Agile Aerospace and Defense · PDF fileTitle: Bell Helicopter Welcomes Representative Adam...

Copyright 2011 Bell Helicopter Textron Inc.

Agile Aerospace and Defense Enterprise (Bell Helicopter Business Systems Modernization Program)

Bennie Peek

VP/CIO Bell Helicopter


Cessna Bell Helicopter

Industrial Finance Textron Systems

Textron Corporation

Cessna Aircraft Bell Helicopter

35%

E-Z-GO

Greenlee

Jacobsen

Kautex

Textron Financial

Textron Systems

AAI

Overwatch

TMLS

Lycoming

2012 Textron Inc. Revenue: $12.2B - 32,000 Employees

14% 25% 24% 2%


Bell Government Product Line

High Demand…High Operational Tempo…Exceptional Performance

OH-58D Kiowa Warrior

TH-67 Creek II

MV-22 Osprey

AH-1Z Viper

UH-1Y Venom

CV-22 Osprey


Bell Commercial Product Line

412

407 206L4

429


1960 1970 1980 1990 2000 2010

Bell Business historic Trend

Flat Revenue for 25 Years

Scalability Issue


Bell Before BSM

Fin

an

ce

Mark

eti

ng

&

Sale

s

Pro

gra

ms

Hu

man

R

eso

urc

es

En

gin

eeri

ng

Inte

gra

ted

Op

s

• Individual functions control business processes

• Decisions made in silos

• Managing in the White Space ineffective

C

ost

ly T

ran

sact

ion

s

Mu

ltip

le D

ata

So

urc

es

Slo

w D

ecis

ion

s / D

elay

s

Han

d-O

ffs

/ Gap

s

Err

ors

/ N

VA

Wo

rk

Enabled by 467 Legacy Systems


Overview of Business System Modernization Program

A very large-scale Business Capability Upgrade encompassing:

• A ERP Project

• An PLM Project

• A Shop Floor Control Project

• A Business Intelligence Project

• Other “dogs and cats”:

– Time and Attendance

– Roles-based Access Security

– XACML/Axiomatics Data Management

– etc


BSM Core Applications

Data Warehouse

Business Objects

Contract, Project Info

Planning, Orders

Requirements, Change Mgmt, Parts

Program Info

Parts, MBOM MBOM

Primavera

MES CAMS / Visiprise

Catia/ Enovia

v6

Business Intelligence

SAP Business Objects

Primavera

ERP SAP ECC

MES SAP CAMS

Sales Orders, Customer Service, Inventory, Costing, Financials, Mfg Scheduling, Warehousing, Repairs

Contract, Project Info


BSM Core Solutions

Solution Scope Consulting Partner(s)

• ECC (PP, FI, CO, SD, MM, WM, PM, GPD)

• iMRO

• GTS

• GPD

• CRM

• SRM / SNC

• Business Objects

• CAMS

ECC – Deloitte

CAMS – SAP

BO – InfoSys

• Requirements Management

• Configuration Management & Workflow

• Engineering & Planning BOM

Dassault

Other

• Kronos Time & Attendance

• XACML/Axiomatics Data Security

• Aveksa Roles management system

• Cransoft (data management)

Backoffice (Cransoft)

http://www.deloitte.com/


BSM Timeline

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013

Release 2 CAMS for Mfg

Fab.

Release 3 CAMS for Assembly

Enterprise PLM Common Business Process Design

Release 4 Enterprise ERP

2014

Q1

Release 5 Enterprise ERP Extended

Program 94%

Complete

Copyright 2011 Bell Helicopter Textron Inc. 12

Top Ten Barriers to Success

Source: DC CIO Survey

Unrealistic Expectations

Resistance to Change

Inadequate Sponsorship

Poor Project Management

Case for Change Not Compelling

Project Team Lacked Skills

Scope Expansion/Uncertainty

No Change Management Program

No Horizontal Process View

IT Perspective Not Integrated 30%

41%

43%

44%

44%

46%

54%

65%

72%

82%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

ERP Risk: Causes of ERP Project Failure

Aerospace ERP Implementations

Critical Issue Major Issue Minor Issue

Complex and Dirty Data


How Have We Done?

Aerospace Issue: Bell Mitigating Actions:

No Change Management Program / Resistance to Change

Comprehensive “Business Readiness” Program: − Led by Seasoned Full Time Director − Full time representatives from every business area − Comprehensive job strategy − Weekly executive governance meetings − CEO review of Readiness Dashboard − Full communication program

No Horizontal Process View

• Built Process Framework in Planning Phase of Program • Built functional views of business processes to help communicate • 1 year spent in laying process foundation – 20 key decisions • Replaced procedures with process documentation from project

Complex and Dirty Data • Implemented engineering systems first to improve data quality before project • Allocated very large number of resources for over a year to clean up data • Bill of Material and Scheduling data clean-up was the largest challenge

Early Results Are Promising … we are Live!


Process Scope & Framework

Develop Technology & Prototypes

Manage Customer Contracts

Design Product

Execute Product Programs

Fabricate and Assemble Products

Acquire Materials and Services

Manage Material Flow

Manage Customer Orders

Maintain, Repair and Overhaul

Provide Customer Support

Products & Services

Manage Capital and Corporate Risk

Manage Accounting

Manage Company Support Services

Manage Human Capital

Manage Internal Projects

Manage Information Technology

Plan and Manage Business

Manage Plant, Equipment and Facilities

Provide Financial & Costing Decision Support

Financial & Costing Decision Support

CUSTOMERS

Bell Aircraft & Services Value

Streams

Partially Scope In Scope Out of Scope

(Commercial, Military, Spares,

Services)


15

Risk of being “Live” but failing to Thrive P

ro

cess M

atu

rit

y

IT Systems Maturity

75% More Profitability

-7% More Profitability

38% More Profitability

Baseline Profitability

Immature Advanced

Im

matu

re

Ad

van

ced

From “Do IT Investments Pay Off” - Supply Chain Management Review May/June 2005

THE GOAL!!

To Realize ROI: Focus on business process AND system changes


BSM Program Objectives

• Reduce overall cost to design, build & support our products

– Inventory Carrying Cost

– Manufacturing, Engineering, Quality: support labor costs

– Overhead Labor costs in “enabling” functions

• Reduce information systems applications by 50%

• Reduce cycle time of new commercial product design

• Reduce cross-facility process variation where there is no customer benefit


Remaining Challenges

• Cultural Change in Materials Planning & Scheduling

– No dates in the past

– Available to Promise (ATP) does not work well without date discipline

– Starts with Sales & Ops Planning

• Proactive management of Bills of Material data

• Finalize data cleanup for converted shop orders

• Redesign Tooling process

• Tune system performance in selected areas

• Mature systems interface monitoring – technical & functional

SAP: Lever to drive cultural change in the way the world is viewed

Agile Aerospace and Defense · PDF fileTitle: Bell Helicopter Welcomes Representative Adam...

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