Worldwide Logistics in the Area of Maintenance, Repair and Overhaul of Commercial Aircrafts

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1 Worldwide Logistics in the Area of Maintenance, Repair and Overhaul of Commercial Aircrafts Logistik- & Wissenschaftsforum HAMBURG 2016, Thoralf Wagner, GmbH

2 The Lufthansa Technik Group Facts & Figures. Lufthansa Technik is the leading manufacturer independent provider of maintenance, repair, overhaul and modification services for civil aircrafts: Number of employees: about * Aircraft under exclusive contracts: over from over 790 customers Revenue: 4,3 billion Euros* Corporate Headquarters: Hamburg 31 subsidiaries and affiliates worldwide *Lufthansa Technik AG Germany and 21 consolidated companies of Lufthansa Technik Group in

3 Fast replaceable components keep the aircraft flying Three hour delay causes around EUR compensation costs (150 pax a 250 EUR) 2 Engines 3 landing gears 15 fuselage segments > 1000 components The distribution of components is critical for the availability of the A/C! 3

4 High stock level to be avoided due to high inventory costs Engine Control Unit Escape slide Flight Data Recorder Coffee Maker

5 Network Design Our competitive advantage Master the trade-off between inventory-, logistic costs & speed Step 1: Take/define the fixed stationary locations (e.g. internal componentworkshops or supplier facilities) 5

6 Network Design Our competitive advantage Master the trade-off between inventory-, logistic costs & speed Step 2: Compile all customer data and derive future customer data (e.g. locations, contracted material, agreed availability times/speed) 6

7 Network Design Our competitive advantage Master the trade-off between inventory-, logistic costs & speed Step 3: Compile all current and future logistic data (e.g. transportation lanes, speed, costs) 7

8 Network Design Our competitive advantage Master the trade-off between inventory-, logistic costs & speed inventory costs logistic costs Step 4: Run multiple simulations(e.g. central vs. de-central set-ups) and generate cost- and performance results 8

9 Network Design Our competitive advantage Master the trade-off between inventory-, logistic costs & speed logistic costs inventory costs Step 5: Finding the optimal network solution with balanced inventory & logistic costs and sufficient service-levels. 9

10 How the world changed in 8 years! Pope Benedict was elected on 19 April

11 How the world changed in 8 years! Pope Francis was elected on 13 March

12 Digitalization trends Future aircrafts exactly know what they need and when Boeing 777 Boeing 787 maiden flight 1994 maiden flight

13 Digitalization trends Our business model will change (physical) Logistics with IT-support Information Management with physical logistics 13

14 Vielen Dank für Ihre Aufmerksamkeit. Thank you for your attention. Contact: Thoralf Wagner Director Component Logistics Weg beim Jäger Hamburg Phone: Mail: thoralf.wagner@ltls.dlh.de Copyright 2015 Lufthansa Technik AG. All rights reserved. The information contained in this presentation is proprietary to Lufthansa Technik AG and is disclosed in confidence. The presentation and the information contained herein shall be kept strictly confidential and shall not be used, disclosed to others or reproduced without the express written consent of Lufthansa Technik AG. Nothing contained in this publication shall constitute any warranty, guarantee or liability for Lufthansa Technik AG, its subsidiaries and affiliates but is for information purposes only. Accordingly, Lufthansa Technik AG its subsidiaries and affiliates neither expressly nor conclusively accept responsibility or liability for the actuality, accuracy and completeness of the statements and information contained in this publication. 14

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