2. 2
Business Overview
• SEI Level 2/3
• ISO 9001 Registered
• ISO 14001 Registered
• FAA/JAA Certified
• D1-9000A Certified
Fort Wayne, Indiana
• Engine Control production
• Aftermarket service
Johnson City, New York
• Controls Sector headquarters
• Design, development,
production, test
Los Angeles, California
Design, development, production, test
Redmond
facility
Ontario
Facility
3. 3
Current Business State Future Business State
General Business Overview
5 Facilities 5 Facilities
2 Legal Entities 1 Legal Entities
5 Major Lines of Business 5 Major Lines of Business
5 Manufacturing Factories 4 Manufacturing Factories
Combined Out / Insourced Financial Services Insourced Financial Services
Combined Out / Insourced Procurement Services Insourced Procurement Services
Accounting Structure
3 Charts of Accounts 1 Charts of Accounts
Multiple Calendars 1 Calendar
2 Disclosure Statements 1 Disclosure Statement
Multiple Rate Structures 1 Rate Structure
Systems
5 MRP Systems 1 MRP System
3 Procurement Systems 1 Procurement System
4 Quality Systems 1 Quality System
4 T&A Systems 1 T&A System
2 Payroll Systems 1 Payroll System
2 Travel Systems 1 Travel System
Business Overview (continued)
4. 4
Introduction – Business Drivers
Sale of Business
– Integration of Controls Sector
Shared Services Agreement
– Replace 64 disparate Legacy Systems
Need to Integrate with Customers and Suppliers
New Business Initiatives (i.e. Lean)
Become More Cost Competitive
Establish Foundation for Allowing Business
Growth While Reducing Operational Costs
5. 5
EPOCH Vision
A common, integrated Enterprise across all sites that
enables sustained competitive advantage and profitable
growth. This common Enterprise encompasses the entire
Program Management and Product Lifecycles and will be
e-connected with customers, partners, suppliers and
geographically dispersed sites.
Santa
Monica
Santa
Monica
New
Business
Addition
New
Business
Addition
Johnson
City
Johnson
City
Fort
Wayne
Fort
Wayne
Custome
r
/
Partners
Custome
r
/
Partners
Johnson
City, NY
7. 7
Why Oracle as a Preferred A&D Partner
Committed to A&D Vertical
– Willingness to partner
– Long term viability
Multi-site Architecture
– Single instance of software for commercial, aerospace
and space
– Foundation for future Shared Service
Integrated Package
– Third party integrations
8. 8
Why Oracle as a Preferred A&D Partner
Software Flexibility
– Workflows, flex fields and extensions
A&D Functionality in Core Software
Functional Coverage
Web Based Technology
– Applications, Database and Technology Stack from one
vendor
Goal was to reduce complexity
and risk
9. 9
Introduction – Epoch Guiding Principles
Develop one global system, with shared data, that would
enable the business to operate effectively and efficiently
Standardize leading business practices globally
Implement Oracle and other 3rd party applications as
“Plain Vanilla” as possible with no customizations
Utilize the 80/20 rule whenever possible
Plan for Manageable implementations
Design for simplicity throughout business lifecycle
Use the Five Why rule … Keep asking Why, Why, Why,
Why, Why
10. 10
Lessons Learned
Develop Clear Vision and Business Drivers
Need “Rock Solid” Senior Management Support
Integrate Organization First
– Eliminate Legacy Mindset
Staff Project Team with “A” Players
Editor's Notes
I am not an Oracle Salesperson
I’m a proud papa of the EPOCH project that the vision was conceived about two years ago and we have held true to this despite many obstacles. We named the project EPOCH to signify the significant change the business was going to undertake…we wanted to make it clear from the start that this was not an IT project.
My name is Pat Shannon and work at BAE SYSTEMS Controls in Johnson City NY
Some background on myself: I have been with the company for 18 years and we have changed names 4 times
I’ve been in Program Management for the past 10 years. I have over 4 years experience in the IT field with the last 14 months as leader of the EPOCH Project. Prior to that I was CIO for 14 months and went on special assignment to lead this project. We embarked on this e-business transformation starting in 10/00 as a result of being divested from LM. I am going to tell you about what we have been doing over the past 18 months and how Oracle has been an integral part of this project
BAE SYSTEMS is a global leader in the Aerospace and Defense Industry. Formed in 1999 as a combination of British Aerospace and GEC Marconi. We became part of BAE SYSTEMS on 9/25/00 as we were divested by LM. We are part of BAE SYSTEMS NA that is a US company that reports into the parent BAE SYSTEMS PLC. Controls is a sector that consists of 5 facilities across the country with two manufacturing locations…one high volume, low mix production facility, and a low volume high mix development/production facility. It is noteworthy that our facility in Fort Wayne, In was voted one of the top 10 manufacturing facilities in NA by Industry week in 2000. We develop controls for commercial, aerospace and space sectors…planes, trains and automobiles Produce over 40,000 circuit cards per year Mention engine controls, controls for hybrid electric buses and space rate gyros (highly regulated to less regulated customers). Our main customers are GE Aircraft Engines, LM and Boeing.
As you can see we have a myriad of systems and services as a result of LM and combining with the Santa Monica business and our vision was to use project EPOCH as the means to integrate the sector in terms of processes and systems. We have a number of shadow and disparate systems that are not connected. Standardize, simplify and speed up.
Since we were divested from LM we had two years to exit existing services and systems and we had to integrate the various businesses across the sector to meet the synergy savings as part of the business case for the acquisition
We decided to embark on a bold plan that was strategic and would enable business initiatives and provide a foundation for future growth and shared services. BAE SYSTEMS has a rigirous lifecycle management process that forces discipline on any major capital expenditure and we have followed. We had to justify this investment even though it was necessary because we an new structure was required. See Greg White’s charts
Our vision for this project was to develop a global design that would support the entire business model from commercial, to A&D and space across all sites in a single instance extending out to suppliers, customers and partners and providing a foundation for growth as previously mentioned…this is were Oracle differentiated themselves from their competition. Deflationary environment…fixed price environment and business as usual would not get us there
This is our top level A&D footprint that shows third parties that are integrated to Oracle were their suite does not provide functional coverage.
BAE SYSTEMS did not mandate systems…we arrived at our conclusion independently…validated with a consulting organization and challenged by phase review process
Based on past experiences and scale of project we wanted someone that would be in the game for the long haul…committed to the A&D marketplace (come long way since 1996)
Took a 10 year look…strategic not tactical
Oracle listened…CABs, development access
Key was muti site architecture…support five sites with different requirements (design anywhere build anywhere) mixed mode manufacturing scaleable supports growth cost effectively (Flexibility from commercial to space)
Approach was an integrated suite of applications…microsoft office approach..heresy vs. integrating multiple vendors
No customizations…most proud of driven from guiding principles
Another lesson learned…A&D part of core software…A&D enabled
High degree of functional coverage…includes Project Contracts, Quality and Service lots of skeptics…worked with Oracle discuss at next seminar
Technology stack, applications and database from one vendor..single sign on (today we have about 17 passwords that expire on different schedules)
Personal portal
Fundamentally, with a project of this scope and complexity one of my primary objectives in developing the approach was to minimize complexity and scope
Based on lessons learned from previous implementation..framework to drive decisions
Approach integrated systems for sector as noted earlier…difficult at times (Quality, Service, Project Contracts)
Integrated sector by using EPOCH project to standardize process across business (helped in getting everyone onto one system but took considerable time) common criteria for common requirements (simplify and standardize…one quality system, CM system and procurement system to support DABA) Adoption of commercial practices (lean) eliminate non-value activity and reduce variability (six sigma and lean)
No customizations…did not pay lip service…here to say we accomplished this principle so far and we have the resolve to hold true to this principle
System implementation strategy…big bang vs. phased (keep revisiting…5 sites..driver is to get off LM systems)
Remove complexity..seen by future state chart…30 years of complexity built up that we felt was needed to be stripped out to be competitive
Tool that we affectively applied to accomplish this was 5 why rule
Thank everyone on the BAE SYSTEMS team for their efforts…round of applause
Spent considerable time developing vision for the system, functional visions etc so that business drivers were clear from the onset..global requirements and global design
Develop a list of guiding principles and use them through the life of the project to guide decision making..this is one thing we did well and I would highly recommend this to anyone considering implementing a system
This may seem trite but it is key to keeping everyone focused and it has to start at the top
Integrate organization first…could have done a better job here but you need to recognize how the system can change the way you do business…ties back to top management support (different roles etc.)
Staff team with your best and brightest and give them resources to get the job done…tremendous growth experience..developing your next business leaders (growth is extraordinary) We will understand how the entire business works. Provide an e-business foundation that we can build from in the future!
Even though we are not at the end of our journey I am looking forward to a successful go-live in JC on 7/02 and independence from LM systems and services by 9/02
This would not have been possible without Oracle applications and technology along with their commitment to the A&D sector along with their never ending support
