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Content
In Focus: AVIATION FORUM 2011
Aerospace Supply Chain: Strategies, Concepts,
Potentials
The supply conference in the aerospace industry
Special Topics: Risk Management, Green Supply Chains,
Globalization of SMEs, Risk and advantages of Consolidation
Key success factors in aerospace supply chain
management
Manfred Hader, Jörg Wahler, Dr. Alexander Schwandt,
Roland Berger Strategy Consultants GmbH
IT Globalisation on Wings of Steel
Eric Feuillassier, Dimension Data
Aviation Forum 2011
Globalising the Aerospace Supply Chain:
The Airbus Approach
Dr. Klaus Richter, Airbus SAS,
Philippe Advani, EADS
Launch Management – Lean Principles in the
Strategic Supplier Management
Marc Helmold, Bombardier Transportation
III/2011
AVIATION
Selecting (out)sourcing structures for aerospace
engineering services in India
Prof. Dr. Roger Moser, IIM Bangalore,
Christian Kuklinki, EBS Business School,
Dr. Andreas Wittmer, Universität St. Gallen

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AVIATION
Editorial
This special issue of Supply Chain Management ® focuses on the AVIATION
FORUM 2011, the supply chain conference in the aerospace industry. At the
Aviation Forum key issues in the aerospace industry will be discussed between
aerospace decision makers including Airbus procurement representatives, a
wide spectrum of aerospace supplier companies as well as top executives and
procurement experts from other industries. The international conference focus-
es on strategies, concepts and potentials in the aerospace supply chain. Beside
14 presentations by top executives, four workshops will be held covering the
special topics of consolidation and globalization of the supplier network, as
well as green approaches and risk management.
The introduction articles will discuss specific selection (out)sourcing struc-
tures for aerospace engineering services in India as well as key success factors
in aerospace supply chain management. The global sourcing challenges and the
specific approach of Airbus; the biggest worldwide manufacturer of airplanes;
to globalize the Aerospace Supply Chain will be presented as a best practise
paradigm. Further topics are the IT Globalization on Wings of Steel and Launch
Management, and the Lean Principles in the Strategic Supplier Management.
Prof. Dr. Johannes Walther Dr. Walter Huber
Institute for Production Management Siemens IT Solutions and Services
S u p p l y Chain Management iii /2011
3

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Fundamental topics
Selecting (out)sourcing structures for
aerospace engineering services in India
Prof. Dr. Roger Moser, IIM Bangalore,
Christian Kuklinki, EBS Business School,
Dr. Andreas Wittmer, Universität St. Gallen 7
Key success factors in aerospace
supply chain management
Manfred Hader, Jörg Wahler,
Dr. Alexander Schwandt,
Roland Berger Strategy Consultants GmbH 13
Practical topics
Globalising the Aerospace Supply Chain:
The Airbus Approach
Dr. Klaus Richter, Airbus SAS,
Philippe Advani, EADS 19
IT Globalisation on Wings of Steel
Eric Feuillassier,
Client Executive Airbus/EADS,
Dimension Data 25
Launch Management – Lean Principles
in the Strategic Supplier Management
Marc Helmold, Bombardier Transportation 29
AVIATION FORUM 2011
Aerospace Supply Chain:
Strategies, Concepts, Potentials 34
Greeting 35
Partners and Sponsors 36
Exhibition plan 37
Program: Wednesday, 19 th of October 2011 38
Speaker/Expert profiles 39
Program: Thursday, 20 th of October 2011 56
Speaker/Expert profiles 59
Recension 78
Editorial 3
Register of authors 10
Event Calendar 28
Impressum 23
List of advertisers 12
Selecting (out)sourcing structures for
aerospace engineering services in India
Content
Prof. Dr. Roger Moser, IIM Bangalore, Christian Kuklinki,
EBS Business School, Dr. Andreas Wittmer, Universität St. Gallen
Sourcing of engineering services from India is increasingly gaining
attention from Western aerospace firms such as European Aeronautic
Defence and Space (EADS), Boeing and many others. Since the
industry faces rising competition and cost pressure, the interests
behind this sourcing strategy seem twofold: to enter the rapidly
growing Indian defense and civil aerospace market as well as to
reduce development costs. Yet, the Indian engineering sourcing
market remains still relatively untapped since firms are challenged
in selecting an appropriate sourcing structure for (outsource) offshoring
high-end aerospace engineering services. Page 7
Key success factors in aerospace
supply chain management
Manfred Hader, Jörg Wahler, Dr. Alexander Schwandt,
Roland Berger Strategy Consultants GmbH
The growing strategic relevance of supply chain management in the
aerospace industry and the growing complexity of supply chain networks
enforces a transition of the current responsive supply chain approach
towards an agile supply chain. Significant efforts and changes
in the collaboration between supply chain stakeholders are needed
to secure the success for the whole industry. Leading OEMs have
already started with this transition in their latest programs. Given full
order books, high pressure for a timely ramp-up and increased cost
pressure from global competition, we expect that the leading OEMs
will accelerate the transition in the coming years. Page 13
Globalising the Aerospace Supply Chain:
The Airbus Approach
Dr. Klaus Richter, Airbus SAS, Philippe Advani, EADS
As Western economies are still affected by one of the worst economic
global crises, the commercial aerospace industry, surprisingly, has
been spared by these trends. Driven by the sustained growth of
Asian economies and the timely development of well-positioned programmes,
the Airbus business outlook remains positive with an expected
continuous growth in revenues. In order to sustain this growth
as well as to consolidate an optimal economic proposition, Airbus
remains steady-on-course with the ambitious globalisation road-map
it has set over the past years. This article aims at describing the rationale
behind it, while exposing the challenges and modus operandi
that has been put in place to carry out this program. Page 19
IT Globalisation on Wings of Steel
Eric Feuillassier, Dimension Data
A stable, yet flexible global IT solutions and services partnership can
help multinational manufacturers leverage the advantages of shifting
elements of their supply chain into new territories, but without
cross-border business costs and risks taking to the skies. This is an
important lesson to be learnt from a large aircraft builder, as it rallies
to position itself competitively within booming emerging markets.
A strategic focus for this organisation is executing on a sound unified
communications and collaboration strategy that will help its
employees work together seamlessly over an increasing amount of
international borders. Page 25
S u p p l y Chain Management ii i/2011
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Summary
Sourcing of engineering services from India is increasingly
gaining attention from Western aerospace firms such
as European Aeronautic Defence and Space (EADS),
Boeing and many others. Since the industry faces rising
competition and cost pressure, the interests behind this sourcing
strategy seem twofold: to enter the rapidly growing Indian defense
and civil aerospace market as well as to reduce development
costs. Yet, the Indian engineering sourcing market remains still
relatively untapped since firms are challenged in selecting an appropriate
sourcing structure for (outsource) offshoring high-end
aerospace engineering services.
Status Quo
In contrast to other services, offshore sourcing and outsourcing
of engineering services to India has only recently
emerged. Of the $750 billion spent on engineering services
worldwide, only $10-15 billion were offshored – of which
12 % were sourced from India. Within the next few years,
the share of offshored engineering services is expected to
Aerospace Engineering Services
Selecting (out)sourcing
structures for aerospace
engineering services in India
Prof. Dr. Roger Moser, IIM Bangalore, Christian Kuklinki, EBS Business School,
Dr. Andreas Wittmer, Universität St. Gallen
Figure 1: Influencing Factors on Selecting Sourcing Structures
grow at least tenfold and to reach $150-225 billion worldwide,
resulting in a market potential of $35-50 billion for
the Indian supplier base (NASSCOM & Booz Allen Hamilton
2006). Surprisingly, in light of India’s favorable factor
conditions such as low costs and the largest talent pool for
engineering services in emerging markets, most companies
have been struggling so far to integrate Indian suppliers
into their high-end engineering activities.
Aerospace firms aspiring to benefit from the favorable
factor conditions in offshoring engineering services to India
can choose among three strategies:
n to directly engage with Indian engineering services
outsourcing (ESO) providers such as Wipro, Infosys, or
QuEST from Headquarters;
n to establish local, fully-owned development centers, labeled
as “captive centers” (CC), as in the case of Boeing
and Airbus;
n to maintain an international purchasing office (IPO)
which acts as an interface between Headquarters in Europe
or US and the ESO providers in India.
Boeing, for example, sources engineering services for
aircraft design from TCS and Infosys among others and
additionally operates a CC in
India, the Boeing Research and
Technology Center, Bangalore.
Similarly, Airbus sources engineering
services from five
Indian ESO suppliers and has
established a CC in Bangalore,
the Airbus Engineering Centre
India.
Besides cultural challenges
and structural considerations
of the aerospace industry on an
international level, in particular
strategic considerations have to
be integrated in an analysis and
evaluation of an appropriate
sourcing structure for engineering
services in India (Figure 1).
For global aerospace firms,
questions aiming at how to
S u p p l y Chain Management iii /2011 7

8
Aerospace Engineering Services
reap India’s market opportunities for sourcing and sales
remain partially unanswered: Will efforts in disseminating
aerospace-specific engineering capabilities and domain
knowledge to ESO providers in India pay off? Will it be
advantageous to establish CCs or IPOs in India to manage
challenges associated with the nature of sourcing engineering
services?
Specificities of Engineering Services
As engineering services are complex and knowledgeintensive,
these services require a high level of interaction
and coordination between client and supplier. Here,
the knowledge-intensive character points towards major
concerns centering on a decrease in service quality or inadequate
intellectual property (IP) protection (Dossani &
Kenney 2007). With these services being highly specialized,
the sourcing process for offshoring engineering services
appears challenging as engineering suppliers in India also
require extensive domain knowledge with respect to the
specifications of the aerospace industry. Expertise which is
hardly found in India so far.
Strategic Considerations for Selecting
Sourcing Structures
As aerospace firms have recently started to re-direct their
attention towards sourcing of engineering services in India,
an integration of strategic considerations at this early stage
enables to exploit the benefits of an appropriately selected
sourcing structure on a long-term basis.
A recent study of the EADS-SMI Endowed Chair at the
Indian Institute of Management Bangalore (IIMB) about the
engineering challenges in the Indian aerospace industry has
identified three key elements to select an appropriate sourcing
structure (Figure 2):
n objectives towards supplier,
n objectives towards local market and,
n the nature of sourced services.
Objectives towards Suppliers
The objectives towards a supplier have to account for
the targeted relationship with the supplier and the associated
risks. During the last years, the global aerospace in-
Figure 2: Strategic Considerations and Selection of Sourcing Structure
S u p p l y Chain Management iii /2011
dustry has substantially reduced the number of preferred
engineering services suppliers of which five suppliers have
their headquarters in India (George 2008). In the course of
this process, the preferred suppliers from India are expected
to gain a more important role.
The importance of local presence for the establishment
of trust among client and supplier seems indispensable;
particularly at the beginning of business relationships, faceto-face
meetings on a personal and frequent basis play an
essential role in India.
Local Presence
Without local presence, there will be no link between
the customer and the supplier. In this respect, IPOs and
CCs utilize their local presence very different. IPOs in India
build relationships with local suppliers on a more general
basis with the aim to identify a range of potential local suppliers.
A primary objective of IPOs is assessing potential
local suppliers’ capabilities and transferring the analyzed
information across the borders of India. The challenge for
IPOs is that they are themselves only facilitating communication
between engineers in Europe or the US and the
suppliers in India. However, very shortly after the initial
meetings the IPOs loses its function. A fact, that they are
very much aware of and often unnecessarily fight against
with negative consequences for the overall process efficiency.
In contrast, CCs utilize their local presence to additionally
strengthen their established relationships on a more
operational level building strong working relationships on
a project basis. This allows them to also spot quite fast the
potential weaknesses of their suppliers and take appropriate
actions.
The fact that Indian suppliers are often still considered
to be high-risk partners in the aerospace industry takes a
dominant role in the selection process of a sourcing structure.
Especially Indian ESO providers frequently outline
themselves the importance of having security systems and
secure channels for IP protection implemented. Engineering
services are only outsourced to suppliers if they can
prove sufficient capabilities and security systems.
Intellectual Property
One has to be very sensitive to the fact that most of the
information coming from a customer is bordering on IP and
it will always be a concern as to whether that IP is being infringed.
A high level of associated
supplier risks will probably
continue to deter firms of utilizing
an Indian ESO for offshoring
engineering services. On the
contrary, these risks strongly
reason investment efforts associated
with the establishment
of local CCs. Once having established
a local presence, these
offices substantially improve an
identification of potential sup-

Figure 3: Strategic Considerations: Objectives towards market
plier risks and at the same time enable the company to efficiently
provide trainings to suppliers of interest.
Objectives towards Market
For the aerospace industry, the interests in India are not
only the low-cost sourcing potentials of the market, but also
the current state and future growth opportunities of the local
customer market – and the related offset requirements
(Figure 3).
As confirmed in the IIM Bangalore study, the option to
leverage the lower cost-levels in India pertains as a motivating
driver for implementing all three sourcing structures –
but to a varying extend. An IPO enables to gain insights into
the local industry, its current conditions and developments,
and to create knowledge about the Indian supply base. CCs
allow not only to perform critical tasks internally at lowcost
levels in India but also to efficiently outsource lesscritical
tasks to local suppliers. The local presence through
a CC also supports the fulfillment of offset requirements in
India and serves as hedge against currency fluctuations in
other industrialized markets.
Nature of Engineering Services
In any case, the high complexity of aerospace engineering
services calls for a high degree of interaction between
client and supplier as the dispersed teams perform subtasks
for a final product or service. Meeting a client’s requirements
entails huge efforts from the suppliers as a
perfectly detailed and self-explanatory task descriptions
for engineering services remain
exceptional. Within this process,
one has to account for the
fact that some of the supplier’s
engineers in India may simply
not have gained sufficient experience
and domain knowledge
for interpreting the requirements
according to the client’s expectations.
The necessity of face-to-face
communication becomes also
apparent as one reflects upon
Aerospace Engineering Services
multiple visits and employee
exchanges that most ESO providers
conduct – not only in
the beginning of sourcing projects,
but also throughout the
complete engineering process.
Without a face to a name it is
very difficult for the supplier to
deliver anything as every customer
has a different process.
Still, the high interdependence
between sub-tasks and
the related degree of required interaction
and coordination between client and supplier often
hinders aerospace firms to consider direct offshore outsourcing
for engineering services.
Interaction between Indian Suppliers and the
Customer in Europe
It is very important that Indian suppliers interact with
the team in Europe (Figure 4). One needs interaction on a
daily basis. For establishing an IPO in India, the degree of
task interdependence plays a minor role – despite its ample
options to interact with local suppliers. As daily interaction
for sourced engineering services occur a high technical
level, most IPOs cannot provide the necessary technical capabilities.
Hence, if an IPOs’ responsibilities are not clearly
assigned this can hamper the efficacy of client-supplier coordination
efforts and the further development of buyersupplier
relationships. Since IPOs concentrate on supplier
market intelligence and the facilitation of business relationship
development for their internal clients (including the
engineers at headquarters), an involvement in (technical)
day-to-day discussions seems of little use – not even if the
IPO aspires to take a mediating role between the dispersed
teams.
When communication is started and channel through
two or three people, by the time it reaches the customer
or the person who has to answer the query, the meaning is
totally different. In addition, it always involves a time lag.
On the contrary, a CC enables direct face-to-face interaction
with local suppliers to coordinate the sourcing process of
engineering services on a daily basis.
Figure 4: Strategic Considerations: Nature of Engineering Services
S u p p l y Chain Management iii /2011 9

Aerospace Engineering Services
Conclusion
In any case, spatial proximity between the parties involved
in (outsource) offshoring engineering services is required
to prevent or quickly address arising challenges. At
the same time, a local presence supports the establishment
of a strong market presence towards clients in the Indian
aerospace sector and to gain local industry insights on a
technical and commercial level. The right sourcing structure
is therefore crucial to support Western aerospace companies
in India to achieve competitive advantages.
References
n Dossani, R., & Kenney, M. (2007). The next wave of globalization:
Relocating service provision to India. World
Development, 35(5) 2007, p. 772-791.
n George, B., Aerospace supply chain: Opportunities
for Indian suppliers, 2008, in: http://www.nasscom.
in/Nasscom/templates/NormalPage.aspx?id=55118,
Stand: 24.09.2011.
n NASSCOM, & Booz Allen Hamilton, Globalization of
engineering services: The next frontier for India, 2006,
in: http://www.boozallen.com/media/file/Globalization_of_Engineering_Services.pdf
, Stand: 24.09.2011.
Zusammenfassung
Das Sourcing von Ingenieurdienstleistungen aus Indien steht
immer mehr im Fokus der westlichen Luftfahrtunternehmen wie
European Aeronautic Defence and Space (EADS) und Boeing.
Die unter wachsendem Kostendruck stehende Luftfahrtindustrie
will dabei gleichermaßen von der wachsenden Flugzeugsnachfrage
in Indien und dem indischen Angebot von Ingenieurdienstleistungen
profitieren. Allerdings ist der indische Markt für entsprechende
Ingenieurdienstleistungen noch recht unterentwickelt.
Unternehmen haben daher zieladäquate (Out)Sourcingstrategien
zu entwickeln
Authors
CHRISTIAN KUKLINSKI, 1983, is completing his
Ph.D at the Automotive Institute for Management at
the EBS Business School, Wiesbaden.
PROF. DR. ROGER MOSER, 1977, is a Faculty Member
at the EADS-SMI endowed chair for Sourcing Supply
Management at the Indian Institute of Management
in Bangalore und Professor for Strategy and International
Management of Automotive Institute for Management
at the EBS Business School, Wiesbaden. He
consults companies with specific aspects of their business
expansion in India.
DR. ANDREAS WITTMER, 1973, is Managing Director
of the Center for Aviation Competence und Vice
President of Institute for Systemic Management und
Public Governance at the University St. Gallen. In addition
he is President of the Swiss Aerospace Cluster.
10
S u p p l y Chain Management iii /2011
Register of authors
Philippe Advani
EADS France
Phone +33 1 42242160
Email philippe.advani@eads.net
Eric Feuillassier
Dimension Data
Phone +33 53460-6214
Email eric.feuillassier@dimensiondata.com
Manfred Hader
Roland Berger Strategy Consultants GmbH
Phone +49 40 37631-4327
Email manfred.hader@de.rolandberger.com
Marc Helmold
Bombardier Transportation
Phone +49 3302 89-3240
Email marc.helmold@de.transport.bombardier.com
Christian Kuklinki
EBS Business School
Phone +49 611 7102-2062
Email christian.kuklinski@ebs.edu
Prof. Dr. Roger Moser
IIM Bangalore
Phone +91 99027609-38
Email roger.moser@iimb.ernet.in
Dr. Klaus Richter
Airbus SAS
Phone +33 5 61933333
E-Mail klaus.k.richter@airbus.com
Joerg Wahler
Roland Berger Strategy Consultants GmbH
Phone +49 711 3275-7225
Email joerg_wahler@de.rolandberger.com
Dr. Andreas Wittmer
Universität St. Gallen
Phone +41 224 3346
Email andreas.wittmer@unisg.ch
Dr. Alexander Schwandt
Roland Berger Strategy Consultants GmbH
Phone +49 30 39927-3570
Email alexander_schwandt@de.rolandberger.com

12
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S u p p l y Chain Management ii i/2011
Messe Berlin GmbH
Phone +49 30 30382116
www.isc-ila.com
Siemens AG
Phone +49 1805 444713
www.siemens.com/answers
Virginia Economic Development Partnership
Phone +32 26477433
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CONSULTANT
Managementberater
Berlin München Warschau Shanghai Chicago
2010
AVIATION
®

Summary
Success factors in the Aerospace Supply Chain
Key success factors in
aerospace supply chain
management
Manfred Hader, Jörg Wahler, Dr. Alexander Schwandt, Roland Berger Strategy Consultants GmbH
The growing strategic relevance of supply chain management
in the aerospace industry and the growing
complexity of supply chain networks enforces a
transition of the current responsive supply chain approach
towards an agile supply chain. Significant efforts and
changes in the collaboration between supply chain stakeholders
are needed to secure the success for the whole industry. Leading
OEMs have already started with this transition in their latest
programs. Given full order books, high pressure for a timely
ramp-up and increased cost pressure from global competition,
we expect that the leading OEMs will accelerate the transition
in the coming years.
Initial situation
The latest results of the 2011 Roland Berger Strategy
Consultants “Aerospace and Defence Top Management
Issues Radar” – our annual survey involving more than
110 top industry executives – underline that supply chain
management remains a core strategic challenge at the heart
of every company in the aerospace industry.
Increasing supply chain complexity
has resulted in continuous fire fighting activities
and increased resource needs. Con-
sequently more than 80 % of potential cost
reduction levers mentioned by the participants
of the survey are related to supply
chain activities (supplier management, manufacturing/
assembly efficiency improvement) [Roland Berger 2011].
These levers aim to reduce the Total Cost of Acquisitions
which represent in around two thirds of total costs of an
aerospace OEM.
To cope with the increasing supply chain challenges
we expect that the supply chain management approach of
leading aerospace players will evolve from a resource intensive,
responsive supply chain to an agile supply chain
that will leverage the intelligence of the whole supply
chain network through professionalized interfaces, synchronized
information, stronger IT systems, strict rules,
and enhanced trustworthy collaboration. To achieve this
evolution, our experience points to four main key fields of
action: Flow Management, Development of Supplier Portfolio,
Supply Chain Design and Development of Strategic
Suppliers.
In the following discussion we will present a strategic
framework for sustainable supply chain management development
as well as the related key success factors.
Methodology
The discussions and findings presented are based on the
results of the “Aerospace and Defence Top Management
Issues Radar” 2011 and two in-depth case studies [Roland
Berger 2011]. The survey was conducted in March – April
2011 and includes responses for more than 110 top managers
across six countries (Belgium, France, Germany, Italy,
Spain, UK). Participants represent 52 firms, covering a wide
range of business segments (commercial aeronautics, defence
& security, space). Approximately one third of the
participants are CEOs of leading companies on OEM, Tier-
1 and Tier-2 levels of the aerospace value chain. In depth
cases studies were conducted between May 2010 to August
2011 in the aerospace industry.
Today OEMs recognize that they are forced
to develop and implement new skills and toolboxes to
monitor, steer and support the complex supply chains.
Initial situation
Key players in the aerospace industry are struggling
with today’s complexity of their supply chain – e.g. Boeing
with ~70 % outsourced value creation of the 787 and
Airbus with an increased outsourcing proportion of ~50 %
for the new A350 XWB have both significantly increased
the work share for their top strategic suppliers who now
are involved earlier and act as risk sharing partners. Yet,
ramp-up of the new programs and supply chain performance
continue to be a huge challenge for all involved
parties.
S u p p l y Chain Management iii /2011 13

Success factors in the Aerospace Supply Chain
Introduction: Key priorities and general
industry trends and their impact on
supply chain management
Generally, in the post-crisis landscape, many A&D companies
have started to pursue growth strategies again. To
secure profitable growth and strengthen current market positions
the following priorities shape the companies’ agendas
and determine the challenges for supply chain management
(Figure 1) [Roland Berger 2011]:
n Consistently over the last 4 years program management
is #1 priority in companies agenda. Unprecedented number
of programs in the aerospace and defence industry
are in the development phase or early ramp up phase.
Due to increasing level of integration (e.g. risk sharing,
development partnerships, supplier pre-assembly,
platform integration concepts) program management
is seriously concerned with aligning development, and
industrial ramp up with supply chain partners. Today’s
resulting key challenge for supply chain management
is to move from a fire fighting mode to anticipation and
better managed interfaces.
n #2 priority in companies agenda is the market strategy/
globalization. The need to gain presence in rising stars
(e.g. China, Brazil, Russia) to address opportunities in
growing markets (e.g. Middle East for Defence & Security)
and to establish or maintain a low cost footprint
and balanced dollar cost base are key topics for the companies.
The impact on supply chain management is significant.
SC managers struggle to achieve an optimum
between cost targets, offset requirements, quality standards,
currency volatility reduction and operational efficiency.
The accelerated globalization – e.g. market and
production shift to Asia and Latin America – results in
significantly increased supply chain complexity.
#1
#2
#3
#4
14
2008 2009 2010 2011
>� Programme
Management
>� Market Strategy /
Globalisation
>� Supply Chain
>� External Growth /
PMI
>� Programme
Management
>� Market Strategy /
Globalisation
>� Flexibility
S u p p l y Chain Management iii /2011
>� Programme
Management
>� Market Strategy /
Globalisation
n Innovation and R&D efficiency is #3 priority and first
time in the top three priority list. Increasing competitiveness
and rising consolidation pressure as well as
shortening technological development cycles push this
topic on the agenda. Especially due to fact that research
and development responsibilities were pushed to subtier
suppliers, new challenges in managing joint design
processes and configuration changes occur in the supply
chain.
n The performance and efficiency of the supply chain itself
is ranked #4 priority in companies agenda and has consistently
been in the top priorities of the past years.
Concluding, key industry trends and priorities increase
strategic relevance and complexity of today’s supply chain
management. Therefore supply chain management evolves
to form the backbone of global aerospace organizations
[Schwandt, Franklin 2010].
In the following section we discuss how an appropriate
supply chain set-up and tool box needs to be designed to
enable increasing supply chain integration and collaboration
and master increasing complexity and cost pressure in
the aerospace industry.
Key success factors for supply chain
management in the aerospace industry
Today OEMs recognized that they are forced to develop
and implement new skills and toolboxes to monitor, steer
and support the complex supply chains and development
networks. Aerospace companies like Airbus increase efforts
to apply proven concepts from automotive industry to their
own supply chain. As presented in figure 2, the increasing
numbers of stakeholders in such supply and development
networks enforce different supply chain capabilities
reaching from optimization, integration, collaboration to
synchronization to master the
>� Programme
Management
>� Market Strategy /
Globalisation
>� Product Strategy >� Innovation and R&D
efficiency
>� Marketing & Sales >� Supply Chain >� Supply Chain
Figure 1: Top priorities in aerospace companies’ agendas [4 most frequent answers]
growing complexity [Baumgarten,
Thoms 2002].
While internal optimization,
which is only focused on a single
organization, has the lowest
capabilities to manage system
wide complexity, synchronization,
at the highest degree of integration,
focuses on complexity
in the whole network.
Supply chain synchronization
strives for full transparency
and availability of information,
joint optimization of processes
and interfaces and has
the highest capability to handle
complexity. Today’s aerospace
supply chain management is
mainly focused on improving
integration and collaboration
capabilities but it needs to get

Participants
Whole
network
Network-
partner,
Industry partner
Wholesaler,
Customer
1 st tier
Supplier
Own
Organization
Collaboration
Cooperation with defined
processes and rules
Integration
IT-based data exchange
with partners
Optimization
Internal supply chain
Low Medium
High
Mastering complexity capabilities
ready for a paradigm change to enable systematic synchronization.
Depending on the targeted supply chain capabilities different
configurations and tools need to be applied.
As shown in figure 3 supply chain configurations/typologies
can be distinguished along the two axes of “strategic
relevance of the SC” and “supply chain complexity” – Efficient,
Accurate, Responsive and Agile [Rappl, Schwandt
2010].
The efficient supply chain (I) is characterized by low
complexity combined with supply chain management
having a low strategic relevance for the organization. An
efficient supply chain is not a suitable typology for the
Success factors in the Aerospace Supply Chain
Synchronization
Cross network collaboration,
common, joint databases
Maximal
Figure 2: Supply chain management capabilities to cope with or master complexity
Strategic Relevance
High
Low
Accurate
Supply Chain
II
Efficient
Supply Chain
I
Agile
Supply Chain
IV
Responsive
Supply Chain
III
Low High
Complexity
Figure 3: Supply chain typologies
<
aerospace industry. Rather it is
a suitable typology for small,
closed systems, which are characterized
by a high level of control
and stability [Schwandt,
Franklin 2010].
The accurate supply chain (II)
is also characterized by low to
medium complexity, but where
the supply chain has medium to
high strategic relevance. In contrast
to the efficient supply chain
typology, a failure in the supply
chain can have significant impact
on the whole organization.
Hence, the supply chain management
has not only to comply
with efficiency requirements,
but it needs to be trustworthy,
reliable, and transparent. Redundancies
and safety stocks
are needed to secure continuous
supply. Specific measures, such
as quality or sustainability certificates, are required to secure
the accuracy of the products or resources. Nevertheless,
complexity remains low since production quantities are relatively
small, supplier basis is stable and development cycle
are moderately long [Schwandt, Franklin 2010].
The responsive supply chain (III) is characterized by
high complexity and low to medium strategic relevance.
The responsive supply chain has to cope with high levels of
uncertainty and diversity and needs to respond with flexibility
to unpredictable demands or events. A higher degree
of freedom in supply chain processes allows responding
more spontaneously and more individually to changing
situations. The low to medium strategic relevance is determined
by several factors:
n the level of external value creation is limited,
n resources or partners in the supply chain network are
interchangeable or redundantly available, or
n the products cycles are moderately long.
Responsive supply chains aim at maximizing the performance
for a specific and dominant partner in the supply
chain by increasing efficiency through defined processes
and rules [Schwandt, Franklin 2010].
The agile supply chain (IV) typology is distinguished by
high levels of supply chain complexity and by high strategic
relevance. A failure in the supply chain (or network) can
have significant impact on overall performance. Hence, the
requirements for control and reliability increase. Despite
this, the speed for rapid reaction enforces decentralized
decision-making, and high diversity and specificity of resources,
products, suppliers, and customers results in strategic
interdependencies that need to be managed as well
[Schwandt, Franklin 2010].
In the past the aerospace supply chain developed from
an accurate supply chain approach towards a responsive
S u p p l y Chain Management iii /2011 15

16
Success factors in the Aerospace Supply Chain
supply chain approach. High levels of quality and security
standards were secured by flexible and individual
solutions with different suppliers. Over the years increasing
supply chain resources were needed to manage operational
and strategic tasks and to cope with the growing
complexity. Since ramp-up of new programs is crucial to
secure the cash flow and margins, significant efforts were
put in place to solve rising supply chain challenges by
task forces, supplier on-site support teams, MAP teams
(mise au point) and other approaches. Consequently, the
total cost of acquisition increased. This years “A&D Top
Management Issues Radar” results underline this fact.
Participants stated that 41 % of targeted cost reduction
Today’s aerospace supply chain configuration is in
a transition from a responsive supply chain to an
agile supply chain.
levers are directly related to the supply chain (e.g. renegotiation,
reorganization of supply chain organization or
joint improvement programs). Another 41 % of targeted
cost reduction levers are indirectly related to the supply
chain and the management of suppliers as they are linked
to manufacturing and assembly efficiency improvement
[Roland Berger 2011].
Today’s aerospace supply chain configuration is in a
transition from a responsive supply chain to an agile supply
chain. Increasing quantities, shortening development
cycles and increasing cost pressure do not allow anymore
a fire fighting modus that was still feasibly in a responsive
supply chain configuration.
Synchronization
Cross network
collaboration, common,
joint databases
Collaboration
Cooperation with
defined processes
and rules
Integration
IT-based data
exchange with
partners
Optimization
Internal supply
chain
Accurate
Supply Chain
II
Efficient
Supply Chain
I
S u p p l y Chain Management iii /2011
Complexity
Low High
Agile
Supply Chain
IV
Responsive
Supply Chain
III
Low Medium High Maximal
Mastering complexity capabilities
Figure 4: Framework for designing high quality supply chains with adequate
capabilities to master complexity
New ways of interactions are needed to cope with the
growing complexity. As illustrated in figure 4, supplier
management in terms of collaboration and synchronization
needs to be enforced and supported by appropriate
technological solutions and processes [Schwandt, Franklin
2010].
Based our project experiences we identified four success
factors to strengthen supplier management and establish an
agile supply chain configuration (Figure 5):
1. Improve Flow Management between OEM and suppliers
in all stages of the Program life cycle by
n professionalizing interfaces through improved reporting
processes and end-to-end responsibilities,
n defining and applying strict and shared
rules (e.g. consequent design freeze dates,
shared and stable design rules in development
phases, clear quality and test procedure
definitions in industrialization preparation,
shared KPI definitions in production
phase),
n reducing volatility in the supply chain through more robust
planning.
2. Develop Supplier Portfolio by
n establishing transparent and reliable risk and performance
evaluation through shared assessment criteria’s
and early communication of bottlenecks,
n synchronizing information flow through suitable IT
solutions (e.g. PDM link systems, web based planning
tools, shared tracking and monitoring systems),
n setting a clear vision of target supplier portfolio.
3. Improve Supply Chain Design by
n focusing on key suppliers with the right capabilities,
n assessing robustness of the supplier network,
n leveraging best practices and
supplier know how through
High
Low
Strategic Relevance
the whole network.
4. Develop Strategic Suppliers
by
n establishing high degree of
trustworthy collaboration
(e.g. risk sharing partnerships,
joint improvement
programs, open book policy,
on-site representatives, joint
development plateaus),
n transferring knowledge by
co-location of critical teams
and ramp up supplier capabilities.
References
n Baumgarten, H., Thoms, J.,
Trends und Strategien in der
Logistik: Supply Chain im
Wandel, Berlin 2002.

•� Establishing high degree of
trustworthy collaboration
n Fischer, M.L., What is the right supply chain for your
product?, in: Harvard Business Review, March-April
1997, Reprint No. 97205, pg. 106-116.
n Rappl, T., Schwandt, A., Supply chain management: The
backbone of complex, global acting organizations, in:
Nedopil, C., Steger, U., Amann, W. (2010), Managing
complexity in Organizations: Text and Cases, Hampshire
2010, pg. 156-176.
n Roland Berger Strategy Consultants, Top Management
Issues Radar 2011 - European Aerospace & Defence
industry, http://www.rolandberger.com/media/
publications/2011-06-20-rbsc-pub-Top_Management_
Issues _ Radar_2011.html (2011).
n Schwandt, A., Franklin, J. R., Logistics: The Backbone for
Managing Complex Organizations, in: Kuehne Foundation
Book Series on Logistics 17, Bern 2010.
Success factors in the Aerospace Supply Chain
•� Professionalizing interfaces
through improved reporting
processes and end-to-end
responsibilities
Authors
Zusammenfassung
1
Die wachsende strategische Be-
Improve
Flow Management
deutung des Supply Chain Man- Man-
•� Transferring knowledge by
co-location of critical teams
•� Defining and applying strict and
shared rules (e.g. consequent design
freeze dates)
agements in der Luftfahrtindus trie
und die wachsende Komplexität
4
Supplier
2
•� Reduce volatility in the Supply
Chain through more robust
planning
der Zuliefernetzwerke erfordert
einen Wandel von dem aktuellen
Develop Strategic
Supplier
•� Focusing on key
suppliers with the right
capabilities
•� Assessing robustness of
the supplier network
•� Leveraging best practices
and supplier know how
through the whole network
Management
and
Development
3
Improve Supply
Chain Design
Develop Supplier
Portfolio
•� Establishing transparent and
reliable risk and performance
evaluation
•� Synchronizing information flow
through suitable IT solutions
•� Setting a clear vision of target
supplier portfolio
reaktiven Supply Chain Ansatz
zu einem agilen Supply Chain Ansatz.
Erhebliche Anstrengungen
und Veränderungen in der Zusammenarbeit
zwischen den Zulieferpartnern
sind notwendig, um den
Erfolg für die gesamte Branche
zu sichern. Führende OEMs haben
bereits diesen Wandel in ihrer
Figure 5: Key success factors for the aerospace supply chain management
neuesten Programme initialisiert.
Angesichts voller Auftragsbücher,
hohem Druck für ein rechtzeitiges Ramp-up und erhöhtem Kostendruck
durch den globalen Wettbewerb erwarten wir, dass die
führenden OEMs diesen Wandel in den kommenden Jahren noch
beschleunigen.
TOM HEINKEL
Geschäftsführung
MATTHIAS GEH
Recruiting
MANFRED HADER, b. 1965, is a Partner at Roland
Berger Strategy Consultants GmbH.
DR. ALEXANDER SCHWANDT, b. 1980, is a Senior
Consultant bei Roland Berger Strategy Consultants
GmbH.
JÖRG WAHLER, b. 1967, is a Principal at Roland
Berger Strategy Consultants GmbH.
LENA MACHATE
Recruiting
JOACHIM AGGER
Geschäftsleitung
S u p p l y Chain Management iii /2011 17

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Summary
Globalising the
The globalisation of the aerospace industry has now gathered
momentum: Newly emerged nations are providing
the foundations for a sustainable business proposition
both due to market size and increased industrial maturity.
This trend is reflected in the future Airbus procurement spend
profile: In general, the global spend will double from 22bn Euros in
2010 to more than 45bn Euros beyond 2020, of which the so-called
“rest of the world” outside of Europe will have a significant share.
In order to sustain this growth as well as to consolidate an optimal
economic proposition, Airbus remains steady-on-course with the
ambitious globalisation road-map it has set over the past years. The
company has put in place a set of strategic responses and organisational
enablers to address globalisation challenges at the various
stages of the procurement process, from market analysis to implementation
support. A specific dedicated organisation, the “Global
Sourcing Network”, including the establishment of so-called Country
Sourcing Offices, such as India and China, reinforces the support
of the regions. Airbus is confident that, by focusing its efforts
and setting up the right organisational support, it will improve its
overall business proposition through global sourcing.
Initial situation
As Western economies are still affected by one of the
worst economic global crises, the commercial aerospace in-
Global Aerospace Supply Chain
Aerospace Supply Chain:
The Airbus Approach
Dr. Klaus Richter, Airbus SAS, Philippe Advani, EADS
2001
1,575 aircraft worth $130bn
Figure 1: Airbus order book evolution 2001 to 2011
2011
4,233 aircraft worth >$500bn
dustry, surprisingly, has been spared by these trends. Driven
by the sustained growth of Asian economies and the
timely development of well-positioned programmes, the
Airbus business outlook remains positive with an expected
continuous growth in revenues. Boosted by the unprecedented
sales success for the A320neo (new engine option),
Airbus raised its overall backlog to currently over 4,000
aircraft, worth more than 500bn$ and representing more
than seven years of production output (Figure 1). At the
same time, in light of make-to-buy strategies put in place,
procurement increasingly gains in importance for Airbus,
representing 75 % of the company’s cost base today, compared
to 50 % in the 1990s.
In order to sustain this growth as well as to consolidate
an optimal economic proposition, Airbus remains steadyon-course
with the ambitious globalisation road-map it has
set over the past years.
This article aims at describing the rationale behind it,
while exposing the challenges and modus operandi that has
been put in place to carry out this programme.
Globalisation Drivers
The Western aerospace industry has developed tightly
around its North American and European hubs. In the early
2000’s, roughly three quarters of Airbus’ procurement
footprint was originating from
North America
Europe
Africa
Middle East
Latin America
Asia/Pacific
Lessors
Western Europe while a small
quarter was originating from
North America.
Very limited sourcing volumes
were spread across the
world, mainly by market access
considerations dubbed as offsets
in several countries. Dating back
to the post-war period (the 1960s
in India, the 1970s in China, …),
these efforts were driven by governments
in search of strategic
self-reliance and centred around
government-controlled national
champions. Although the role of
S u p p l y Chain Management iii /2011 19

20
Global Aerospace Supply Chain
Average
Average
cost
cost
of labour
of labour
per
per
hour
hour
in US$.
in US$.
2011
2011
INDONESIA 0,8
INDONESIA 0,8
SRI LANKA
0,9
SRI LANKA
0,9
EGYPT
1,1
EGYPT
1,1
PHILIPPINES 1,2
PHILIPPINES 1,2
ECUADOR
1,8
ECUADOR
1,8
THAILAND 2
THAILAND 2
PERU 2,1
PERU 2,1
MEXICO
2,3
MEXICO
2,3
UKRAINE 2,5
UKRAINE 2,5
AZERBAIJAN 2,5
AZERBAIJAN 2,5
INDIA 2,9
INDIA 2,9
CHINA 2,9
CHINA 2,9
TURKEY 3,2
TURKEY 3,2
VENEZUELA 3,6
VENEZUELA 3,6
COLOMBIA 3,8
COLOMBIA 3,8
KAZAKHSTAN 4
KAZAKHSTAN 4
RUSSIAN FEDERATION 4,6
RUSSIAN FEDERATION 4,6
CHILE 4,6
CHILE 4,6
BULGARIA 4,9
BULGARIA 4,9
ARGENTINA 4,9
ARGENTINA 4,9
MALAYSIA 5,4
MALAYSIA 5,4
ROMANIA 5,5
ROMANIA 5,5
HONG KONG 5,5
HONG KONG 5,5
TAIWAN 7,4
TAIWAN 7,4
BRAZIL 7,8
BRAZIL 7,8
PORTUGAL
9,1
PORTUGAL
9,1
HUNGARY
10,3
HUNGARY
10,3
SLOVAKIA
10,5
SLOVAKIA
10,5
SINGAPORE
11,7
SINGAPORE
11,7
POLAND
12,3
POLAND
12,3
CZECH REPUBLIC
15,1
CZECH REPUBLIC
15,1
ISRAEL
15,5
ISRAEL
15,5
KOREA, REP. OF
15,7
KOREA, REP. OF
15,7
GREECE
21,6
GREECE
21,6
NEW ZEALAND
21,9
NEW ZEALAND
21,9
SPAIN
23,8
SPAIN
23,8
UNITED KINGDOM
25,6
UNITED KINGDOM
25,6
UNITED STATES
27,4
UNITED STATES
27,4
JAPAN
28
JAPAN
28
FRANCE
32,1
FRANCE
32,1
ITALY
32,5
ITALY
32,5
CANADA
33,4
CANADA
33,4
IRELAND
34
IRELAND
34
NETHERLANDS
37
NETHERLANDS BELGIUM
37 39,3
BELGIUM
39,3
GERMANY
40,3
GERMANY FINLAND
40,3 40,4
FINLAND
40,4
AUSTRIA
41
AUSTRIA
41
SWEDEN
43
SWEDEN
43
AUSTRALIA
45,6
AUSTRALIA
45,6
SWITZERLAND
47,5
SWITZERLAND DENMARK
47,5 47,6
DENMARK
47,6 59,4
NORWAY
59,4
NORWAY
0 10 20 30 40 50 60
0 10 20 30 40 50 60
© Reproduced by permission of the Economist Intelligence Unit
Figure 2: Labour cost and sustainability of cost advantage
the state has progressively decreased in importance, especially
with regards to the control of commercial airlines, an
increasing number of nations have bartered access to their
markets for local added value. Apart from giants like China,
which has carefully mapped technology infusion in its aerospace
supply chain, a multitude of nations are set on this
path – either as an effort of industrial consolidation (Brazil,
Malaysia, Korea, Turkey) or diversification (United Arab
50
Emirates, Kazakhstan or Vietnam).
45
However, value for cost has emerged progressively as
a leading driver for aerospace globalisation and this for 40
several reasons: Beyond massive labour cost arbitrage 35
(Figure 2), policies driven by market access have not only
30
successfully provided fundamental aerospace capabilities
25
in emerging countries, but these are now actively tapped
and leveraged by the emerging private sector. India is 20 a
point in case, where private business houses are building 15
an independent industry by tapping aerospace engineers
10
from national champion HAL or government labs such as
5
NAL or DRDO and blending them with low cost labour and
established private sector productivity. These joint trends 0
converge towards fostering a genuinely competitive proposition
from third countries in aerospace, following the pattern
of other industries (automotive, power etc.).
S u p p l y Chain Management iii /2011
A third leading driver for globalisation of the Aerospace
industry has been access to rare resources. While raw materials
are controlled by oligopolies in the upstream part
PLEASE of the aerospace NOTE: supply The chain, following engineering resources have
acknowledgement become scarcer in the line Western has world to be as young engineers
mentioned:
are progressively less attracted to the manufacturing world.
Globalisation usefully contributes to addressing these is-
© sues Reproduced with countries by such permission as Russia or of Kazakhstan the for Tita-
Economist nium, and India, Intelligence and even the Unit. USA, for engineering.
A fourth globalisation driver relates to risk management:
Commercial aviation remains a Dollar-dominated industry.
Whereas over 80 % of Airbus sales are denominated in
Dollars, only two thirds of its procurement is, leading to
a net exposure of roughly €10bn. Globalisation offers the
potential to reduce this gap. The erosion of the US$ as the
predominant reference currency will provide opportunities
to diversify progressively sales denominations. Apart from
risk of currency fluctuations, Airbus adjusts its globalisation
targets in order to minimise its exposure to classical
risks and boundary conditions such as geopolitical, factor
cost inflation, loss of intellectual property and supply chain
risks.
It is through regular review of and arbitration between
these drivers that Airbus has defined its globalisation targets.
PLEASE NOTE: The following
acknowledgement line has to be
mentioned:
© Reproduced by permission of the
Economist Intelligence Unit.
Airbus Global Sourcing Vision 2020
Airbus has incorporated global sourcing targets in its strategic
road-map “Vision 2020” (Figure 3). At the beginning
of its global sourcing programme, Airbus sourced roughly
a third of its spend (including engines) from beyond Western
European borders. This spend originated predominately
from the US, while the share of third countries was very limited.
By 2020, Airbus intends to source, whether directly or
indirectly, about half of its procurement spend from beyond
Western Europe: The share of the US spend is to increase
marginally in relative terms and representing a doubling in
absolute terms. The share of third countries is to represent
Bn� Challenges
�� Market Access
RoW
�� Value for Cost
USA
�� Risk Management
W. Europe �� Access to Resources
22bn
45+bn
2010 2020
Figure 3: Airbus global sourcing evolution to 2020

close to 15 %, i.e. an annual spend of about €6bn, with a
significant contribution to originate from indirect sourcing,
whether through the foreign subsidiaries of Western suppliers
or the volumes they procure from those countries.
For Western Europe, the scenario would still represent an
increase in absolute figures over the decade.
The Airbus Approach to the Global
Sourcing Challenge
In the case of aerospace, one of the primary challenges
linked to global sourcing is the maturity of the supply chain.
The hurdle of technological complexity is compounded by
stringent certification requirements and high upfront investments.
For this reason, only a segment of the Airbus spend –
aerostructures, materials, engineering – is adapted to direct
off-shoring. Conversely, propulsion, systems & equipment
contribute mainly indirectly through the upstream part of
the supply chain (mechanical parts, electronic components,
sub-assemblies). In all cases, developing new suppliers requires
an active involvement of customers.
A second major hurdle is the sheer size of the industry.
Although aerospace enjoys a reputation of advanced technology
and strategic value, the total turnover of the industry
is a fraction of that of the automotive industry. The question
for, say a large Indian forging house, is not to tie-up
capacity with one or the other aerospace OEM, but rather to
compare the interest of investing into aerospace rather than
in the automotive or power industry.
A third issue relates to consistency with other aspects of
the procurement policy such as the overall consolidation of
the supply chain. The top 20 equipment suppliers of Airbus
represent 91 % of the company’s equipment spend. They
were 40 suppliers ten years ago. Similarly, it is the policy
of Airbus in the field of aerostructures to shift from smaller
build-to-print towards larger design-and-build packages
entrusted to larger risk sharing partners.
Airbus has put in place a set of strategic responses and
organisational enablers to address these challenges at the
various stages of the procurement process:
Preparation
A significant effort has been devoted to understanding the
markets, analysing the capability & capacity of current players
and potential new entrants as well as the policy framework
in which they operate. A thorough country screening
process and supplier screening process have been elaborated
and have been instrumental in the identification of global
sourcing targets whether in terms of countries or partners. It
is the policy of Airbus, in complement to its strong relationship
with large public players, to pro-actively develop its relationship
with local private sector players with the objective
to build consistent aerospace clusters in strategic countries.
Focus & Guidance
This preparation work allows providing focus and guidance.
Airbus Call for Tenders have to systematically take
Global Aerospace Supply Chain
into account global sourcing opportunities. Call for Tenders
are directed towards only very few relevant future partners
which are intensively supported by local Airbus teams to
ensure compatibility of requirements and understanding.
An illustration is the Engineering Services procurement
policy which has inducted Indian engineering companies
in its core list of suppliers. Similarly, Airbus has worked
closely with its Western Suppliers to provide convergence
on country priorities and supports tie-ups between them
and the local industry. The associated efforts are planned
in advance and taken into account in the business case of
globalisation.
Implementation Support
A significant effort is placed on the deployment of systems
and resources to ensure a satisfactory implementation.
Field engineers are deployed in strategic countries to ensure
supplier development and surveillance. Special efforts
are dedicated to the most hopeful new suppliers.
Dedicated Organisation
Airbus has set-up a dedicated organisation named
“Global Sourcing Network” (GSN) to orchestrate and support
the execution of its globalisation road-map. The organisation
– approximately 100 people spread across the key regions
and evenly split between commercial representatives
and dedicated supply chain experts – is founded on a set of
Country Sourcing Offices (India, China, North America, …)
coordinated by a central team which provides consistency
to the approach and linkage to the central procurement
organisation as well as current Western Tier 1 suppliers.
Whereas the population of Airbus is still Eurocentric, GSN
is staffed predominantly by citizens of new target countries.
The Country Sourcing offices cover the end-to-end procurement
process in support of the Airbus central procurement
organisation. Depending on the business maturity of Airbus
with each country, the stress is laid on up-stream (strategy
definition and monitoring/procurement marketing/call
for tender & negotiation support) or down-stream (supply
chain and quality) task range. Training programmes have
also been put in place to increase the exposure of European
teams towards the new challenges of globalisation.
Concluding remarks
The specifics of the aerospace industry, such as technological
complexity, certification constraints, long–lead times
and a strong dependency on home defence budgets, have
made it enter later than others on the path of global sourcing.
However, the globalisation of the industry has now
gathered momentum: Newly emerged nations are providing
the foundations for a sustainable business proposition
both due market size and increased industrial maturity.
If uncertainties remain, for example regarding factor cost
inflation, several countries have remarkably adjusted by
increasing productivity, or relocating towards lower tier regions.
Airbus is confident that, by focusing its efforts and
S u p p l y Chain Management iii /2011 21

22
Global Aerospace Supply Chain
setting up the right organisational support, it will improve
its overall business proposition through global sourcing.
The fact that the decade-long programme Vision 2020 is
currently on track reinforces this confidence.
Zusammenfassung
Die Globalisierung der Luftfahrtindustrie hat Fahrt aufgenommen:
Die Schwellenländer stellen dabei die Grundlage für
eine nachhaltige Geschäftsentwicklung, sowohl bezüglich Marktgröße
als auch zunehmender industrieller Reife. Dieser Trend
zeigt sich im zukünftigen Airbus-Beschaffungsprofil: Die globalen
Ausgaben werden sich von 22 Milliarden Euro in 2010 auf
mehr als 45 Milliarden Euro in 2020 verdoppeln, davon wird
der so genannte „Rest der Welt“ außerhalb Europas einen beträchtlichen
Anteil haben. Um dieses Wachstum zu stützen und
eine optimale Geschäftsaufstellung zu erreichen, ist Airbus mit
einem ehrgeizigen, in den letzten Jahren aufgestellten Globalisierungplan
auf Kurs. Das Unternehmen hat eine Reihe von strate-
Hönigsberg & Düvel Datentechnik GmbH
August-Horch-Str. 1 | 38518 Gifh orn
Tel. 05371 960-0 | www.hud.de
S u p p l y Chain Management iii /2011
gischen Antworten und organisatorischen Enablers entwickelt,
um die Herausforderungen der Globalisierung während der verschiedenen
Procurement-Prozessphasen anzugehen – von Marktanalyse
bis hin zu Implementierung reichend. Eine spezifische
Organisation, das „Global Sourcing Network“, einschließlich der
Einrichtung so genannter Country Sourcing Offices wie Indien
und China, verstärkt die Unterstützung der Regionen. Airbus
ist davon überzeugt, dass Geschäftsverbesserungen durch globale
Beschaffung über fokussierten Einsatz und die richtige organisatorische
Aufstellung erreicht werden können.
Authors
Engineering Services for Aerospace Industries
Global IT-Infrastructure Projects
Corporate SAP Development & Testi ng
Shopfl oor IT Services (IT & Automati on)
PHILIPPE ADVANI, born in 1962, is Vice President
EADS/Airbus Global Sourcing Network at EADS in
Paris.
DR. KLAUS RICHTER, born in 1964, is Executive
Vice President Procurement at Airbus SAS in Toulouse.
Integrated IT Services for Aerospace Industries –
Our solutions let you take off!

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06630

Summary
A stable,
IT Globalisation
on Wings of Steel
Eric Feuillassier, Dimension Data
yet flexible global IT solutions and services
partnership can help multinational manufacturers
leverage the advantages of shifting elements of their
supply chain into new territories, but without crossborder
business costs and risks taking to the skies. This is an important
lesson to be learnt from a large aircraft builder, as it rallies
to position itself competitively within booming emerging markets.
A strategic focus for this organisation is executing on a sound
unified communications and collaboration strategy that will
help its employees work together seamlessly over an increasing
amount of international borders. This underscores the importance
of collaboration with its global IT partner of choice, Dimension
Data, who’s not only able to match the manufacturer’s international
footprint closely, but also helps to provide greater visibility
and control over each part of its value chain through processes of
systems integration and consolidation. All of this, while catering
for the client’s unique requirements with a flexible services model,
orchestrated globally, yet delivered locally.
Initial situation
To be an aircraft manufacturer in this day and age is to be
caught in a unique set of paradoxes. These organisations are
influenced, first of all, by market forces from two business
realms: on the one hand, they’re part of the highly competitive
global manufacturing and automotive industry, which
Figure 1: Aircraft manufacturers are part of the highly competitive global
manufacturing industry
Globalisation needs flexible services model
is constantly pushing into new territories in order to save
costs and capture new markets. On the other hand, their
lot is tied in with the aviation and transport industry. If
airlines suffer under tough economic conditions that harm
air travel and transport, this inevitably influences their purchase
decisions with aircraft manufacturers when ordering
new aircraft and procuring supporting services.
Another, somewhat ironic paradox that aircraft manufacturers
are dealing with is the significant pressure currently
felt by all global organisations to cut down on the
amount of national and international travel they undertake
to do business. This pressure stems from a range of sources,
not only from a growing, worldwide awareness of ‘green’
sustainability and the need to meet increasingly stringent
carbon footprint regulations, but also from economic considerations,
such as the skyrocketing cost of fuel. It has simply
become too expensive to send employees around the
world for reasons that aren’t absolutely crucial – even in organisations
directly linked to aviation, who are themselves
turning a critical eye on unnecessary travel.
To complicate matters, some manufacturing clients have
a stake not only in commercial aviation, but also in building
and supporting aircraft and equipment for military use,
as well as for space-oriented projects such as rockets and
satellites. These less visible, yet important areas of business
come with a completely different set of challenges and concerns
than those of building commercial aircraft, not least
of which revolve around official accreditation and compliance,
systems security, and the
handling and storage of politically
and strategically sensitive
information.
New territories
Against this complicated
industry background, a wellknown
global aircraft manufacturer
and longstanding client
of Dimension Data recently set
itself the strategic challenge of
shifting as much as one-fifth of
its supply chain business into
the so-called BRIC emerging
markets, particularly India and
China. This strategy is motivated
mainly by three factors: first-
S u p p l y Chain Management iii /2011 25

26
Globalisation needs flexible services model
ly, the costs of both labour and materials are considerably
lower in these countries, translating to potentially significant
savings in their procurement. Secondly, the exploding
population counts of these nations are set to become strong
market growth points for air travel in future. Where there’s
a greater need to fly, there’s also a growing demand for new
and expanding airlines and new aircraft. Also thrown into
this mix is the increasing political and international maturity
of these countries, leading to a growing need to expand
their military capabilities and technologies to ensure national
security and protect their borders. For this aircraft
manufacturer, the expansion into new territories therefore
makes perfect business sense, but it’s never as simple as it
may seem.
Risks and challenges
Establishing and conducting business in developing
countries come with an unavoidable set of risks and challenges,
whether from an operational or technological perspective.
The client is particularly mindful
of the possibility that, in setting up new
manufacturing plants, there might be a lack
of technical know-how in a target country,
skills which are necessary to run the operation
far removed from the intellectual centre
of the organisation. The further away and
more foreign the territory, the more pressing the need for
training becomes, as not all expertise can be imported from
headquarters.
In addition to this, the further away the new division is,
the greater the distance from the management and decisionmaking
core of the organisation, which makes efficient and
globally orchestrated corporate governance all the more difficult.
When the manufacturer chooses to offshore some of
its planning, designing and procurement, it needs to make
sure that these aspects still align with its overall corporate
vision, strategy and operational processes. All of this, while
Figure 2: Video conferencing leverages employees´ global collaboration
S u p p l y Chain Management iii /2011
the cost of international travel is kept at an absolute minimum.
The need is therefore great to create and sustain ways
of working together effectively across borders, which is
supported by the manufacturer’s sound and unified communication
and collaboration strategy.
Technology support
One of this organisation’s first IT priorities was therefore
to put a strong platform in place that could seamlessly
support their employees’ global collaboration – whether
through voice calls, video conferencing, desktop sharing,
or any other IP-based method. The organisation saw it as
essential to establish, support and manage a corporate network
that’s not only available 24x7, but also robust enough
to deliver an acceptably consistent quality of service. These
objectives were achieved recently with the help of Dimension
Data. After a major drive to rationalise the support
of its network and consolidate service delivery through a
single service provider, the manufacturer implemented a
Especially because of the high cost for international
travel, the need is great to create and sustain ways
of working together effectively across borders.
fully managed network solution across the entire corporate
infrastructure with continual life cycle management, delivering
an average availability of 99.99 %
Network support and management challenges are not
unknown to international organisations of all kinds. But,
in addition to these, there are special factors further complicating
the IT requirements of an aircraft manufacturer,
which had to be taken into consideration. Chief among
them is the extraordinary length of time over which specific
sets of information must remain accessible and secure
within the client’s environment. To design and build a new
long-haul commercial aircraft
can easily take in excess of two
decades. And then, after delivery
to the customer has taken
place, there’s an average of another
20 years of service left,
during which the aircraft is to
be fully supported. Two decades
ago, the IT landscape was
a completely different world
compared with today, and will
develop and change even more
rapidly in the decades to come.
Yet, the data associated with all
the aircraft designed and built
by the manufacturer during this
time needs to retain its integrity
in every way, while migrating
smoothly and seamlessly, from

one decade to the next, with the ever-evolving data platforms
and devices used to store, access and share information.
This creates challenges for this client from a technology
investment point of view. While investing heavily in one
particular type of data storage and management technology,
it’s already aware that the rapid pace of IT evolution
will compel it to refresh these platforms or devices relatively
soon afterwards, leading to questions concerning the
integrity and security of data linked to aircraft still in service.
Not far into the future, this information would need to
be migrated again, with minimum effort and risk, to newer,
fresher, faster storage and data centre solutions.
Valued partnerships
Given these circumstances, it’s not only essential that an
international IT services provider´s footprint as the aircraft
manufacturer’s global technology partner is broad enough
to follow its client’s drive into emerging markets, but also
crucial that the full range of technology services we provide
– from consulting, to implementation, to support and managed
services – remain flexible and client-centric enough
to facilitate the idiosyncrasies of this client’s particular
environment . There’s simply no space for a one-size-fits-all
approach.
More specifically, this aircraft manufacturer has drawn
particular advantage from our ability to offer the following:
Global orchestration, local delivery
As a global IT service provider, we created and manage
a fully functional, services-led virtual business unit within
our organisation, focused specifically on understanding the
needs and challenges of clients within this industry sector,
as well the overall corporate objectives and strategies of individual
customers. This business unit also draws together
and orchestrates skills and expertise from all over world to
deliver the required services seamlessly in whichever country
or region they’re needed.
A single point of contact
This removes the need to deal with a range of solutions
and service providers in various regions, and simplifies
both the financial and operational environment of the client
considerably. It also allows for greater standardisation of
service levels across the entire corporate network.
Multivendor, multidisciplinary expertise
Legacy systems and technologies are part of any global
organisation’s environment – also for this aircraft manufacturer.
Service delivery processes must therefore include
consolidation and integration services across the majority
of them, and this is where strategic partnerships between
the systems integrator, and key technology vendors, such
as Cisco and Microsoft, come into play in anything from
network management hardware and software, to data centres,
to IP telephony. The stronger those relationships are
Globalisation needs flexible services model
in terms of certifications and partnership recognition, the
more skills and expertise an IT integrator can bring to bear
on its services-led projects in every region and country.
Ultimately, it is the responsibility of the global IT services
and solutions partner of today to help its multinational
manufacturing clients to communicate and collaborate
seamlessly among regional and local divisions, share
knowledge across departments and maximise and capitalise
on procurement and logistics platforms in new market
territories. In the growing absence of international travel,
the IT partner becomes the new wings of steel on which to
cross international borders.
Zusammenfassung
Eine stabile, aber anpassungsfähige Lösungs- und Servicepartnerschaft
kann international tätigen Herstellern helfen, die
durch die Verlagerung von Elementen ihrer Lieferkette in neue
Gebiete erzielten Vorteile noch weiter auszubauen, ohne zusätzliche
grenzüberschreitende Geschäftskosten oder Risiken. Diese
wichtige Lektion kann man von einem großen Flugzeughersteller
lernen, der sich immer schneller wettbewerbsfähig in wachsenden,
aufstrebenden Mäkten positioniert. Ein strategischer Fokus
dieser Organisation liegt darauf, eine funktionierende, einheitliche
Strategie für Unified Communication und Collaboration
umzusetzen, die ihren Mitarbeitern helfen wird, nahtlos über
immer mehr Landesgrenzen hinweg zusammenzuarbeiten. Das
unterstreicht die Wichtigkeit der Zusammenarbeit mit seinem
globalen Servicepartner, Dimension Data, der nicht nur seine
internationle Präsenz abdecken kann, sondern dem Unternehmen
auch durch Konsolidierung und Systemintegrationsprozesse
hilft, mehr Übersicht und Kontrolle über seine Wertschöpfungsketten
zu erlangen. Dies geschieht auf der Basis eines flexiblen
Servicemodells, das Dienstleistungen global steuert, aber lokal
zur Verfügung stellt.
Author
ERIC FEUILLASSIER is the Client Executive for
Dimension Data responsible for managing a specialised
internal business unit that services large, multinational
clients from the aeronautical, defence and space
aviation industry. In addition to his management responsibilities,
he oversees the operational aspects of
the various projects that are currently underway and
acts as a central point of contact between Dimension
Data and these specialised manufacturers.
S u p p l y Chain Management iii /2011 27

Event Calendar
Events Calendar
November 2011 to March 2012
AVIATION FORUM
19. bis 20. Oktober 2011, Hamburg
Institut für Produktionsmanagement / IPM GmbH
Phone +49 511 47314790
www.ipm-scm.com/AFO
28. Deutscher Logistik-Kongress
19. bis 21. Oktober 2011, Berlin
Bundesvereinigung Logistik e.V.
Phone +49 421 173840
www.bvl.de
Supply Chain World Europe
23. bis 25. Oktober 2011, Amsterdam
Supply Chain Council
Phone +1 202 9620440
www.supplychainworld.org
World Air Forum (WAF)
27. bis 28. Oktober 2011, Amsterdam
Airline Business
Phone +44 208 652 2180
www.waf2011.com
AIRTEC 2011
02. bis 04. November 2011, Frankfurt am Main
Airtec GmbH & Co. KG
Phone +49 931 30838217
www.airtec.aero
Supply Chain World East Asia
08. bis 09. November 2011, Singapur
Supply Chain Council
Phone +1 202 9620440
http://supply-chain.org
MRO Asia
08. bis 10. November 2011, Peking
Aviation Week
Phone +212 904 3225
www.aviationweek.com
28
S u p p l y Chain Management ii i/2011
Dubai Airshow 2011
13. bis 17. November 2011, Dubai
F&E Aerospace
Phone +44 20 88462927
www.dubaiairshow.aero
CeMAT INDIA 2011
06. bis 09. Dezember 2011, Bangalore
Hannover Milano Fairs India Pvt. Ltd
Phone +49 511 8932113
www.cemat-india.com
Aircraft Interiors Middle East (AIME)
01. bis 02. Februar 2012, Dubai
F&E Aerospace
Phone +44 20 88462700
www.aime.aero
MRO Middle East
01. bis 02. Februar 2012, Dubai
Aviation Week
Phone +44 20 71766233
www.aviationweek.com
Singapore Airshow 2012
14. bis 19. Februar 2012, Singapur
Experia Events Pte Ltd.
Phone +65 6542 8660
www.singaporeairshow.com.sg
Avionics and Defense Electronics Europe
21. bis 22. März 2012, München
PennWell
Phone +44 1992 656619
www.avionics-event.com
Aircraft Interiors Expo
27. bis 29. März 2012, Hamburg
Reed Exhibitions, Hamburg Messe
Phone +44 208 2712174
www.aircraftinteriorsexpo.com
AVIATION

Summary
Launch Management –
Launch Management
Lean Principles in the Strategic
Supplier Management
Marc Helmold, Bombardier Transportation
The purpose of this paper is to outline the needs to apply
and transfer lean principles for developing ideal supply
networks. It was believed by various experts from
industry and academia that current supply networks
were possibly showing waste and non adding value activities
in certain process steps due to severe and costly supply disruptions
in recent years. This paper will be helpful to academics and
practitioners who work both with supply networks and supplier
relationship management (SRM) and with current purchasing
and SRM practices. Reduced manufacturing depths lead automatically
to higher dependencies on suppliers and supply networks.
Although numerous companies already introduced lean
principles, these techniques have not yet been rolled out to the
upstream supply chain. Lean principles must be a integral part
of the strategic supplier management. Companies can thus differentiate
and gain the egde over their competitors. Studies and
empirical data show that the transfer of lean processes to the supply
network lead to significant advantages in terms of quality,
cost and delivery performance.
Upstream Supply Chain Management
Recent trends like the increasing
outsourcing activities, the
ongoing globalization and the
increased activities towards the
concentration on core competencies
have led to more and more
complex supply interdependencies.
The activities carried out by
the organisation itself regularly
account for only 20 percent to 30
percent of its total performance.
As a result, supplier relationship
management (SRM) and
supplier network management
have become more important in
peripheral business areas. With
the increased dependency on
supplier networks as shown in
Figure 1, companies have also
Tier 3
Supplier
Tier 2
Supplier
aggravated a huge amount of risk considerably towards the
upstream supply chain. The picture shows the supply chain
in the area of suppliers and customers.
This fact is also emphasized by Hendricks & Singhal
(2008), who identified that enterprises without operational
slack and redundancies in their supply chains experience
negative stock effects. They showed in the quoted articles
the tremendous impacts of supply chain risk disruptions on
stock price performance and shareholder value. Their studies
show that such disruptions can lead to an abnormal stock
price return of minus 40 percent. The typical challenges and
issues raised in the existing literature are very similar and
raise amongst others the following important questions:
n How to avoid supply disruptions through supplier management?
n How are supplier networks activities adding value?
n What are critical success factors of keiretsu supply networks?
Surveys and empirical data point out that there is still a
gap in practice, the role of SRM and the application of lean
and other principles to multi-layer supply networks [Dust/
Helmold 2009].
Value adding activities consist in many companies of
about 20-30 percent. Original equipment manufacturers
Tier 1
Supplier
The
Organisation
Tier 1
Customer
Supply Side Demand Side
Tier 2
Customer
Upstream Supply Chain Management Downstream Supply Chain Management
Figure 1: Upstream Supply Chain Management
S u p p l y Chain Management iii /2011 29

Launch Management
(OEM) are permanently outsourcing activities and services
to suppliers as proven by the Mercer Management
Consulting and the Frauenhofer Gesellschaft in their survey
“FAST” [FAST 2015]. The study shows that the trend
towards non core competencies to suppliers will increase
from 65 percent to 77 percent in 2015. As a result the core
competencies and value adding activities will decrease to
less than 25 percent on average.
Concept and implementation
As a consequence only lean enterprises with a flexible
and lean supply chain can survive in this environment. As
a matter of fact, many companies have introduced already
lean principles, but have not yet applied
this concept to their suppliers [Liker 2004].
This should convince companies to do so.
Every crisis means also an opportunity to
introduce new concepts and paradigms. In
the Japanese language the term “crisis” also
means “opportunity” or “chance”. The lean
concept was developed by Taichi Ohno [1990], who worked
for Toyota Motors. It derived from a bundle of instruments
which come from sophisticated production methods or
supporting functions like logistics [Liker 2004]. The ideal
interplay and optimal combination of all instruments are
essential for success. The vision of lean production is based
on the Just-in-Time (JIT) philosophy and the Toyoto Production
System (TPS) as shown in Figure 2 and focuses on
the elimination of waste and the minimization of stock.
In contrast to the traditional paradigm the objectives of
keiretsu supplier networks and lean production are based
on a reduction of throughput times and the elimination of
non value adding activities. These activities are waste or
so called “MUDA”. Figure 2 shows the two concepts, the
traditional and the lean one. Both concepts are directed towards
customers.
30
Traditional
Approach
Large
Inventory
=
High
Delivery
Capability
Customer
Orientation
��
Figure 2: Lean Production appproach
Lean
Thinking
S u p p l y Chain Management iii /2011
Short
Cycle Times
=
Optimal
Reaction
Capability
Customer
Orientation
Nevertheless the lean concept´s foundation is based on
the optimal reaction capability and not based on inventories.
Inventories are increasing the cost of capital and have
negative impacts on the shareholder value, whereas short
cycle times lead to small inventories.
Practical examples by Porsche Consulting [Porsche 2009]
show that the introduction of the TPS led to radical improvements
in terms of errors and defects per car (quality),
serial completion time (cost and productivity) and inventory
(logistics and delivery). The study reveals [Porsche 2009],
that the reduction of defects per car was reduced by 63 percent.
The throughput time could be improved by more than
53 percent. This caused a positive situation of inventory by
50 percent.
Objectives of keiretsu supplier networks and lean production
are based on a reduction of through put times
and the elimination of non value adding activities.
In the JIT approach, it is important that the right part
comes in the right quantity in the right quality at the right
time to the right place as shown in the 5R principle. The
TPS has been applied by many OEMs in the automotive
industry, railway area or other business sectors. Bombardier
Transportation is applying the Bombardier Operations
System (BOS), Porsche the Porsche Production System and
Daimler the Daimler Production System. However, it is not
always successful, as the activities are only partially introduced
and not rolled out in total. Secondly, lean principles
are not synchronized with the upstream supply chain management
and may thus not show the desired effects and
results.
It does not make sense to establish only single lean instruments.
It is of the utmost importance and a fundamental
aspect of the lean concept that principles are applied in
a total approach that involves the suppliers. In this respect,
it is the crucial role of procurement and supplier relationship
management to transfer this competency to its supply
chain. Inefficiencies throughout the supply chain can
thus be identified, waste can be eliminated and processes
can be harmonized in order to strive for continuous improvements.
Continuous improvement (Japanese = Kaizen)
means small steps and is part of the lean philosophy.
Data show that the complete transfer of lean principles
to the supply chain can lead to significant cost reduction
advantages of up to 15 percent. Hendricks and Singhal
[2005] show in their analysis that supply chain discrepancies
can harm the share value of the own company by up
to 40 percent. Only flat hierarchies, lean competencies and
direct accountability through line responsible people (Japanese
= Gemba) lead to an improved communication and
concentration on value adding activities and core issues.
Due to the importance of the supply chain it is necessary
[Liker 2004, Freitag 2004, Engel, 2004]:
n to apply lean principles throughout the supply chain,

Flow-
Principle
n to integrate suppliers,
n to be customer oriented,
n to have flat hierachies,
n to establish competency and responsibility to core functions
(Gemba),
n to concentrate only on essential success factors,
n to reduce waste,
n to continuously improve,
n to apply a „PULL“ system,
n to apply a learning organisation.
There are four pillars for the lean production system.
These are the integral parts of a lean production and JIT
system as shown in Figure 3.
The four pillars consist of the flow, the tact, pull and zero
defect principle, that have to be introduced simultaneously.
In the sense of an optimized upstream supply chain it is
a fundamental activity to implement these four principles
towards the supply chain. Thus, it is possible to synchronize
master production and delivery schedules and to have
short lead times of goods and products. Flexibility is important
to react quickly on customer demands. Waste has to be
eliminated throughout the entire process.
The customer is only willing to pay for products and
goods, which are benefitial and add value to him as ex-
�����
������
Projektergebnisse Produktion
Tact-
Principle
Figure 3: The four Principles of JIT
�������
������
Figure 4: Open and hidden waste
Lean Production System
Just in Time (JIT)
�������������
���������
Pull-
Principle
Zero Defect
Principle
Launch Management
plained by Ohno or Liker [Ohno
1990, Liker 2004]. Non adding
activities are not to be paid and
need to be radically erased.
Waste can be categorized in
open and hidden waste as
shown in Figure 4; the opposite
is value adding activities. Waste
must not be compressed, but replaced
by value adding activities.
The only method to eliminate
waste is transparency and
the taking away of the appear-
ing security. By making problems transparent, it is possible
to identify the root cause accordingly.
In the TPS philosophy there are seven reasons for waste
as shown in Figure 5. These reasons are overproduction,
inventories, transport, idle times, exceeding space, repairs
or rework and moving times.
There are three MU´s including MUDA that support the
elimination of waste wihin the philosophy of Toyota. In
parallel to MUDA, there are MURA and MURI which are
the ground theory for the TPS. MURA means “inbalance”,
MURI “overutilization”. While certain capacities are too
scarce (Bottleneck) are other resources significantly below
their capacity limits.
Conclusion
The main objective of procurement and a strategic supplier
management is to apply the JIT principle to the suppliers.
Value adding activities have to be rolled out to all
suppliers from raw material to module and keiretsu suppliers.
The keiretsu supplier represents the closest relationship
and connection to a supplier. Keiretsu is an integration of
suppliers into the own organisation and system, there is in
few cases partial ownership involved. Figure 6 shows the
seven aspects of waste that must be erased.
Supplier activities must have a pro-active or parallel approach,
reactive measures should be avoided. The procurement
function has to manage suppliers in such way, that
flawless launches and synchronized process can be established
with suppliers. KAIZEN is the fundamental driver
of this philosophy, this means small and gradual improve-
Elimination
of Waste
Supply Chain and
Production Process
Production Process
Supply Chain
Product and Machines
Figure 5: Projektergebnisse Seven reasons Produktion for waste
7 Reasons for
Waste
1.� Overproduction/
Over Supply
2.� Inventory
3.� Transport
4.� Idle Times
5.� Space/Layout
6.� Repair/Defects
7.� Moving Times
S u p p l y Chain Management iii /2011 31

Q – C – D Criteria
32
Launch Management
ments, which prove to be sustainable. Procurement has to
coordinate these activities as the single point of contact to
suppliers, so that interfacing departments are actively involved
in such process. Techniques of lean production serve
here to establish best in class suppliers in terms of quality,
cost and delivery performance (Q-C-D) as the pyramide
shows. High process and product competencies automatically
lead to sophisticated suppliers as shown below. This
applies to raw material, parts, systems, module and keiretsu
suppliers.
References
Relationship
to enterprise
Figure 6: Supplier Pyramide
Keiretsu
Module supplier
Sytems supplier
Component / Parts supplier
Raw material supplier
n Dust, R., Studie: Kosten- und Einsparpotenziale durch ein
ganzheitliches Lieferantenmanagement, Stuttgart 2009.
n Engel, H., Gesprengte Ketten – Absicherung der Supply
Chain durch ein unternehmensweites Business Continuity
Management, in: RiskNews 5/2005.
n Freitag, M., Toyota - Formel Toyota: Zuverlässiger, effizienter,
profitabler, in: Manager Magazin 12/2004.
n Hendricks, K.B., Singhal, V.R., An empirical analysis of
the effect of supply chain disruptions on long-run stock
price performance and equity risk of the firm, in: Production
Operations Management 21/2005.
n Liker, J. K., The Toyota Way, Fourteen Management Principles
from the World‘s Greatest Manufacturer, Madison
2004.
S u p p l y Chain Management iii /2011
High Competence
of Product
A-Supplier
High Competence
of Process
Zusammenfassung
n Liker, J., Choi, Th., Fordernde
Liebe: Supply Chain Management,
in: Harvard Business
Manager 03/2005.
n Mercer Management Consulting,
Fraunhofer Gesellschaft:
Future Automotive Industry
Structure (FAST) 2015.
n Ohno, T., Toyota Production
System – Beyond Large Scale
Production, New York 1990.
n Porsche Akademie, Just in
Time, Das schlanke Produktionssystem,
in: Schulungsunterlagen
der Porsche Consulting,
Stuttgart 03/2009.
Schlanke Prinzipien und Methoden müssen ein Bestandteil
des strategischen Lieferantenmanagements (SLM) sein. Unternehmen
können sich auf diese Weise differenzieren und Wettbewerbsvorteile
schaffen.
Untersuchungen zeigen, dass die Einbindung der Lieferkette
und die Eliminierung von Verschwendung im Upstream Supply
Chain Management signifikante Einsparungen bringen. Empirische
Studien dokumentieren zudem, dass die Synchronisierung
schlanker Prozesse im Hinblick auf das Lieferantenmanagement
zu signifikanten Einsparungen führt.
Author
MARC HELMOLD, born 1969, is Director Procurement
and Supplier Performance Management at
Bombardier Transportation. Marc Helmold was Purchasing
and Supplier Development Manager in OEM
companies in the automotive industry. From 2011/12
he teaches “Supply Management“ at the University of
Economics and Management (FOM) in Berlin and Logistics
at the Technical University in Wetzlar (THM).
This is where you can register for our conferences, purchase conference materials
and copies of the Supply Chain Management Magazine!
www.ipm-scm.com/shop

iSuccess®
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eine Apple-Infrastruktur
besitzen ist iSuccess® ein geeignetes
Medium, um sich
über aktuelle Trends und
Entwicklungen im Business-
Anwendungsbereich von
Apple zu informieren. Ferner
bietet es eine kompetente
Entscheidungshilfe für Unternehmen,
die sich mit der
strategischen Entscheidung
eines Umstieges auf Apple
in ihrem Unternehmen beschäftigen.
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Schicken Sie hierfür Ihre
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Möglichkeit zur Beitragseinreichung
steht Ihnen die Redaktion
zur Verfügung.
www.isuccess.info Kontakt:
Corinna Fohrholz
E-Mail: fohrholz@isuccess.info
Tel.: +49 (0)331 977 3380
Fax: +49 (0)331 977 3406
GITO mbH Verlag
Detmolder Straße 62
10715 Berlin
Tel.: 030 / 41 93 83 64
Fax: 030 / 41 93 83 67
service@gito.de
www.gito.de
INDUSTRIE
Management
Industrie Management bietet
eine im deutschen Fachzeitschriftenmarkteinzigartige
Sicht auf alle industriellen
Geschäftsprozesse. Industrie
Management verfolgt eine
integrierte Betrachtung
von Strategien, Organisation
und Rechnereinsatz
bei Auftragsdurchlauf und
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Zielgruppe und Leser sind
Entscheider im Management
von Industrieunternehmen
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Größen sowie die Fachelite
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Jede Ausgabe von Industrie
Management betrachtet die
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Wort. Herausgeber und Re-
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hohe Qualität und Anbieterunabhängigkeit
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ERP
Management
Unternehmen werden zunehmend
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ERP Management ist
das einzige deutschsprachige
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IT-Architektur
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Durch die fachlich hoch
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Kontakt:
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E-Mail: himstedt@industrie-management.de
Tel.: +49 (0)421 218 9787
Fax: +49 (0)421 218 5640
Kontakt:
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PRODUCTIVITY
Management
Ihre Produktivität als Entscheider
oder Führungskraft
erhöhen wir durch ein neues
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fi nden. Alle für
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werden Sie zukünftig in
voller Länge kostenlos im
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Management abrufen
können.
Die Produktivität Ihres Unternehmens
oder Ihrer Fabrik
können Sie erhöhen,
wenn Sie das umsetzen,
was Sie bei uns lesen. Wir
beschreiben, wie Sie durch
Anwendungssysteme Transparenz
über Ihre Abläufe,
Ihre Leistung und Ihren
Aufwand in Produktion und
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dar, welche Organisationsformen
sich in der Praxis als
sinnvoll, weil zugleich robust
und fl exibel, bewährt haben.
ProductivITy Management
berichtet über Trends in den
relevanten Märkten und
über Strategien, die Sie als
Entscheider in einem produzierenden
Unternehmen
kennen sollten.
www.productivity-management.de
Kontakt:
Hanna Theuer
E-Mail: hanna.theuer@gito.de
Tel.: +49 (0)331 977 3355
Fax: +49 (0)331 977 3406

Greeting
S u p p l y Chain Management iii /2011 35

36
Partners and Sponsors
S u p p l y Chain Management iii /2011
AFO Partner

Hall 6:
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1 st floor:
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Hall 4:
Keynotes &
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S u p p l y Chain Management iii /2011 37

38
Program
S u p p l y Chain Management iii /2011

AVIATION FORUM 2011
AVIATION FORUM 2011:
Knowledge exchange
as a success driver
Prof. Dr. Johannes Walther, CEO, Institute of Production Management (IPM)
Challenges in the aerospace supply chain
The aircraft industry is facing a period of enormous
growth as the number of airplanes is projected to increase
from 18,000 today to 36,000 in 2030. 31,000 planes are projected
to be produced due to retired aircrafts and new
market demand. Simultaneously, more countries reinforce
their strategies to strengthen their aircraft industry such
as China, Japan, Russia, Korea, Canada and Brazil. These
market developments serve as fundamental drivers for the
transformation of the aerospace supply chain, forcing the
OEMs and their suppliers to adapt and transform in order
to win their piece of the global market. On the one hand, the
issue of local sourcing in the dollar region combined with
natural hedging will continue to occupy OEMs and suppliers.
On the other hand, future sales and procurement markets
are built up in the BRIC and other emerging countries.
Consequently EADS intends to source, whether directly or
indirectly, a full 40 % of its spent from beyond Western Europe
by 2020. In order to reduce costs and minimize the
supply chain complexity, the OEMs respond by reducing
their vertical range of manufacturing significantly, i. e. Airbus
who has already reached an outsourcing ratio of 80 %
of the aircraft content.
The transformation of the aerospace global supply chain
will thus lead to an integrated component procurement, the
transfer of engineering tasks to suppliers, the build-up of big
design and manufacturing partners, and the integration of
suppliers as risk sharing partners. This induces a consolidation
process which particularly SMEs have to plan for and
embrace if they intend to play a successful role in the aerospace
supply chain in the future. As the OEMs are applying
the strategy “Global but local,” 1st tier through 3rd tier
suppliers will increasingly find themselves being forced to
follow their customers. The globalization process will particularly
affect SMEs, as the 1st tier suppliers will also be
pushed by the OEMs to increase sourcing in cost competitive
countries. Finally, for the integration of environmental thinking
into the supply chain management OEMs, suppliers and
all other partners have to be involved in an eco-efficient business.
Risks in the consolidated supply chain entail an ever
increasing complexity for the OEMs and every aspect of their
supply chain. Thus they have to be managed at every level to
Speaker
Prof. Dr. rer. pol. JOHANNES
WALTHER is CEO of the
Institute of Production Management,
Professor of Production
Management at the
Ostfalia University of Applied
Sciences and Member of
the Advisory Board of the Institute
of Procurement at the
AutoUni of VOLKSWAGEN.
IPM GmbH, Institut für Produktionsmanagement
Donarweg 6, 30657 Hannover, Germany
Phone +49 511 47314790, Fax +49 511 47314791
Email j.w@ipm-scm.com
web www.ipm-scm.com
make the operation a truly global functioning unit.
These trends defined the automotive industry in the sixties,
when ‘national’ OEMs pushed beyond their national
and natural market borders to reach ever higher economies
of scale in their manufacturing and ever more cost efficiencies
in their sourcing strategies. These trends still define the
industry today. Adapted lessons learned from the automotive
industry can now be applied for the aerospace industry.
AVIATION FORUM 2011
The Aviation Forum – organized by IPM – provides a
neutral academic platform for the communication between
Airbus, its suppliers and other industry experts to improve
and strengthen continuous cost, quality and relationship
at the cutting edge of global supply chain knowledge. IPM
accepts strategic research, qualification and benchmark
requests with respect to globalization and innovation and
organizes the conferences Industrieforum Wolfsburg with
VOLKSWAGEN and Aviation Forum with AIRBUS.
S u p p l y Chain Management iii /2011 39

40
AVIATION FORUM 2011
Dynamic IT solutions
Providing mobility and on-demand availability of IT-
Services by means of cloud computing is no longer just a
trend, but the inevitable future. Smartphones and Tablets
changed people and working environments considerably.
At the same time cloud computing already found its way
into companies. Virtualisation enables businesses to give
their users the mobility they need. It prepares organisations
to switch to cloud services, irrespective whether these are
provided by the internal IT department of the company,
a private or a public external provider. Cloud-enabling allows
businesses to offer their employees, customers and
business partners the mobile experience they are used to
outside their organization.
The challenge companies are being confronted with in
this context is to change their IT infrastructures to flexible
and dynamic systems. Monolithic IT architectures have to
be re-designed to a dynamic landscape consisting of flexible
and linked systems. This in turn requires innovative
sourcing concepts and modularly managed services in order
to provide the required IT resources and dynamic IT
services.
Rightsizing – Support and Managed
Services employed appropriately
Your partner for intelligent sourcing concepts and managed
services is Dimension Data. Together with our German
EADS team of 30 employees we secure the areas IT
infrastructure, telephony, and collaboration. In close collaboration
with our customer Airbus we provide for the
locations in North Germany the data network service, the
videoconferencing service as well as the managed service
for IP-Telephony (as part of our global contract). For our
customer Cassidian (formerly EADS Defence and Security)
we also offer remote access service and managed IPT service.
Company
Dynamic IT solutions
as future challenge
Herbert Bockers, CEO, Dimension Data Germany
Dimension Data is one of the leading specialist IT services
and solution provider with revenue of around five
billion US-Dollars and more than 12.000 employees in 49
countries. Across each of our areas of expertise, Dimension
Data offers a full lifecycle of services that assist our more
than 6.000 clients to plan, build, support and manage their
S u p p l y Chain Management iii /2011
Speaker
HERBERT BOCKERS is CEO
of Dimension Data Germany
since July 2004 and is also
responsible for Dimension
Data Czech Republic. On account
of his longstanding experience
in strategic positions
with IT service companies,
Herbert Bockers was able to
considerably determine the
strategic orientation and further
development of the company into an IT service
provider.
Dimension Data Germany
In den Schwarzwiesen 8
61440 Oberursel · Germany
Phone +49 6171 977-330
Fax +49 6171 977-333
Email herbert.bockers@dimensiondata.com
web www.dimensiondata.com/de
IT infrastructures. These services include Professional Services,
including project management and consulting, Integration
Services, and a broad range of Managed Services
which align to the ITIL framework. More than 400 employees
in six different locations are responsible for outstanding
service quality in Germany.
ADVERTISMENTS
Issue I/2012
Closing Date 12.12.2012
AVIATION

AVIATION FORUM 2011
SMEs in the environment
of the Global Supply Chain
Uwe Gröning, President, Hanse-Aeospace e.V.
Challenges
The aeronautical supply chain faces dramatical changes
such as radical cost savings, supplier reduction, flexibility
increases, risk sharing and the necessity of more sophisticated
companies to fulfill OEM requirements, in short: the
reshaping the suppliers’ landscape. OEMs will only accept
1st-Tier-Suppliers in the near future. SMEs have to find
their docking points towards these 1st-tiers. The same or
similar processes will take place with all OEMs, worldwide.
Measures for SMEs
Throughout these changing processes Hanse-Aerospace
as an association of SME-aerospace related companies plays
a significant role to enable the member companies to follow
the trends. Hanse-Aerospace is an important economic factor
in the North German region. More than 150 members with
14,000 aerospace related employees, 1.5 bn Euro turnover and
a big innovation capacity are facing the new requirements.
Beside this, Hamburg has an 80 years long tradition in civil
aircraft development and production. Traditionally cabin interiors
are one of the outstanding abilities, mainly performed
by Airbus, Lufthansa Technik and its suppliers. This will be
one of the big advantages for the SMEs in the region.
Moreover, Hamburg and the players in the region were
awarded as ‘Spitzencluster Metropolregion Hamburg’.
Within that scope we raised the ‘Centre for Applied Aeronautical
Research’ and the ‘Hanseatic Center for Aeronautical
Training’. The objective is to attract the best companies
and institutions in the field of aerospace and cabin technology,
regardless where they come from.
The new formation ‘Luftfahrtcluster Hamburg’, formed
by the players of the region, including 15 founding members
such as Hamburg Airport, the German Aerospace Centre,
four universities, the state economic ministry and the
German Aerospace Industries Association, is managed as a
Public Private Partnership.
The regional aspects seem to be useful and adequate
for SMEs. The global view needs to be evaluated and verified
by the SMEs. We have to look at Boeing, Bombardier
amd Embraer as well as to Russia, India, China and Japan
– where the civil aircraft competition for Europe comes
from. The main task is to integrate the SMEs’ supply chain
into those of worldwide manufacturers. The SMEs have to
develop their abilities and capabilities beside the docking
points in Europe towards global challenges.
Speaker
UWE GRÖNING is CEO of
Innovint Aircraft Interior
GmbH, a leading company
for customized cabin interiors
(www.innovint.de), President
of Hanse-Aeospace e. V.,
President of the Association
for the Promotion of Applied
Aeronautical Research e. V.
and member of the board of
the Luftfahrtcluster Metropolregion Hamburg e. V.
Hanse-Aerospace e. V.
Holzmuehlenstraße 84, D-22041 Hamburg, Germany
Phone +49 40 6008857-30, Fax +49 40 6008857-50
Email info@hanse-aerospace.net
web www.hanse-aerospace.net
These are beside the OEM Airlines and MRO all other
types of aerospace businesses, e. g. General Aviation and
Helicopter. SMEs have to participate in R&T-programs, regional,
national and in Europe. To get notice of the SMEs, international
exhibitions have to be organized and equipped
with common stands. SMEs have to cooperate in research
and manufacturing to bundle the capabilities in order to
be competitive. SMEs need qualification with regard to cooperation,
e. g. in the Centre for ‘Applied Aeronautical Research’.
Hanse-Aerospace is the link to strengthen all of that.
About Hanse Aerospace
Hanse Aerospace is the biggest association of medium
sized companies in Germany. Its members come from aviation
and space companies representing a wide spectrum
ranging from development, manufacturing, maintenance
and all related services. The association represents its members’
common interests. Its other main tasks are advising its
members, coordinating regional activities, bundling resources,
ensuring cooperation between its members, facilitating
common product development and exchange information.
Hanse Aerospace cooperates with national and European
bodies and is a member of EACP.
S u p p l y Chain Management iii /2011 41

42
AVIATION FORUM 2011
Risk management and
consolidation: challenges
for the aerospace industry
Prof. Dr. Hans-Gerhard Seeba, Automotive Management at Ostfalia University of Applied Sciences,
Campus Wolfsburg
Initial Situation
The time when civil and defense aerospace manufacturers
as prime contractors manufactured roughly 80 percent
of deliverables in-house and outsourced 20 percent of production
for their traditional markets has gone. As the automotive
industry, the aerospace supply chain has changed
dramatically by outsourcing the development and production
of parts, components and systems as the products have
become both more technically and economically complex.
These percentages have now been reversed. Prime contractors
and governments reduced the number of direct suppliers,
costs and responsibilities have been shifted from the
primes to a network of sub-system integrators and other
suppliers. Furthermore aerospace and defense companies
have pursued growth in foreign markets.
The enormous complexity of the present aerospace supply
chain systems is not without danger. Delays to new
commercial aircraft programmes and subsequent orders
have caused costs to overrun and quality failures which
all seem to indicate problems in development, supply and
capacity. The current growth in demand and global capacity
enlargement, especially pushed by the emerging markets,
will put even more pressure on the supply chain.
Risk management in the Aerospace
Industry
The new sharing of responsibilities between aerospace
companies and their suppliers carry new programme execution
risks – risks such as commodity pricing fluctuation,
supply chain capacity issues, risks of supply chain interruption
and political as well as regulatory risks. These challenges
require a different kind of risk management which
covers the entire value chain, differently to how companies
practiced in the past.
To cope with the challenges in the supply chain, and in
particular to provide suitable conditions for product innovation
and competitive advantage, a shift from suppliers as
transaction partners to risk-sharing partnerships (RSP) is promoted.
However, as the risk-sharing relationships’ intended
collective practices are not fully implemented, the airframe
S u p p l y Chain Management iii /2011
Workshop Leader
PROF. DR. HANS-GERHARD
SEEBA was appointed as Professor
of Automotive Management
at the Ostfalia University
of Applied Sciences in
2002. On top of that he acts as
chairman of the International
Car Distribution Programme
(ICDP) and he is lecturing in
training programmes provided
by the AutoUni of Volkswagen to its senior managers
in the component factories.
Siegfried-Ehlers-Straße 1
D-38440 Wolfsburg
Phone +49 5361 8922-25260
Fax +49 5361 8922-25004
Email h-g.seeba@ostfalia.de
web www.ostfalia.de/w
manufacturer (as a large-scale integrator) still has to place impositions
on suppliers and to control their financial stability.
Consolidation: Risks and advantages
Vertical integration in the aerospace value chain has radically
disappeared over the past 20 years. Consolidated first-
and second-tier suppliers now control a huge proportion
of the sub-system integration. Thus, the airframe manufacturers
are able to increase their margins and returns on invested
capital by shifting costs and responsibilities to their
supplier base. In turn, for the manufacturers, the costs of
transactions regarding supply of information, negotiation
and contracts, transport, administration and adapting to
new conditions, all raise strategic dependency, for instance,
in terms of innovation management.

Risk Management
The aerospace industry has a huge
opportunity to create value
For commercial aerospace the opportunity is there with
air traffic forecast to double in the next 15 years. Driven by
traffic growth and replacement needs and a forecast rise in
the global middle class from today’s figure of close to 2Bn
to 5Bn by 2030. This leading to a forecast 20-year passenger
aircraft demand for more than 25,000 aircraft worth more
than US$ 3 trillion.
For defence aerospace opportunities will focus on how to
effectively tackle the global security challenge. Critical infrastructure
protection, border control and crisis management
and deliver strategic concepts in security and defence in the
present context of global threats and shrinking budgets.
In order to take advantage of these opportunities aerospace
industry professionals will need to embed robust and
effective risk and opportunity management practices into
their organization and industry culture and avoid some of
the common risk management failures.
n Poor governance and ‘tone at the top’ – effective governance
and tone at the top drive the transparency, openness
and commitment to continuous improvement that
is needed for risk management to function effectively.
n Inability to implement enterprise risk management –
most efforts are unfocused, severely resource constrained
and pushed down so far into the organization that it is
difficult to establish their relevance.
n Accepting a lack of transparency in high risk areas –
transaction complexity and volatility can further complicate
the ability to see the full picture with decisions taken
on the basis of limited and asymmetric information.
Capturing aerospace industry opportunities will depend
on an efficient and effective supply chain management
where the management of risk and opportunities is a core
competence.
The company
Airbus is a leading aircraft manufacturer with over
52.000 employees and a worldwide presence. The product
line covers a full spectrum of four aircraft families
from a 100-seat single-aisle to the largest civil airliner, the
doubledeck A380. In 2010, Airbus achieved a turnover of
around 30bn Euros, and it has captured more than 10.000
orders from around 300 customers around the world. Airbus
is an EADS company.
AVIATION FORUM 2011
in the Aerospace Industry
Jeremy Tilney-Bassett, Head of Corporate Risk Management, Airbus
Expert
JEREMY TILNEY-BASSETT
(MBA) was appointed Head
of Corporate Risk Management
at Airbus in 2008 and is
in charge of the leadership of
the Enterprise Risk Management
programme. Following
graduation from Exeter University
School of Engineering,
Jeremy Tilney-Bassett began
his professional career with British Aerospace (now
BAE Systems) in 1990. Culminating in the role of Head
of Planning and Risk for the Eurofighter programme.
In 2003 he joined Airbus, where he was Head of Risk
for the single European sky air traffic project definition
phase in his last position.
Airbus S.A.S.
1 rond-point Maurice Bellonte
31707 Blagnac Cedex, France
Phone +33 5 61933333
Email jeremy.tilney-bassett@airbus.com
web www.airbus.com
S u p p l y Chain Management iii /2011 43

44
AVIATION FORUM 2011
Risk Management
at Rockwell Collins
Christophe Blanc, Senior Director Airbus Programs, Rockwell Collins Air Transport Systems,
Jeffrey A. Standerski, Vice President and General Manager, Rockwell Collins Air Transport Systems
Initial Situation
Since Rockwell Collins became an independent company
in June 2001, a large part of our success is attributable to
a re-enforced focus on all aspects of Program management.
Thus, our organization, built to manage products, systems
and services throughout their life cycles, relies on a careful
management of risk at all stages of a program.
Such an efficient program management has allowed us to
engage successfully into new initiatives by airframe manufacturers,
such as Airbus New System Policy on A350XWB.
A consistent approach across
Rockwell Collins
Risk management brings discipline to the decision making
process and allows proactive action to be taken to avoid
problems and surprises. Formal risk management methods
based on industry proven techniques are used at Rockwell
Collins to identify, characterize, prioritize, mitigate, track,
and control risk. Regular communication of risk information
between program and senior management promotes
timely decision making. A common and consistent approach
for tracking and reporting risk enables consistent
and more efficient risk management and review.
A collaborative and iterative Process
Risk management is a collaborative, cross functional process
led by the Program management office, involving all internal
stakeholders, and engaging the Customer in the decision
making process, throughout the life cycle of the program.
Our risk management process utilizes the probability,
impact and timeframe to prioritize risk mitigation activities
on nearest term, highest impact risks. It requires the Risk
Register to be regularly updated.
Risk mitigation activities are formally planned, updated
and reviewed with milestones in the schedule for accurate
monitoring of progress and proactive decision making.
While the preferred outcome of risk identification is mitigation
or avoidance, the leader must be prepared with contingency
plans for risks that are realized.
Rockwell Collins is also focused on systemic risk identification
that affect our core process areas for Enterprisewide
risk reduction projects, allowing specific projects to
focus on things in their control.
S u p p l y Chain Management iii /2011
Experts
CHRISTOPHE BLANC was
appointed Senior Director
Airbus Programs at Rockwell
Collins in May 2011.
Based in Toulouse, he is responsible
for the Commercial
Systems Airbus business and
is leading the execution of
the A350XWB development.
Graduated from ENSEEIHT
Toulouse, Christophe Blanc holds a master‘s degree in
Electronics Engineering.
JEFFREY A. (JEFF)
STANDERSKI was appointed
vice president and general
manager of Air Transport
Systems, Commercial Systems,
in 2006. Since joining
Rockwell Collins in 1989,
Standerski has held positions
of increasing responsibility in
both the Commercial Systems
and Government Systems businesses. Previously,
Standerski served as vice president, Strategy Development
for Commercial Systems.
Rockwell Collins
6 avenuse Didier Daurat B.P. 20008
31701 Blagnac Cedex, France
Phone +33-(0)5-34-61-85-10, Fax +33-(0)5-61-71-77-91
Email cblanc@rockwellcollins.com
web www.rockwellcollins.com
The Company
Working together, our global team of 20,000 employees
shares a vision to create the most trusted source of communication
and aviation electronics solutions to help our
customers succeed.

AVIATION FORUM 2011
Engineering Services Supply
Chain Management (ESSCM)
Tom Heinkel, CEO, Heinkel Group
Demand for additional workforce
Airlines not only need additional aircraft, they also expect
the OEMs to develop new, fuel efficient, more comfortable
and quieter models to cut their costs and meet the passengers
expectations. The highly skilled engineers necessary for these
new developments, and the blue collar workers required for
the ramp up of production can mostly not be covered by
the employees currently working for the OEMs. Due to the
shortage of skilled labour it will become even harder to find
these urgently needed additional staff. For the OEMs, one
way to close this personnel gap is to increase the productivity
of their employees, but these means are limited to a point,
else the quality of the products can suffer.
A second way is to subcontract development tasks to an
engineering supplier and to increase the number of temporary
employees. Most engineering subcontractors are not
only working in the aerospace industry but also for industries
with similarities in tasks, for example the automotive industry,
and are therefore under the right circumstances able
to shift personnel more easily to the market with the greatest
demand.
Situation for engineering suppliers
In northern Germany for example, eight years ago, most
of the engineering suppliers were relatively small, family
owned companies with only a few employees each. Around
five hundred of these companies were working directly for
the local OEM; many of them were specialized in niches
and able to deliver tasks in the size of a few man-years on
time, cost and quality. But with the strategy of the OEMs
to reduce the number of suppliers to only a few and to tender
larger tasks or even build up risk sharing partners, the
situation has changed. Suppliers were under compulsion to
either withdraw from the aerospace market, grow by their
own financial means or to merge with former competitor
to be able to handle the function of being a risk sharing
partner.
For some of these merged companies, neither having the
experience to handle the task necessary to be a risk sharing
partner nor the financial background to cover the gap between
investments today and the positive return on investment
in the far future after the whole aircraft project has
become profitable for the OEM, this was a difficult situation
Expert
TOM HEINKEL is the managing
director of the Hamburg-
based, engineering company
and BDLI-Member Heinkel
Group. Following his studies
at the Nordakademie in
Elmshorn in business administrations
and working
for Philips in Hamburg, Tom
Heinkel joined the company
in 2004. Within the last six years, he was able to increase
the size of his company and diversify into other
branches. He is a member of the Plenum of the Chamber
of Commerce in Hamburg and “Versamm lung
Eines Ehrbaren Kaufmanns zu Hamburg.”
Heinkel Group
Holstenplatz 20b
22765 Hamburg
Germany
Phone +49 40 4130 759 51
Fax +49 40 4130 759 50
Email Tom.Heinkel@heinkel-group.com
Web www.heinkel-group.com
to handle and some of them even went out of business. For
the other engineering companies, which remained independent,
they found themselves to be under pressure by
the OEM, demanding annually for lower hourly rates and
higher productivity.
The war for talents doesn´t make it easier to find the
right people in terms of time, cost and quality. Due to the financial
weaknesses of some risk sharing partners, together
with problems in recruitment, it is a must to find different
solutions in the regions of the world. It is necessary to combine
the ESSC with large suppliers and smart small and
medium sized suppliers.
S u p p l y Chain Management iii /2011 45

46
AVIATION FORUM 2011
Green Supply Chain
Management in the
Aerospace
Green Supply Chain Management
Green supply chain management (GrSCM) can be understood
as integrating environmental thinking into supply-chain
management such as product design, material
sourcing, manufacturing processes, delivery of the final
product to the customers as well as end-of-life management
of the product after its life. There is some initial evidence
from international research that green supply chains may
lead to increased competitiveness and better economic performance
of companies, especially when also getting the
suppliers to have their own environmental management
systems and greening their operations. Inter-organizational
knowledge sharing in green supply chains is supposed to
enhance their effectiveness. This is significantly driven by a
high level of trust among the participants.
GrSCM in the Aerospace Industry
With regard to the aerospace industry some major areas
of discussion of the aircraft manufacturers’ supply chains
include the development of efficient engines, better aerodynamics
in aircraft design and manufacturing and alternative
and greener fuel sources such as fuel cells and biofuels.
In addition an improvement of the energy efficiency
of the corporate infrastructure is often implemented, for
example the installation of solar panels on buildings, the
participation of employees in commuting programs or the
use of green IT programs to increase energy efficiency and
automate the power-down of desktop computers in the evenings
and on weekends. In the value chain network of the
aerospace industry also route optimization and network
development, efficient air traffic management and coercive
legislative policies support “greening”.
Discussion Topics for Today
During the AVIATION FORUM 2011 it is worth discussing
whether the green trend in the aerospace industry will
result in increasing production costs, how “green” will
have to be priced, what the effect of a green supply chain
will have on globalization versus localization and whether
the green paradigm will eventually be the big theme in the
aerospace industry during the next decade.
S u p p l y Chain Management iii /2011
Industry
Prof. Dr. Matthias Tomenendal, Berlin School of Economics and Law
Workshop Leader
PROF. DR. MATTHIAS
TOMENENDAL is a Professor
of Management and Consulting
at the Berlin School
of Economics and Law and
the Director of the school’s
IMB Institute of Management
Berlin. He pursues research
in the area of international
strategies and works as an
independent consultant for international companies.
After his business studies at the Universities of Bielefeld,
Georgia (USA) and Saarland he began his professional
career at the Boston Consulting Group where he
has worked for ten years for the industrial practices in
Germany and Eastern Europe.
Berlin School of Economics and Law
Hochschule für Wirtschaft und Recht Berlin
Badensche Str. 52
10825 Berlin
Germany
Phone: +49 30 85789-317
Email: matthias.tomenendal@hwr-berlin.de
web www.mba-berlin.de
The Berlin School of Economics and Law
The BSEL is among Germany’s leading universities of
applied sciences specialised in private and public management.
9000 students are taught in 50 programmes leading
to Bachelor, M.A., M.Sc., L.L.M. or MBA degrees. The
School is proud of its strong international profile reflected
in more than 100 partnerships with universities all over
the world.

Green and Global
Challenges
Aircraft are highly complex products consisting of several
hundred thousand components. In order to build an
aircraft, the aircraft manufacturer Airbus is working with
more than 3,000 suppliers. Getting suppliers and partners
involved in the process is critical to any eco-efficient business
committed to reducing its environmental footprint
and, at the same time, ensuring the highest quality standards,
so that the global growth in air transport can be reconciled
with a reduction in environmental impacts.
Airbus’ commitment to environmental responsibility has
long been central to its activities and is a key driver of the
company’s products, methods and processes. Airbus’ objectives
for 2020 can only be achieved through a series of
actions taken throughout the product life cycle, from design
to maintenance, from the aircraft’s entry into service
to its end of life and recycling. This includes the continuous
provision of up-to-date environmental specifications to
suppliers, better technologies for manufacturing sites and a
well-planned strategy for end of life and recycling. Furthermore,
the Airbus Aviation Roadmap aims at meeting the
carbon neutral targets set for 2020 and a 50 % reduction in
CO 2 emissions by 2050, focusing on initiatives to promote
biofuel technologies and their commercialization, as well as
Air-Traffic Management (ATM) under the SESAR program.
In the aerospace supply chain, avoiding supply chain
disruptions, tracking hazardous substances within the entire
supply chain and identifying the impact of transport
and logistics on the environment is absolutely essential. A
“green” supply chain typically addresses major issues such
as the management of hazardous substances and CO2 emissions
caused by the transport of parts.
At Airbus, environmental criteria are taken into account
for the selection and qualification of suppliers and are formalized
in contractual agreements. Airbus suppliers are required
to comply with various environmental procedures
and standards, and, as Airbus achieved ISO 14001 certification
in 2007, to deploy an environmental management
system wherever possible. Consequently, Airbus’ entire
manufacturing process is meeting increasingly strict environmental
standards.
Airbus’s aim is not just to adhere to the regulations currently
in force, but to go further and try to anticipate developments
in collaboration with major EU and US aerospace
companies. Airbus suppliers are requested to adopt the
same farsighted and proactive approach.
AVIATION FORUM 2011
Aerospace Supply Chain
Dr. Bernd Kisilowski, Airbus Environmental Affairs, Airbus Operations GmbH
Expert
DR. BERND KISILOWSKI
joined the Environmental Affairs
department of Airbus in
2003. At present, he is Head
of the Environment Germany
organization and of the Corporate
Environmental Industrial
Operations department.
He studied at the University
of Rennes (France) and Rockefeller
University (United States) and graduated in
chemistry from the University of Hamburg. In 1997, he
started his career at 3M, and after obtaining a Master’s
degree in environmental law at the University of Lüneburg,
he joined Airbus in Germany.
Airbus Operations GmbH
Kreetslag 10, 21129 Hamburg, Germany
Phone +49 40 74372222
Email bernd.kisilowski@airbus.com · www.airbus.com
Tracking and managing hazardous materials is crucial,
and Airbus is working towards a systematic inventory of
such materials. Airbus suppliers also have to comply with
current regulations such as REACH and to anticipate future
regulations and substance unavailability in order to avoid
supply chain disruptions and ensure reliability of hazardous
substance substitution by suppliers. The ultimate goal
should be to progressively substitute the most hazardous
materials by more environmentally friendly alternatives.
The company
Airbus is a leading aircraft manufacturer with over
52,000 employees and a worldwide presence. The product
line covers the full spectrum of four aircraft families from
100-seat single-aisle aircraft to the largest civil airliner, the
double-deck A380. In 2010, Airbus achieved a turnover of
approximately 30 billion Euros, and it has secured more
than 10,000 orders from some 300 customers worldwide.
Airbus is an EADS company.
S u p p l y Chain Management iii /2011 47

48
AVIATION FORUM 2011
Solving Challenges
with our Customers
Dr. Denise R. Rutherford, Vice President, 3M Aerospace
Innovation is the art and science of
applying creativity to develop practical
and novel solutions
It’s more than a way of developing products. Innovation
is part of our DNA. We recognized early that doing business
in new, smarter ways would not only create a more
viable company – it could also enable us to meet our social
responsibilities and reduce our impact on the environment.
Today, we’re building on more than 70 years of practices
that support economic, social, and environmental sustainability.
3M’s technologies are being used by customers all
over the world to enable them to meet their own environmental
challenges with a view to the future. Innovation remains
a key enabler to meeting current- and as yet unforeseen-new
challenges.
Sustainability is increasingly important
to the aerospace market
Sustainability can have significantly different meanings
in different countries, and managing that can be a very
complex process, from creating a product that is viable to all
customers, all the way to meeting label requirements. One
of the challenges for aerospace is the truly global nature of
the market with tiers around the world competing and supplying
parts for the same platform while needing to consistently
conform to aerospace quality standards. Innovation
in green and global supply chain management can range
from new product designs to changes in documentation to
novel shipping and receiving approaches.
It can be challenging to make innovative changes in a
market that is resistant to change. We work in an industry
where people’s lives are at stake, and it is essential that our
products perform at a certain level. As we become more and
more aware of the need to reduce our environment impact,
we have to balance that with long-time products that have
produced years of flight data, the needs of our customers as
well as the ROI for 3M.
Developing new solutions is a key component of 3M’s
sustainability strategy and our product portfolio is a living
example of 3M’s expertise in inventing products for a better
tomorrow. Ultimately, sustainability and innovation combined
provide a strong competitive advantage.
At 3M, we are guided by three strategic principles that
make sustainability implicit in everything we do:
S u p p l y Chain Management iii /2011
Expert
After completing her Ph.D.
in Chemistry at Colorado
State University, DR. RUTH-
ERFORD joined 3M in 1989.
She worked in research, new
product development, Lean
Six Sigma, and international
business management prior
to taking the assignment to
lead 3M Aerospace business
globally in 2008.
3M Aerospace
3M Center Bldg. 223-1N-14
St. Paul, MN 55144
USA
Phone +1 651 736 3333
Email drrutherford1@mmm.com
web www.3M.com/aerospace
n Economic Success: We build lasting customer relationships
by developing differentiated, practical, and ingenious
solutions to their sustainability challenges.
n Environmental Stewardship: We provide practical solutions
and products to address our environmental challenges
for ourselves and our customers.
n Social Responsibility: We engage key stakeholders in
dialogue and take action to improve our sustainability
performance.
About 3M
3M captures the spark of new ideas and transforms them
into thousands of ingenious products. Our culture of creative
collaboration inspires a never-ending stream of powerful
technologies that make life better. 3M is the innovation
company that never stops inventing. With $27 billion in
sales, 3M employs about 80,000 people worldwide and has
operations in more than 65 countries.

AVIATION FORUM 2011
Supply Chain Management
in the Aerospace Industry
Mark Pearson, Global Managing Director of Accenture’s Supply Chain Management Practice
Industry drivers and challenges
To sustain high performance in the aerospace industry,
companies must possess speed, flexibility and precision,
characteristics that Accenture sums up as agility. Commerical
and military players face a set of increasingly shared
challenges that require an agile response. They do business
in a multi-polar, networked world, where today’s
customer maybe yesterday’s competitor and tomorrow’s
supplier. Besides agility price competitiveness, supplier
collaboration and integration as well as global reach remain
key requirements to successfully operate in the aerospace
market.
Managing the n-tier Supply Chain
While suppliers will control a larger part of the value
chain the procurement role as a direct link towards the supplier
base will become strategically more important. Due to
the increasing work package complexity collaboration will
need to go beyond direct supplier interaction. n-tier visibility,
control and management become crucial capabilities to
limit supply risk and drive continuous improvement.
Sourcing and Risk Management
To maintain their competitive position aerospace companies
will need to adapt their current sourcing strategies.
Whilst utilizing global market opportunities will become a
necessity, managing related supply risks (as well as other
risk components) will be a key challenge separating High
Performers from other market players.
Shifting to Services
Aerospace and defense companies are changing from
product-focused original equipment manufacturers to
service-oriented original equipment providers, supplying
not assets, but asset availability. To meet these changing
requirements Capabilities-Based Lifecycle Management
will become one of the crucial differentiation factors to keep
market relevance. This big move needs a real transformation
that affects how the companies think, design, develop,
produce and sell; and they must fundamentally rethink the
structure of their purpose and supply chain.
Expert
MARK PEARSON is the
Global Managing Director
of Accenture’s Supply Chain
Management Practice having
functional responsibility
for 2,500 Supply Chain
consultants. He has 23 years
of experience in the area of
Supply Chain Management.
Mark has been responsible
for the execution of Accenture’s Supply Chain Mastery
research – one of the largest pieces of empirical research
into High Performance Supply Chains.
Accenture GmbH
Anni-Albers-Straße 11
D-80807 München
Tel +49 89 93081-68577
Email mark.h.pearson@accenture.com
web www.accenture.com
The Company
Accenture combines over three decades of experience
and insight in the aerospace and defense industry with our
extensive cross-industry functional and deep supply chain
skills, and IT acumen to help our clients become high performance
businesses.
We offer a number of tailored industry solutions that
help global companies and their partners. Accenture is a
global management consulting, technology services and
outsourcing company, with approximately 236,000 people
serving clients in more than 120 countries. Combining unparalleled
experience, comprehensive capabilities across all
industries and business functions, and extensive research
on the world’s most successful companies, Accenture collaborates
with clients to help them become high-performance
businesses and governments.
S u p p l y Chain Management iii /2011 49

50
AVIATION FORUM 2011
China and India – Coping
with the strategic challenge
Dr. Gert Bruche, Professor of International Management, Berlin School of Economics and Law
Strategic challenge
After the turn of the millennium, globalization has
reached a historic ‘inflection point’ which requires a fundamental
realignment of business strategies towards the big
emerging markets, especially China and India. In this context
any large international company has to address four
principal opportunities and challenges.
Must be markets
China and India represent key growth opportunities and
the chance to amortize rising R&D costs for companies in
sectors like aerospace or healthcare. For most large companies
participation in these growth markets and achievement
of strong market positions is not any more a mere option,
but it will affect their chances of survival as independent
entities. But even for SMEs the ‘Chindia question’ is a core
strategic challenge which needs to be addressed.
Cost-efficiency platforms
In the last decades formerly vertically integrated supply
chains have given way to more and more globally fragmented
value networks. China as a manufacturing and
India as a services hub have assumed pivotal positions in
these global value networks. Large companies have to build
and solidify their presence in these hubs via captive units
and through long-term supply alliances. The capability to
manage these distributed global networks efficiently has
become a decisive competitive success factor.
Innovation hubs
Triggered by ‘market pull’, the shifts in manufacturing
and sourcing and supported by significant investments of
China and India into universities and R&D infrastructures
a ‘new geography of innovation’ is on the rise. To cope with
rising innovation costs and host Government’s trading of
‘market access against technology’ Western companies
have to adjust the global configuration of their R&D value
chain. At the same time the control and protection of core
knowledge assets becomes a key strategic task.
Challenger homes
In more and more industries firms from China and India
rise from domestic champion status to become emerging mul-
S u p p l y Chain Management iii /2011
Workshop Leader
DR. GERT BRUCHE, Professor
of International Management,
worked for the United
Nations in Turkey, in a global
senior management position
and as Managing Director of
China for Schering AG. He
also served as Dean and Vice
President of the Berlin School
of Economics and Law. He
specialises in international business strategy with a focus
on emerging markets.
Berlin School of Economics and Law
Hochschule für Wirtschaft und Recht Berlin
Badensche Str. 52, 10825 Berlin, Germany
Phone + 49 16097805031
Email gert.bruche@hwr-berlin.de
web www.hwr-berlin.de/en/prof/gert-bruche
tinationals. Some of them like Huawei in telecoms, Suntech in
photovoltaic, or Mittal and Tata in steel play already in leading
world market positions. Others like South China Rolling
Stock Corporation in rail transport, COMAC in aerospace or
Tata in BPO have ambitions to get there as soon as possible.
Large Western companies must address this challenge by
neutralizing home-base advantages of these challengers and
by deciding whether they want to engage them in alliances or
stay ahead in an increasingly aggressive competition.
The Berlin School of Economics and Law
The BSEL is among Germany’s leading universities of
applied sciences specialised in private and public management.
9000 students are taught in 50 programmes leading to
Bachelor, M.A., M.Sc., L.L.M. or MBA degrees. The School
is proud of its strong international profile reflected in more
than 100 partnerships with universities all over the world
and a range of international double degree programmes,
amongst others with Chinese and Indian universities.

Globalizing the
AVIATION FORUM 2011
Aerospace Supply Chain:
The EADS & Airbus approach
Philippe Advani, Vice President, Head of EADS Airbus Global Sourcing Network
Introduction
As Western economies are still affected by one of the
worst economic crises ever, the commercial aerospace industry
has been astonishingly spared by it. Driven by the
sustained growth of Asian Economies and the timely development
of well positioned programmes, the Airbus order
book has never been so full. In order to sustain this growth
as well as to consolidate an optimal economic proposition,
EADS remains steady-on-course with the ambitious globalization
road-map it has set over the past years.
Globalisation Drivers
The Western Aerospace industry has been tightly knitted
around its North American and European hubs. Till recently,
very limited sourcing volumes were spread across
the world, driven mainly by Market Access considerations.
However, Value for Cost has emerged progressively as a
leading driver for the globalisation of the aerospace industry.
Access to Rare Resources (materials, engineering) and
Minimization of risks such as currency fluctuations, geopolitical,
factor cost inflation, loss of Intellectual Property and
supply chain are additional globalisation drivers.
Global Sourcing targets
EADS has incorporated Global Sourcing targets in its top
most strategic Road-map “Vision 2020” with the intention to
source, whether directly or indirectly, 40 % of its spend, from
beyond Western Europe by the end of the present decade.
The EADS & Airbus approach
In the case of Aerospace, one of the primary challenges
is the maturity of the Supply Chain. The hurdle of technological
complexity is compounded by stringent certification
requirements. A second major hurdle is the size of the industry.
Although it enjoys an aura of advanced technology
and strategic value, its total turnover is a fraction of that
of the Automotive Industry. A third issue relates to consistency
with other aspects of procurement policy such as the
overall consolidation of the supply chain.
Expert
PHILIPPE ADVANI, Vice-
President, EADS & Airbus
Global Sourcing Network,
has held the positions of
Managing Director EADS India
and General Representative
(China) for Alcatel SEL
A.G. Philippe Advani graduated
from Ecole Supérieure
d’Electricité in Paris with a degree
in Engineering and completed an MBA at INSEAD.
He holds a degree in Chinese language and civilization.
EADS France
37, boulevard de Montmorency, 75016 Paris, France
Phone +49 89 607-34085, Fax +49 89 607-34084
Email philippe.advani@eads.net, web www.eads.com
EADS & Airbus have put in place a set of strategic responses
and organisational enablers to address these challenges.
This includes both the mobilization of its current
supply base as well as adapting its processes and organization.
A dedicated organisation named “Global Sourcing
Network” orchestrates and supports the preparation, focus
and implementation of its globalisation road-map. Country
Sourcing offices located in countries such as India, China
and the USA cover the end-to-end procurement process in
support of the central procurement organisations.
The group is confident that, by focusing its efforts and
setting up the right organisational support, it will improve
its overall business proposition through Global Sourcing.
The Company
EADS is a global leader in aerospace, defence and related
services. In 2010, the Group – comprising Airbus, Astrium,
Cassidian and Eurocopter – generated revenues of € 45.8
billion and employed a workforce of nearly 122,000.
S u p p l y Chain Management iii /2011 51

52
AVIATION FORUM 2011
Globalization at Aerolia
Mathieu Costes, Chief of Staff, CEO Office, AEROLIA,
David Millot, Head of Tunisia Project Team, AEROLIA Operation
Aerolia objective
Created on Jan 01st 2009 from a carve-out of two former
Airbus French plants, Aerolia Company is on its way to
match its vision 2020 strategy during a global business increase
timeframe. Main objective is to become Top-3 Aerostructure
Risk Sharing Partners for OEMs, by diversifying
its Customers Portfolio, moving to a real tier-one company
delivering “plug & fly” work-packages and internationalizing
its industrial footprints (Make and Buy).
Diversify Customers Portfolio
With a 100 % Airbus turnover at day one on Jan-2009,
Aerolia gained two new customers: Bombardier, with
“Global 7000/800” fully equipped center-fuselage and TPI
with new plant opening support, Aerolia is on track. In parallel,
Aerolia is developing new relationships with Boeing,
Embraer and other OEM major actors.
Deliver “plug & fly” work-packages
A global concept in Aerostructures to offer a new set of
services on products & businesses to our customers:
n On Products, to deliver the right technological choice
to optimize customer performances; and the adequate
set of tools to match customer way to manage technical
data.
n On industrial model, to offer Customer Intimacy & Competitiveness.
n On standards to Offer to our Customers Industrial Excellence,
with full responsibility of fully equipped fuselage
sections.
Internationalize industrial footprints
(Make and Buy)
Major tier-1 and RSP’s are rated over several eco-efficiency
key elements: a worldwide foot print is one of them.
It aims at reaching several goals, such as pushing for natural
hedging, balancing global logistic cost and integrating a
competitive content, whilst managing a global reduction of
carbon footprint. All those reasons push Aerolia to internationalize
with a good balance between ‘local for local’ and
‘local for global’ supply chain principles. Today, Aerolia is
developing an industrial aeronautic park in Tunisia and
new industrial premises in Canada. Suppliers are moving
worldwide on the same path along Aerolia strategic supply
chain development scheme.
S u p p l y Chain Management iii /2011
Experts
MATHIEU COSTES was appointed
as Chief of Staff at
AEROLIA on April 2010. Following
engineering graduation
at “Ecole des Mines de
Saint-Etienne” and a Master
of Advanced Study in applied
mathematics at “Polytechnics
Institute of Toulouse”,
Mathieu worked 13 years at
Merck & Co Inc., at the French Nuclear Authoritiy, at
Thomson-CFS/Thales then Airbus SAS.
Mathieu COSTES, Chief of Staff, CEO office
Aerolia, Toulouse site
13 rue Marie-Louise Dissart
31 027 Toulouse, France
Phone +335 81 91 40 10
Fax +335 81 91 40 05
DAVID MILLOT joined AER-
OLIA company since its creation
on January 2009. Following
engineering graduation
at “Ecole Nationale des Arts
et Métiers”, David worked
for 10 years at AIRBUS SAS,
Meaulte site, having several
experiences on the same industrial
site (manufacturing,
costing and head of project management). He became in
2009, with creation of AEROLIA SAS, the project manager
of industrial aeronautic park in Tunisia.
David MILLOT, Head of Tunisia Project
Aerolia, Méaulte site
BP 70201
80 302, Albert, France
Phone +333 22 64 30 63
Fax +333 22 64 36 67

AVIATION FORUM 2011
Globalization of Services
Wolfgang-Joachim Schmälzle, General Manager of Sales & Business Development,
Hönigsberg & Düvel Datentechnik GmbH
Experiences & Challenges within
H&D International Group
After several years of international experience in developing
our subsidiaries in the Czech Republic, Mexico and
the U.S. we have established a stable base and competence
for global project and service delivery. The next major step
in our company’s growth strategy is to support our focus
customers with more subsidiaries in emerging markets.
Our challenging business demands –
derived from our clients
n Delivery of innovation potentials and resources for product
development & testing
n Professional Workplace Management for employees (different
roles, increased mobility & collaboration, security)
n Implementation of business oriented robust logistics and
sales & service solutions with capacity & performance
management improvements (KPI’s).
n Expansion into emerging markets to support globalization
and corporate strategy incl. roll-out projects
n Local cost competitiveness, global overall business ability
enhanced with local content services & solutions are
our success factors.
Our Approach
Our experiences in international projects and our global
presence close to our costumers’ main business locations
enable us to fulfill the demands of corporate business – in
line with the strategies of our major customers. We focus on
Engineering Services for aerospace industries, global IT infrastructure
projects, corporate SAP development & testing
and Shopfloor IT services (IT & automation).
Global Strategy Implementation
A well derived strategic decision, a good team approach
and the full commitment of our complete management
board is essential for us, if we enter a new market to gain
best leverages of our investments. To ensure optimal results
of business and IT-services in different local contexts, further
elements of differentiation are obligatory.
Overall we optimize and enhance our industry services
and solutions portfolio with individualized customer services
in order to supply high quality life cycle management
services for infrastructures and applications for our custom-
Expert
WOLFGANG-JOACHIM
SCHMÄLZLE was appointed
General Manager of Sales &
Business Development at
H&D International Group in
2009 and is in charge of developing
existing and new
customers’ business and
lead H&Ds customer-centric
growth. Following graduation
from the University of Mannheim (Business Administration)
he began his career at Hewlett-Packard.
Hönigsberg & Düvel Datentechnik GmbH
John-F.-Kennedy-Allee 62
38444 Wolfsburg
Germany
Phone +49 5361 30856-0
Fax +49 5361 30856-29020
Email wolfgang-joachim.schmaelzle@hud.de
web www.hud.de
ers. To improve efficiency and effectiveness significantly is
important for us! Therefore we fully concentrate on moving
& aligning Business- and CMMI-Level on Stage 4 using agile
project management methods.
The company
H&D International Group is an owner-led IT & Services
Provider with about 1400 employees and global project
presence. International subsidiaries are set up in the Czech
Republic, Mexico and the U.S. Turnover in 2010 was above
60 Mio Euro. The service offering portfolio for the aviation
industry contains mainly Consulting, Training, Implementation,
Software Development & Testing, Infrastructure
& Application Lifecycle Services. Engineering Services
(DMU, CAx, CAE) and our logistics solutions are also very
important offerings for this industry. Our experts are able
to deliver design, development, optimization and support
services within the business processes.
S u p p l y Chain Management iii /2011 53

54
AVIATION FORUM 2011
Challenges
Our customers expect nothing less than on time on qu-
Multinational enterprises are facing challenges as soon as it
comes to local guidelines and regulations per country. Especially
for IT and telecommunication projects across the border
companies need to understand and follow guidelines
and processes that differentiate per country. The in-time
delivery and implementation of IT and telecommunication
services are crucial and a key of success for a company to
launch new products or projects. Hence local guidelines,
regulations and process in a country or area can be an unforeseen
barrier for enterprises.
Solution
Local Projects –
Global Successes
John Hammond, Vice President for EMEA Business Network Solutions, NTT Europe
As one of the leading global ICT providers, NTT Communications
supports enterprises from first setting foot in
a foreign country to consolidating already established presences
– helping with everything from data centre and office
locations to IT site audits, from how to behave in a business
meeting to compliance, tax and import regulations.
NTT provides a flexible network and ICT infrastructure
backbone that acts as a secure gateway to the world’s
most economically vibrant regions. Equally important is
the in-country expertise – especially in the Asian region.
NTT Com can navigate the minefield of doing business in
a foreign land, advising on everything from data centres to
business etiquette and local regulations.
Alongside this, the extensive and experienced European
organisation of NTT Europe, with local offices in 10 countries,
provides local account and technical support to ensure
smooth planning and co-ordination of projects at all
levels.
Voice of Customer Lufthansa Systems
“It is sometimes challenging to enhance the communication
infrastructure in the Asia-Pacific region. Not all
telecom operators meet our requirements. We compared
several communication carriers. Our focus is that the carrier
should be financially stable, it should have low possibility
of a merger, which often weakens service levels, and
it should be able to provide consistent service for the long
term. In addition, the provider should have a good record
of achievements in global business, and should have cut-
S u p p l y Chain Management iii /2011
Expert
JOHN HAMMOND is the
Vice President for EMEA
Business Network Solutions
at NTT Europe, part of
the NTT Communications
Group. In his position he is
responsible for the global development,
deployment and
management of telecoms and
IT services for multinational
enterprises. He received BSc. and MSc. Engineering
Degrees from Trinity College Dublin and a Marketing
Degree from the Marketing Institute of Ireland.
NTT Europe Ltd.
3rd Floor, Devon House,
58-60 St Katharines Way, London, E1W 1LB, UK
Phone +44 207 977 1019
Email john.hammond@ntt.eu
web www.eu.ntt.com
tingedge and high technology of its own. NTT Communications
is qualified in all these fields.”
Mr. Bardo Werum, Vice President, Cross Industries &
Operations, Lufthansa Systems.
About NTT Communications
As Global ICT Partner, NTT Communications offers a
broad spectrum of services. These include global networking,
security, hosting, voice, data and IP services, cloud
computing and IT management solutions as well as IT services,
provided by NTT’s Tier 1 IP backbone in over 150
countries.
NTT Communications is a wholly owned subsidiary
of Nippon Telegraph and Telephone (NTT) Corporation,
one of the world’s largest telecommunications companies
– ranked 31st in the Global Fortune 500. Part of the NTT
Group are also companies as Cirquent, Dimension Data,
Integralis and itelligence.

Perspectives for Aircraft
Perspectives for Aircraft Design and
Manufacturing
Our customers expect nothing less than on time on
quality deliveries of their aircraft. In an ever changing and
challenging economical and ecological environment their
permanent focus is on efficiency, productivity and reduced
environmental footprint of their aircraft operations. Consequently
they strongly press for stretched step changes
in performance and cost improvements through most advanced
and innovative technologies and comprehensive
services.
With a strong customer focus, Airbus has emerged over
the past decade to the world leader in aircraft design and
manufacturing. Actual Airbus output is 500+ aircraft per
annum, with a conservatively forecasted market demand
suggesting even higher rates to be achieved during this decade.
Building more than two A320 aircrafts per day requires a
fundamental transformation in the way of working as well
as in the methods and tools used. Successful adaptation
from the automotive industry best practices are showing
promising opportunities. This leads to simplification of
increasingly complex constellations in design and supply
chain, strict discipline in standardisation and modularization,
whilst securing sufficient individualisation for the customers
in the visible cabin area.
The clear focus of Airbus on aircraft architecture and integration
requires a different approach in collaboration and
integration of suppliers into the development and manufacturing
process. Strong consolidation on first tier suppliers,
professional and collaborative project execution with
managed risk control, definition of new quality standards,
aligned industrial principles like lean operating systems or
synchronised research and technology strategies are just a
few consequences and interesting opportunities at the same
time.
Without question new challenges and standards for cost
effectiveness and competitiveness will impact our business
model, as new players are preparing their entry into the
arena. Anticipating customer needs, Airbus will deliver innovative
solutions and turnkey support and services for
efficient operation of our products.
With the customers in mind and the passengers at heart,
the basics remain simple: All contributors shall deliver on
time on quality every time. To stay in the leading position
however further ingredients need to be added, that are:
evolution towards a “partnership“ model, based on bench-
AVIATION FORUM 2011
Design and Manufacturing
Mario Heinen, EVP, Center of Excellence Fuselage and Cabin, Airbus Operation GmbH
Dinner Speaker
MARIO HEINEN is EVP of
the transnational Center of
Excellence Fuselage and Cabin
for all aircraft programs
since 2008. In this function
he is responsible for the design,
the assembly and the
system installation of all fuselage
sections. In previous
positions Mario Heinen was
Head of A380 Programme, A320 Programme and Airbus
Delivery Centre. After completing his studies in
Aeronautical Engineering Mario Heinen started his career
as Engineer at Lufthansa, where he held different
Manager positions in Engineering and Maintenance
Operations. He was General Manager Aircraft Maintenance
at Lufthansa Technik Frankfurt before he joined
Airbus in 1999.
Airbus Operations GmbH
Kreetslag 10, 21129 Hamburg
Germany
Phone +49 40 74381134
Email Mario.Heinen@airbus.com
web www.airbus.com
mark performance, enhanced quality standards, sustained
reliability, adapted reactivity and world class program execution.
The company
Airbus is a leading aircraft manufacturer with over
52.000 employees and a worldwide presence. The product
line covers a full spectrum of four aircraft families
from a 100-seat single-aisle to the largest civil airliner, the
doubledeck A380. In 2010, Airbus achieved a turnover of
around 30bn Euros, and it has captured more than 10.000
orders from around 300 customers around the world. Airbus
is an EADS company.
S u p p l y Chain Management iii /2011 55

56
Program
S u p p l y Chain Management iii /2011

AVIATION FORUM 2011
S u p p l y Chain Management iii /2011 57

Rocking the Hybrid.
Der Touareg.
Der erste
Ausgestattet mit optionalen Technologien wie der dynamischen Fernlichtregulierung
„Dynamic Light Assist“, dem Spurhalteassistenten „Lane Assist“ oder der Distanzregelung
ACC nimmt der Touareg seinem Fahrer viele Dinge ab, die das Fahren anstrengend
machen können. Schließlich soll Sie nichts davon ablenken, hinter dem
Steuer eines Autos zu sitzen, dessen außergewöhnlich leistungsstarker und umweltschonender
Hybrid*-Antrieb jede Strecke in ein unvergessliches Erlebnis verwandelt.
*Touareg, V6-TSI Hybrid, 245 kW (333 PS) und 34,3 kW (46 PS), Kraftstoffverbrauch, l/100 km, innerorts 8,7/außerorts 7,9/
kombiniert 8,2; CO2-Emission, kombiniert 193 g/km. Gemäß RL 1999/100/EG, abhängig von Fahrweise, Straßen- und
Verkehrsverhältnissen. Abbildung zeigt Sonderausstattung gegen Mehrpreis.
www.volkswagen.de
der mit Adrenalin fährt.

AVIATION FORUM 2011
Supply Chain Management
at Airbus
Dr.-Ing. Klaus Richter, Executive Vice President Airbus Procurement
Supported by the overall current economic situation, the
2010 financial year results at Airbus demonstrated some
substantial achievements: Airbus again set a new record
with 510 civil aircraft deliveries; furthermore, the market recovery
was reflected in 574 new orders (net). The year 2011
has started very positively for the company, in particular
with the success of the A320neo with now over 1,000 commitments
in the order book since its launch. In an industry
outlook through 2030, Airbus’ latest global market forecast
suggests that – with air traffic supposed to more than double
in the coming two decades – more than 26,900 new passenger
aircraft will be needed to meet the rising demand;
deliveries of single-aisle aircraft being the most significant
in terms of volume and value.
Efficient supply chain management for these expected
volumes will require – considering as well the size that
Airbus represents on work packages for systems and parts
suppliers – that our partners meet new challenges in terms
of capacity management and performance. In addition to
that, both financial and management capacity will become
increasingly important.
New operating environment &
challenges
Positioning and re-orienting procurement at Airbus can
be put in the context of the overall challenging environment
for the company: globalisation, new competitors, minimisation
of currency exchange risks and the management of
large-scale projects. At the interface to suppliers, enhanced
competences are required in the process chain: In addition
to innovation potential, consolidation of the supply chain,
quality requirements and global orientation, the partners of
tomorrow will have to focus more on the industrialization
of processes. Furthermore, when comparing the sector to
the automotive industry, there is a need to further orient
towards series production.
Global Sourcing
When transforming aircraft production into a global business,
the new emerging markets gain in importance compared
to the traditional ones in Europe and the US. This trend
is reflected in the future Airbus procurement spend profile: In
general, the global spend will double from US$30bn in 2010
to more than US$60bn beyond 2020. The so-called “rest of the
Speaker
DR.-ING. KLAUS RICHTER
was appointed EVP Procurement
at Airbus in 2007 and
is in charge of all procurement
across the entire Airbus
organisation .
Following graduation from
the Technical University of
Munich in mechanical engineering
and two years of research
in the USA, Klaus Richter began his professional
career with McKinsey in 1993 until he joined the BMW
Group in 2003 where he was Senior Vice President Materials
Purchasing in his last position.
Airbus S.A.S.
1 rond-point Maurice Bellonte
31707 Blagnac Cedex
France
Phone +33 5 61 93 33 33
Email klaus.k.richter@airbus.com
web www.airbus.com
world” outside of Europe and the US will have a significant
share, for example through growing volumes from China
(aerostructure work packages for the series programmes).
The Airbus procurement organisation reflects this through
reinforced support of the regions and the establishment of
so-called Country Sourcing Offices, such as India and China.
The company
Airbus is a leading aircraft manufacturer with over
52.000 employees and a worldwide presence. The product
line covers a full spectrum of four aircraft families from a
100-seat single-aisle to the largest civil airliner, the doubledeck
A380. In 2010, Airbus achieved a turnover of around
30bn Euros, and it has captured more than 10.000 orders
from around 300 customers around the world. Airbus is an
EADS company.
S u p p l y Chain Management iii /2011 59

60
AVIATION FORUM 2011
Hamburg –
The place for aviation
State Councillor Dr. Bernd Egert, Free and Hanseatic City of Hamburg
Thinking in new dimensions
Hamburg offers competences covering all facets of aircraft
construction, aircraft maintenance and airport operations.
Together with the three major companies – Airbus
Deutschland GmbH, LufthansaTechnik AG and Flughafen
Hamburg GmbH – more than 300 small and medium-sized
firms together with the technological and scientific institutions
make contributions to the know-how. That makes
Hamburg a leading location for civil aviation world-wide.
The construction of the Airbus A380 gives Hamburg as
a place for aviation a share in an internationally outstanding
project: the development, construction and operation
of this wide-bodied aircraft are hitherto the greatest challenges
faced by the aircraft industry, suppliers and aircraft
operators. Another outstanding aspect for Hamburg as a
place for aviation is the sole responsibility for the development
and construction of the A380 cabin. The construction
of the A380 also has a positive effect on the metropolitan
region of Hamburg. The Airbus plants in Stade as centre of
competence for CFRP and in Buxtehude for in-flight entertainment
play a major role in the programme.
Hamburg – The place for aviation.
At a glance
n An aviation tradition of more than 100 years with today
more than 39,000 employees,
n three core companies: Airbus, Lufthansa Technik, Hamburg
Airport,
n supply chain with 300 aviation suppliers (SMEs) with
distinct diversification,
n a continuously growing scientific landscape with five
universities focussing on basic research and practical
applications in aviation technology (University of Applied
Sciences HAW Hamburg, Hamburg University
of Technology TUHH, University of Hamburg, Helmut
Schmidt University, University of Applied Sciences FH
Wedel),
n two research centres (Technology Centre Hamburg
Finkenwerder THF, Centre for Applied Aircraft Research
ZAL) as well as two institutes of the German Aerospace
Centre DLR,
n qualification centre for professions in aviation technology;
dual training at State Tech-nical School for Production
Engineering and Aircraft Technology (G15); private
S u p p l y Chain Management iii /2011
Speaker
State Councillor DR. BERND
EGERT was appointed State
Councillor at the Ministry
for Economics, Transport
and Innovation (concerned
with the economy and innovation)
on the 24th of March
2011. Before that Dr. Egert
was at the Ministry of Economics
and Labour Affairs of
the Free and Hanseatic City of Hamburg, head of the
Office for the Economy, Port and Technology, , comprising
departments for: the port, logistics, aviation/
industry, technology+innovation/commerce, services,
craft trades. Dr. Bernd Egert has obtained the academic
degree “Diplom-Physiker”.
Dr. Bern Egert
State Secretary
Free and Haanseatic City of Hamburg
Alter Steinweg 4
D-20459 Hamburg
Phone +49 40 42841-1855
Email Bernd.egert@bwvi.hamburg.de
web www.bwvi.hamburg.de
basic and advanced training; technical tertiary education;
corporate learning location co-operation at the
Hamburg Centre of Aviation Training HCAT,
n leading edge cluster of the Federal Republic of Germany
with focussed research pro-jects in the strategy for “a
new kind of aviation”: more economic, more ecologic,
more comfortable, more reliable, and more flexible
n powerful and communicative network of industry partners,
public authorities, associations, universities, chambers,
employers and workers organisations,
n networking of German regional aerospace organisations
and international aerospace organisations in the EACP
European Aerospace Cluster Partnership.

Challenges ahead of
The German Aerospace Industries
Association (BDLI)
The BDLI with more than 190 members represents the interests
of an industrial sector, which is a significant driver of
national economic growth. Our industry creates and safeguards
highly-skilled jobs for Germany, combines almost
all strategic key technologies and achieved a turnover of
24.7 billion euros with a directly employed labor force of
around 95,400 in 2010.
SME-dominated, national industry
supplier landscape
The landscape of German Aerospace companies is dominated
by the OEMs Airbus, Eurocopter and Cassidian and
a large basis of SMEs. These companies are currently facing
diverse industrial perspectives.
Defense-related business is currently facing a severe
downturn. This is creating a substantial crisis for those
SMEs in Germany who are specialized on development,
production or support of components for military aircraft
systems.
On the opposite, due to a quickly-growing global demand,
the civil aircraft industry is envisaging an excellent
long-term perspective. This goes along with a range of challenges
such as ramp-up, consolidation, globalization, cost
pressure, the euro-dollar ratio, to name only a few of them.
It is obvious that there will be a shift in the whole industrial
supply chain – not only from OEM to tier1.
Risk & revenue partnership
OEMs need to define their role and strategy and stay
with it for a reliable period of time. Airbus, for example,
chooses a “New Systems Policy” (NSP), positioning itself as
a global leader in air transport systems integration, resulting
in a down flow of responsibilities and modular expertise
into a cascaded global supply chain. This implies the
bearing of immediate risks both by OEMs and suppliers,
but also of long-term dependencies on the OEM side.
Risk reduction, fair risk and revenue partnership models
and tailored contracting are key issues for all involved parties.
Otherwise, specialized SME might exit aerospace business,
creating process-critical problems on the OEM side.
AVIATION FORUM 2011
the national supply chain
Dietmar Schrick, Managing Director, German Aerospace Industries Association, BDLI
Speaker
DIETMAR SCHRICK is Managing
Director of German
Aerospace Industries Association
(BDLI). Before changing
to BDLI, he was Member of
the Executive Board of EADS
Military Air Systems, Director
of Manching plant and of
Dornier Flugzeugwerft. He
had several leading positions
in Business Development, Marketing and Foreign Relations
within MBB, DASA and EADS. Dietmar Schrick
holds a degree in Engineering and a degree in Business
Administration.
Bundesverband der Deutschen Luft- und Raumfahrtindustrie
e.V. (BDLI)/ German Aerospace Industries Association
ATRIUM Friedrichstrasse 60
D-10117 Berlin · Germany
Phone +49 30 206140-10 · Fax +49 30 206140-12
Email schrick@bdli.de · web www.bdli.de
All links of the value chain will have to exchange expectations
and needs, in order to create a competitive set-up to
succeed in a cyclic volatile aerospace business.
Innovation, consolidation
The BDLI actively moderates this process on different
levels, for example through representation of the supplier
industry in its board, by means of eye-level platforms for
OEMs and suppliers within the BDLI, through dedicated
working groups for engineering service suppliers and
through specific research on the national supplier segment.
Suppliers will have to further consolidate in Europe and
Germany, as only innovative capabilities will enable suppliers
for long-term partnerships with OEMs. It is the right
time now for this symposium to take up one of the biggest
future issues of our industry.
S u p p l y Chain Management iii /2011 61

62
AVIATION FORUM 2011
Strategic Outlook at Airbus:
Delivering the Future
Christian Scherer, Executive Vice-President Airbus Strategy and Future Programmes
Initial situation
Despite two difficult downturns in recent aviation history,
the sector managed to recover quickly, proving the
importance for the world’s business and people’s day to
day lives. Airbus recently published the 2011 Global Market
Forecast which suggests that traffic will more than double
in the coming 20 years as aviation becomes more accessible
to those in emerging markets as well as in Asia, Europe and
North-America.
Airbus, along with its suppliers, is committed to continue
innovating to improve the whole flying experience
for passengers, and to reduce the cost for airlines while decreasing
our environmental footprint.
Growing world passenger fleet
The world’s passenger aircraft fleet will grow from
15,000 in 2011 to over 31,000 by 2030. In the meantime,
10,500 aircraft from the existing fleet will be replaced with
more eco-efficient models. Of these, 3,400 will be recycled
back into passenger service while 2,200 aircraft should also
be converted to freighter.
Global demand is increasing and
diversifying
The GMF predicts that the greatest demand for passenger
aircraft will come from airlines in the US, the People’s
Republic of China and Germany, with a mix of global, lowcost
and charter airlines. In addition the world’s airlines will
require about 5000 smaller aircrafts, either jet or turbo-prop
to serve regional demand. Globally, deliveries of single-aisle
aircraft are the most significant in terms of volume and value,
with these aircraft flying 80 % of global seats. The twin-aisle
segment can operate domestic, regional and inter-continental
routes, performing a key role in connecting the mega-hubs
where the A380 is promised to a great future, to secondary
airports. The A350XWB is set to soon excel in that role.
The company
Airbus is a leading aircraft manufacturer with over
52.000 employees and a worldwide presence. The product
line covers a full spectrum of four aircraft families from a
100-seat single-aisle to the largest civil airliner, the double-
S u p p l y Chain Management iii /2011
Speaker
CHRISTIAN SCHERER was
appointed Executive Vice
President, Head of Strategy
and Future Programmes in
September 2007. He is in
charge of defining Airbus’
long term strategic objectives
in different areas such
as analysis of the market environment
and research of
trends and evolutions, product policy and development
of future programmes, industrial strategy, international
partnerships and cooperation programmes.
He holds an MBA from the University of Ottawa in
international marketing and a degree from the Paris
Business School (ESCP) in organisation and management
information systems.
Airbus S.A.S.
1 rond-point Maurice Bellonte, 31707 Blagnac Cedex,
France
Phone +33 5 61 93 33 33
Email christian.scherer@airbus.com
web www.airbus.com
deck A380. In 2010, Airbus achieved a turnover of around
30bn Euros, and it has captured more than 10.000 orders
from around 300 customers. Airbus is an EADS company.
MEDIA KITS
Download unter www.ipm-scm.com
AVIATION

Supply chain solutions
for the after-market
August Wilhelm Henningsen, Chairman of the Executive Board, Lufthansa Technik AG
Challenges of starting a new airline
To start a new airline a great number of tasks have to be
worked out and solved before the first revenue flight can
take off.
Besides defining the target market and creating a workable
business case the airline has to select the right aircraft,
it has to hire licenced flight crews and it must establish a
certified maintenance organization before it will receive an
Aircraft Operation Certificate (an AOC) from the airworthiness
authorities.
Beginning with the start-up phase Lufthansa Technik
supports airline customers all the way along to a mature
operation – with engineering, line maintenance and material
supply services. The capabilities and experience in
serving a large number of airlines such as Lufthansa enables
Lufthansa Technik to deliver such a support successfully
on a global scale. Using these services enables any
new airline to obtain its certification in a very time-efficient
and secure way.
Relying on such a compact start-up support, the airline
only has to employ a very limited number or even no own
engineering and technical personnel at all to get started.
Experienced engineers and mechanics will be assigned by
Lufthansa Technik. This saves time and money for the new
airline, at the same time ensuring operational performance
at the level of a well-established airline.
Besides the availability of qualified personnel a seamless
supply of consumable and rotable material (components)
has to be available from day one.
Lufthansa Technik is holding a sizeable material stock
to guarantee the reliable operation of its customers. This
stock is equally shared (pooling) between all customers. All
clients pay a lease fee to have access to the pool. By this, the
customers avoid major investments in own material stocks.
To minimize the size and cost of this material pool, Lufthansa
Technik invested heavily into component repair
capabilities over the last decades to minimize turnaround
times in the repair process.
A high-performance global logistic supply chain guarantees
shortest replenishing times to the local warehouses of
Speaker
AVIATION FORUM 2011
AUGUST WILHELM
HENNINGSEN is Chairman
of the Executive Board
of Lufthansa Technik AG.
Prior to assuming this position
on January 1, 2001, Mr
Henningsen was in the Board
responsible for the LHT
product and services activities.
He had become a member
of LHT’s Executive Board on April 1st, 2000. Mr.
Henningsen studied mechanical engineering with focus
on aeronautics at Brunswick Technical University.
Lufthansa Technik AG
Weg beim Jäger 193
22335 Hamburg
Germany
Phone +49 40 50703356
Email hamtvv@lht.dlh.de
web www.lufthansa-technik.com
the customers. This is supported by a state-of-the-art EDP
system which provides all data concerning asset distribution,
material tracking and tracing as well as all relevant
cost information.
The described support and supply services are proven in
global operations.
About Lufthansa Technik
The Lufthansa Technik Group, with 32 subsidiaries and
more than 26,000 employees worldwide, is one of the leading
manufacturer-independent providers of services for the
aviation industry. Lufthansa Technik is licensed internationally
as a repair, production and development enterprise.
The Group’s portfolio encompasses the entire spectrum of
services in the areas of maintenance, repair, overhaul, modification
and conversion, engines and components.
S u p p l y Chain Management iii /2011 63

64
AVIATION FORUM 2011
Consolidation.
Risks and Advantages –
A practical approach
Olivier Cauquil, Senior Vice President, Procurement Strategy & Business Operations, Airbus
Drivers of supply chain consolidation
The industrial approach of the major Aircraft manufacturers
has significantly evolved over the past 20 years. Many
factors have driven them to increase out-sourcing. The Airbus
cost structure has actually evolved from a 50-50 % make
and buy balance in the early 90’s to close to 80 % of procured
items in the aircraft content today. The management of resources
has been the first driver.
The huge increase in the demand and hence in the aircraft
production volume has led Airbus to rethink the relationship
with its supply base. Lower volumes could cope with
tactical (build-to-print) subcontracting. Delivering over 500
aircraft yearly can only be envisaged with integrated components
procurement. In parallel the Airbus product range
has been significantly broadened. Handling several developments
in parallel has only been possible by transferring
some engineering tasks to suppliers (design and build). Going
further, Airbus has divested part of its Aero-structure
activity, thus creating big design and build partners, integrated
into airframe design loops and configuration management
processes within an Extended Enterprise model.
Besides workforce and skills, the financial resources are
also a major hurdle in launching a new airplane. The set-up
of an aircraft programme business case relies on the participation
of suppliers acting as risk-sharing partners.
The quest for a sustainable position on the market has
driven the set-up of a more collaborative way of working
with a narrowed set of suppliers.
Reducing the time-to-market and opening the door to
suppliers design innovation opportunities is key to maintaining
competitiveness. Common R&D projects, earlier selection
for broader work packages are the main drivers of
this new approach.
Finally, the vertical integration of procured goods has been
a significant contributor to production lead time reduction.
The evolution of all these relationships has resulted in
supply chain consolidation. This consequently raises a legitimate
question for many suppliers: how to maintain and
develop their business in this fast evolving environment?
There is no single and universal answer. We will, however,
provide some ideas and comments that may help find
the way forward.
S u p p l y Chain Management iii /2011
Expert
OLIVIER CAUQUIL is Senior
Vice-President, Strategy
and Business Operations at
Airbus, based in Toulouse,
France. He has held positions
in the field of Information Systems
and Industrial Organisation
Management, and has accumulated
an extensive experience
of Procurement due to
the positions held as Avionics Procurement Director and
Vice President Equipments and Systems Procurement at
Airbus. He studied Economics at Toulouse University
and is a graduate of the Toulouse Business School.
Airbus Central Entity
Phone +33 562 118639, Fax +33 5 671 98039
Email olivier.cauquil@airbus.com
web www.airbus.com
How to envisage the consolidation?
n Becoming or remaining a Tier 1 supplier is not a must,
nor is the size of the company in itself. The cornerstone
of the strategy definition is to identify where the supplier
is contributing unique added value and how an
association with other player(s) can create competitive
advantage. Working as a supplier to a well established
prime can often be a better option (faster, less capital
investment, opening to market with other OEMs).
n Due to the long cycles and the capital-intensive nature of
the aircraft industry, a healthy balance sheet is of utmost
importance to ensure a safe growth.
n Invest in innovation: technology, industrial processes,
logistics, global sourcing.
n Pay close attention to the efficiency of your supply chain.
Revisit your make or buy policy.

A First Tier Supplier
The Company
Diehl Aerosystems is a first tier supplier for avionic solutions
as well as a major partner for cabin integration in the
aerospace industry worldwide, with customers including
most major airframers, such as Airbus, Boeing, Eurocopter
and Embraer, as well as manufacturers of military programmes
such as Tornado, Eurofighter and A400M.
Diehl Aerosystems is one of five corporate divisions
of the Diehl Group – a family-owned German company
with business activities in various industries, which employs
more than 13,000 people all over the world. Within
the Group, Diehl Aerosystems coordinates the activities of
commercial and military aircraft. The division consists of
four units – Diehl Aerospace, Diehl Aircabin, DASELL and
Mühlenberg – altogether with more than 3,000 employees
and an annual turnover of more than 600 million Euros.
The integrated product portfolio of Diehl Aerosystems
consists of various avionic systems and cabin interiors elements.
As part of avionic solutions for aircraft, Diehl Aerospace
offers cockpit and display systems, flight and high lift
control units, integrated modular avionics, doors and slides
management systems and cabin lighting systems.
Diehl Aircabin develops and assembles cabin interiors,
such as the entire floor-to-floor lining which also includes
luggage bins, crew rest compartments, monuments and air
ducting. The company‘s areas of expertise range from the
design, construction, manufacturing and qualification of
cabin elements right through to the integration of system
components. Diehl Aircabin is also involved in the manufacture
of exclusive cabin equipment and furniture for VIP
and corporate jets.
Both Diehl Aerospace and Diehl Aircabin are joint ventures
with Thales.
DASELL develops, designs, produces and overhauls
high-quality cabin interior components for commercial aircraft.
Lavatory systems, wash rooms and showers make up
the core competence of the company. Mühlenberg, which is
part of Diehl Aerosystems since the completion of the takeover
in August 2011, is a specialist for designing, certifying,
producing and delivering galleys, stowages, partitions and
small monuments for both, linefit and retrofit installation.
AVIATION FORUM 2011
in the Aerospace Industry
Rainer von Borstel, Member of the Executive Board of Diehl Stiftung & Co. KG,
President of Corporate Division Board Diehl Aerosystems
Expert
Since April 2010, RAINER
VON BORSTEL is Member of
the Executive Board of Diehl
Stiftung, and since July 2010
also President of Corporate
Board Diehl Aerosystems.
Rainer von Borstel has more
than 25 years of experience
in the aerospace industry.
He joined Airbus in the mid-
1980s, where he held a number of increasingly senior
positions between 1985 and 2008.
Diehl Aerosystems Holding GmbH
Am Flugplatz
D-88471 Laupheim
Phone +49 7392 703-2750
Fax +49 7392 703-1999
Email rainer.vonborstel@diehl-aerosystems.de
web www.diehl-aerosystems.de
With its product range covered by the four units, Diehl
Aerosystems has all major cabin interiors capabilities inhouse,
which – in combination with avionics and cabin electronics
– bears a huge potential for technical integration of
products, i.e. weight and cost savings. Furthermore, scalable
solutions from individual cabin products and systems
to complete integrated cabin packages are available. In addition,
Diehl Aerosystems offers a wide range of customer
support services, which include assistance for maintenance
and repair of Diehl Aerospace, Diehl Aircabin and DASELL
products.
The Corporate Division Diehl Aerosystems has various
engineering and manufacturing sites in Germany. Further
customer support facilities are located in Toulouse, France
(responsible for Europe and Asia), Sterrett, Alabama, USA
(responsible for the Americas) and Singapore, managed by
partner Satair (responsible for Asia-Pacific).
S u p p l y Chain Management iii /2011 65

66
AVIATION FORUM 2011
Support of the
Airbus Network
Management Services
Eric Feuillassier, Client Executive , Dimension Data
Taking on fully managed support of one
of the largest networks in Europe
Providing Airbus with consistent support across a multivendor
environment which spans 8 countries, improving the
uptime of their network infrastructure whilst ensuring value
for money were the challenges that Dimension Data tendered
for back in 2003. Eight years on and we are proud to say that we
are still Airbus’ transnational partner for their Network Management
Services across France, Germany, UK, Spain, China
and USA. Furthermore the relationship continues to be successful
and grows from strength to strength.
At Dimension Data, we are committed to Airbus’ continued
growth and success. This demands that the Business Unit is
relentless in its efforts to help our client reach their business
objectives through adding value to the services we already provide
and exceeding Airbus’ expectations at every opportunity.
Improvements to the network infrastructure
Working collaboratively, Airbus and Dimension Data
were able to adopt and implement a fully managed network
solution across the entire network infrastructure with
continual lifecycle management, thus delivering a network
availability of an average 99.999 %. Moreover, a period of
100 % has been achieved over three consecutive months.
Resolve times also improved to an average of two hours,
ensuring minimal disruption and continuation of daily operations.
Achieving these results was possible due to:
n The formation of three main technical support teams operating
in France, Germany, Spain, UK, China and USA
with the support of Airbus operational managers. The
structure of the three teams was mainly influenced by
each geography’s technical and operational requirements.
n Meeting the security requirements of working in such
a fragmented environment meant that all support functions
had to be contained within the perimeter of the Airbus
boundaries. Specific engineering capabilities were
required and security checks were undertaken.
n Over the years, Dimension Data has worked closely with
Airbus to replace all 3Com legacy equipment and redesign
the network with a Cisco solution.
S u p p l y Chain Management iii /2011
Expert
ERIC FEUILLASSIER was
appointed Client Executive
of the EADS Business Unit
at Dimension Data in April
2011. Apart from managing
the daily running of the
Business Unit, Eric has been
entrusted with overseeing
the operational aspects of
the various projects that are currently underway at
Airbus and acts as a central point of contact between
Dimension Data and Airbus.
Dimension Data
39, Chemin des Ramassiers
31770 Toulouse/Colomiers
France
Phone +33 53460 6214
Email eric.feuillassier@dimensiondata.com
web www.dimensiondata.com
In summary, by choosing Dimension Data as their IT
partner, Airbus can focus on achieving their business targets,
while we concentrate on continually monitoring the
uptime of their network infrastructure.
A view to the future
The improvement to the network has allowed the Dimension
Data Onsite team to get involved with low or
medium level design work, over and above their daily
activities. Also, the results that have been collaboratively
achieved by Airbus and Dimension Data have paved the
way for us to support other advanced technologies, such as
high availability IPT, which will further equip Airbus with
the technology they need to accelerate their ambitions and
enhance future business opportunities.

Labinal
Labinal and Safran
Engineering
Labinal (a Safran Group company) is a world leader in the
field of electrical wiring systems for the aviation, space and
defense markets. With more than 8500 employees around the
world, Labinal provides highly reliable EWIS (Electrical Wiring
Interconnection System), engineering, technology, products
and services to more than 20 leading aerospace OEMs.
Labinal designs and products include end to end wiring in
military and business jets, regional and commercial aircraft,
engines, satellites and helicopters. With operations in 9 countries,
Labinal has developed a global industrial and engineering
footprint providing proximity and value to its customers.
The company’s unmatched expertise is founded on decades
of design, development and manufacturing success
and long-term partnerships with the leading aerospace
companies. Labinal’s industrial activities, serving all market
segments, are customer-focused. They are organized in
four fields of activities: Research and Technology, Engineering
(through its subsidiary Safran Engineering Services),
Manufacturing and Services. Labinal offers full systems
solutions ranging from design and manufacture to installation
services located on-site, to logistics; resulting in an
end-to-end solution for customers.
Safran Engineering Services
As a worldwide leader in technologies and engineering
services, Labinal’s subsidiary Safran Engineering Services focuses
on customers’ needs and delivers added value by combining
best practice methods and state of the art technologies.
It is organized into four Centers of Competencies combining
the expertise in Electrical Systems, Aerostructures,
Mechanical Systems, Software, and Electronic Embedded
Systems. The expanding industrial and engineering footprint
assures that the best services are provided at the best
rate for the customers.
A complete suite of tools
Labinal expertise on electrical systems has met IGE-XAO
(electrical software editor) expertise and it ended up in a
global concept covering the whole scope from pre-defini-
Services:
Globalization Strategy
Karen Bomba, CEO, Labinal
Speaker
AVIATION FORUM 2011
KAREN BOMBA was appointed
CEO of Labinal in
2010. She is responsible for
worldwide activities. Following
graduation from Rensselaer
Polytechnic Institute
in mechanical engineering,
she began her career in aerospace
companies. She joined
Safran in 2000 and ultimately
became CEO of Messier-Bugatti USA. In 2008, she was
COO of Zoltek Companies, Inc.
Labinal (Safran group)
36 rue Raymond Grimaud · 31701 Blagnac cedex, France
Phone: +33 534 600010
Email karen.bomba@labinal.com · web www.labinal.com
tion up to manufacturing. The Joint Venture, EHMS, has
been created to develop specific manufacturing software
module to optimize production, paperless production and
secure configuration (as defined, as built, as installed).
This complete electrical suite of tools and processes integrating
all the needs from design to manufacturing and
installation meets the challenge of future aircraft programs. It
is spread over all Labinal – Safran Engineering Services organizations
worldwide and guarantees customer satisfaction.
To meet customer expectations, it provides the ability to
achieve challenging schedules, to support a quicker definition
and maturity convergence, to improve energy efficiency,
to reduce weight, and to reduce heating as Aircraft
are becoming more electrical.
Customer contractual scope requirements are increasing
from “Build to Print” to complete work packages. This
tool suite integrates interface management between Labinal
core activities, partners and competitors.
S u p p l y Chain Management iii /2011 67

AVIATION FORUM 2011
Challenges for Aircraft Seats
Due to the global ramp-up at the aircraft manufacturers,
the introduction of new models, as well as the growing
retrofit business, the demand for cabins and especially seats
has increased tremendously. Besides the higher demand,
the requirements driven by ecological, safety and economical
orientation create a challenging field for aircraft seats.
The main challenges for the development of new aircraft
seats are weight, comfort and total cost of ownership. By
tackling all three challenges, the contribution of the seats
to the overall efficiency, eco-friendliness and the customer
experience of air travelling can be significantly influenced.
The compliance with the increasing requirements by the authorities,
the OEMs as well as the airlines, as a precondition
for the business, make it even more challenging.
To create innovative products and solutions, all the resources
and the different disciplines of a company as well as
the external network need to be activated. RECARO Aircraft
Seating, headquartered in Germany, uses an integrated and
global approach to master the described challenges and to
introduce seats which are well-known for their light weight,
high comfort and high reliability as well as efficiency.
Company
Innovation through
value chain excellence
Dr. Mark C. Hiller, Managing Director, COO, Recaro Aircraft Seating GmbH & Co. KG
Recaro Aircraft Seating is a globally active developer and
manufacturer of aircraft seats for the leading airlines worldwide.
The company currently has 1,500 employees, including
more than 700 working in Germany, and operates four
production plants in Germany, Poland, South Africa and
the USA. Recaro Aircraft Seating has also four Recaro Service
Centers and 15 representatives in Europe, the Middle
East, America, Asia and Australia. For its spare parts business
the company has two service partners with numerous
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sind 68 erhältlich S u p p l y Chain im IPM-Shop: Management www.ipm-scm.com
iii /2011
Born in Stuttgart in 1972, DR.
MARK C. HILLER studied
Economic Science at the University
in Kaiserslautern/
Germany and at the Babcock
Graduate School of Management
in the USA. After various
consulting projects at the
Centre for Production Technology
at the University of
Kaiserslautern he obtained his PhD in 2002. In 2003, Dr.
Hiller started in the Recaro Group: At first in the Holding
as Head of Synergy Management, later he headed
Customer Affairs at Recaro Aircraft Seating, signing
responsible for Sales, Program Management and Customer
Support. Since 2007, Dr. Hiller is Managing Director
at Recaro Aircraft Seating GmbH & Co. KG. He is in
charge of Quality, R&D, Sourcing and Production.
RECARO Aircraft Seating GmbH & Co. KG
Daimlerstraße 21 · 74523 Schwäbisch Hall
Phone +49 (0) 791/5 03-70 00
Fax +49 (0) 791/5 03-71 63
Email info@recaro-as.com
web www.recaro-as.com
locations worldwide. Based in Schwäbisch Hall, Germany,
Recaro Aircraft Seating generated sales of 288 million Euros
in 2010. The company ranks among the world’s top three
aircraft seat manufacturers.
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II/2008
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INHALT
www.ipm-scm.com
II/2008
Procurement Service Provi ding:
Prozessorientierte SCM-Optimierung
Konzeption – Branchen studie – Praxisbeispiel
am Beispiel des Message Hub
Sherin Stepniak, Wolfgang Buchholz,
Klaus Josef Schäfer, Clariant Corporation
Fachhochschule Münster
RFID-gestützte Logistik in der Pharmaindustrie
The Evolution in Supply Chain Replenishment
Frank Brzoska, SAP Deutschland AG & Co. KG
Models: New Opportunities to Create Value
Die erfolgreiche Integration komplexer Supply
Oliver Eitelwein, CTcon Management Consulting,
Chains bei einem Firmenzusammenschluss
Prof. Dr. Thomas J. Goldsby, University of Kentucky (USA),
Dr. Hans-Walter Höhl, Bayer Schering Pharma AG
Prof. Dr. Terrance L. Pohlen,
University of North Texas (USA),
Handlungsempfehlungen zum
Dr. Carl Marcus Wallenburg,
Bestandsmanagement
WHU-Otto Beisheim School of Management
Dr. Götz-Andreas Kemmner, Abels & Kemmner GmbH
mschl_aussen_1507.indd 1 15.07.2008 14:26:05 Uhr
INHALT
Sicherheit in globalen Supply Chains:
Ableitungen aus der Prinzipal-Agent-Theorie
Andreas Wieland, Technische Universität Berlin
Szenario-Management in der Logistik –
Planungspraxis, Potenziale und Perspektiven
Dr. Heiko A. von der Gracht,
European Business School (EBS)
PRTM Studie:
Global Supply Chain Trends 2008 – 2010
Dr. Reinhard Geissbauer, Michael D’heur,
PRTM Management Consultants GmbH
Monetäres Supply Chain Management:
Beitrag des SCM zum Unternehmenswert
Alwin Locker, Soltar – The Supply Chain
Experts, Markus Rothböck, delfortgroup AG
Lean Management und RFID in der
Automobilindustrie
Dr. Walter Huber, Atos Origin GmbH
Best Cost Country: Kosten optimale Wertschöpfungskette
in der Automobilindustrie
Markus Wiederstein, Lutz Fischer,
PA Consulting Group
Dynamic Vendor Managed Inventory –
Plattform für eine veränderte Business Kultur
Prof. Dr.-Ing. Thorsten Brandes, TFH Wildau,
Marc Tuma, Motorola GmbH,
Stefan Wiesemann, T-Mobile Deutschland GmbH
Risiko- und Kostenminimierung
bei internationalen Beschaffungen
Prof. Dr.-Ing. Robert Schmitt,
Janko Kukolja, RWTH Aachen
scm_0803_umschl_außen_A3_3012.indd 1 30.12.2008 20:24:02 Uhr
III-IV/2008
AUTOMOTIVE

Company Profile
Fokker Technologies develops and produces complex
(lightweight) structures, electrical wiring systems and landing
gear for the Aerospace sector. In this, Fokker Technologies
is contributing its integrator origin by sophisticated
technology and design features such as Glare, Thermoplastics
and the proprietary WDMS tool set. The service activities
are directed at flight hour arrangements, inventory optimization,
related component and airframe maintenance
and providing (integrated) logistics with a high technical
content. This together with the Type Certificate Holdership
engineering and modification capabilities is directed at the
ongoing competitive operations of the Fokker fleet, as well
as other aircraft types such as the Bombardier Dash 8 and
NH90 helicopter fleets and systems.
With 3700 employees, circa Eur 616 million in turnover
the Fokker companies hold a prominent position in
the aviation and aerospace industry, as a leading player in
the market for Electrical Systems, Aerostructures, Aircraft
Maintenance and Services.
At Fokker Technologies, one of the most important
developments during 2010 was the decision to integrate all
aerospace entities into one group with a dedicated Executive
Board. Through this integration, Fokker Technologies
has clustered a balanced portfolio of activities based on
deep technology and engineering expertise. The activities
are well spread over defense and civil industries as well as
service and components business. Fokker Technologies has
a wide range of relationships with the leading companies in
the aerospace industry and knowledge centers.
Strategy
Fokker Technologies
In 2010 Fokker Technologies continued to pursue the
strategy adopted after the Candover acquisition of Stork
B.V, the parent company of Fokker Technologies. This
strategy involves the development of its core activities,
into world-class businesses which operate in the top tier
in their core businesses. Fokker Technologies is recognized
by delivering with its integrator origin high quality services
and excellence in engineering and technology application,
with the ambition to be the preferred supplier to
the respective industry leaders. Over the past years and in
2010, Fokker Technologies’ Business units have made good
AVIATION FORUM 2011
Company Profile & Strategy
Sjoerd S. Vollebregt, CEO, Fokker Technologies
Speaker
SJOERD S. VOLLEBREGT
joined Stork in 2002 as CEO
of the Board of Management;
he is currently also
CEO of the Executive Board
of Fokker Technologies. An
engineering and economics
graduate, Sjoerd has previously
worked for Royal Van
Ommeren, Intexo Holding
and Ocean plc where he was regional CEO for Central
and Eastern Europe.
Sjoerd has been active in sailing and has competed at
Olympic Games in Canada and Russia.
Fokker Technologies Holding B.V.
Industrieweg 4
3351LB Papendrecht
Phone +31-(0)78-6419235
Email mara.vanvaals@fokker.com
web www.fokker.com
progress in establishing integrated solutions by distinctive
business models, which fully captures strong customer focus,
knowledge sharing and execution excellence. The wide
spread of participation in development, manufacturing and
sustainment of aircraft platform across civil and military
applications, contributes strongly to customer intimacy,
technology development and robustness.
Fokker Technologies is substantially raising resource
levels to be able to accelerate development in the coming
years. These organizational changes have laid the basis
for pursuing growth outside the traditional markets, in
particular in emerging markets and extending the aircraft
families supported by Fokker Services. Depending on the
available opportunities , the strategy roadmap can be executed
through acquisitions, alliances, joint ventures and
autonomous growth.
S u p p l y Chain Management iii /2011 69

70
AVIATION FORUM 2011
Benchmarks for
Complex Global Logistics
Steven D. Markham, President, BLG Logistics Inc.
Supply Chain Complexity
Measuring supply chain complexity without stepping
on any particular industry’s toes is a difficult job. Is managing
over 700,000 SKU’s for a retail chain, or distributing to
50,000 points of sale less complex than managing 50,000
parts going into vehicle production at 15 locations in 10
countries? Is the supply chain of building an aircraft more
complex than that of building an airport, a rail network, or
a port?
Regardless of the rankings, comparisons and superlatives
of each industry, some things are undisputed. Globalization
has had an exponential impact on supply chain
complexity; every industry has its own challenges and despite
these unique challenges, cross-industry benchmarking
can add value to every supply chain.
Following recent developments in aviation production, it
is fair to assume that a historically regional, or at minimum
“continental,” production network (with a global supply
chain), is expanding to become a global production network.
To which industries can aviation look for examples
and best practices for the global manufacture of complex
durable goods?
The Automotive Industry in the
Southeast US: Benchmark for Complex
Global Manufacturing
Typically the so-called foreign “transplant” manufacturer
has produced a global product or a unique local product
exclusively for the local/regional market. Transplant manufacturing
has been utilized to avoid legislated barriers, to
offset currency risks, to take advantage of less expensive
labor, and to achieve a marketing advantage of being a “local”
product. It has rarely been used as part of a global manufacturing
strategy to increase efficiencies throughout the
supply chain and around the globe. While the Ford Motor
Company opened its first overseas plant in Trafford Park,
Manchester in 1911, just 8 years after the company was established,
the complex global manufacturing environment
of today was unthinkable.
Since the mid 1980’s foreign manufacturers have built
more than 20 plants in the United States with capacity of
more than five million vehicles. Most of these plants have
been built in the southern United States and not in the traditional
“rust belt”. Whereas most of these facilities build
nearly exclusively for the US and/or NAFTA markets, the
German Car manufacturers have transformed themselves
S u p p l y Chain Management iii /2011
Speaker
STEVE MARKHAM is President
of BLG Logistics, Inc.,
a subsidiary of the BLG
Logistics Group. After graduation
from the University of
Texas in 1990, he relocated to
Bremen, Germany and began
at BLG. In various capacities
at BLG he has helped establish
BLG in South Africa, Brazil
and the USA. In 2004, he relocated to Atlanta and
started the US operations. Steven is currently also Vice
Chairman of the German American Chamber of Commerce.
BLG Logistics Inc.
1170 Howell Mill Road NW #300
Atlanta GA, 30318
USA
Phone +1 (404) 819 5389
Email steven.markham@blg-logistics.com
web www.blg-logistics.com
into America’s leading exporters of passenger vehicles. The
plants have previously produced vehicles solely manufactured
in the United States, but are beginning to ship KD
parts to factories around the globe. The challenges and risks
of this endeavor are immense, but so are the potential rewards.
BLG Logistics
BLG LOGISTICS stands for international networks for
contract/3pl, finished vehicle, and container logistics. The
contract/3pl division of the company provides specialized,
facility-based services for industrial and retail logistics,
transcending and uniting the various point-to-point
networks offered by traditional transportation-based providers.
Headquartered in Bremen, Germany, the corporate
group provides more than 15,000 jobs worldwide.

Thales Avionics:
AVIATION FORUM 2011
supply chain globalization
Gil Michielin, Vice President General Manager Commercial Avionics, Thales Avionics Division
Innovation in linefit supply chain
Today, Thales Avionics supply chain delivers over 130000
products annually to Airbus Single Aisle, Long Range and
Double Deck final assembly lines.
In 2009, Thales Avionics decided to launch an ambitious
project to adapt its supply chain, to face an increasingly challenging
context that involved high pressure to simultaneously
decrease production costs, improve industrial flexibility
to match production rate variations and a permanent desire
to improve quality and on time delivery performances.
The following major innovation areas were addressed.
Globalization of the supply chain network
This led to the creation of a Singapore production centre
close to worldwide EMS and LCD suppliers for high production
volumes and the rationalization of French based
production facilities into a single Industrial Competence
Centre in Vendôme for low and medium production volumes.
Improvement of product maturity to serve a robust
supply chain
This was conducted by experienced industrial and supply
chain professionals to introduce, throughout the engineering
and development process, a robust and preventive
set of industrial tests and reviews to guarantee a fully reliable
first fit.
Implementation of a “Quality Survey Report”
prevention plan to protect Airbus assembly lines
This was a real step forward to protect the customer from
faulty product call back risks that could occur during aircraft
assembly. A complete process was set-up by Thales
and its suppliers to improve the detection of minor changes
at all manufacturing stages, speed-up corrective actions
and stop immediately the production of any faulty items.
This have substantially contributed to help obtaining
from Airbus an “A” rating for on time delivery performance
in June 2011 and a “zero QSR” record since October 2009.
... as well in the maintenance
In 2009, Thales Avionics launched a project called Wings:
Worldwide Integrated New Global Supply chain. The aim
was to inject a high level of innovation into our supply
chain by transforming our main processes: eliminate all in-
Speaker
GIL MICHIELIN is a graduate
Engineer in electronics. Since
1982, he spent most of his career
in Thales in Commercial
and Military Avionics. Today
Vice President General Manager
of the “Commercial Avionics”
Business Line, he is in
charge of the development of
Thales position on the Commercial
Avionics segment and his responsibilities cover
major Air Transport, Regional and Big Jet aircraft programs.
105 avenue du Général Eisenhower, BP 63647
31036 Toulouse, Cedex 1, France
Phone +33 5 61 19 65 00
Fax +33 5 61 19 66 00
web www.thalesgroup.com
ternal orders and focus our resources towards the customer,
globalize and optimize our stocks in order to improve availability
levels, extend the use of a forecast tool in order to
have a global coverage of our parts, and reduce the number
of missing parts.
In addition, two main innovation processes were set up:
n Direct shipment to our customers from our central supply
chains,
n a new parts push process, which enabled parts to be
pushed from central stocks for parts needed for repairs,
based on real consumptions and not on orders made by
repair stations. All processes became automated, which
eliminated internal orders.
Those two innovations lead to the following improved
performances:
n “On Time Delivery” for spares, thanks to the direct shipment
from the central supply chain : increased availability
of parts and reduced shipping times
n “Turn around time” for repairs, thanks to the push process
: increased e availability of parts linked to continuous
stock replenishment, globalisation of stocks and reduced
missing parts.
S u p p l y Chain Management iii /2011 71

72
AVIATION FORUM 2011
Innovation by Systems
Jean-Michel Clairis-Gauthier, Vice President, Sales, Marketing & Business Development,
ACSS, an L-3 Communications & Thales Company
Challenges
The way people fly and the aircraft that enables their
flight are changing. New procedures and technologies are
being implemented by aviation authorities around the
world to meet the future transportation requirements of
NextGen and SESAR.
These initiatives, NextGen in the United States and
SESAR in Europe, are redesigning the way we use the global
airspace to make it more efficient. As an industry, we
want to help aircraft get from takeoff to landing in the most
direct and delay-free manner possible. Even with the everincreasing
demands on the air traffic management system.
One of the key elements of the new system is cockpit
surveillance. That capability provides pilots with enhanced
positioning information for their aircraft, as well as the aircraft
operating in the airspace around them.
ACSS is the designer of state-of-the-art safety avionics
that improve situational awareness for aircraft operators
for all phases of flight. Be it airport taxi, takeoff, cruise or
landing, ACSS helps airplane manufacturers, such as Airbus,
meet the demands of this new and emerging aviation
environment.
The results of these improvements in how we use the
airspace will be savings in time, distance and fuel. This not
only benefits airline operators and the passengers they fly,
it also has an extremely positive impact on the environment
by producing less emissions. This is becoming increasingly
important to airlines that have become more and more conscious
of aircraft pollutants.
Advanced surveillance solutions
ACSS began building a supplier relationship with Airbus
close to 10 years ago. ACSS was in the process of producing
a new avionics system that could compete with a sole source
supplier, while delivering technological and installation
advantages. Through this product development, ACSS established
a solid reputation for its products and support.
Airbus took notice, and when the time came to add new avionics
capabilities to the Airbus line of aircraft, ACSS stepped
forward with technologies that will meet future needs and
set new standards for NextGen and SESAR flight operations.
A shared vision to bring the most advanced capabilities
and highest levels of integration to the Airbus avionics suite
has helped to solidify ACSS’s supplier relationship with
S u p p l y Chain Management iii /2011
Speaker
JEAN-MICHEL CLAIRIS-
GAUTHIER is Vice President
of Sales, Marketing & Business
Development for ACSS,
an L-3 Communications &
Thales Company. Mr. Clairis-
Gauthier is responsible for
planning and implementation
of sales and marketing
procedures to achieve orders
and revenue objectives for ACSS, as well as overseeing
new business development programs. ACSS is an
industry leader in safety avionics systems.
ACSS, an L-3 Communications & Thales Company
19810 N. 7th Avenue
Phoenix · AZ 85027 · USA
Phone +1 623 445-7000 · Fax +1 623 445-7001
Email acss.communications@L-3com.com
web www.ACSS.com
Airbus. ACSS looks forward to continuing to broaden its
relationship with Airbus in the years to come as more of the
NextGen and SESAR requirements come online.
About ACSS
Aviation Communication & Surveillance Systems
(ACSS), 70 percent owned by L-3 Communications and 30
percent owned by Thales, is a leader in state-of-the-art safety
avionics systems that increase safety, situational awareness
and efficiency for aircraft operators in all phases of
flight. Primary technologies include Traffic Alert and Collision
Avoidance Systems (TCAS), Terrain Awareness Warning
Systems (TAWS), Mode S transponders and Automatic
Dependent Surveillance-Broadcast (ADS-B) capabilities for
major airline, business and regional jets, as well as military
transport platforms.
More than 75,000 units of ACSS product are operating in
commercial, corporate and military aircraft.

The Company
B/E Aerospace is the world’s leading provider of integrated
interior products, and the world’s leading distributor
of aerospace fasteners and consumables. Products include
all classes of aircraft cabin seating, lighting, oxygen
systems, lavatories, galley systems and galley inserts. B/E
also provides a broad range of engineering services including
design, integration, certification and aircraft reconfiguration.
Founded in 1987, B/E has experienced rapid growth,
both organically and through its 29 acquisitions. B/E has
more than 6,500 employees in 25 facilities worldwide. The
company has a significant presence in Hamburg, including
the European headquarters of its Consumables Management
segment. Also located in Hamburg is a dedicated
technical support organization for Airbus line-fit operations.
In nearby Lübeck, B/E conducts research, design and
manufactures oxygen systems for commercial and military
markets.
Growth
B/E Aerospace:
The Company Profile
Werner Lieberherr, President, B/E Aerospace
B/E’s global customer reach and business model promotes
consistent growth despite economic and industry
fluctuations. Revenues are equally balanced between the
OEM and the aftermarket.
The company will finish 2011 with revenues of approximately
$2.5 billion, a 20 % CAGR from 2005. The revenue
is strategically balanced across geographic and customer
segments, with the fastest growth in the emerging regions
of the world.
Backlog has also grown significantly during the period,
currently at $6.5 billion, a 34 % CAGR from 2005. The backlog
is balanced equally between Europe, the Americas and
emerging markets, and reflects a strategic transformation
towards SFE interior systems, which now comprise 45% of
the backlog.
Innovation
B/E’s culture of continuous innovation is anchored by
customer intimacy and a commitment to delivering the value
required for each customer’s unique business proposition.
The company’s latest innovation is the industry’s record
launch of its tourist class seat platform, Pinnacle, with
Speaker
AVIATION FORUM 2011
WERNER LIEBERHERR was
appointed President and
Chief Operating Officer of
B/E Aerospace in December
2010, and from July 2006
held the position of Senior
Vice President and General
Manager for the Commercial
Aircraft Segment. Previously,
Mr. Lieberherr was Managing
Director of Alstom Power, Inc’s global steam generation
segment with major locations in North America,
Europe and Asia. Mr. Lieberherr holds a MBA from
Northwestern University’s Kellogg Graduate School of
Management and a Masters Degree in Business Management
and Operations Research from the Swiss Federal
Institute of Technology.
B/E Aerospace
1455 Fairchild Road
Winston-Salem, North Carolina USA
Phone +1 336 744 1001
Email werner_lieberherr@beaerospace.com
web www.beaerospace.com
orders for over 1500 aircraft in its first year. Additionally,
B/E is delivering a next generation SFE galley system and
a patented passenger oxygen system for the A350XWB, and
the LED cabin lighting system for the critically acclaimed
737 Boeing Sky Interior.
The future
B/E’s success is dependent on achieving the precise
balance of integration into airframe production systems,
delivering operational excellence, while leveraging B/E’s
customer intimacy to continuously launch market changing
product platforms.
S u p p l y Chain Management iii /2011 73

74
AVIATION FORUM 2011
Overview
Alcoa Aerospace:
Leading Through
Innovation
Eric V. Roegner, President, Alcoa Forgings and Extrusions
As a leading supplier of material and component solutions
to the world’s aerospace industry, Alcoa has continuously
enhanced and broadened its product portfolio in
meeting customers’ needs and helping them explore new
frontiers since the dawn of aviation.
The company’s aerospace operations are comprised of
four businesses with operations around the world that generate
approximately $3 billion in total revenues and leading
share positions in their chosen markets: Alcoa Global
Rolled Products; Alcoa Forgings and Extrusions; Alcoa Fastening
Systems; and Alcoa Howmet.
Almost all aluminum aerospace alloys currently in use
were originally developed by Alcoa, and today’s major new
aircraft programs incorporate Alcoa’s product innovations
from nose to tail, and wingtip to wingtip. Alcoa’s new thirdgeneration
aluminum lithium alloys provide breakthrough
performance with respect to weight, maintenance requirements
and ease of manufacturability.
Alcoa created the world’s largest aerospace forgings to
reduce weight and lower cost on the F-35 Joint Strike Fighter,
while the 525-seat A380 jetliner has the largest fuselage
panels and wing skins ever produced. The 787 uses the first
application of large aluminum-lithium plate on a commercial
aircraft – developed and supplied by Alcoa, while more
than one million of its fasteners go into every 787 and A380.
The company also is the world leader in single-crystal technology
for advanced castings that withstand the extreme
temperatures of clean-burning aero engines.
Looking to the future, Alcoa is well positioned to remain
the aerospace industry’s supplier of choice, with a competence
that goes well beyond materials to an understanding
of how materials can work together with structural and design
innovations in providing optimal solutions when aircraft
are built, flown, maintained – and ultimately recycled
after completing their operational lifetimes.
Alcoa’s commitment to innovation is backed by the full
resources of the company’s technical teams and the Alcoa
Technical Center, which is the world’s largest light metals
research facility.
S u p p l y Chain Management iii /2011
Speaker
ERIC ROEGNER was named
President of Alcoa Forgings
and Extrusions in 2009,
a business with facilities in
North America, Europe and
Asia supplying aluminum, titanium,
nickel and steel forgings,
hard alloy aluminum
extrusions and cold finished
products into the aerospace,
defense, automotive, industrial and oil & gas markets.
In 2007, he was named President of Alcoa’s Global
Hard Alloy Extrusions business.
Alcoa Forgings and Extrusions
1600 Harvard Avenue, Cleveland, Ohio 44105-3040, USA
Phone 216-641-4120
Email Eric.Roegner@alcoa.com
web www.alcoa.com
The Company
Alcoa (NYSE:AA) is the world’s leading producer of primary
and fabricated aluminum, as well as the world’s largest
miner of bauxite and refiner of alumina. In addition to
inventing the modern-day aluminum industry, Alcoa innovation
has been behind major milestones in the aerospace,
automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial
markets over the past 120 years. Alcoa has been a member
of the Dow Jones Sustainability Index for 10 consecutive
years and approximately 75 % of all of the aluminum ever
produced since 1888 is still in active use today. Alcoa employs
approximately 59,000 people in 31 countries across
the world.

AVIATION FORUM 2011
MAGNA STEYR as technology
bridge between automotive
and aerospace industry
Gerald Pöllmann, Business Unit Manager, MAGNA STEYR Aerospace & Diversified Industries
MAGNA STEYR – Activities
MAGNA STEYR acts as an important research and development
center for new technologies. We are intensively
working on seeking out and using synergies between the
automotive and the aerospace industries. On the technological
side we are focusing on lightweight engineering, with all
types of alloy metals and composite materials, and complete
systems with similar utilization, like fuel cell/hydrogen
systems. Since 1990, MAGNA STEYR has gained experience
in the development and serial production of feed lines,
used for the liquid hydrogen and oxygen propellant for the
European launcher ARIANE 5 upper and main stage. As a
consequence of this knowhow, MAGNA STEYR started the
development and serial production within the clean energy
program as a partner of BMW, responsible for a fully functional
and certified liquid Hydrogen storage system for the
BMW 7 Series, the world’s first serial production. Being one
of the most experienced companies for such applications,
we started a research program funded by the Austrian Research
Promotion Agency (FFG) for the development and
the further serial production for a new generation of lightweight
storage systems for liquid hydrogen for use in future
aircrafts. Together with AIRBUS and other partners, MAG-
NA STEYR forms the SAE 80 working group to develop and
specify the standards for future airborne certifications of
fuel cell and hydrogen storage systems. In the field of engineering
services MAGNA STEYR offers a range of services
to Aerospace customers using the competence and capacity
backbone of the automotive engineering. This international
competence is secured by 2.300 high qualified employees in
engineering divisions form Europe to Asia and the US.
About MAGNA STEYR
MAGNA STEYR, an operating group of Magna International,
is the worldwide leading, brand-independent engineering
and manufacturing partner for OEMs. We offer
engineering services up to and including complete vehicle
development, flexible vehicle assembly solutions from niche
to volume production, innovative fuel systems, and an entire
range of roof systems. As a contract manufacturer, we have
produced 2.5 million vehicles – of 21 different models – to date.
Speaker
GERALD PÖLLMANN is
Business Unit Manager of
MAGNA STEYR Aerospace
& Diversified Industries since
2010. He started at MAGNA
in 1999 as manager for transportation
logistics and held
in the meantime several management
positions in business
development, M&A projects,
program manager for product development and production
projects. After graduating as technical engineer
he studied economics in Austria and Spain.
MAGNA STEYR Fahrzeugtechnik AG & Co KG
Liebenauer Hauptstrasse 317, 8041 Graz, Austria
Phone +43 316 404-8311, Cell +43-66488408311
Email gerald.poellmann@magnasteyr.com
web www.magnasteyr.com
About Magna International
Magna International (www.magna.com) is the most
diversified automotive supplier in the world. We design,
develop and manufacture automotive systems, assemblies,
modules and components, and engineer and assemble
complete vehicles, primarily for sale to original equipment
manufacturers of cars and light trucks in North America,
Europe, Asia, South America and Africa. Our capabilities
include the design, engineering, testing and manufacture of
automotive interior systems; seating systems; closure systems;
metal body and structural systems; vision systems;
electronic systems; exterior systems; powertrain systems;
roof systems; hybrid and electric vehicles/systems as well
as complete vehicle engineering and assembly.
S u p p l y Chain Management iii /2011 75

76
AVIATION FORUM 2011
Zodiac Aerospace:
Challenges and
Global Sourcing
Olivier Zarrouati, CEO, Zodiac Aerospace
Zodiac Aerospace: Figures
Zodiac Aerospace is a world leader in the field of aerospace
equipments and systems, able to provide turnkey
integrated systems and with an expertise recognized by
all the main aircraft manufacturers. Owing to this unique
position, Zodiac Aerospace is onboard all the new aircraft
programs. The increase of Zodiac Aerospace’s FY2010/2011
sales revenues, up 27.9 % on a reported basis and up 17.3 %
on a same scope and exchange rate, highlights, in a still
favorable economical environment, the robustness of the
Group’s strategy.
New operating environment & Challenges
Zodiac Aerospace has built, by internal and external
growth, world-leadership positions on many niche markets,
being able to supply its customers with larger and
more integrated work packages. This higher volume of
business creates the need for aircraft manufacturers to
establish long term relationship between them and their
“best in class” suppliers. Therefore Zodiac Aerospace has
worked both on the operational and on its financial aspects.
The latter is the ability to be a reliable risk-sharing
partner for the long term. It triggers the need to remain
profitable, even in a weak dollar environment, and to generate
a proper return on investments and on capital employed.
The former goes through an optimization of the
internal processes and of the supply chain, considering and
benchmarking all possible options.
Global Sourcing
Zodiac Aerospace anticipated the consolidation of the industry
by being a major actor of this move. From an operating
standpoint, the Group also early took the decision to develop
production capabilities in cost competitive countries. This
is not only a way to protect the Group’s profitability from
exchange rate variations, but also an opportunity to procure
internally, to the benefit of all the Group’s business units,
and in accordance with the best standards in terms of quality
and delays. This has set new criteria to revisit the “make or
buy” decisions. Owing to higher volumes, the development
S u p p l y Chain Management iii /2011
Speaker
Olivier Zarrouati was appointed
CEO of Zodiac Aerospace
in 2007. Following graduation
from Ecole Polytechnique and
from the Ecole Nationale Supérieure
de l’Aéronautique et
de l’Espace, Olivier Zarrouati
started his carreer with the
French Space agency (CNES)
before joining Matra Marconi
Space. He joined the Zodiac Group in 1998 and was successively
Head of Development, CEO of the AeroSafety
segment, and CEO of the Group’s aerospace businesses.
ZODIAC AEROSPACE
61, rue Pierre Curie, 78370 Plaisir, France
Phone +33 1 61 34 23 23
Email Olivier.zarrouati@zodiacaerospace.com
web www.zodiacaerospace.com
of cost competitive countries operations was pursued, generating
additional opportunities to improve the production
processes towards more industrialization. Even if, in many
ways, the automotive industry is different from aerospace, at
least it can be learned a lot from the industrialization of processes
and the “Lean” organization. Zodiac Aerospace has
been heavily involved and is still investing in this process.
The company
Zodiac Aerospace is a world leader in aerospace equipment
and systems for commercial, regional and business
aircraft, as well as helicopters and space applications. Zodiac
Aerospace employs 23,000 people worldwide, and
generated revenue of €2.75 billion in 2010/2011 from its
three business segments of Aerosafety & Technology, Aircraft
Systems and Cabin Interiors.

78
Recension
Spiegel, H., Götte, S.,
Friehmelt, H. (Hrsg.)
Partnership Supply Chain
in der Luftfahrt
Aspekte der Unternehmensführung
Rainer Hampp Verlag,
ISBN 978-3-86618-281-3,
München, Mering 2008, 183 Seiten, € 24,80
In der Luftfahrtindustrie vollzieht sich gegenwärtig ein
nachhaltiger Wandel im Verhältnis zwischen der System-
und Zulieferindustrie. Diese Entwicklung induziert – vor
allem aufgrund geografischer und kultureller Distanzen
der Supply Chain Partner – die Notwendigkeit eines international
ausgerichteten Managements in der Luftfahrtindustrie.
Der ganzheitliche Fokus eines solchen Supply
Chain Management verändert dabei die Aufgaben der
Unternehmensführung, insbesondere im Hinblick auf die
proaktive Gestaltung von Geschäftsbeziehungen. Dabei
kommt dem Sourcing-Management eine besondere Rolle
zu, das die Beziehungen zu den Zulieferern fokussiert und
die Planung, Steuerung und Kontrolle von Abnehmer-Zulieferer-Beziehungen
umfasst. Management und Führung
gelten unter diesen komplexen Bedingungen als eine äußerst
anspruchsvolle Aufgabenstellung.
Die vorliegende Publikation erörtert die Aufgaben einer
ganzheitlichen Gestaltung von Wertschöpfungsketten in
der Luftfahrtindustrie im Rahmen des Konzepts der Partnership
Supply Chain. Anhand ausgewählter Beispiele
werden die spezifischen Wechselbeziehungen zwischen
den in Supply Chains involvierten Kooperationspartnern
veranschaulicht und Möglichkeiten zur aktiven Gestaltung
von Wertschöpfungsketten erörtert. Vor allem die Kriterien
„Partnerwahl“ und „Vertrauen“ bei dezentralen Verantwortungs-
und Risikobereichen werden dabei betrachtet.
Die einzelnen Beiträge des Buches sollen spezifische Vorgehensweisen
zur Auswahl von Kooperationspartnern
und Strategien zur aktiven Gestaltung der wichtigsten Ko-
S u p p l y Chain Management iii /2011
operationsbeziehungen anhand von konkreten Beispielen
aus der Luftfahrtindustrie veranschaulichen.
Die Publikation umfasst insgesamt neun Kapitel. Zunächst
werden die Besonderheiten der Luftfahrtlogistik
während des Lebenszyklus eines Flugzeugs erörtert, die
insbesondere aus der langen Lebensdauer und der enormen
Produktkomplexität resultieren (Kapitel 1). Die
Entwicklung und die nachhaltige Bedeutung von Wertschöpfungspartnerschaften
in der Luftfahrtindustrie werden
anschließend diskutiert (Kapital 2) und der Status quo
des Outsourcing sowie diesbezügliche Chancen, Risiken
und Dimensionen behandelt (Kapital 3). Im Fokus der Unternehmensführung
steht im Rahmen des Supply Chain
Management die ganzheitliche Planung, Steuerung und
das Controlling von Abnehmer-Zulieferer-Beziehungen.
Diesbezügliche Methoden und Instrumente werden eingehend
beleuchtet (Kapitel 4). Unter dem Titel Selbstschutz
und Supply Chain Management wird u. a. der mangelnde
Schutz des geistigen Eigentums im Zusammenhang mit
globalen Arbeitsplatzverlagerungen beleuchtet (Kapitel 5).
Des Weiteren wird die Notwendigkeit erörtert, den Partnern
in der Aerospace Supply Chain Real-Time-Informationen
bereitzustellen, um auf exponentiell steigende Lebenszyklusgeschwindigkeiten
adäquat reagieren zu können
(Kapitel 6). Die spezifischen Herausforderungen des
Projektmanagements in der Luftfahrtindustrie, die insbesondere
in der effizienten Umsetzung und Steuerung von
technologischen und prozessualen Innovationen mittels
hocheffizienter Vorgehensmodelle bestehen, bilden einen
weiteren Fokus (Kapitel 7). Die Luftfahrtindustrie stellt
vor dem Hintergrund der Globalisierung und produktbezogenen
Sicherheitsrelevanz enorme Anforderungen an
ein unternehmensübergreifendes Qualitätsmanagement.
Diesbezügliche Ausgestaltungsmöglichkeiten werden eingehend
diskutiert (Kapitel 8). Abschließend werden die
Anforderungen an Kennzahlensysteme für Kooperationen
im Bereich der Produktentwicklung beleuchtet und eine
Struktur für ein Kennzahlensystem entlang einer unternehmensübergreifenden
Supply Chain entwickelt (Kapitel 9).
Das Buch richtet sich an Interessierte aus Unternehmen
und Wissenschaft und erörtert neueste Entwicklungen der
Kooperation von Supply Chain Partnern in der Luftfahrtindustrie.
In neun Beiträgen werden aktuelle Herausforderungen
des Aerospace Supply Chain Management für
den Leser sehr gut nachvollziehbar erörtert. Die Autoren
verdeutlichen anhand von Beispielen und Verfahren, wie
eine Partnership Supply Chain in der Luftfahrt erfolgreich
gestaltet werden kann. Die einzelnen Beiträge sind einheitlich
gestaltet und durchgängig von einem hohen inhaltlichen
Qualitätsniveau. Neben den Artikeln aus dem
Hochschulbereich ist insbesondere auf die Beiträge der Unternehmenspraxis
hinzuweisen, durch die ein hohes Maß
an praktischer Fundierung gewährleistet wird (u. a. Recaro
Aircraft Seating, Lufthansa Revenue Services). Das Buch ist
geleichermaßen Wissenschaftlern , Studierenden und Praktiken
zu empfehlen.
Dr. Peter Bräuer, München

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wünsche noch schneller reagieren?
Unsere Antwort: Digital Engineering. Für mehr Flexibilität
und geringere Kosten.
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Airbus, its logo logo and the product names names are registered trademarks.
trademarks.
Fliegen, stil- und umweltbewusst.
Der Airbus A380 ist ein Flugzeug der Superlative und bietet seinen Passagieren ein unübertroffenes Flugerlebnis. Auf zwei
geräumigen Decks, die sich über die ganze Länge der Maschine erstrecken, ist der Raum für jeden einzelnen Fluggast
ganz besonders großzügig bemessen. 220 Fenster sorgen für eine mit Tageslicht durchfl utete Kabine. Der Geräuschpegel ist
niedriger als in jeder anderen Passagiermaschine. So kommen Sie wesentlich frischer und ausgeruhter an Ihrem Reiseziel an.
Doch die Ingenieure des Airbus A380 haben mehr als nur das Wohl der Passagiere an Bord bedacht. Ein zuverlässiges
Umweltmanagementsystem sorgt dafür, dass seine Auswirkungen auf die Umwelt während der gesamten Lebensdauer so gering
wie möglich gehalten werden. Somit erfüllt Airbus die strengen Aufl agen des Unternehmenszertifi kats ISO 14001. Mit einem
Flugzeug, mit dem es sich drinnen wie draußen besser leben lässt. Airbus A380. See the bigger picture.