Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1

Intelligent MRO for Intelligent Age Kenneth Chang Senior Practice Director APAC Consulting Services

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 3 Program Agenda  IT Technology Trend  Oracle In Airline Industry  Oracle Consulting Services  Study Case  Q&A

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 4 IT Technology – Rapid Changes There has also been a major shift in Aircraft Technology How are you preparing for these major “ shift ” ???

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 5 Oracle in Airline Industry To fill a shape with an image. 1.Use existing picture box, DO NOT delete and create new picture box. 2.Right click on the shape. 3.At the bottom of the submenu select “Format Shape” 4.Select “Fill” at the top of the “Format Shape” dialog box. 5.Select “Picture or Texture fill” from the options. 6.And select “File” under the “Insert from” option. 7.Navigate to the file you want to use and select “Insert” 8.On the “Format” tab, in the Size group, click on “Crop to Fill” in the Crop tool and drag the image bounding box to the desired size 9.DELETE THIS INSTRUCTION NOTE WHEN NOT IN USE

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 6 Oracle Solution Strategy for Airline Industry Investments – Acquisitions Endeca, Eloqua (Big Data) Endeca, Eloqua (Big Data) Hyperion (Financial Planning, EPM) Hyperion (Financial Planning, EPM) BEA (Middleware) BEA (Middleware) Sun (Hardware) Sun (Hardware) ATG (E-Commerce /Chat/Live Help) ATG (E-Commerce /Chat/Live Help) Investments -- Build Differentiation Demantra (VCP) Demantra (VCP) Oracle Complex MRO Oracle Complex MRO Distributed Warehouse Management Distributed Warehouse Management Oracle Airline Data Model Oracle Airline Data Model AIA, Fusion Middleware & Fusion Applications AIA, Fusion Middleware & Fusion Applications Governance Risk & Compliance solutions Governance Risk & Compliance solutions Optimize Execution Empower Airline sales and marketing with industry expertise Empower Airline sales and marketing with industry expertise Drive industry strategy and investments with global / regional boards and the Aviation Strategy Council Drive industry strategy and investments with global / regional boards and the Aviation Strategy Council Empower the Ecosystem Continue developing a strong Airline professional s and community within Oracle Continue developing a strong Airline professional s and community within Oracle Collaborate with partners to build best of breed solutions Collaborate with partners to build best of breed solutions Collaborate with IATA on Industry Regulations Collaborate with IATA on Industry Regulations Industry Leadership Leader in ERP, HR Management Leader in ERP, HR Management Leader in CRM, E-Commerce Leader in CRM, E-Commerce Leader in Database, Middleware, Hardware Leader in Database, Middleware, Hardware

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 7 Oracle Presence in Airline Industry

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 8 Oracle’s Airline Footprint Oracle ISV Partners Customer Channels Corporate Administration Analytics Business OperationsAnalytics Flight/Crew Scheduling Revenue Management Flight Operations Cargo Management Passenger Reservations Call Center MarketingSales Customer Service Self-Service Partner Mgmt Supply Chain & Warehousing Purchasing & Inventory Asset Management Maintenance, Repair & Overhaul Loyalty Management Indirect Procurement Projects CPM Financials (Revenue Acctg) Compensation Human Resources Facilities Management ITITHRHR Infrastructure Mobility Hubs / Master Data Mgmt Integration Framework / SOA Identity & Security Services NetworkingDatabase Operating System Virtual Machine ServerStorage Systems & Data Center Mgmt Development Tools CRM Human Resources Financials Supply Chain HelpdeskHelpdesk

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 9 Oracle Consulting Services in Airline Industry To fill a shape with an image. 1.Use existing picture box, DO NOT delete and create new picture box. 2.Right click on the shape. 3.At the bottom of the submenu select “Format Shape” 4.Select “Fill” at the top of the “Format Shape” dialog box. 5.Select “Picture or Texture fill” from the options. 6.And select “File” under the “Insert from” option. 7.Navigate to the file you want to use and select “Insert” 8.On the “Format” tab, in the Size group, click on “Crop to Fill” in the Crop tool and drag the image bounding box to the desired size 9.DELETE THIS INSTRUCTION NOTE WHEN NOT IN USE

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 10 Oracle Consulting Service “OCS” Is Oracle with Global Scale – Regional Presence 145 Countries Coverage 29 Local Languages 18,000+ Oracle experts serving over 20 million users 145 Countries Coverage 29 Local Languages 18,000+ Oracle experts serving over 20 million users Oracle Consulting is a Critical Element of Oracle’s Solution: We Deliver on Oracle’s Commitment

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 11 Oracle Consulting Service OCS Position in the Market Criteria Offering Strategy Go-to-Market Strategy Business Strategy Ability to Execute Completeness of Vision Accountability Oracle Strengths Strategic position due to Oracle relationships Deep vertical knowledge (Industry, Functional and Technical skills) Solid expertise: business strategy + business process  “Oracle consultants showcase deep vertical knowledge in industries… In addition, Oracle consultants bring solid expertise around areas such as business strategy and business process.”  -- Ali Zaidi and Sebastian Ruest, IDC  “Oracle Consulting has a portfolio of offerings for E-Business Suite, PeopleSoft and JD Edwards, and it uses its functional and technical skills to both supplement and lead initiatives with subject matter experts for Oracle products.”  -- Alex Soejarto and Susan Tam, Gartner

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 12 Oracle Consulting Services OCS Strategy for Airline Industry Back Office (Fin, SCP, Proc, HR, etc.) Customer Management (Siebel CRM Loyalty, Marketing, CXX, etc.) Aircraft Maintenance ( cMRO, eAM, VCP, etc.) Passenger Integration Platform (SOA, BPM, OADM, etc.) Data Warehouse & Business Intelligence (Exadata, BI, Hyperion, etc)

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 13 Implementation Study Case Korean Airlines To fill a shape with an image. 1.Use existing picture box, DO NOT delete and create new picture box. 2.Right click on the shape. 3.At the bottom of the submenu select “Format Shape” 4.Select “Fill” at the top of the “Format Shape” dialog box. 5.Select “Picture or Texture fill” from the options. 6.And select “File” under the “Insert from” option. 7.Navigate to the file you want to use and select “Insert” 8.On the “Format” tab, in the Size group, click on “Crop to Fill” in the Crop tool and drag the image bounding box to the desired size 9.DELETE THIS INSTRUCTION NOTE WHEN NOT IN USE

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 14 Financials, including Revenue and Managerial Accounting Procurement Catering Facilities Aerospace and Defense (Manufacturing and Maintenance) Aircraft, Engine and Component Maintenance Solutions – Business Units Case Study – Korean Airlines

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 15 Study Case – Korean Airlines Maintenance System Overview

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 16 Study Case – Korean Airlines Engineering Manufacturer/OEM Manual Manufacturer/OEM Document Digital Library Maintenance standard management - Maintenance index management - Standard process management Digital Data support Configuration Management -Master Configuration -Unit Configuration Job Card Manual View Scheduling AIG information Demand forecasting  Electronic maintenance manual and integrated manual management. Integration with other process chain. Revision management  Maintenance standard management. Maintenance index management based on MPD. Standard process management. Job Card creation/revision. Job Card publish  Configuration management. Configuration management based on IPC. AIG management at position level  Electronic maintenance manual and integrated manual management. Integration with other process chain. Revision management  Maintenance standard management. Maintenance index management based on MPD. Standard process management. Job Card creation/revision. Job Card publish  Configuration management. Configuration management based on IPC. AIG management at position level Job Card publish Manual View PlanningExecution Inventory * AIG : Alternative Item Group

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 17 Study Case – Korean Airlines Planning Visit Scheduling (Work Bench) Confirm Workload & Visit Schedule Standard Work Process Workload Calculation Engineering MR P2P(Push to Production) Execution (Production Schedule) Historical Data Engine/ Component Removal Quantity Fleet Plan & F/H Plan 3rd Party Order data ( Long Term, Annual, Short Term(Monthly/Weekly) ) Available Capacity ( including Simulation function ) aircraft Operation Schedule Line Maintenance VWP ( TR, PR/PO, Non-Routine ) VWP (Visit Work Package) * MR : Maintenance Requirement

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 18 Study Case – Korean Airlines Execution Planning Work Order Scheduling Job Assignment My Work Order Production Analysis Cost Analysis Reliability Analysis Non-Routine Creation Maintenance Requirement Route Operation - Skill / Tech Level - Competency - Resources. Resource Type. Duration Time - Material / Tool - Standard Procedure Tech level (Skill Level) Work schedule Competency Material Required Schedule Material Demand Optimized Scheduling and Execution Standardization of Non planned maintenance ACARS Message Provide decision support information Synchronized

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 19 Study Case – Korean Airlines Execution – Production Scheduling Production Scheduling Uncompleted Work Rescheduled Work Orders from PS Revised Work Order Dates Open Work Orders from cMRO New & Existing Work Orders Work Breakdown Structure Work Order Relationships PS cMRO Daily Interface Monitoring Completed Work Operation Section Resource Section

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 20 Study Case – Korean Airlines Inventory Reduce Forecasting deviation by Separating planned, unplanned demand Improve accuracy of forecasting by using various forecasting model Planning (Long term) Planning (Long term) Create PO for Net Quantity Create PO for Net Quantity Execution (Daily) Execution (Daily) Unplanned Demand Planned Demand Total demand on Time Horizon Total demand on Time Horizon Apply 15 forecasting models and blending Safety stock Demand forecasting Remove Outlier and Calculate demand deviation Unplanned material Usage data Unplanned material Usage data Compare demand and supply MonthQty Demand for unplanned demand Demand for Planned maintenance Estimation variation Mature curve Somtimes Continuous Trend 15 Forecasting models DEMANTRA Demand >Stock?  Inventory reduction by Improving demand forecasting

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 21 Study Case – Korean Airlines Reliability cMRO Configuration Tech. Standard Job Order Data Job Order Data Line Base Shop Reliability Program DB Reliability Program DB Information Time/Cycle Defects Part change Alerting BIEE Report Inquiry data Statistical Analysis System  Training  Procedure revision Other Action NR Analysis Failure probability Material demand Production capability Data Analysis Corrective Action Feedback Action Data Collection Data Collection Performance Standard (Periodic Operation)  Modification of A/C, Components  Maintenance method/interval revise  Publish engineering information

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 22 Study Case – Korean Airlines Costing Subdivide Standard Cost Subdivide Standard Cost Application of Maintenance interval Application of Maintenance interval Provide division estimated cost Provide division estimated cost Actual Product Cost Actual Product Cost Separate BT, Cycle Cost Separate BT, Cycle Cost  Reduce settlement duration: D+5  Provide decision support information appropriately through BI  Accurate actual cost  Reduce settlement duration: D+5  Provide decision support information appropriately through BI  Accurate actual cost - A/C: Program Sub Type - Engine : Module Level - C & D Check - Engine, APU, L/G - Other Material components - Factory/Team//Shop - Work Order Level Estimated/Actual Cost Accuracy improvement Estimated/Actual Cost Accuracy improvement Remove monthly Cost deviation Remove monthly Cost deviation Budget control By Shop Budget control By Shop Cost control for Progressing job Cost control for Progressing job Accurate Route cost Accurate Route cost Cost calculation criteria improvement - Maintenance interval : Using previous 5 years history - Material Electronic parts : Using previous 3 years history - Application overhead cost : Factory level  Shop level - Cost creation timing: once/month  Daily - Labor cost rate: Shop level, Skill set level  Personnel level - Accounting principal : Completion base  Period base - Standard M/H : Skill level, Monthly Update Maintenance Cost Improvement - ATA Chapter level

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 23 Study Case – Korean Airlines Analytics - Business Intelligence BI environment supporting effective strategic decision making Integrated Daily/Monthly operation summary analysis PlanningExecution …… Engineering … Data Hub ERP ODS

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 24 Maintenance Reliability Based Forecasting Optimized Inventory Tail-Based Costing Maintenance Synchronization Overall End to End Integration – Data Accuracy Route Profitability within 3hrs of departure Single and Strategic Sourcing and Procurement Realtime Project Management Optimized Catering Operation Benefit Case Study – Korean Airlines

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.Confidential – Oracle Internal 25 Exploited For Maintenance Insight via Single data sources Fuselage Stringer Clip Repair Structure Repair Frame Corrosion Crack Fuselage hole Inspection Fatigue

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.Confidential – Oracle Internal 26 Exploited For Maintenance Prediction To gain insight into likely failures

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.Confidential – Oracle Internal 27 Oracle and Oracle Consulting Services Your partner in the Aircraft Technology “ shift ”

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 28 Oracle and Oracle Consulting Services the only “Vertically Integrated Service Provider” DESIGNED FOR AVIATION, ENGINEERED FOR INTEGRATION

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.Confidential – Oracle Internal 29 Back office Management Mechanics Your Future Thank You!

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.Confidential – Oracle Internal 30

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 31

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 32

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 33 Graphic Section Divider