Aviation MRO Software Defining, Selecting & Implementing a Solution

 Improve Efficiency  Improve Accuracy  Improve Productivity  Improve Profitability  Reduce Costs Obvious Benefits 2

Disciplined & regimented controls ensure :  Users only do what they are supposed to do  Uniformity of procedures & processes  Processes are followed that are technically, commercially & financially appropriate  Processes are followed in the correct order Users can assess the status of an individual work scope, or the business as a whole, at any point in time, and be pro-active as well as reactive. Users can assess the status of an individual work scope, or the business as a whole, at any point in time, and be pro-active as well as reactive. Improve Control 3

Teamwork is vital to the success of any business. Software is a useful tool in this process. The Three ‘C’s’ of Teamwork:  Cooperation  Coordination  Communication Improve Teamwork 4

Harness Business Data Business Data that is effectively harnessed can be an enterprise’s most potent weapon. Data can be :  Stored  Shared  Analysed  Acted Upon 5

“It takes all the running you can do to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!” Lewis Carroll (from “Alice through the Looking Glass”) Drive Your Business Forward ! 6

Step 1 Defining your requirements  Define your business processes  Identify areas requiring improvement  Agree the objectives to be achieved  Produce a detailed specification  Define timescales and budgets 7

Step 1 Defining your requirements Do :  Set up a Project Team which should include the best and most experienced personnel  The team must be open-minded, positive and should take the approach of a ‘fresh start’  Be honest in evaluating your business’s performance : recognise both strengths and weaknesses  Produce as detailed a specification as possible  Decide on some measurable K.P.I.’s  Set a realistic budget and timescale 8

Step 1 Defining your requirements Don’t :  Scrimp on resources, particularly when reviewing business processes and producing a specification  Restrict your requirements to cover those of the current business set-up  Fail to involve interested parties when defining the requirements 9

Step 2 Evaluating Software  Locate suitable software providers  Supply vendors with the detailed spec  Evaluate vendors’ responses  Invite vendors to demonstrate  Visit reference sites for the short-listed  Agree on a choice 10

Step 2 Evaluating Software Locating suitable software providers can be difficult. Sources include :  Internet : although this is one of the most common methods of searching, it can be confusing and random. People use the internet because of speed and convenience, but it requires patience, thoroughness and painstaking detailed investigation  Advertising : browse publications that are targeted at your business sector for the most suitable choices  Referrals : probably the most reliable, but don’t always take their word for it! 11

Step 2 Evaluating Software Review the prospective software providers’ responses carefully. You should consider :  How well have they met the spec? What other functionality do they offer that you may not have considered?  What solutions do they offer for modifying the system to meet your requirements?  Does their Support Contract offer value for money?  Does their budgetary estimate include all the potential costs, or are they hidden? 12

Step 2 Evaluating Software The demonstration is often the most important opportunity to evaluate the software and its vendor. You should consider :  What responses did they give to the spec? Test them for the truth  Functionality they offer that you may not have considered  Are they people you can deal with? Remember, software is a relationship business  Asking them to demonstrate a specific process, not just show you screens 13

Step 2 Evaluating Software The reference site visit is a vital part of the selection process. You should ask them :  What are the strengths of the software as they see it, and how has it been of benefit to their business?  What areas provide potential for a return on investment?  How responsive is the vendor to meeting their support and functionality needs?  Is their system ‘bespoked’ at all, and if so, what have been the ramifications?  Did their implementation go according to plan? 14

Step 3 Implementing Software  Appoint a Project Manager and Team  Define an agreed detailed Project Plan  Review your business processes again  Go-Live only when you are ready 15

Step 3 Implementing Software Do  Ensure that the Project Manager and Team are empowered to make changes  Ensure that adequate resources are made available  Be Prepared  Expect resistance, but ensure that all the Project Team and senior management are fully committed to a successful implementation  Ensure ‘ownership’ of each function within the software 16

Step 3 Implementing Software Don’t  Lose sight of why you wanted the software in the first place, having particular regard to those functions that offer a return on investment  Scrimp on resources, particularly the time that the Project Team spends on training and testing the software  Go-Live until you are fully prepared  Delay the Go-Live without very good reason 17

Common Myths “Because it’s expensive, it has got to be good!” 18

Failures !  Child Support Agency - £450m  J Sainsbury- £350m  UK Inland Revenue - £2 billion write off  UK Dept of Work & Pensions – 7 out of 10 Projects failed in the past decade  Others : Ford, McDonalds, Nike…. 19

Common Myths “Because that organisation is using it, it has got to be good!” 20

Applications must be fit for purpose  Satellite Workshops of large Corporations do not require ERP Systems  Manufacturing-Based software does not fit the processes of MRO businesses  Finite Scheduling does not work in Aviation MRO  Regardless of cost, if a software does not match the processes of the organisation, the Project is doomed to fail 21

Common Myths “Bespoke Applications are better than a commercial ‘Off-the-Shelf’ Aviation MRO solution” 22

Disadvantages of Bespoke Systems  Greater risk that the product will become unsupportable  Greater risk of Support Costs going over-budget  Increased risk of Project failure  Slower response times  Increased Development Costs 23

A few statistics… The following figures apply for Software Projects :  24% are terminated before they produce anything  68% are considered to have failed  Of those that do complete, the average cost overrun is 45% Source : The Standish Group – Chaos Report

Top 5 Reasons for Project Failure  Incomplete requirements & specifications  Lack of User Involvement  Lack of resources  Unrealistic expectations  Lack of Executive support Source : The Standish Group – Chaos Report

Recipe for Success : CHAOS Ten  Executive Support  User Involvement  Experienced Project Manager  Clear Business Objectives  Minimised Scope  Standard Software Infrastructure  Firm Basic Requirements  Formal Methodology  Reliable Estimates  Other Criteria 26

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