SLT Speak

Aerospace Workforce of the Future

CoNteNts

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The market for aerospace and defense industry is projected at $70 billion by 2029, according to a joint report by Roland Berger, NASSCOM and IESA. India has emerged as a preferred global sourcing destination due to its competencies in producing quality, innovative, and low-cost solutions. However, we should be mindful that with opportunities come numerous challenges both internal and external, which requires consistent processes and practices, logistics infrastructure improvements as well as highest industry accreditations to meet stringent quality and safety regulations of aerospace manufacturing. We as an organization must keep pace with ever-advancing, sophisticated technologies and skill development. This includes enhancing our expertise in machine technology, complex surface treatment

and material processing capabilities. We must acknowledge the fact that India can no longer rely on decades old labor arbitrage

as its sole competitive advantage. The aerospace manufacturing continues to undergo significant technological and economic changes that require innovation in cost reduction and speed to market, and we must equip ourselves to address these critical subjects. The government is gradually becoming an enabler for the aerospace industry in the private sector as well, while creating highly business conducive atmosphere and ease of doing business. As a private sector company, we can work on implementation of skills development, growth of MSMEs, infrastructure and logistics, while preparing for new disruptions such as Industry 4.0. Our Special Economic Zone (SEZ) that encompass these themes have already set very high standards in this respect.

Over the next decade, India is poised to become a significant player in global aerospace supply chain, as the country offers not only tremendous cost advantages but also open to advancing technologies. The industry prospects look very promising and as an organization, each of us must take hold of this opportunity and embrace technology, enhance training and skills, along with our values based attitude to truly become a driving force in the industry.

Challenges in Aerospace Manufacturing

VOluME IV

FMS – Flexible Manufacturing System .................................. 2

‘Champions of Change’ ..... 3

AAI’s first “Test Door Plug” to Airbus, Hamburg ................ 4-6

3P - A Journey towards Lean Enterprise ............................... 7

Aequs Besancon Wins Global Customer’s Confidence ....... 8

New Sophisticated Passivation Line Inaugurated at API ....... 8

AAIPL Successfully Qualifies for AS9100 - Rev D ............... 8

SQuAD Unveils first Titanium Forging made from 6AI-4V .... 8

SEZ Updates ........................... 9

Employee Exchange- Testimonials ........................... 9

Aequs Foundation .............. 10

Customer Visits @ Aequs .... 10

Editorial Team:

Devjeet Majumdar

Biswajit Baruah

Kuldeep Rane

Sasmita Pattnaik

Raju Kumar

Dhaval Chitnis

Jeetinder Khubchandani

Aravind Melligeri, Chairman & CEO

Rajeev Kaul, Group CFO & Managing Director, India

Indian aerospace manufacturing is undergoing significant transformation, with the country emerging as one of the prominent contenders in global aerospace. The leading aerospace companies from across the sphere are eyeing emerging opportunities, with the government putting major thrust on ‘Make in India’ initiative. The aerospace manufacturing sector is poised to make rapid strides as future industry prospects have never been brighter. It’s recommended that employees develop right mindset and embrace the newest technology to paramount, while becoming a leading future workforce in competitive global aerospace manufacturing, which demands unconditional zero-defect production.

In this era of unprecedented change, innovation and technology are promising to dramatically transform the world. It’s imperative for aerospace workforce to incorporate radical thinking, new technology and efficient manufacturing processes. The employees must look forward to becoming more innovative and adopt to fast changing technology environment, as the industry has become demanding with the invasion of exponential technology. The success and accomplishment of an organization fundamentally depend on employees’ practice and demonstration of their competencies.

It’s critical for aerospace workforce to constantly evolve and embrace best practices, as new trends are reshaping traditional methods of functioning. A digital workplace has become the foundation of aerospace industry with the advancement in robotics, automation, artificial intelligence (AI), Internet of Things (IoT) and others. Aequs, has been on the forefront at adopting new technologies and innovations, and flexible manufacturing system (FMS) is a testimony, while this would provide an edge in the aerospace industry. There’s growing demand for innovative approaches and streamlined processes in the aerospace manufacturing. Hence, placing people and innovation first, the industry can ensure that no matter what turbulence disrupts the industry, it will have competent resources to fly through any circumstances, and reach calmer, clearer and favorable skies.

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FMS – Flexible Manufacturing System

Over the next year, Aequs Aerospace is taking a major step forward with the introduction of FMS technology. This technology will enable Aequs to offer customers the most competitive machining solutions on a global level.

What is FMs?

FMS technology comes in several forms but, fundamentally it is 2 or more machining centers linked by a common controller, common load station, and a pallet pool system. An FMS requires highly-engineered solutions such that parts can flow through the system with perfect quality and little-to-no operator intervention. It can economically solve the challenges of machining the relatively high mix,

low volume product variety we currently see in Aerospace.

Aequs Approach: The first FMS cell will be targeted for Airbus and PAG hard metal products and consist of a mix of 5-axis and 4-axis horizontal machines arranged in a 6-machine in-line configuration. The specific machines are DMG 6300 models with powerful HSK100 spindles and sophisticated software for machining accuracy and excellent quality.

Illustration: Simple schematic of the cell:

The FMS cell and first 3 machines are scheduled to be delivered in December. They will subsequently be installed in the new FMS facility under construction just to the west of the ASYM business unit. The FMS cell is quite large, approximately 45 meters in length; however, the cell will be very efficient and much more productive than 6 standalone machines. The FMS will actually take up less floor space than the equivalent number of standalone machines required for the same level of production. Additional benefits will include lower COPQ (cost of poor quality), higher WIP velocity, (throughput),and lower inventory. All of this adds up to better use of working capital.

As hard metal demand increases, the remaining 3 machines will be added in FY19.A second FMS cell, for soft metal (SM) products, will get installed in the early part of FY19. The SM FMS will consist of 4 high-speed, 4-axis machines with a dual load station. This cell will only need 4 machines due to shortercycle-time of SM operations. With SM parts cycling through the machines much faster than with the HM FMS, the pallet transfer system and load stations will see much higher demand.

While the concept is simple, FMS cells require more effort upfront to setup but, once established, they are much easier to manage and far more productive than standalone machines. This move to FMS requires significant investment and represents a major shift in machining & engineering technology for Aequs. Glenn Miners is leading the implementation, bringing years of FMS experience in his former job. Together with our AXM Engineering team, we have a winning combination and we are confident of success

Konrad Hahnelt, Executive Vice President, Global Operations

JuNE, 2017 2OCTOBER, 2017

SLT Speak

o ur Chairman & CEO, Aravind Melligeri, was one among 200 CEOs from varied sectors at the “Champions of Change” G2B conclave (NITI Aayog)

in New Delhi on 21st and 22nd of August 2017.

This conference sought to nurture conversations between players from the private sector and representatives from the government and other noteworthy delegates such as Rajiv Bajaj of Bajaj Auto, Nikhil Nanda of Escorts, Chandra Shekhar Ghosh of Bandhan Bank and Priya Nair of HUL.

The key philosophy driving this conference is that high growth rates can be achieved and sustained when the private sector’s dynamism and innovative spirit is channeled towards the country’s growth and betterment. under the theme of Make in India, it was decided that the government needs to act as a facilitator or enabler, while the implementation is to be undertaken by the private sector.

Many of the issues discussed at the conference have been at the core of Aequs’ operations under Mr. Melligeri for years now. Skills development and vocational training are just

few among the many ways in which Aequs Aerospace has been contributing to this vision, though at a local level for the people of Belagavi. The manufacturing sector we see the government’s role as an enabler, create a conducive business environment, refine regulatory and legal frameworks relating to land, labour, capital and ease of doing business. The private sector, as an implementing agent can work on matters such as skill development, growth of MSMEs, logistics, infrastructure and prepare itself for new disruptions such as Industry 4.0 with the government’s proactive support.

The Hon’ble Prime Minister said that development must become a mass movement like our freedom struggle. He said that a spirit should be created, whereby we all set targets for our contribution to India, by 2022. You are my team, and we need to work together to take India forward.

The importance of Champions of Change cannot be overstated as the government is working hand in hand with the private sector towards a more inclusive governance model. A 360-degree view of the development scenario requires inputs from all stakeholders, including industry leaders. It is a prestigious occasion for Mr. Melligeri to have been invited to share his thoughts and inputs on matters pertaining to developing India and preparing the Indian manufacturing sector for the challenges that lie ahead.

‘Champions of Change’

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Chairman & CEO, AravindMelligeri was one among the 200 CEO’s from varied sectors at the “Champions of Change” G2B conclave (NITI Aayog)

Aravind in discussions with Hon’ble Finance Minister, Mr. Arun Jaitley at the “Champions of Change” conclave

With Smriti Irani sharing a candid moment

4OCTOBER, 2017

It’s indeed a proud moment for AAI to successfully produce the first ‘Door Plug’ assembly for Airbus 321 NEO (New Engine Option) aircraft. AAI maintained the legacy of ‘Aequs first’ – bagging the title

of first Indian private company to work on Door Packages.

Aerostructures Assemblies India (AAI), the joint venture between AEQUS & SAAB has evolved as a strong supply chain player for producing detailed parts in India. Also, it specializes in manufacturing requisite tooling, jigs and fixtures. AAI has been able to deliver over 70 percent in-country value add in some parts, while supporting the Government’s ‘Make in India’ initiative.

Door Plug is a Design to Build (D2B) package won by SAAB with AAI as its manufacturing partner. The work package is metallic and includes a high degree of assembly.

The manufacturing activity for this package was initiated with a kickoff meeting in Sep-2015 at AAI. Since then, there’s been no looking back for AAI.

AAI’s first “Test Door Plug” to Airbus, Hamburg

CoveR stoRy

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PHAse IInitially there were some challenges, and this being a

design to build package, non-availability of data on product and assembly were a concern. AAI team members sorted the issues by collaborating with design team at SAAB in Bangalore, and provided inputs on the manufacturing feasibility. The preliminary design started materializing gradually. The tooling requirement started flowing with the progression in design, technical information and assembly processes etc. AAI initiated engineering activities like PFMEA exploring tool selection etc. during this phase.

PHAse IIThe project entered second phase in 2016, where

activities like supply chain, local vendor development for industrialization, tooling manufacturing with local supplier, skill development, process qualification from Airbus etc. were completed. As per the requirement, AAI had to qualify for its assembly processes to AIPS/AIPI specifications. AAI team accordingly prepared work instructions, planned and ordered

raw material for test specimens, captured the test requirements for each process. Once the process qualifications were executed, AAI initiated training of its existing operators on each work instruction. The training sessions included both theoretic as well as practical simulation on test pieces. SAAB later conducted a prequalification audit at AAI and mutually agreed to call Airbus for process qualification audit in third week of November 2016., which was then later postponed to January 2017 due to some logistics changes.

Meanwhile, AAI team carried out other necessary preparations like CAPEX, finalizing detail part and assembly, tool suppliers etc. AAI also initiated the manufacturing of assembly tooling. However, AAI had to face challenges as this was the first time an assembly tool for door structures were being produced. The key risks were critically followed and monitored regularly. Assembly tooling manufacturing was treated as a sub-project and controlled separately. The design aspect also affected this activity as clarity on accessories for main tool were decided at a later stage. AAI managed this with close coordination between SAAB and the supplier partners.

PHAse IIIWith the Airbus process qualification audit scheduled

in Jan-2017, we had to hire and train employees for new project within a span of two months. AAI’s robust training process ensured process qualification with in the specified timeframe.

Post certification, Phase III involved the supply chain activities like finalizing sourcing of detail parts, fasteners, chemicals, assembly tooling etc.

AAI played a key supply chain role to industrialize assembly tool at the local level. Airbus suggested SAAB to use some existing parts from the previous door packages of same design.

CoveR stoRy

6OCTOBER, 2017

AUDIts/RevIeWsAAI successfully qualified for the Industrial Process

Control Assessment (IPCA) audit. This audit measured the effectiveness of the GRAMMS requirement of Airbus, and was completed in June 2017.

Progress Reviews like Industrial Review Meeting (IRM) took place at regular intervals between Airbus, SAAB and AAI. All key milestones, critical activity, risks and timelines were reviewed during these meetings.

DesIGN CHANGelast two years, AAI witnessed major design changes

in detailed parts, which include addition of new assembly process, fasteners etc. Keeping Design to Build (D2B) nature of projects in mind, they had to adapt to such changes and incorporate them well. The design changes had to be handled very carefully as it sometimes affected detail parts supply chain, project delivery and product cost.

tHe FINAL MoMeNtAfter two years’ strenuous efforts and hard work, the

moment of final delivery of the door plug had arrived. And, by end of June 2017, majority of the items like detail parts availability, jig erection & commissioning, operator training, process documentation, shop floor preparedness, packing was ready for production. On July 16, 2017, AAI successfully produced one door plug, and dispatched the same on July 17, 2017 to Airbus directly for fitment trial and feedback.

The Chairman and CEO of Aequs, Aravind Melligeri, flagged off the dispatch of the first door plug. It is an achievement for AAI in terms of package, scope of work and responsibility. The delivery of ‘Door Plug’ is a considerable feat for AAI as well as its JV partners. FAI & production of ‘Door Plug’ has commenced and has been planned to dispatch in October 2017.

Currently AAI is also associated in producing Aero Structure assemblies for A380 and A350 programs and India space programs of ISRO.

CoveR stoRy

In an organisation’s journey towards excellence, it is necessary for it to innovate and improve continuously. Efficient functioning of all the associated resources and

processes is important for it to achieve supreme operational benefits. Japanese improvement systems are renowned all over the world for being enablers in transforming organisations positively. Implementing these, many organisations have experienced greater efficiencies in their functioning.

One such improvement system from Toyota lean Philosophy is 3P which stands for Production Preparation Process. It is basically an event-driven process which was developed by Mr. Chihiro Nakao, a former Senior Manager at Toyota and founder of Shingijutsu.

3P helps in achieving breakthrough results by empowering organizations to get right features, at right price, lowering the manufacturing cost and achieving highest customer satisfaction. It finds application in the following instances:

Operational Excellence team at Aequs conducted a 3P event as a part of lean journey for UTAS A320 NEO Project to finalize machine layout that would ensure seamless flow of material. More than 28 employees participated from various functions. These participants were divided into 3 teams and the event was divided into four different phases and on each of the four days one phase was completed involving diverse set of activities.

A structured process was followed by these teams and an efficient model was developed by each team. On the final day, utilising the collective power of their minds all the three teams together developed a final workflow model that eliminates waste, uses space optimally, ensures smooth flow of material, follows principles of lean manufacturing, is flexible enough to change and sustains the benefits of layout for a long term.

3P - A Journey towards Lean Enterprise

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The objectives of the 3P event were very well achieved with a reduction almost 50% in planned no. of setups, introduction of Multi machine manning, 8 - 10% improvement in OEE and inventory turns of 4-6 through EBQ. It was very enriching and great learning experience for the participants.

“3P- Transformational journey towards greater business improvements”.

Phases of 3P

Radhakrishna v, General Manager, Corporate Operational Excellence

Aequs Besancon Wins Global Customer’s Confidence

SQuAD Unveils first Titanium Forging made from 6AI-4V

AAI Graduates to AS9100 REV- D Certification

New Sophisticated Passivation Line Inaugurated at API

Aerostructures Assemblies India (AAI) receives certification as per AS9100 Rev-D, newly revised standard certification renewal from AS9100 Rev-C. AAI becomes the first organization to be audited & certified as per the

revised aerospace standard EN9100:2016 in India. AS9100 Rev-D is world’s most widely recognized quality management standard, it brings additional requirements on product safety, counterfeit parts prevention, configuration management and focuses on risk management processes.

sQuAD completed the first titanium forging made from ‘6AI-4V’ material which was exclusively done for Liebherr - France. Among its many advantages, this grade of alloy is heat treatable and is an excellent

combination of strength, corrosion resistance, weld and fabricability. In another development, SQuAD has successfully supplied 30 thousand rail forgings per month (for July and August) which is a commendable feat.

Aerospace Processing India (API) has added a atomized passivation line which was inaugurated by Mr. Jason Addis, Director API, in presence of Shawn Smith, Director,

API, Rajeev Kaul MD, Group CFO and Shankaranarayanan, GM on 13th Sept’17. This replaces API’s existing passivation manual line and can accommodate more specifications as per customer requirements

JuNE, 2017

Aequs Besancon, France, a division dedicated to jet fuel injection manufacturing, wins global customer’s confidence for excellent quality and OTD performance (since 2015:100% OTD, OPPM). The

injectors manufactured at Besancon for Safran Helicopters Engines are installed on Airbus, Augusta, Bell and Harbin helicopters. Aequs Besancon has already supplied to Safran Power Units, with injection ramps of M88 engine that equips the Rafale of Dassault Aviation.

8OCTOBER, 2017

SLT Speak

Aequs SEZ has carried out ground breaking ceremony for Flexible Manufacturing System (FMS) complex, an advanced manufacturing facility on 17th August,

2017. The facility, which will come up within SEZ campus, is expected to be operational by last quarter of fiscal year 2018, and will be housing state-of-the-art advance machine center. This facility will enhance the manufacturing techniques at Aequs, and will offer customers the most competitive machining solutions on a global platform.

New Machining Facility

Employee Exchange Program

AMS Warehouse Complex

Aequs SEZ is constructing one of the largest building complex within SEZ till date, measures to the tune of 2 lakh Square feet, and located behind the Aequs

cafeteria and Occupational Health Center (OHC). This facility will primarily cater to most demanding need of raw material storage and FG warehouse. This facility will also host the fast emerging ‘Aequs engineering and plastics (AEPL) division. This warehouse complex is expected to cater to the growing needs of all Aequs entities within the SEZ and thereby adding more value to Aequs’ ecosystem of efficiency.

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Ludovic de Frileuze, VIE Supply Chain

Robin Dugouchet, VIE Supply Chain

“I joined the SEZ as part of VIE program, to build strong relationship in purchasing field between both French and Indian teams. The aim is to constantly reinforce a robust cooperation by using the assets that different Aequs sites are able to produce, this includes savings on some projects. I have been welcomed by several people including my team, who did everything to make feel at ease, even outside the working hours. I can announce that one of India’s most ancient maxims ‘Atithi Devo Bhava’, has been consciously applied for my case.”

“I came to India as part of the V.I.E program. I joined the manufacturing engineering department of AeroSystem Manufacturing in the SEZ, in India. My role involved in liaising between the engineering team in Aubigny, France and in India for upcoming global projects. Travelling to India was a big decision, but I owned up to the challenge considering it would be a learning experience. I received immense support from my colleagues in France and India. I am grateful to my colleagues for this amazing journey, and will cherish forever.”

seZ UPDAtes

Aequs Foundation is enduring for advancement of education and students. As per the vision and mission of Aequs Foundation, it’s concentrating

primarily on 3 verticals – Health and Hygiene, Education, and Safety. The foundation has launched and executed various projects in the mentioned focused areas, and strongly believes in sustainability of projects.

Project eye Care – The project focuses on providing free eye screening and spectacles to needy students. The foundation conduct camps in association with Vasan Eye Care Hospital, Belgaum. Aequs Foundation, so far has conducted four eye care camps that covered 5 Government schools, screened

Customer Visits @ Aequs

1280 students, and distributed spectacles to 75 needy students.

Project AHHA – This project focuses on behavioral changes towards Health and Hygiene practice followed by students. The foundation conducted workshops/ sessions on learning and practicing yoga, eye camps on how to take care of eyes, and session’s on creating awareness among students on disease spread during rainy season.

Project Grow Green – The foundation conducted tree plantation program at government higher primary school at Narsingupur on 8th August 2017, and planted 40 trees in the school campus.

Aequs hosted several existing and prospective customers at its SEZ, including high profile delegates from Safran, Eaton, PAG, UTAS, etc. As a customary event, they planted saplings with their name signage. Apart from our esteemed customers, we organized media trips to our SEZ for Business World and The Hindu Business Line. The media personnel were impressed with Aequs’ ecosystem of efficiency and the scale of business transaction that happens in SEZ.

10OCTOBER, 2017

Aequs Foundation – Serving Communities with Care