Supply Chain and Maintenance Imperatives for the … Chain and Maintenance Imperatives for the Next...

Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting10/14/15 1

Logistics Officers Association2015

Supply Chain and Maintenance Imperatives for the Next Generation Aircraf



Sonic Cruiser



787 Aircraf



A Brilliant Background• Developed 8 commercial aircraft previously–Many, many more when including “series” types

• Launched all previous development aircraft on time

• Developed many breakthrough innovations– First two man cockpit– First ETOP’s operations

• Strong customer confidence– Nearly 1000 787 orders



A Great Plan

•Known Technologies

•Integrated Product Teams

•“Lean” Implementation• Production and Supply Chain

•Global Outsourcing• Intellectual Capital• Parts and Subassembly

•Process Oriented Culture

•Strong Past Performance



The 787 Rollout



A Great Plan….But………

•Known Technologies

•Integrated Product Teams

•“Lean” Implementation• Production and Supply Chain

•Global Outsourcing• Intellectual Capital• Parts and Subassembly

•Process Oriented Culture

•Strong Past Performance •Unconsciousness

•Overestimated suppliers capabilities

•Diffused the responsibility, accountability and authority•Communication Issues

•Reduced inventories and reserves

•Communication issues, distance between the problem and solution

•Thought the process would solve the problem..unconscious thought



Corporate Strategy

• Shifted from design manufacturing model to supply chain model– Distributed engineering – Created tiered supplier definitions/structure

• Pushed responsibility and financial risk lower to suppliers– Reduce upfront costs– Create better cash flow– Pull breakeven forward

• Focused technology development and insertion• Significantly decreased development time



Another Way to Look at the Big Levers

Business Model Organization

Technology

ProcessesSupplier InteractionCentralized vs Decentralized

Intellectual CapitalExperienceRelationshipsOrganizational Influence

MaterialsToolingFacilities



Strategic Issues•Needed better relationship management with suppliers (The social supply chain)• The first level of predictive indicators• Collaborative problem solving• Embrace the social tools

•Big Data…..and fast, actionable data• Quick visibility ….. the ability to act on it and the desire to• SCM control towers

• Information-people-processes and authority

•Risk management moving from static to dynamic• Culture• Optimization• Discussion…less charts



SCM Recommended Practices•Develop a complete end to end supply chain strategy early – Include supplier management

•Map out the supply chain at multiple levels to identify key risk points – theory of constraints – critical path analysis

•Assist tier I suppliers to mature their supplier oversight, monitoring and performance metrics reporting processes

•Develop leading supply chain indicators that identify risks

•Build a supply chain organization that can actively monitor and manage multiple networks and linkages across an extended supply chain

•Assure the supply chain organization fully understands all the activities coming through the supply chain



It’s All About the Supply Chain



IPT Recommendations

•Define clear roles and responsibilities, accountability and authority (RAA)

•Establish clear performance goals prior to program startup

•Budgets and schedules need to be risk tolerant (slack and contingencies) Discuss budgets and schedules in terms of ranges

•Implement a common risk framework that is understood by everyone in the organization

•Ensure risks get adequate support. Assure functions own the risks and the solutions



Process Recommendations•Establish process health metrics for each process

•Establish a review schedule for all processes• Review-

• Effectiveness• Efficiency• Lessons learned from other processes• Process changes in interconnected processes• Training and education adequacy• Recommendations

•Process improvements should focus on simplification• Cost and velocity will improve

•Own your dependencies

•Capitalize on OPW (Other Peoples Work)



Leadership Lessons Learned•No Behavioral strategy

•Enterprise vs individual past performance

•People risk vs technical risk• Succession planning placed some people in the wrong jobs

•Management inserted risks into the program• Vocabulary precision• Management attention

Risk is all about the peopleRisk is all about the people



Strategic DevelopmentOperational Strategy

• What• When• Where• Why

Behavioral Strategy

• What behaviors and skills are needed to support the strategy?• How do we measure it?

• What artifacts or evidence indicate the expectations are occurring?• Are the management tools and techniques reinforcing the behavior needed?• What will be rewarded and punished?

• Is my succession planning consistent with the changes desired?



Maintenance Issues



787 Structural Content

Carbon laminate

Carbon sandwich

Other composites

Aluminum

Titanium

Misc. 9%

Composites 50%

Aluminum 20%

Titanium 15%

Steel 10%

Other 5%



787 TechnologiesCommon Core Open Systems Architecture

Advanced Flight Controls More Electric

Systems Architecture

Wireless IFEIntegrated Health

Management e-Enabled Systems



787 Maintenance Philosophy

• Push most maintenance to line activities– Segment maintenance to overnight visits– Base heavy maintenance every 12-13 years

» First visit after 6 years• Composite structure to reduce corrosion inspections• Reduce/eliminate hydraulics/pneumatic systems• Enhance information/data usage for maintenance

decisions - Wireless transmission of maintenance information for operational efficiency

• Reduce component variation/BFE

*As compared to a 767-300

Reduce Structural Maintenance Costs by 30%*Reduce Structural Maintenance Costs by 30%*

767 A330 787

Line Maintenance Interval

500 Hours 700 Hours 1,000 Hours

Base Maintenance Interval

18 Months 18 Months 36 Months

Heavy Structural Inspection

6 Years 6 Years 12 Years



Key Focus Areas For Maintenance Optimization

• Composite Technologies– Rapid non-destructive inspection– Composite repairs from 15 hours to 1 hour

• 787 Hardware/Software Integration

• Intelligent Decisions to Support Systems

• Higher Expectations for Electronic Data availability and integration– Tech Data navigators– I-Capture– Digital configuration management

Hardware/Software Systems Skills Are the Most Critical for the FutureHardware/Software Systems Skills Are the Most Critical for the Future



Intelligent Decision Making

Electronic Logbook – Digitally captures log reports and integrates with ground systems

Integrated Vehicle Health Management – Airplane and ground based diagnostic tools

Maintenance Performance Toolbox – Web based system allowing rapid access to technical support information

As Flying Configuration – Tracks hardware and software configuration of the airplane

Integrated Materials Management – Supply chain management, warehousing and inventory control

ELB

IVHM

AFC

MPT

IMM

• Convert Data to System Optimization• Analytics

• Enhancements to Integrated Vehicle Health Management that Assist in Maintenance Planning and Decisions• Increase aircraft availability

and reduce maintenance time by 75%

• Integrate Technical Data

• Drive process connectivity to aircraft needs with maintenance information• Data Integration



Focus Areas

• Emphasize technologies that reduce infrastructure or significantly reduce cycle times

• Optimize technical data interfaces• Digitize as much as you can

• Focus on maintenance process automation• Integrate IVHM into your processes

• Improve probability based planning and modeling• Analytics

• Develop methods to automate maintenance on platforms that reduce manpower

Prioritize efforts that can validate cost reductions and productivity GainsPrioritize efforts that can validate cost reductions and productivity Gains



Random Thoughts

• Innovation Comes from Failure with Resilience – Boeing thinks they are 5 years ahead of the competition in technology*

• Tolerance of Failure is the Measure of Health of an Organization

• Attention is a Leading Indicator- Compliance is a Lagging Indicator

I learned how not to invent the light bulb 10,000 times – Thomas EdisonI learned how not to invent the light bulb 10,000 times – Thomas Edison

*May 22 investors conference



Recommended ReadingThe Amazon Way – 14 Leadership Principles Behind the World’s Most Disruptive Company John Rossman

Outliers Malcolm Gladwell

American Icon – Alan Mulally and the Fight to Save Ford Bryce Hoffman

Boyd Robert Coram

Moneyball Michael Lewis

Emily Post’s The Etiquette Advantage in Business Peggy Post & Emily Post

21st Century Jet Karl Sabbagh



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