Digital Transformation in Aerospace Industry Challenges and Opportinities

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1 Digital Transformation in Aerospace Industry Challenges and Opportinities Dr. Jochen Schlick, Senior Partner & Co. Founder Staufen.Digital NEONEX GmbH

2 Outline STAUFEN.DIGITAL NEONEX The Company Common Challenges in Aerospace Industry Diversity of Variants and small Batches as an Opportunity Factory Supply Chain Transparency and low Documentation Overhead Beyond single Companies Opportunities of Digitalization

3 STAUFEN.DIGITAL NEONEX Your Partner for Digital Transformation 3

4 STAUFEN.DIGITAL ECO-SYSTEM STAUFEN.DIGITAL NEONEX Your Partner for Digital Transformation OUR MISSION Partner for digital Transformation. OUR VALUE PROPOSITION We inspire your business strategy. We are entrepreneurs & think in business models. We link success factors from traditional & digital world. We understand Industry & Operations and increase their efficiency. We deliver realistic concepts & implement fast. 4

5 CONSULTING PORTFOLIO STAUFEN.DIGITAL NEONEX Part of a unique digital Eco-System Digital Transformation Our Consulting Services Our Solution- and Testbed-Partner Plug & Play DIGITAL STRATEGY DIGITAL PORTFOLIO SMART FACTORY DATA SCIENCE Digital Transformation Academy Our Qualification program STAUFEN.DIGITAL ECO-SYSTEM The STAUFEN Group Digital & LEAN 5

6 CONSULTING PORTFOLIO STAUFEN.DIGITAL NEONEX Our consulting Services Digital Strategy Digital-Transformation Roadmapping Sparring & Coaching Digital Transformation New Work & Agility Lighthouse EXPERIENCE / QUALIFY / ENABLE Sm@rt Factory Vision PoC* Planning & Implementation Robot-Process- Automation Manufacturing Analytics *Proof-of-Concept 6

7 DIGITAL TRANSFORMATION ACADEMY QUALIFICATION PROGRAMM DIGITAL TRANSFORMATION ACADEMY as Partner for global Competence Development >20 Years of Qualification Experience The Staufen Group qualifies more than Managers & Experts per year in 14 languages at 13 locations worldwide. Sustainable learning and applying Certified Digital Executive No change without strategy Best of the worlds of "change" and "digitization combined to offer you a unique qualification & education program. Global Competence Development STAUFEN.DIGITAL NEONEX is cooperating with University of St. Gallen & STAUFEN.ACADEMY and PTW Darmstadt to develop holistic, modular qualification concepts to teach both theoretic knowledge as well as practical knowledge. Practical & Didactic Expertise Three steps towards the Certified Digital Executive Academy, Seminars, Expert Education, Trainings, Coaching, Benchmarking according to Academic Standards with actual Use-Cases. 1. DIGITALIZATION STRATEGY 2. BUSINESS DEVELOPMENT or CHANGE MANAGEMENT 3. DESIGN THINKING or DIGITAL PRODUCTS & PLATFORMS or WORKING SYSTEM 4.0 7

8 Common Challenges in the Aerospace Industry

9 COMMON CHALLENGES IN AVIATION INDUSTRY Common Challenges in Aviation Industry Low Batch Sizes Unflexible Paper Documentation Instable supply chain Pilot Production not really possible Debugging products during running production Trend to customization Traceability and Retrievability of Data and Information Product Identification Matching products and information ENVIRONMENT & RESTRICTIONS Right-First-Time High quality KPI hard to reach High testing efforts High error costs/scrap rate Regulatory Environment European vs. US-Standards Certification & Standardization Diversity of systems and products 9

10 COMMON CHALLENGES IN AVIATION INDUSTRY Scope of Digitalization Within single Companies vs. Supply-Chain-Wide Digitalization means to reduce the cost of complexity Intra - Digitalization Set up your own Sm@rt Factory Inter - Digitalization Efficient Communication between Suppliers and OEM High flexibility with lot size 1 Tracking & Tracing Process Lock Supplier Digital Identification Plate & Documentation Transparent Supply Chain State Technology (selection) Auto-ID Cloud Robotic Analytic Deep Learning Enabler Augmented Reality Mobile Virtual Reality Additive Manufacturing Leadership Excellence Foundation Process Excellence 10

11 Diversity of Variants and small Batches as an Opportunity Factory Mass Customization made easy 11

12 SEW Film 12

13 DIVERSITY OF VARIANTS AND SMALL BATCHES AS AN OPPORTUNITY Inside a Sm@rt Factory - Examples Lean Lean & Smart Smart Add-Ons Digital Heijunka eprocurement / Labeling Pick by light / by voice Digital Guided SWI Andon & Escalation Mgt. Real-time capacity analysis Digital CIP Mobile Assistance / AGV Digital QIP Real-time ekanban Tracking & Tracing Indirect Processes Within an Assembly Cell 13

14 SINGLE USE CASE Digital supported picking processes in logistics and assembly Real-time pick-by-light / voice Improved performance in logistics by being guided, hands-free and ways optimized Real-time information's Improved quality by adding sm@rt poka yoke systems like weight sensors or cameras using AI Set commissioning supported by intelligent trolleys OUR GOALS OBJECTIVE THE PROBLEM PAIN POINTS WHAT WE WILL DO SOLUTION WHAT WE WILL IMPROVE PAYBACK Improve performance in logistics processes by way optimizations and real-time information Improve production supply by implementing a standardized emergency process Improve picking and assembly quality by adding appropriate sm@rt solutions (payback adapted solutions) No real-time picking information create performance and priority gaps Performance in picking processes often difficult to improve Customer complaints and production stops due to picking errors No balanced and optimized picking processes Use real-time information and sm@rt solutions to run the picking process Pick by light or pick to light or even combination depending on picking order structure Intelligent use of AI e.g. by implementing a camera based quality check or weight sensors (needs very good master data!) Often drastically improved picking performance, in some areas more than 50% Strongly improved quality led to much less complaints and waiting time in production Standardized emergency process led to much less micro management 14

15 SINGLE USE CASE Real-time quality training after Customer complaint Operator Learning Management System Training and people development Online and class room training People management and resource planning Prediction of future skill need OUR GOALS OBJECTIVE THE PROBLEM PAIN POINTS WHAT WE WILL DO SOLUTION WHAT WE WILL IMPROVE PAYBACK Increased productivity through better trained operator Improve 50% of corresponding KPI caused by human Schedule and tracking of operator development plan Better knowledge about needed skills also in the future People management is driven by local, individual initiatives not supported by up to date systems Risk that non-skilled people run processes Missing visualization of gaps in people skills Integrated solution work center needed skills for each process existing skills for each person System shows directly the news like customer complaint to the right person by batch registration at the machine Training directly at the machine possible Planning functionality based on current order portfolio High prioritization of User-friendliness and self explaining Trained, empowered and motivated people Impact on all KPI People development tool for shopfloor Short and mid term operator resource planning based on needed skills 15

16 Escalation? Escalation? Waiting time? SINGLE USE CASE Escalation Management Supporting smooth procedure of standard processes in workstations, and at machines Workplace /Machine Workplace /Machine Input Device / User Interface Andon System Receiving People Problem Occurring 1 Creating Alert 2 Describing Alert 3 Allocation of the Andon Alert 4 Receiving Andon Alert 7 The PLC might provide much more error codes than we like to escalate è we need the possibility to filter Displaying Status Displaying Status Displaying Status Displaying Status (Accepted) (Escalated) (Waiting) (Closed) 13 N Y * Starting Escalation Closing Andon 5 Process Alert 6 12 Waiting Time Solving Problem 9 Andon Data Analytics 14 Significant reduction of Mean Time To Repair (MTTR) Set-up of structured CIP based upon transparent facts and KPI Output Device / User Interface Accepting Andon Alert 8 Y N 5 Y N Closing Andon Alert /Reason Classification 10 Performance Display of Andon Measurement Board related QCPC with Andon Alert and Use Case 7 KPI: Response Time Display of Andon related QCPC with KPI: Waiting Time Display of Andon related QCPC with KPI: Repair Time 11 Display of Andon related QCPC with KPI: MTTR 15 OUR GOALS OBJECTIVE THE PROBLEM PAIN POINTS WHAT WE WILL DO SOLUTION WHAT WE WILL IMPROVE PAYBACK Supporting smooth procedure of standard processes in workstations and at machines Transparency about (re-)occurring everyday problems and needed time for their resolution Creation of Andon alerts both manually and directly from PLC signals Creating Database for CIP No systematic approach for problem solving Lack of real-time operational data leads to higher downtimes Unknown reaction times, waiting times and MTTR due to missing online alerts and system support No structured CIP due to missing transparency about root causes Use of mobile Devices for manual creation and reception of Andon alerts and escalations Connect machines for automatic Andon alert creation if wished Set-up of a highly flexible system to configure problem classes, people groups and communication flows User-friendly HMI and shop floor functionality Significant reduction of Mean Time To Repair (MTTR) Improved productivity through downtime reduction Transparency as basis for CIP based upon facts and KPI Highly motivated and engaged people 16

17 SINGLE USE CASE 3,00 Process Variation: Sand Humidity % Correlation Detail Analysis Cluster Analysis Sand Humidity % 2,80 Before 2,60 After 2,40 2,20 2,00 1,80 1, Measurement Adjustrment of Key Parameters Statistically Significant Populations Manufacturing Analytics Scrap Rate Reduction Data analytics to analyse and visualize complex processes Strong impact on downtime and scrap reduction Definition of correlations between different process data Base for automatic real-time adjustments (closed loop) OUR GOALS OBJECTIVE THE PROBLEM PAIN POINTS WHAT WE WILL DO SOLUTION WHAT WE WILL IMPROVE PAYBACK Reduce Scrap Rate in Foundry due to casting defects Finding existing parameter correlations regarding final product quality Adjust the identified Key Parameters Casting defects lead to scrap and high rework efforts in machining Difficult process control due to many chemical / continuous processes involved High indirect efforts to stabilize the production Identification of different correlations segregated by product types Selection of relevant production output parameters Set up a data correlation matrix and apply data crunching algorithms Base to install online process control Significantly reduce casting defects and scrap rate! Improve Yield and minimize Material Costs The Data Lake Problem: Thousands of parameters are monitored and stored in a central database. Methods to analyze are not utilized Identify key variables in order to optimize the production process 17

18 Supply Chain Transparency and low Documentation Overhead Digital Identification Plate Digital Twin Supply Chain Monitoring 19

19 SUPPLY CHAIN TRANSPARENCY AND LOW DOCUMENTATION OVERHEAD Digital Identification Plate Electronically Identify Components QR-Code leads to the video / AR Instructions for repair... Picture: Wittenstein SE 20

20 SUPPLY CHAIN TRANSPARENCY AND LOW DOCUMENTATION OVERHEAD Real Time Supply Chain Monitoring Several SAP and other Several formats SAPlike like Excel, csv,... Dashboard solution Output Logistics provider External component suppliers In memory database Global network Supplier view Plant view Individual reports Alerts based on targets & thresholds Mobil APP User friendly report creation (no IT support needed as long as data are available) GPS One database only to avoid redundant data Real-time if possible Automated data collection if possible 21

21 SUPPLY CHAIN TRANSPARENCY AND LOW DOCUMENTATION OVERHEAD Digital Twin in Assembly - Example From Knowledge... Place material provisioning Routes and path network Production program Material flow... To Decisions 3D-stock planning and evaluation 4D logistic simulation Interactive graphic line-balancing 22

22 SUPPLY CHAIN TRANSPARENCY AND LOW DOCUMENTATION OVERHEAD Conclusion Inter-Digitalization of Supply Chain The Positives Supplier The reduction of efforts within the supply chain is technically possible Huge amount of waste work can be eliminated The adherence to delivery dates and the reliability of the complete supply chain will be improved significantly The Downside Supply chain monitoring will lead to inexorable transparency of real world company performance The real world performance is much worse everybody would have expected Many companies will have to agree on a common digital ID plate or on the format of electronic documentations The diversity of systems and products leads to a big chance to never have to agree on a common definition The standardization organizations will be far to slow However based on a pragmatic requirement definition an agreement is possible Supplier 23

23 Opportunities of Digitalization Get Eliminate waste work Help AIRBUS to the Supply Chain Agree on Supply Chain Monitoring, Digital ID and electronic Documentation 24

24 OPPORTUNITIES OF DIGITALIZATION Opportunities of Digitalization in Aerospace Low Batch Sizes The SmartFactory approach reduces the organizational overhead and allows for individualized products to the cost of mass production Right-First-Time Manufacturing Analytics offers a huge tool set to improve process yield even with small batch sizes Unflexible Paper Documentation The Digital Identification Plate and the Digital Twin lead to significantly less waste work Regulatory Environment Digitalization doesn t help! But companies need to agree on pragmatic standards 25

25 OPPORTUNITIES OF DIGITALIZATION How to start Digital? Help AIRBUS to the Supply Chain Agree on Supply Chain Monitoring, Digital ID and electronic Documentation Start in your own company Get Eliminate waste work 26

26 Kostenfrei anmelden! # 2. März 2018 // 09:00 18:00 Uhr # Online Event # Sm@rt Factory # Virtuelle Führungen, Top Speaker & Lösungsanbieter powered by:

27 Your Partner for Digital Transformation Co-Founder: Dr. Jochen Schlick Dr. Peter Stephan Thomas Rohrbach STAUFEN.DIGITAL NEONEX GmbH, Königstrasse 2, Stuttgart, Germany

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