11 Innovation Challenges in Finmeccanica’s Supply Chain Giovanni Bertolone Executive Vice...
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Transcript of 11 Innovation Challenges in Finmeccanica’s Supply Chain Giovanni Bertolone Executive Vice...
11
Innovation Challenges in Finmeccanica’s Supply Chain
Giovanni BertoloneExecutive Vice President OperationsFinmeccanica
Montreal, December 6th 2011
22
Agenda
Finmeccanica Overview
Technology & Supply Chain Innovation
Finmeccanica presence in Canada
Conclusions and Way ahead
33
FINMECCANICA : SEVEN SECTORS, ONE GROUP
HELICOPTERS
AgustaWestland Alenia AeronauticaAlenia AermacchiATR
DEFENCE SYSTEMS
Oto MelaraWASSMBDA
TRASPORTATION
AnsaldoBredaAnsaldo STSBredaMenarinibus
DEFENCE AND SECURITY ELECTRONICS
DRS TechnologiesSELEX ElsagSELEX GalileoSELEX Sistemi Integrati
SPACE
Telespazio Thales Alenia Space
ENERGY
Ansaldo Energia
AERONAUTICS
100% Finmeccanica Companies
JVs
44
19%
38%15%
5%
6%
7%10%
26%
30%11%
8%
5%
6%
14%HELICOPTERS
DEFENCE AND SECURITY ELECTRONICS
AERONAUTICS
SPACE
DEFENCE SYSTEMS
ENERGY
TRASPORTATION
REVENUES 2010
18.7 B€+2.9%
ORDERS 2010
22.5 B€+6.4%
In 2010, the three strategic pillars (Helicopters, Defence and Security Electronics and Aeronautics) generated
around 70% of Revenues and Orders
2010 RESULTS
REVENUES 2010 ORDERS 2010
55
2010
2B€ = 11% revenues
2010More than 20.000 people involved in R&D/Design &
Development on Total FNM Resources more than 70.000
INNOVATION AND R&D IN FINMECCANICA IN NUMBERS
R&D expenditures Resources
66
Agenda
Finmeccanica Overview
Technology & Supply Chain Innovation
Finmeccanica presence in Canada
Conclusions and Way ahead
77
Strengthening Global Positioning
Internazionalization
Value Creation – Customer Satisfaction
Competitiveness
Profitability
Investments Innovation
Technologies
Processes
Integration/Synergies
Extracting value from businessMarkets
Products
Acquisitions
JV
FINMECCANICA STRATEGIC FRAMEWORK
88
Aerospace and Defence industry is an increasingly complex network of relationships, due to the shift from vertical programs to highly distributed, multinational and multi-stage operations
A large number of players are involved in an integrated and worldwide value chain, ranking from commodities suppliers (“Transactional Suppliers”) to strategic suppliers (“Fully Integrated Strategic Partner”)
OEMs in this environment have to drive and manage all the complex links and risks, running along their supply chain
GLOBAL SOURCING FOOTPRINT
99
Technologies & Processes Innovation
What is Market asking for ?
Solutions to operational needs not only products
Greater flexibility to incorporate emerging technologies over the system’s life
Faster time to market
Risk resilience and cost-effective outcomes
Sustainability approach (development of “green” policies)
Full effective Life-Cycle Management
Value Chain Global Integration
THE DEMAND
Supply Chain Optimization
1010
Push each company in optimizing the use of resources
Define IP strategy at Corporate level with implementation across the OpCos
Lead a coordinated approach to secure a successful participation to EU Research Programs
Promote the creation of a strong industrial culture via the definition of a set of common tools and methodologies
Establish the Technology Network of FNM in a collaborative model with all the FNM CTOs
Phase 1:Knowledge Management
Phase 2: Technology Governance
Phase 3: Innovation Governance
2002 2004 2005Phase 4: R&D&I
Networking Governance
2008
...from Knowledge Management to a “Strategic R&T Networking”.
European projects
Coordination
IPR
Competitiveness Plan
MindSh@re
Start of Technology Governance
Innovation and R&D Strategy Plan
2011
CTO Board
2003
FINMECCANICA GROUP: MAIN PHASES OF INNOVATION
1111
Clear Leader
Strong
Tenable
Weak
Favourable
Pacing BaseEmerging Key
Core & Common
Technology Platform
Outsourcing opportunities
Core distinctive OPCos Technologies
Innovation Breakthrough by
Internal development and
External collaboration
TECHNOLOGY DEVELOPMENT MAPPING
1212
Cost reduction and risk sharing lead to a shift from simple outsourcing towards
partnerships and collaborative models among the supply chain players (Prime,
OEMs, Suppliers, Sub-Suppliers, Logistic Operators, Support and Services Providers, Customers)
Technology Network
New Business Models
Key Performance Indicators
Operational Optimization
Further KPI development for monitoring and to control suppliers’ performances,
leading to enhance the responsiveness of each Supply Chain player.
Capability to optimize the inventory management minimizing relevant costs
along the whole lifecycle
The need to implement new processes, methodologies and tools is due to the
large number of relationships and the complexity of our products
FOCUS ON INDUSTRIAL COMPETITIVENESS
CHALLENGES AND NEEDS IN THE SUPPLY CHAIN DOMAIN
1313
Manufacturing
Delivery
Support /Services
Pro
gra
m M
anag
eme
nt
Pro
cess
Qu
alit
y
Industrial Competitiveness
Engineering
Customer Satisfaction
Extended Enterprise
Supplier Performance Management
Global Sourcing
Procurement efficiency
Make or Buy (outsourcing vs insourcing)
Information visibility / Communication
Platform
Responsibility & Risk sharing
SUPPLY CHAIN MANAGEMENT: LEVERAGE FOR COMPETITIVENESS
Supply Chain
1414
Supplier Management
Improvement Initiatives in Supply Chain
Global Sourcing
Procurement efficiency
Outsourcing &Processes improvement
Economic Impact
BENEFITS ON GROSS MARGIN
Total ProjectsSupply Chain Projects
Savings from Supply Chain Projects represent more than 50% of total
savings
CLUSTER OF INITIATIVES
SUPPLY CHAIN TARGETS ACHIEVEMENT
1515
INTEGRATIONLow High
VO
LU
ME
S I
N G
LO
BA
L S
OU
RIC
ING
HIg
hL
ow
2008
OFF-SHORE SOURCING IN
LCC
2009
OFF-SHORE ACTIVITIES
REINFORCEMENT
FNM EU/USA BEST PRACTICE
INTEGRATION
2010
2011
INDUSTRIAL COMPETITIVENESS
TASK FORCE
2012
FOSTERING GLOBAL
SOURCING
• FOCUS ON GEOGRAPHIC SCOPE WIDENING (USA AND CANADA)
2013
GROWTH OF VOLUMES
ADDRESSED TO GLOBAL
SOURCING
• OUTSOURCING PLANS IN LCC & BEST VALUE COUNTRIES
2007
LAUNCH OF GLOBAL SOURCING PROGRAM IN LOW COST COUNTRIES
(LCC)
Finmeccanica is committed to collaborate with supply sources worldwide, according to the Best Value principle
FINMECCANICA GLOBAL SOURCING ROADMAP
1616
“We promote cooperation and efficiency in the supply chain, ……. environmental sustainability and social responsibility become significant elements in negotiations with
our suppliers”
31 December 2010
(Finmeccanica Sustainability Report 2010)
(€ millions)
GOODS AND SERVICES PURCHASED BY FNM GROUP IN 2010
IN 2010 PROCUREMENT COSTS ACCOUNTED FOR 65% OF TOTAL REVENUES
1717
Agenda
Finmeccanica Overview
Technology & Supply Chain Innovation
Finmeccanica presence in Canada
Conclusions and Way ahead
1818
Testo fintoArmy
Navy
Mili
tary Air Force
LINAPS artillery pointing systemHowitzers 105/14
76/62 SR naval guns class Tribal Fregates DRS Canada activities
CSH program (Canadian Search & Rescue Helicopter): 15 AW101 SAR Cormorant
Civi
l
Commercial53 AW139,3 AW 119 Koala for Skyline Helicopters3 AW119 for London Air service (Vancouver)
FNM Acquired ContractsEnd User
392 people in Canada
3 DRS Technologies facilities Carleton Place, Ontario – Circuit Card Assembly
Kanata, Ontario – Secure Voice System for tactical comms, the
SIRIUS passive LR- IRST system, EW training systems, Simulators
Bedford, Nova Scotia – Power Conversion, Inverters, Converters
Alenia Aermacchi Representative Office, Ottawa
AgustaWestland Representative Office, Ottawa
FINMECCANICA PRESENCE IN CANADA
1919
Long and successful history of Economic and Industrial Cooperation in Canada, in different sectors:
FINMECCANICA FOOTPRINT AND PERSPECTIVE IN CANADA
AERONAUTICSPratt & Whitney Canada for ATR 42-72 aircraft (3.5 B$ since 1982)Bombardier on C-series commercial aircraft for tail plansCAE for developing the simulator for the M346 Initial Training Capability
HELICOPTERS P&W for AgustaWestland helicopter engines. PW210 engine selected for the AW169.AgustaWestland and CAE: ROTORSIM consortium for the development of flight simulation for
helicopters training
DEFENCE AND SECURITY ELECTRONICS
Acquisition of DRS Canada, as part of DRS C3 and Aviation Group (average revenues 80 M$/year)CMC Electronics for the provisioning of avionics radios (SELEX Elsag)
SPACEPartnership with MDA (MacDonald Dettwiler & Associates) and the Canadian Space Agency for
various programs (Earth Observation and Space exploration). Partnership with NOVATEL and CMC Electronics on GALILEO. Cooperation with NAV Canada for
the GNSS (Global Navigation Satellite System) program
TRASPORTATION Strategic Industrial Agreement between Bombardier and Ansaldo Breda for the supply of high-speed trains to the Italian railways and other export markets (excluding Canada)
2020
(**): AW orders placed from 2005 up to date. Source: Finmeccanica Estimate
FNM PROCUREMENT&OPPORTUNITIES FOR CANADIAN INDUSTRY (> 16 B$)
(*): ATR orders placed from 1982 up to date.
3,5 B$
0,5B$
6,5 B$
2 B$
NEW REGIONAL TURBOPROP
NEW AW169 DEVELOPMENT
2,8 B$
= Potential IRB benefit to Canada in case of FWSAR win
= Forecasted orders
= Placed orders
> 12 B$
0,15B$ 0,15 B$
4,2 B$
ATR vs P&W (*)
AW vs P&W (**)
Others(DRS Canada, CAE,
etc…)
TODAY
total
1982 2005 2009
FUTURE OPPORTUNITIES
2121
Besides engines, most of procurements in the A&D sector concerns Electric & Electronic Components
More than 60 Canadian Vendors are actually included in FNM Suppliers Database
Pratt&Whitney Canada has been awarded “Finmeccanica Best Supplier 2010”.
The current vendor list can be further increased with a number of high technologies Canadian partners, supporting Finmeccanica in the major strategic opportunities in the Country:
Aeronautics (Fixed Wing Search & Rescue Program) Helicopters (Canadian Search and Rescue Helicopter fleet upgrading) Electronic Defence (Integrated Soldier Systems Program - ISSP) Air Traffic Management (Air Surveillance Radar - ASR)
CANADIAN SUPPLY CHAIN
2222
Agenda
Finmeccanica Overview
Technology & Supply Chain Innovation
Finmeccanica presence in Canada
Conclusions and Way ahead
2323
Canada represents one of the high value markets where Finmeccanica intends to promote a coordinated strategy among the Group Operating Companies and to sponsor partnership/collaboration with local industry, Universities and Research Centers
In the last decades, Finmeccanica has established a strong consolidated economic relationships with major Canadian industries.
In order to increase Finmeccanica presence and recognition in the Country, we will continue to explore the relationship with Canadian suppliers, becoming part of a Global Innovative Network.
High technology Districts, as Aéro Montréal, represent a fundamental support for Finmeccanica to enhance the Supply Chain policy in Canada
References for contacts
Finmeccanica Group ServicesAngelo Cecchini – Head of Sourcing [email protected]
CONCLUSIONS AND WAY AHEAD