SCM Aviation 2018

From Curse to Blessing with the Right Sales Planning Software

From Curse to Blessing with the Right Sales Planning Software

Prof. Dr.-Ing. Götz-Andreas Kemmner, Abels & Kemmner GmbH

At first glance, sales forecasting looks easy for aerospace industry suppliers. After all, they have access to quite regularly updated and very longterm demand forecasts as well as to the so-called cadences of the major aircraft manufacturers, which provide information on the expected number of individual aircraft models to be built each month. On closer inspection, however, the seemingly uncomplicated forecasting circumstances turn out to be significantly more complex, uncertain and incomplete than one might think, as forecasting horizons and formats often vary from manufacturer to manufacturer, forecast quality fluctuates, or real orders and forecasting periods overlap. If the aim is to turn the patchwork of CSV files, Excel tables and PDFs into an organizationally and technically simple overall concept that provides consistent, automatic, and rolling 24-month demand forecasts where key parameters are calculated and controlled automatically, attempting to do this in Excel is not recommended. Rather, professional tools should be used as they can massively reduce the complex planning effort.

Digital Decision Making – a Hybrid AI Approach

Digital Decision Making – a Hybrid AI Approach

Klaus Portmanns, Adrian Weiler, INFORM GmbH

Digital decision making based on hybrid AI technologies has become reality. Today, tried and tested artificial intelligence, operations research, fuzzy logic and machine learning technologies decision making capabilities for planning or operational control that used to be a strictly human capability. A hybrid approach combines the best of these technologies while interactively integrating the user’s expertise. The technical advances of recent years have made these technologies economically efficient. This enables a new strategy for the operational management of companies in the aerospace industry, called Agile Optimization. Intelligent algorithms recommend optimized actions based on planning or real time data. Application areas include forecasting and demand planning, inventory optimization, production and assembly scheduling, but also workshop scheduling, workforce management, and spare parts stock allocation and management, a crucial area for MRO processes. The aim is to make companies more profitable, but above all more resilient, so they become able to react quickly and intelligently to ad-hoc changes and unexpected events.

European Aerospace Supply Chain: Performance Today and Necessary Developments

European Aerospace Supply Chain: Performance Today and Necessary Developments

Michael Santo, Steffen Wenzel, h&z Management Consulting

The effect of globalization on the European aerospace industry is more pronounced now than ever as the role of emerging markets has increased. Overcapacities in the market and cost pressures were the consequences that have led to a transformation in the industry. Additionally, the production ramp-up in Airbus programs has impacted all actors in the supply chain. It is clear that digitalization is fast becoming an essential lever of transformation and performance improvement. Thus, the ability of the European aerospace suppliers to meet their customers’ expectations and develop the required skillsets to compete against international newcomers has become increasingly important. Based on our comprehensive and systematic analysis of the international competitiveness of aerospace suppliers in France and Germany (published on this year’s ILA), we defined a strengths and weaknesses profile of the supplier industry and a future competitiveness portfolio. In this article we will reflect upon recent developments since ILA and draw up a synthesis of the impact on the supply chain, as well as identify current challenges and actions to succeed in the future.

From Supply to Block – the New Chain Equation in A&D

From Supply to Block – the New Chain Equation in A&D

Hendrik Lojek, Dr. Hans-Jörg Kutschera, Richard Hauser, Chuck Marx, PwC Strategy&

Blockchain-based technology could revolutionize business practices, as we know them. This applies not only to the financial sector, but also to the A&D industry – and we are already there! Imagine being able to transfer value or prevent disputes over the Internet – without going through a third party. There would be a single source of truth, accessible for all relevant stakeholders, accurate and audible. This is the new standard for traceability.

The Near-Term Growth Opportunity in Targeting the Right Customers

The Near-Term Growth Opportunity in Targeting the Right Customers

Guy Benjamin, Harold Brink, Florent Kervazo, Hugues Lavandier, Ilan Rozenkopf, McKinsey

For aerospace manufacturers, capturing organic growth through new product development has proved a long and costly process with an uncertain outcome. By contrast, growth through aftermarket services is a short and straight path to a predictable outcome: dramatically improved financial performance. This article outlines how companies in aerospace and industry can improve their approach to aftermarket services by focusing resources on the most attractive leads, thus reaping the benefits of increased service volumes.

Pro-Active Turnaround in Aviation

Pro-Active Turnaround in Aviation

Sebastian Jäger, Dr. Stefan Ohl, Michael Dorn, AlixPartners

A&D industry players find themselves in a highly challenging and dynamic situation: To protect shareholder value, they need to keep outperforming the stock market and stay exceptionally profitable. At the same time, they are facing challenges to manage steep production ramp-up, the need to invest in digital and new business models, and rising M&A activities in a disruptive market environment with ever shortening business lifecycles. A&D business leaders find their companies at a tipping point of either doing business as usual and facing the risk of a downward spiral that could quickly get out of control, or to pro-actively turn around while they are still performing well and take them to a new level of sustainable and profitable growth. The Pro-Active Turnaround or PAT is a proven approach to massively increase shareholder and stakeholder value in the long-term. Its focus on disruptive change, a holistic program view, execution from Day 1, professional stakeholder management and a proven 4-phase methodology differentiate PAT from typical optimization programs. These are key enablers for lasting success.