OHB System Supply Chain & Opportunities
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1 OHB System AG Gerd Heinrich 15/06/2017 OHB System Supply Chain & Opportunities
2 Central Supply Chain for all OHB Programs CarbonSat / EnMAP / MTG Earth Observation Security Navigation Technology Galileo Exploration / Science ExoMars / Euclid / JUICE / PLATO / XMM-Newton / Herschel-PACS / ROSETTA Telecommunications HISPASAT / Heinrich Herzt / Electra Manned Spaceflight SAR Lupe / SARah / Athene Robotics / TET / 2 Precision clocks / Fibre optics International Space Station / DC4EU
3 OHB Business Concept Own share 25% 75% in the Supply Chain 95% of satellite program hardware subcontracted or purchased Software, OHB core-competence OHB System PRIME OHB is attractive to the institutional national & European Business! Fostering large supplier base Leverage capabilities of SME Extremely flexible on Geo-Return issues We listen to customer preferences Project 3 & System Consortium Architect & Management Engineering Integrator AIT
4 Bild: ESA Navigation Galileo Prime contractor for design and construction of a total of 30 satellites for the European satellite navigation system Galileo Customer: EU Commission and ESA These satellites were completed in less Navigation payload subcontracted to Surrey Satellite Technology Ltd., UK Platform based on experience gained from the SAR-Lupe project. The FOC (full operational capability) phase of the Galileo program is being funded by the European Union. The European Commission and the European Space Agency ESA have signed a delegation agreement under which ESA acts as the design and procurement agent on behalf of the Commission. The view expressed here does not necessary reflect the official position of the European Union and/or ESA. Galileo is a registered trademark owned by the EU and ESA and registered under OHIM application number
5 Trend : Technology Convergence Internet of things everywhere & low latency & high band width ADS-B Push to Global Applications Automatic Dependent Surveillance- Broadcast Decreasing launch cost Boom in entrepreneurial space Skybox, Oneweb, Planet Labs Multiplication of launch capacity private & worldwide 5
6 Transformation to 21st Century Space Standard Failure tolerant design philosophy versus System redundancy in final flying hardware Vertical business models Automated production Cost Factor 10 down! Harnessing technology to innovate Use Cyber-physical systems to monitor physical processes, quality Constellation maintenance/upgrade Disruptive Effect in the Supply Chain 6
7 Digital Challenges How will the customer PO autonomously steer itself through a dynamic Value Chain and order materials, resources and capacity? How can we digitally connect production facilities across geographies and company boundaries? How to generate a digital convergence of business operations? o Micro/digital payment o Autonomous purchasing o Real time process control / controlling Dynamic reconfigurability of supply networks with upstream contracted suppliers BLOCKCHAIN 7
8 Reversing the Cost & Calendar Spiral in Space 3 ways OHB masters Cost & Calendar the Space Business Logistic 1 Master System-Engineering and Technology : Trade requirements and design until goals are achieved, Use large margins, avoid too much of optimization 2 Leverage on Space System Procurement Use strong Partners and Suppliers 3 Install agile Attitude Large organizations depend on processes and rules to reduce cost and master schedules. More successful is is having the right people with the impedment to achieve results and reduce cost. Seite 8
9 Swiss Suppliers Large Aerospace & Defense pool but small number of space partners Spectrum of High end Technology Electronics -> Mechanical specialists -> GSE Very visible Commitment, good Quality, tough Pricing and good example of thinking global acting local. Challenge => Leverage aviation manufacturing tech to build NewSpace Page 9
10 Overview Business Opportunities Programs in C/D Phase HEINRICH-HERTZ German national mission ELECTRA NextGen Telecom Satellite product line Galileo Batch 3 Recurrent 1 st Generation SARah German reconnaissance mission MTG ESA Earth Observation mission Arbeitskreis Mittelstand, Bremen October
11 Business Opportunities PLATO ESA Science Program, ITT expected July 2017 KO Q1/2018 Detection of terrestrial Exoplanets in the habitable zone around solar-type stars and characterization of their bulk properties (priority 1 science targets) High-precision photometry to produce large sample of accurate stellar light curves, obtained over time intervals of month to several years with a high duty cycle (priority 2) Spacecraft includes science payload instrumentation hardware and software to be provided by a consortium of scientists funded by the agencies of their resp. Member States (as CFI), and lead by DLR Institut fu r Planetenforschung, Berlin 11
12 Business Opportunities PLATO CH is part of 11 Critical countries OHB is currently running phase B1- Extension in preparation for OHB s PRIME bid Subsystem Level procurement.has identified a minimum number of seven subsystems..it will be requested for PLATO that the Prime Contractor demonstrates already in his proposal that he has secured at least a value of 50 % (maximum of 75 %) of the geographical return requirement for each of the defined critical countries. The related subcontracts will need to be fully ready for signature at the time of the start of the contract of the Prime Contractor 12
13 Business Opportunities Heinrich Hertz OHB/DLR are in final negotiations C/D Kick-Off planned Q3/ 2017 BMWi Mitflugvereinbarung BMVg Zuwendungen/ Beistellungen Auftraggeber RfA Gesamtsystemverantwortlicher Bundeswehr Boden/ Betrieb Infrastruktur Schnittstelle Bodensegment/ Terminals DLR/ RfA DLR Mission for (BMWi) with BMVg hosted payload Scientific IOV Mission ( W/T ) Hosted payload part by DoD ( MIL ) DLR is representing DoD as customer Raumsegment Nutzlast Bodensegment Ground Support Equipment Plattform Startsegment W/T (Raum-) Technologie Beisteller Boden- Technologie Beisteller Experimentatoren Frequenzkoord. 13
14 Corner Stones of the ELECTRA Product Line Supply Context 1. Commercial Product Line of Telecom-Satellites 2. Customer is SES 3. Base line supplier list decision & contracting is NOW 4. ESA Best Practice ITT does NOT apply 5. Direct payments to Suppliers 6. Partnership with a Systems company 7. Conditions, definitions and scope of work follow SES way of doing 8. Award of Development contracts up to Qualification 9. Award of Long Term Supply Agreements Electra 1 PPP Electra 2 Commercial Customer.... Electra N Commercial Customer Seite 14
15 Additional Opportunities Development is advanced or recurrent Main subsystems contracted Still smaller scale opportunities SARah, German reconnaissance mission MTG ESA Earth Observation mission Galileo Batch 3 15
16 Page 16
17 Page 17
18 Annex Page 18
19 Reversing the Cost&Calendar Spiral in Space 1 Master System-Engineering and Technology in dialog with supplier Balance increased performance versus need OHB-Supplier-Team adjust requirements until a balance between cost and benefit is achieved Use of Large Margins for reduced testing, better flexibility More robust design means less redesign Devaluing Optimization => optimzed solutions prevent standardization Set functional requirements rather than technical requirement stating what we want, not how Seite 19
20 Reversing the Cost & Calendar Spiral in Space 2 Leverage on space systems procurement Linking customer s expectations to the value chain Build on the reputation and heritage of partner/suppliers Distribute the whole work/risk on as many shoulders as possible Subcontracting a lot The Prime invest in quality not capacity Key Decision maintain 75 % of the programs in the Supply Chain, subcontract 95% of satellite equipment hardware OHB is the System Architect and Integrator Seite 20
21 Reducing cost in the Space Value Chain 3 Install Attitude Having the right partners & people is critical Small Teams with instantaneous communications strong and sense of personal responsibility Assign importance to low cost Make cost data known Reduce the opposition to new ways of doing business Forster common sense Seite 21
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