www.IFSWORLD.com

© 2009 IFS

PARADIGM SHIFT IN MRO FOR AEROSPACE

USING IT SOLUTIONS

NILESH KUMARPRACTICE HEAD – AEROSPACE & DEFENCEIFS SOLUTIONS INDIAnilesh.kumar@ifsworld.com+91 9810050404

© 2010 IFS

INTRODUCTION

GLOBAL PRESENCE

© 2010 IFS

GLOBAL PRESENCE

COUNTRIES50

NET SALESUS$ 341 M

EMPLOYEES2,700

CUSTOMERS 2,000

LANGUAGES20

© 2009 IFS

5

IFS AT A GLANCEOVERVIEW

IFS OVERVIEW

A leading global provider of end-to-end software solutions- applications: ERP, SCM, CRM, PLM, CPM, EAM, MRO, Projects

Founded in 1983 - headquarters in Linköping, Sweden- Listed on the Stockholm stock exchange

Some 2000 customers and some 830,000 users ofIFS Applications™

Represented in more than 50 countriesStrong Knowledge, Skills and Technical transfer strategy for our solutions

6

IFS APPLICATIONS

IFS OVERVIEW

Click icon to add picture (16:9)

IFS FOUNDATION1™— TECHNOLOGY AND ARCHITECTURE

BUSINESSPERFORMANCE

BUSINESSREPORTING

ECO-FOOTPRINTMANAGEMENT

DOCUMENTMANAGEMENT

BUSINESSMODELER

QUALITYMANAGEMENT

CASEMANAGEMENT

ACCOUNTINGRULES

IFSBUSINESS

ENABLERS™

SYSTEMINTEGRATION &WEB SERVICES

EVENTMANAGEMENT

MOBILE &WIRELESSSERVICES

PERSONALPORTAL

COLLABORATIVESOLUTIONS

IFS FINANCIALS™

GENERALLEDGER

CONSOLIDATEDACCOUNTS

FIXED ASSETS

ACCOUNTSRECEIVABLE

ACCOUNTSPAYABLE

CASH FLOW

BUDGETMANAGEMENT

eINVOICE

IFS DISTRIBUTION™

INVENTORY

PURCHASING

SUPPLIERSCHEDULES

CUSTOMERORDERS

CUSTOMERSCHEDULES

INVOICING

DEMANDPLANNING

IFS MAINTENANCE ™

EQUIPMENT

EQUIPMENTMONITORING

EQUIPMENTMETERING

OVERALL EQUIPMENT

EFFECTIVENESS

WORKORDER

PREVENTIVEMAINTENANCE

SCHEDULING& RESOURCEALLOCATIONS

PROCESSAUTOMATIONINTEGRATION

VEHICLEINFORMATIONMANAGEMENT

COMPLEX MRO

IFS HUMAN

RESOURCES™

PAYROLLADMINISTRATIO

N

TIME &ATTENDANCE

EXPENSEMANAGEMENT

TRAININGMANAGEMENT

EMPLOYEE DEVELOPMENT

&CERTIFICATIONS

RECRUITMENT

SELF-SERVICE

IFSMANUFACTURIN

G™

SHOP FLOORREPORTING

COSTING

SHOP ORDER

REPETITIVEPRODUCTION

BATCH PROCESS

MAKE | CONFIGURE

| ASSEMBLE TO ORDER

ENGINEER TOORDER

MAKE TOPROJECT

CONSTRAINT-BASED

SCHEDULING

MULTI-SITEPLANNING

IFSENGINEERING™

PDMCONFIGURATION

ASSET DATAMANAGEMENT

ENGINEERINGCHANGE

MANAGEMENT

PROJECTDELIVERY

IFSSALES & SERVICE™

SALES &MARKETING

WEB STORE

SALESCONFIGURATOR

CALL CENTER

FIELD SERVICE

SERVICE CONTRACT

MANAGEMENT

IFS PROJECTS™

PROJECTMANAGEMENT

PROJECTBUDGETING

PROJECTPLANNING

RISK MANAGEMENT

SUB CONTRACTMANAGEMENT

SALES CONTRACT

MANAGEMENT

PROJECTREPORTING

© 2010 IFS

IFS SOLUTIONS – FOCUS INDUSTRIES

IFS OVERVIEW

AEROSPACE & DEFENSE

AUTOMOTIVE CONSTRUCTION, CONTRACTING,

& SERVICE MANAGEMENT

MANUFACTURINGPROCESS

RETAIL & WHOLESALE

UTILITIES & TELECOM

8 EXAMPLES OF CUSTOMER SUCCESS STORIES

IFS IN AERSOPACEA FEW EXAMPLES

© 2011 IFS

Lufthansa Technic Qantas

© 2009 IFS

CRITICAL BUSINESS ISSUES / CHALLENGES

© 2009 IFS

10

THROUGH LIFE SUPPORTTHE A&D CHALLENGEPotential for Cost Reduction

Initial Procurement reform - potential for major savings

Efficient in-use management - greatest potential

Improved ‘in-Service’ support - driver of Logistics efficiency/cost saving

Management Effort - equipment programmes spend most on in-service issues

‘Designed-in’ - embedded costs arecommitted well before equipment is delivered

Supportability - focus should be on designing supportability into equipment

Design Stage - best chance to reduce support costs is at the design stage

15% on Concept/Assessment/Design .....but.....85% In-Service

70% of whole life cost in support

Management Effort

Concept / Assess-ment / DesignIn Service

Equipment Lifecycle Costs

Concept / Assess-ment / Design

Support

Industry are best placed to design in Supportability’ into their equipment

© 2009 IFS

11

CRITICAL BUSINESS ISSUESCOMMERCIAL AVIATION

Commercial aviation—A market of great volatility and tremendous interdependencies.

In light of today’s increasing competition and mounting cost pressures, operators need to:

Optimize aircraft utilization to maximize revenue

Contain operational and labor costs, including MRO activities, among others

Continue to ensure A/C safety and regulatory compliance

To meet these goals, operators demand consistently reliable service with increasingly leaner budgets, resulting in two overriding CBIs for MRO shops:

Being able to provide quick turn times at competitive rates

Reducing their own operational costs

© 2009 IFS

12

DEFENCE SPECIFIC CHALLENGESMAINTAINING OPERATIONAL EFFECT

Extended use of Defence equipments - Typically used from 10 to 30 years and significantly increased equipment complexityChallenging Defence Budgets- Problem enhanced through credit crisis

Need to manage resources better by integration of Finance and HR Capabilities - Defence resources (especially trained people) are scarce and increasingly expensiveNeed to manage resources and skills better due to increased

regulatory requirements- A particular problem with aircraft maintenance

Impact of Operational tasking (Increased)- Major transformation in global Defence Forces with more flexible roles and increased taskingImpact of Operational tasking (Operational Readiness)- Increased need for high agility and operational readiness against unspecified forces

Increased demand for MOD/DOD process efficiency- Generally driven be government demand

© 2009 IFS

13

Success depends on a partnership between Industry and an Operator/MOD/DODs

Information is key enablerInformation needs of Operator/MOD/DOD/Industry change

Shared Data is CriticalTo understand risks in contracting and biddingTo exploit benefits (improve availability & efficiency, cost savings & profit)

To establish trust

DERIVED CHALLENGESTCO AND THROUGH LIFE SUPPORT

© 2009 IFS

TRENDS & DRIVERS

15

MARKET TREND FOR IN-SERVICE SUPPORTA&D TRANSFORMATIONAL STAIRCASE

MRO FOR AEROSPACE & DEFENCE

Contracting forCapability

Contracting forAvailability

Spares Inclusive

Traditional

Ind

ustry

Involv

em

en

t, Ris

k, b

ut

Sig

nifi

can

tly e

nh

an

ced

pote

ntia

lre

ven

ue

OperatorProvider Decider

Moving up ‘staircase’ exploits Industry’s strengths by using Service Based

Contracting to deliver equipments as a capability - buying Performance, not transactional goods and services

© 2009 IFS

16

MARKET TRENDS FOR IN-SERVICE SUPPORTA&D TRANSFORMATIONAL STAIRCASE

Move from isolated applications / islands of information for MRO, Supply Chain, Quality, Engineering - To integrated IT solutions for end to end business process

Outsourcing of various business processes to 3rd Party service providers

OperationsEngineering

Supply Chain Management

Quality & Compliance Control

LINE BASE SHOP

Maintenance Planning & Scheduling

Supporting Processes (ERP Backbone)

© 2009 IFS

17

Success depends on a partnership between Industry and an Operator/MOD/DODs

Information is key enablerInformation needs of Operator/MOD/DOD/Industry change

Shared Data is CriticalTo understand risks in contracting and biddingTo exploit benefits (improve availability & efficiency, cost savings & profit)

To establish trust

A Common viewof performance

.....and this needs an e2e information capability for success

MARKET TRENDSTCO AND THROUGH LIFE SUPPORT

© 2009 IFS

IT SOLUTIONS

AEROSPACE & DEFENCE – INTEGRATED MRO

© 2010 IFS

BEST PRACTICE SOLUTIONS

CORPORATE PERFORMANCE MANAGEMENT

FLEET & ASSET MANAGMENT

APPLICATIONSOLUTIONS

OPERATEBUSINESSPROCESSES

ENGINEER PLAN MAINTAIN UPGRADE DISPOSE

SPARE PARTS MANAGEMENTDemand ForecastingSpare Part SalesSpare Part Catalog

Distribute Assets internallyManage InventoryManage Rotable Pools

Deliver to Customers Reverse Supply Chain

Supply Chain NetworkProcurement Receipt and QC

Manage Master ConfigurationManage Serial Configuration

Manage Maintenance ProgramsOperate Asset

Manage Line/Forward Maint.Plan Heavy/Depth Maint.

Perform Reliability Analysis

COMPLEX ASSEMBLY COMPONENTHEAVY MAINTENANCEPlan Maintenance VisitScope Maintenance VisitAsset inductionWork SchedulingExecute Visit Work ScopeAsset DispatchMaintenance Visit Closure

MAINTENANCE, REPAIR & OVERHAUL

Receive and DispatchMaintenance Level Work ScopesDisassembly and AssemblyDisposition and RepairConfiguration and ComplianceAgreements and Invoicing

Receive and DispatchRepair Order MgmtDisposition and RepairLoan and ExchangeAgreements and Invoicing

Finance & eInvoice

Human Resources

Document Management

Contract & Project Management

Call Center & Case Management

Facilities & Equipment Management

SUPPORTPROCESSES

19

MULTI-MODE

MULTI-NATIONAL

MULTI-CURREN

CY

MULTI-DIVISION

MULTI-LANGUAG

E

MULTI-SITE

© 2009 IFS

20

INTEGRATED SOLUTION – COMMON VIEW

WHAT IS WHERE – AN ASSET CENTRIC VIEW

CONFIGURATIONControl

OPERATIONS

FLEET MAINTENANCE

PLANNING

W/SHOP MAINTENANCE &SCHEDULING

W101Work Order

DISTRIBUTEMAINTENANCE

Reports

Maintenance Performance

&Supply Chain Performance

A54Master

Maintenance Schedule

Current & ForecastAvailability

Deferred FaultsMods

Maintenance

Supply Chain Materials

Operational RequirementsMaintenance

IntervalsFleet Mods Plan

EquipmentPerformance /

Statistics

Sub-Con Out

© 2009 IFS

21

EUROFIGHTER TYPHOONIERS (INDUSTRIAL EXCHANGE & REPAIR SERVICE)

EXAMPLES OF CUSTOMER SUCCESS STORIES

Suppliers are paid for a ‘rotable’ exchange or repair service

Performance Related Payment linked to the supplier’s performance

RepairConsortium

Customer

Exchange Items

Repair Items

Maintenance Action Required

Customer Spares Stock

Contractor Support Facility

ExchangeStock

ExchangeFacility

RepairFacility

Limited RepairStock

Industry

Manufacturer’s RepairFacility

H

O

L

E

I

N

T

H

E

W

A

L

L

IFS Applications tracks critical assets both on the aircraft and through the industrial repair loop and transportation

system

A&D IN-SERVICE SUPPORT& ASSET

PERFORMANCE / AVAILABILITY

© 2009 IFS

22 VISIBILITY

Drill-Down toFigures/Graphs

PERFORMANCE / AVAILABILITY

© 2009 IFS

23 VISIBILITY

© 2009 IFS

24

PERFORMANCE / AVAILABILITY

VISIBILITY

Contribution of disparate data.•Inventory•Learning – from HR/Training•Core Maintenance Costs

Scorecard Indicators & TrendsUser definable limits

Structure Data to Suit…•Fleet View•Asset Type View•Etc…

© 2009 IFS

25

FLEET STATUS

VISIBILITY

Drill-down to view

Details of faults etc.

© 2009 IFS

26

BENEFITSMRO SHOPS

Improve operational efficiency and control by

Reengineering business processes, if needed

Optimizing planning and forecasting over the long term

Monitoring and adjusting daily maintenance operations

Collaborate in real time with employees, customersand suppliers over web portals to

Increase customer satisfaction

Speed up internal and external processes

Ensure accurate and fast information flow across the entire enterprise by

Integrating shop-floor activities with material management, finance, workforce management, and business intelligence

Ensure proper job assignments by keeping track of each employee’s certifications and skill sets

And reduce costs …

REDUCING COSTS

Materials/inventory management• Reduce lead times for parts and external services• Lower on-hand stock

Supply chainmanagement

IT Solutions provides tools to help lower costs in both areas.

Maintenance management• Eliminate nonproductive wait periods• Achieve faster turnaround times

Operations

Business intelligence tools (scorecards, cubes)

Cost Tracking

Tracking real-time labor costs Tracking costs to each work order and aircraft, identifying all man-hours spent, all materials issued, all external costs accrued

Showing actual costs of materials in inventoryTracking purchased inventory and customer furnished inventory by condition code and owner code

e-Maintenance Management System

Confidential

E-MMS AT INDIAN AIR FORCE

Enterprise Service Bus

Business Process

Interaction Services (Portal)

Access Control Services

iCAT

IMMOLS

DFSM

RO

Ap

plic

atio

ns

Enterprise Management SystemEnterprise Management System

Security ManagementSecurity Management

Maint .,Engg .

& CAD IS

Maint .,Engg .

& CAD IS

MailSystem

We

b C

on

ten

t M

gm

t.

Ide

ntit

y M

an

ag

em

en

t

Kn

ow

led

ge

Mg

mt

Sys

tem

Da

ta M

inn

ing

Bu

sin

ess

In

telli

ge

nce

&

Re

po

rtin

g

Co

llab

ora

tive

e-L

ea

rnin

g &

Tea

m C

olla

bo

ratio

n

Se

arc

h

ET

L

Database, Warehouse & Content Mgmt. System

Multidimesional OLAP DatabasesUnstructured Documents

Kiosks

Mail Interface

Directory Services

HQ Monitoring

Control

e -Trolley

2. Solution Design 2.1 Architecture

© 2009 IFS

INDEPENDENT ANALYSIS

© 2009 IFS

30

IFS A&D MARKET SHARE

INDEPENDENT ANALYSIS

EAM in EMEA

EAM in Aerospace & Defence

EAM for the Fleet asset type

EAM Field Service Management

Enterprise Asset Management Solutions Worldwide Outlook

Sourced from:

IFS holds the leading market position in the following market segments

www.IFSWORLD.com