Supply Chain and Maintenance Imperatives
for the Next Generation Aircraft
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Logistics Officers Association
20 October 2014
Sonic Cruiser
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
787 Aircraft
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 1000 787 orders
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
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
The 787 Rollout
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
A Great Plan….But………
•Known Technologies
•Overestimated suppliers capabilities
•Integrated Product Teams
•Diffused the responsibility, accountability and
authority
•Communication Issues
•“Lean” Implementation
•Production and Supply Chain
•Reduced inventories and reserves
•Global Outsourcing
•Intellectual Capital
•Parts and Subassembly
•Communication issues, distance between the
problem and solution
•Process Oriented Culture
•Thought the process would solve the
problem..unconscious thought
•Strong Past Performance
•Unconsciousness
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
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Another Way to Look at the Big Levers
Processes
Supplier Interaction
Centralized vs Decentralized
Business Model
Organization
Technology
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Materials
Tooling
Facilities
Intellectual Capital
Experience
Relationships
Organizational Influence
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
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
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
It’s All About the Supply Chain
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
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)
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
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
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?
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Maintenance Issues
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
787 Structural Content
Carbon laminate
Carbon sandwich
Other composites
Other
Steel 5%
10%
Titanium
15%
Aluminum
Titanium
Aluminum
20%
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Misc.
9%
Composites
50%
787 Technologies
Advanced
Flight Controls
Integrated
Health
Management
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Common Core
Open Systems
Architecture
More Electric
Systems Architecture
Wireless IFE
e-Enabled
Systems
787 Maintenance Philosophy
• Push most maintenance to line activities
– Segment maintenance to overnight visits
– Base heavy maintenance every 12-13 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
Reduce Structural Maintenance Costs by 30%*
*As compared to a 767-300
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
767
A330
787
Line
Maintenance
Interval
500 Hours
700 Hours
1,000
Hours
Base
Maintenance
Interval
18 Months
18 Months
36
Months
6 Years
6 Years
12 Years
Heavy
Structural
Inspection
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
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Intelligent Decision Making
ELB
IVHM
MPT
AFC
IMM
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
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
• 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
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
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Random Thoughts
I learned how not to invent the light bulb 10,000 times – Thomas Edison
• 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
*May 22 investors conference
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
21st Century Jet
Karl Sabbagh
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting
Questions?
Jim Brunke
Brunke & Associates, LLC
National and International Aerospace Consulting