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Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Supply Chain and Maintenance Imperatives for the Next Generation Aircraft.

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Presentation on theme: "Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Supply Chain and Maintenance Imperatives for the Next Generation Aircraft."— Presentation transcript:

1 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Supply Chain and Maintenance Imperatives for the Next Generation Aircraft Logistics Officers Association 20 October 2014

2 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Sonic Cruiser

3 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 787 Aircraft

4 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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 orders

5 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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

6 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting The 787 Rollout

7 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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

8 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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

9 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Another Way to Look at the Big Levers Business Model Organization Technology Processes Supplier Interaction Centralized vs Decentralized Intellectual Capital Experience Relationships Organizational Influence Materials Tooling Facilities

10 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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

11 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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

12 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting It’s All About the Supply Chain

13 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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

14 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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)

15 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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 people

16 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Ten Common Reasons Strategic Plans Fail History /Past Success People/Culture Leadership Discipline Communication Monitoring, Measurement, Feedback Lack of Flexibility Milestones/Rewards Bad Planning Bad Plan

17 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Strategic Development Operational 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?

18 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Maintenance Issues

19 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 787 Structural Content Carbon laminate Carbon sandwich Other composites Aluminum Titanium Misc. 9% Composites 50% Aluminum 20% Titanium 15% Steel 10% Other 5%

20 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 787 Technologies Common Core Open Systems Architecture Advanced Flight Controls More Electric Systems Architecture Wireless IFE Integrated Health Management e-Enabled Systems

21 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 787 Maintenance Philosophy Push most maintenance to line activities – Segment maintenance to overnight visits – Base heavy maintenance every 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 Reduce Structural Maintenance Costs by 30%* 767A Line Maintenance Interval 500 Hours700 Hours1,000 Hours Base Maintenance Interval 18 Months 36 Months Heavy Structural Inspection 6 Years 12 Years

22 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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 Future

23 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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

24 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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 Gains

25 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting 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 Edison *May 22 investors conference

26 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Recommended Reading The 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 21 st Century Jet Karl Sabbagh

27 Jim Brunke Brunke & Associates, LLC National and International Aerospace Consulting Questions?


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