model  number,  raise  it  to  the  power  of  F#,  and  make  it  lighter

Is  a  picture  worth  a  thousand  words?

Is  a  picture  worth  a  thousand  words?

Easily!

So  – how  much  is  a  model  worth?1,000  words  *  1,000  words?    1,000,000  *  1,000?  (it  is  3  dimensional,  after  all)

Agenda• Where  we  fit  in  the  supply  chain  • What  is  driving  change  • But...  that's  not  how  we  did  it  on  the  last  program  • TANSTAAFL  (somebody  has  to  pay)  • Now,  multiply  by  40,  divide  by  the  square  root  of  the  parts  on  the  BOM,  add  the  platform  model  number,  raise  it  to  the  power  of  F#,  and  make  it  lighter

Managing  Systems  Design

Synchronous  Mechanical,  Electrical  and  Software  Product  Development,  Configuration  Management,  Change  Control,  and  Traceability

EVMMechanical Development

and Management

Material Compliance

Simulation Data &Process Management

Engineering Change

RequirementsManagement

Program/Project Management

IP Protection Export Compliance

Mechanical Content

RequirementsCapture, Author Software Development

Electrical Content Software Content(ALM)

MES

Electronics Developmentand Management

Software Release & Delivery Management

AnalysisSimulation

Optimization

ERP

Leveraging  partnerships• Up  an  down  the  supply  chain• None  of  us  can  do  it  alone• Text  and  drawings  are  not  enough• MODELS  “are  how  we  communicate”

Agenda  (all  in  30  minutes  or  less!)• Where  we  fit  in  the  supply  chain  • What  is  driving  change  • But...  that's  not  how  we  did  it  on  the  last  program  • TANSTAAFL  (somebody  has  to  pay)  • Now,  multiply  by  40,  divide  by  the  square  root  of  the  parts  on  the  BOM,  add  the  platform  model  number,  raise  it  to  the  power  of  F#,  and  make  it  lighter

5% 5%

50%

65%

75%

85%90%

95% 96% 97% 98% 99%

0%

20%

40%

60%

80%

100%

120%

BID  &  PROPOSAL

PLAN  &  ORGANIZE

REQUIREMENTSDISCOVERY  &  VALIDATION

TRADE  ANDSELECT  CONCEPTS

DESIGN FABRICATE VERIFY INTRODUCE,  DELIVER  &  SUPPORT

PRODUCTION PRODUCTION PRODUCTION PRODUCTION

Requirement  Maturity

5% 5%

50%

65%

75%

85%90%

95% 96% 97% 98% 99%

$3,500   $3,500  

$4,500  

$6,000  

$10,000  

$15,000  

$35,000  

$100,000  

$200,000  

$350,000   $375,000   $400,000  

$3,500  

$35,000  

$350,000  

0%

20%

40%

60%

80%

100%

120%

Cost  of  change

Requirement  Maturity

Program  Stage

Requirement  Maturity  versus  cost  of  change  (logarithmic)

What  changed?  When?  Driven  by  what?

Agenda• Where  we  fit  in  the  supply  chain  • What  is  driving  change  • But...  that's  not  how  we  did  it  on  the  last  program  • TANSTAAFL  (somebody  has  to  pay)  • Now,  multiply  by  40,  divide  by  the  square  root  of  the  parts  on  the  BOM,  add  the  platform  model  number,  raise  it  to  the  power  of  F#,  and  make  it  lighter

0

5000

10000

15000

20000

25000

30000

35000

19701980

19902000

20102020

Complexity   (system  requirement   count)

But  Seriously…• Requirements  continuously  evolve• Cost  of  change  due  to  requirements  change  continuously  rises• Absorption  versus  assertion  – who  pays?• Complexity  continues  to  increase• And  you  want  me  to  communicate  changes  with  drawings?

Key  takeaways• Text  and  drawings  will  NOT  work  today• Models  are  the  only  way  to  communicate–Complexity

– Rapidity  of  change

–Maturity  of  requirements

–COST  of  incorporating changes

• Cost  of  change  continues  to  increase• Complexity  continues  to  accelerate• We  need  to  work  TOGETHER  to  all  move  forward