Transitioning to Whole Life Customer Support Solutions 19 th November 2003

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1 Transitioning to Whole Life Customer Support Solutions 19 th November 2003 Charles Hughes - Director of Customer Service Provision Rolls-Royce plc, Defence Aerospace

2 Product Life Cycle Support Managing Knowledge Integration Transitioning to Whole Life Customer Support Solutions

3 Rolls-Royce plc A high-integrity engineering group operating in civil aerospace, defence, marine and energy markets worldwide

4 Defence Aerospace Holds a strong position in all key defence market sectors - combat, STOVL, light-attack, trainer, transport, helicopters, maritime reconnaissance and aerial surveillance More than 160 armed forces Unique VSTOL experience Participating in principal new programmes Innovative supporting services

5 Rolls-Royce & Customers major UK sites Luechars Kinloss Main Operating Bases Glasgow Edinburgh Newcastle Sunderland Aircraft Manufacturing Bases Data Flows (example) St Mawgan Barnoldswick Valley Wolverhampton Pershore Derby Ansty Bristol Yeovilton Wittering Cottesmore Coningsby Bedford London (Company HQ) Marham

6 Worldwide aerospace operation and support Parent company and major facilities Resident representation Registered offices Over 250 representatives Support for over 70 repair bases

7 Product Life Cycle Support Managing Knowledge Integration Rolls-Royce like any business has to: Create Collect Analyse /Use Exchange and Deliver data In order to produce its Products and Service s To deliver Support Solutions will fully support these elements

8 Total Support Packages Tailored support from a full range of services, including fully integrated total support packages. Engine and parts supply Maintenance, Repair and Overhaul, including Engine Health Monitoring Data Management, including predictive modelling Technical Information Maintenance Capability Support Training Innovative Support and Business Arrangements Asset Management

9 Product Life Cycle Support () Internet-based architecture and federated data models make possible implementations involving thousands of users across many sites Extended Enterprise Integration Tier 2 Suppliers Tier 1 Suppliers Dept Enterprise Customers Partners Extended Enterprise of OEM s, Customer, Partners and Suppliers Product Lifecycle Management (PLM) Enterprise Integration through dedicated networks Domain specific information systems (e.g. CAD, MRPII, Planning) Domain In Service Support Concept Assessment Demonstration Manufacture In-Service Disposal Product Life Cycle

10 Product Life Cycle Support () Extended Enterprise Integration Tier 2 Suppliers Tier 1 Suppliers Dept Enterprise Customers Partners 5 10 years Design for Supportability Typically years Operational Life Domain In Service Support and Operational Feedback C A D M In-Service D Product Life Cycle When set against a timeline the picture looks more like this!

11 MRMS meets customer driven opportunities Commodity Gnome in Sea King RB199 in Adour in Tornado Jaguar Pegasus in Harrier Spey in Nimrod MR2 EJ200 in Eurofighter Service MFTS PDSCi TRADITIONAL SUPPORT SPARES INCLUSIVE AVAILABILITY CAPABILITY Customer Risk Service Provider Risk Self Trust Team Trust

12 Product Life Cycle Support Managing Knowledge Integration Integrated System enables proactive maintenance through health monitoring & forecast usage Integration of all these parts will provide inservice PLM capability within a digital environment Logistic Support Model Enterprise Resource Planning Flight Deck (Control Room) Engineering Models LCC Model DATA WAREHOUSE Basic Algorithms Customer Relationship Management Product Data Management Forecasting Model Service Data Management In development today Models and basic automated analysis available and being developed Available within Rolls-Royce and Accessible by MoD for data and Information storage

13 Product Life Cycle Support Managing Knowledge Integration Business Benefits Typical Business Schematic Without RSP s Partners JV s Collaboration Customer Supplier Customer PDM ERP Supplier Customer Customer SDM CRM Supplier Supplier Every bespoke bridge is an additional cost to create and maintain and a source of confusion Bespoke and Bridges mistakes Contractors OBU s R&O ERP - Enterprise Resource Planning PDM Product Data Manager SDM - Service Data Manager CRM Customer Relationship Manager

14 Product Life Cycle Support Managing Knowledge Integration Business Benefits With RSP s Partners JV s Collaboration Customer Supplier Customer PDM ERP Supplier Customer Customer SDM CRM Supplier Supplier Contractors OBU s R&O Bridges Typical Business Schematic

15 Integrated supply chain design The key elements to enable an integrated supply chain are Mapping the processes Integrated information flow End-to-end responsibility and accountability customer focus Comprehensive skill sets Capability assessment Agility will fully support these elements

16 Product Life Cycle Support Managing Knowledge Integration Rolls-Royce & Ministry of Defence Early Implementation of

17 Product Life Cycle Support Integrating Knowledge Rolls-Royce & MoD Early Implementation of - Summary MoD and Rolls-Royce are agreed they will gain significant and essential benefit from Early Implementation (EI) of. A joint EI programme is being developed, to align with availability of deliverables, and cover our joint data requirements for operating TSP/CLS type contracts. An initial element of this programme is already underway for Marine Olympus and Tyne A further element is to involve the Defence Aerospace Software Application - Service Data Manager This is a key part of the Information System for Defence Aerospace Service offering Mission Ready Management Solutions (MRMS)

18 Product Life Cycle Support Integrating Knowledge Rolls-Royce & MoD Early Implementation of - Summary EI will enable The testing of the MoD LITS/Rolls-Royce Interface and RLI using the Defence Aerospace Service Data Manager project. An implementation process template & lessons learned data capture process. Actual benefit to current business from application of The audit of the completed modules This is an opportunity for Rolls-Royce & MoD to work together to demonstrate what can be achieved and start to realise our investment in.

19 The Future for Implementation of will: Reduce costs for both the customer and industry Rolls-Royce Increase effectiveness and improve efficiency for the customer Improve customer confidence in industries ability to deliver integrated Support Solutions The ISO standard will facilitate the development of more diverse integrated teams and supply chains as it provides a neutral data exchange standard crossing all industries and all political barriers.

20 Whole Life Customer Support Solutions Opportunies Pipeline UK MoD RTM322 UK MoD Gem UK MoD RB199 Work On-going RAAF Adour On Contract UK MoD Spey UK MoD Pegasus UAE Adour Pipeline RAF T56 / AE2100 Nordic RTM322 UK MoD Adour Mk106 UK MoD EJ200 Civil M250 US Army M250 Malaysia Adour RAAF T56 / AE2100 UK MoD Partnered Defence Supply Chain Civil M250 UK MoD Gnome Canadian NFTC Adour US Military AE1107 US Army M250 US Marines AE2100D3 US Navy Adour F405 US Navy T56 RTM322 Portugal UK MoD Defence Training Review UK MoD Military Flying Training System

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