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Innovating within the value chain: Supplying components to an existing PSS - Ola Isaksson, Senior Specialist for GKN Aerospace Engine Systems (former Volvo Aero)
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Innovating within the value chain: Supplying components to an existing PSS - Ola Isaksson, Senior Specialist for GKN Aerospace Engine Systems (former Volvo Aero)

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The classic product-to-service example is how Rolls Royce changed from product manufacture to selling power-by-the-hour. But how is it to be a supplier to such a service-oriented manufacturing ...

The classic product-to-service example is how Rolls Royce changed from product manufacture to selling power-by-the-hour. But how is it to be a supplier to such a service-oriented manufacturing company? This case tells of how GKN Aerospace Engine has also gained from this transition.

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    Innovating within the value chain: Supplying components to an existing PSS - Ola Isaksson, Senior Specialist for GKN Aerospace Engine Systems (former Volvo Aero) Innovating within the value chain: Supplying components to an existing PSS - Ola Isaksson, Senior Specialist for GKN Aerospace Engine Systems (former Volvo Aero) Presentation Transcript

    • The information contained in this document is GKN Aerospace Sweden AB Proprietary information and it shall not – either in its original or in any modifiedform, in whole or in part – be reproduced, disclosed to a third party, or used for any purpose other than that for which it is supplied, without the writtenconsent of GKN Aerospace Sweden AB. Any infringement of these conditions will be liable to legal action.1Innovating within the value chain:Supplying components to an existing PSSMarch 19th 2012Ola Isaksson
    • MAKING THINGS FLYOutlineThe CompanyThe ContextPSS building on capabilities – an examplePSS Decision support capabilitiesObservations and learnings2
    • MAKING THINGS FLYOutlineThe CompanyThe ContextPSS building on capabilities – an examplePSS Decision support capabilitiesObservations and learnings3
    • MAKING THINGS FLYGKN Aerospace GKN DrivelineGKN LandSystemsGKN PowderMetallurgy1759 to 20124
    • MAKING THINGS FLYGlobal positioningNearly 50,000 employees in over 35 countriesGlobal Positioning5
    • MAKING THINGS FLYGKN Aerospace$3.5B International Aerospace Enterprise35 sites - 12,000 peopleGKNAerospaceEuropeGKNAerospaceNorthAmericaMarcus BrysonCEOGKN AerospaceGKNAerospaceEngineSystemsAerospace North AmericaAerospace Europe & Special Products GroupAerospace Engine Systems (Volvo Aero)6
    • MAKING THINGS FLY7
    • MAKING THINGS FLYEngine Structures Portfolio8Fan bladesNozzle, exhaust system(attached to turbinestructures)Nacelles and inlets (attachedto fan casings)Compressorand turbinebladesCompressor disksand blisksFull Engine MROGripen Support8
    • MAKING THINGS FLYWe have a strong presence in today‘saircraft fleets90 percent of all new largecommercial aircraft engines useour componentsFor these aircraftwe provide:Engine componentsEngine technologyEngine technical supportEngine MRO services
    • MAKING THINGS FLYOutlineThe CompanyThe ContextPSS building on capabilities – an examplePSS Decision support capabilitiesObservations and learnings10
    • MAKING THINGS FLYGlobalization – driving changePopulation growthBoP Countries – from50 to 90% of worldpopulation (1950 to2010)110246810121700 1800 1900 2000 2100World PopulationGrowth (Billion)* UNFPAUnited Nations Population Fundestimate 31.10.2011Source: United Nations, Department of Economic andSocial Affairs, Population Division (2011): WorldPopulation Prospects: The 2010 Revision. New York(Updated: 15 April 2011)AsiaAfrica
    • MAKING THINGS FLYContinous increase in air traffic4% increase intravelling – annually12
    • MAKING THINGS FLYConsequences of growthInnovations needed in theAir Trainsport (ICAO)safety, security andsustainabilityIncreased responsibilitythrough life formanufacturersInnovations needed in ourcompaniesBring new technologies tomarketBring new ”solutions” tomarket13"Image courtesy of the Image Science & Analysis Laboratory,NASA Johnson Space Center"
    • MAKING THINGS FLY”After sales” servicesincreasing revenue for OEM Manufacturersby D. Williams at Manufuture 2009
    • MAKING THINGS FLY.. providing an increasingly tangled mix of theirproducts and serviceshttp://www1.rolls-royce.com/media/presentations/services3.pdf
    • MAKING THINGS FLYIn summarySustainability and Safety – two major driversCompetition on new markets and with new actorsOEM’s in Engine Business focus on life cycleservice provision1st tier suppliers focus on cost competition andtechnology leadership16
    • MAKING THINGS FLYThe Challenge as identified late 1990thWhat value can we provide in OEM’s PSS dominantbusiness models?How can we make use of whole engine, and throughlife experience in components?Do we have the right people, culture, market positionetc. to provide Product-Service Systems?...17
    • MAKING THINGS FLYExamples of Early Learnings
    • MAKING THINGS FLYCompetence and business co-evolvementA decade ago – invested in research andcompetence development in “Functional Products”Result:A set of skilled people (MSc’s, PhD’s, Professors) –now in leading positions – with deep insights in PSSthinking and techniquesAn extensive knowledge network in the areaA set of techniques, tools and methods to develop,market, simulate, .. PSS solutionsA number of emerging businesses ...19
    • MAKING THINGS FLYOutlineThe ContextThe CompanyPSS building on capabilities – an examplePSS Decision support capabilitiesObservations and learnings20
    • MAKING THINGS FLYExample: LTS – Life Tracking SystemA PSS solution enablingcondition basedmaintenanceIntroduced for theSwedish RM12 engine inthe Gripen Aircraft21
    • MAKING THINGS FLYLTS – Life Tracking System22LTS is an in-house developed software, which calculates lifeconsumptions for the life limited parts of an engineLTS uses sampled engine mission data from all flights.Measured (load) data transformed into life consumption throughadvanced and validated in-house simulation tools (LAS)LTS uses information from performance simulation models to covernon-measured loads
    • MAKING THINGS FLYWhat does LTS calculate?Load critical areas of the product have beenpre-identifiedLTS calculates actual life consumptionbased upon “all” real missionsLTS is used for the most critical parts of theengine, which constitute 64% of spare partcosts and 70% of labor costs23Areas
    • MAKING THINGS FLYNecessary conditions for LTSAccess to registered load data filesAccess to data from performance and secondaryflow modeling toolsAccess to valid life analysis modelsAccess to historical and present engineconfiguration24
    • MAKING THINGS FLYGKNLTS Landscape25LTS-SystemPre-LTSMaintenance SystemMission InformationEngine ConfigurationIndividuals InformationConfirmed Life Corrections Life CorrectionsLifeManagementLife EngineNHf, NHp cyclesMeasured Engine dataMGSS1. Measureengine flightdata2. Intelligent data processing based on LTSsimulations3. Update maintenanceSystem withConsumed life
    • MAKING THINGS FLYEOT [h]Life limit in the maintenance planWithout LTSWith LTSConsumedlifeinELCFThe difference with and without LTS26
    • MAKING THINGS FLYWhat will LTS bring to the customerIncreases the availability of JAS39 Gripen fighterDecreases the flight hour cost (increase utilization)while maintaining high safetySupports life tracking for all user profiles includingexport profilesFor leasing / pooling customers the engine wear / lifeusage is calculated based upon the customer’sactual usage.27
    • MAKING THINGS FLYOutlineThe ContextThe CompanyPSS building on capabilities – an examplePSS Decision support capabilitiesA frameworkIntegration in Engineering toolsObservations and learnings28
    • MAKING THINGS FLYTwo examples of decision support for PSSA. A Framework to facilitate organisation andcommunication of PSS issuesB. Introduce PSS decision support in engineering29
    • MAKING THINGS FLY1. Basic PSS relations to considerRelation between Need, Solution andSolution Components
    • MAKING THINGS FLY2. Decompose into life cycle phasesNeed Phase: Theneed phase iswhere there is auser who has aneed.Solution Seeking: The solutionseeking phase is characterizedby search for existing solutions,alternative solutions, sub-solutions etc. that may bepossible to use.Solution Development: The solution developmentphase is the coordinated development of PSScomponents. The solution development phases mayinclude a “traditional” product development process fordeveloping the physical part of the solution.Solution Realization: This isthe most intriguing phase.Solution realization intraditional hardware terms isthe manufacturing and deliveryof the product.Solution Support: Thesolution support phaserepresent the change in stateof a product-service offer.Solution Closure: Thesolution closure phase coversthe end of use, and possiblere-cycling state. Input is theproduct and services in use.
    • MAKING THINGS FLY3. What roles do we haveThe User is a consumer of thePSS. Example: Passenger inan aircraft, user of cellphone or a professional usersuch as an airline.The Provider is theorganization responsible tooffer the integrated PSSsolution. The provider hasdirect relation to the user.The Enabler is a collective termfor organizations providingtechnologies or servicesnecessary for the provider toprovide solutions.
    • MAKING THINGS FLY4. Combined framework model
    • MAKING THINGS FLYUsing the FrameworkConsise question in eachphase for each roleOperateProvideEnableAirlinePerformanceAvailabilityUp-Time CapacityMaintenanceEngine Aircraft RepairShopDiagnisticSystemGauge ”other”SubSystemTechnology
    • MAKING THINGS FLYB. Introduce PSS capabilities into Engineeringenvironments35
    • MAKING THINGS FLYIdea: PSS Engineering DesignTake a PSS view and adopt the engineering environment to definea richer virtual product modelDevelopmentManufacturingIn ServiceDesignRequirementsDesignRequirementsDesignRequirementsPhysical productsSoftwareInformationFPKnowledgeLeasingCulture & ValuesTrainingPhysical productsSoftwareInformationFPKnowledgeLeasingCulture & ValuesTrainingFunctionalProduct Design”Features”Design”Features”Design”Features”
    • MAKING THINGS FLYStep 1: Functional Product Design ofa FlangeHow to design a “simple” Flangewith alternative Manufacturing andMaintenance ConceptsHardware alternativesManufacturing alternativesMaintenance alternatives
    • MAKING THINGS FLYFlange design, cont.Design knowledgeimplementedIn a knowledge engineeringsystemSimulates downstreamactivities in early phases.Design EngineersDomainProduction EngineersDomainMaintenance EngineersDomain
    • MAKING THINGS FLYAn integrated design toolConcurrent“engineering” ofDesign-,Manufacturing-, andService- designEnable PSS DesignIterationsThis demonstratorraised awareness andattraction by involvedparties39Design EngineersDomainProductionEngineersDomainMaintenanceEngineersDomain
    • MAKING THINGS FLYObservations and learningsTiming is everythingCustomer, Provider and Enabler need to move simultaneouslyPSS changes-, and challenges-, establishedpracticesMuch to learn from change managementFacilitate understanding – Competence, Communication andClarificationShift in business model impacts underlyingtechnologies and material supplyBoth existing and new40
    • MAKING THINGS FLYThere is room for innovation in combining ProductService Technologies41
    • 42Thank you!March 19th 2012Ola IsakssonOla.isaksson@gknaerospace.com