IBM s Point of View on how to manage some of the most complex assets on the planet Christopher J. Rospenda Global Aviation Leader Internet of Things September 24, 2015 0
Christopher J. Rospenda: Worldwide Industry Leader - Aviation Educational Background FAA Aircraft Dispatcher Designee FAA Aircraft Dispatcher License IBM Education Harvard Business School Client Executive Program email: cjrospen@us.ibm.com Tel : +1 203-727-3375 Professional Industry Background Mr. Rospenda has been with IBM for over 13 years and brings over 28 years of experience in Best Practices for the Travel and Transportation Industries, with a special focus on Airlines, Flight Operations and Maintenance. Prior to joining IBM, Chris spent over 20 years working for major air carriers in various leadership roles. He assisted and lead several mergers and acquisitions of major carriers domestically and internationally. He was also was a Director and Manager of System Operations Control for several airlines with overall responsibility for the minute to minute operations. Chris has lead the Innovation team at a large international carrier working with IBM research developing the Customer and Equity and Lifetime Management view of client behaviors and the beginning for predictive analysis. Role & Main Focus Current IBM Role Worldwide Industry Leader for Aviation responsible for driving market awareness of solutions and results from customers. Solution Focus Enterprise Asset Management Maximo along with add on tools which are compelling to MRO providers and airlines such as Health, Safety & Environment, Mobility, Scheduling Industry Segments Aerospace & Defense,, Aviation and Maintenance Repair and Overhaul facilities. Key Skills Subject Matter Expertise in flight operations, airlines operations and regulatory compliance, merger and acquisition and airline integration and business 1 development. History of Major Aviation Engagements Chris has been engaged with various customers/industries including the most recent: Maximo for Aviation Worked with the development partners and teams to review and assess over eighteen hundred requirements and modification to assist in bringing Maximo for Aviation to the market for IBM. Merger and Acquisitions Lead the engagements of operational assessments, planning, reporting and integration of over a dozen air carriers around the world. Most recent engagement was with two major carriers in the United States and the Principal consultant over all departments including flight operations, maintenance and station operations. New Stations Start Ups Major Air Carrier responsible for leading a team tasked with the identification, preparedness and start up of over forty stations and new destinations around the globe. Responsibilities included fuel, maintenance, Crash Fire Rescue inspections audits and assessments and recommendations on compliance tracking. Aircraft System Instructor Instructed students on all aspects of aircraft systems, electrical, hydraulics, pneumatics to become proficient in the operation of the aircraft during regular and abnormal flight situations 1
Agenda Trends and Market Drivers in the aviation market IBM s Ability to Contribute New Opportunities Summary 2
Aviation a complex environment with multiple interconnected organizations Multiple A/C types Multiple Owners Multiple Part Types Multiple A/C Operators Multiple Locations Multiple Authorities & Regulators An aircraft is a flying object that has to be perfectly identified, monitored and maintained. J.P. Lardez, IFRSKEYES, Innovate 2015 3
Market pressures Small operating margins maximize asset utilization optimize use of resources reduce cost of maintenance operations optimize inventory and component purchasing effective management of services contracts reduce IT support costs Airworthiness validation of aircraft software and hardware configuration complying with country regulatory requirements managing Service Bulletins & Airworthiness Directives Ensure maximum value at time of asset resale maintain accurate maintenance and configuration history 5
British Airways 777 Engine Fire Las Vegas 6
British Airways 777 Engine Fire Las Vegas What will we learn? 7
British Airways 777 Engine Fire Las Vegas Better yet, how will you adapt to what we have learned for your organization? 8
Agenda Trends and Market Drivers in the aviation market IBM s Ability to Contribute New Opportunities Summary 9
IBM and its pedigree: Answer a business problem We were approached by a business leader with a problem CR Smith 1960 The was a need to handle data quickly at that time the response rate was minutes 90 minutes We built upon IBM success SAGE (Semi Automatic Ground Environment) US Military Air Defense Systems global monitoring We listened to the industry Airline passengers wanted immediate confirmation of reservations 10
IBM s Answer 11
IBM and its pedigree: Answer a business problem We were approached by a business leader with a problem CR Smith CEO of American Airlines The was a need to handle data quickly at that time the response rate was minutes 90 minutes We reduced the response time to mere seconds We built upon IBM success SAGE (Semi Automatic Ground Environment) US Military Air Defense Systems global monitoring Primary NORAD Air Defense Computer System in 1955-1980 s We listened to the industry Airline passengers wanted immediate confirmations of reservations We were able to book and secure passenger data in seconds IBM handles >25,000 transactions per second today 12
IBM s answer to MRO Safety is the first concern Regulatory compliance needs to be absolute Process and Procedures need to be monitored and documented Personnel need to be monitored for certification compliance Inventory needs to be harmonized and optimized Operational schedule needs to be maintained Configuration throughout design, build, operations, and retirement adds to the bottom line. 13
IBM Areas of Focus Engineering OMP to MPD Configurations Compliance Materials Management Globally Purchasing Warranties Contracts Mobility Access to information Connected & disconnected Planning Forecasts Costing Graphical Tools Maintenance Skills & Labor Advanced Scheduling Analytics Validate Configuration Optimize schedules Integration to Business Wide Systems 14
Engineering Creation and management of Operator Maintenance Plans (OMP) from the manufacturer Maintenance Planning Document (MPD) Management of the history of the maintenance plans for the life of the aircraft Validation of the software and hardware configuration of the aircraft at any time Management of the history of the aircraft configuration for the life of the aircraft Support of regulatory compliance efforts, including improved readiness for both external and internal audits and reviews of maintenance policies, configuration change histories and maintenance records. 15
Planning Complete aircraft hierarchical graphic view of planned and forecasted work Costing of PM including nested job plans Graphically view and assign work load for hangar and all aircraft in each bay, matching to available resources Plan the aircraft maintenance work to ensure that the hangar and bays are used to full capacity with the correct capabilities. Review daily readiness of labor and tools of a hangar 16
Material Management Manage inventory across a number of storerooms for better visibility and shared part usage resulting in lower stock levels across shared pooled inventory including purchasing, receipts, inspections and vendor payments Lights out purchasing of interval-based, meter-based or event driven automated procure to pay processes. Warrantee management including managing warranties, providing, full claim processing for monetary compensation or nocharge part, and advanced notification of pending warranty expiration Contract management and billing, including managing pooled resources, detailed and accurate billing with a review and approval, and SLA penalty fee billing Maximo Inventory Insights, a SaaS offering that optimizes inventory levels to minimize cost and maximize availability of parts 17
Maintenance Manage labor, skills, qualifications, training to reduce risk Flexibility to support planned and unplanned maintenance activities Integrated visibility to required Service Bulletins and proactive component replacement Advanced Scheduling capabilities for service bays Graphical Assignment of labor to work for aircraft in the service bays Multiple mobility options native work management app for connected or disconnected usage use of browser base applications on tablets 18
Mobility: Work Execution for Complex Assets For maintenance technicians and support staff that allows mobile workers to; work connected or discovered from the network review task details, report labor actuals, tool or material usage, and maintain the work log install, remove, or replace assets in a complex asset hierarchy use bar code scanning or voice to enter data view a map of their work orders and get directions to selected items with the optional maps feature 19
The Role of Business Analytics in MRO Validation of the software and hardware configuration based on rules for each aircraft ensuring the correct configuration for each aircraft before it is released to operations Analytics to drive scheduling to reduce the time on the ground for scheduled maintenance activities Analytics to ensuring that the required skills and components are available at the aircraft maintenance location Reporting of KPIs with predefined reports or ad-hoc reporting 20
Integration and Data Management Easy Integration Framework : Key Capability An integral capability that allows the synchronization and integration of data and applications between Work Management and external systems in real time or batch mode ERP Adaptors to seamlessly work with ERP systems in charge of purchasing and financial reporting across the enterprise. Ability to access large amounts of history: Provision data archiving to retain data in context with related metadata, and to allow faster response to audit and discovery requests 21
Providing capabilities for the entire MRO organization VP Maintenance & Engineering Technical Services Manager Material Manager Maintenance Manager Quality Manager Safety Manager Finance Manager IT Development & Support Engineering Manager Store Manager Workshop Manger Quality Auditor Technical Planning Manager Warranty Manager Line Maintenance Manager Quality Controller Technical Library Manager Material Planner Base Maintenance Manager Training Manager Reliability Analyst Purchaser Custom Agent Shipping Agent 22
Agenda Trends and Market Drivers in the aviation market IBM s Ability to Contribute New Opportunities Summary 23
New Opportunities for Merged Owner Operators Delta & Northwest United and Continental Southwest & Airtran American & US Airways Multiple aircraft and non-standard inventory systems Multiple stores locations with new aircraft introduced System wide training and compliance requirements 24
New Opportunities for Merged Owner Operators Delta & Northwest United and Continental Southwest & Airtran American & US Airways The synergies of an homogenized materials management system could save millions! Multiple aircraft and non-standard inventory systems Multiple stores locations with new aircraft introduced System wide training and compliance requirements 25
New Opportunities for MRO Providers Clients producing more data from aircraft Intelligent aircraft Intelligent assets (hangars, technicians) Streamline Inventory investments Stage inventory strategically Leverage economies of scale Forecast skills requirements Maintain training certifications Project future needs based on growth Design compelling contract offerings for customers Operate more efficiently Increase customer satisfaction Competitive advantage 26
New Opportunities for MRO Providers Clients producing more data from aircraft Intelligent aircraft Intelligent assets (hangars, technicians) Streamline Inventory investments Stage inventory strategically Leverage economies of scale Forecast skills requirements If your organization could predict the value of aircraft assets upon retirement would that portray you as a market leader in your industry? Maintain training certifications Project future needs based on growth Design compelling contract offerings for customers Operate more efficiently Increase customer satisfaction Competitive advantage 27
New Opportunities for Leasing Companies Digital documentation of aircraft History Maintenance Operations Configuration Improved resale value of the asset > 25% increase in value (Airbus, June 2015) Competitive Advantage Carfax for Airplanes (Aviation Week, Sept 2015) 28
New Opportunities for Leasing Companies Digital documentation of aircraft History Maintenance Operations Configuration If your organization could determine and control the value of aircraft in the post market industry would that add to your bottom line? Improved resale value of the asset > 25% increase in value (Airbus, June 2015) Competitive Advantage Carfax for Airplanes (Aviation Week, Sept 2015) 29
Agenda Trends and Market Drivers in the aviation market IBM s Ability to Contribute New Opportunities Summary 30
IBM Solution built on aviation pedigree Tailored for the Aviation industry Built on Maximo capability proven in other safety critical industries An aviation specific solution developed with industry leading development partners including Airbus A user interface using the language and terminology of the aviation industry Lifecycle management Supports the entire aircraft cycle from initial delivery to decommissioning Manages the configuration of software and hardware for the lifetime of the aircraft Manages the maintenance plans for the lifecycle of the aircraft An open platform and integration framework to allow quick integration with other systems such as ERP systems Implementation and support World Wide implementation and support available from IBM Implementation and support also available for IBM business partners 31
More Information ibm.com Maximo for Aviation web page Product documentation on the Knowledge Center 32
Questions? Christopher J. Rospenda IBM Global Aviation Leader Internet of Things cjrospen@us.ibm.com 33