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Virtualization and Simulation
                          As Key Assets for the New Business Challenge

                                                    Nazario Cauceglia
                                                    Chief Technical Officer




Virtual Test and Engineering Simulation in A&D
October 23rd-24th
Summary




                          Alenia Aeronautica Context



                          Alenia Aeronautica Vision



                          Virtualization Skills & Highlights



                          Virtualization Roadmap & Achievements



                          Way Ahead and Conclusion


Rome, October 23rd-24th                        Company Confidential   2
Alenia in Finmeccanica




          Aircraft          Helicopter         Space              Electronic for     Defence System   Transportation &
                                                                    Defence                               Energy

                                            Alcatel Alenia        Selex Sensors &
  Alenia Aeronautica      Agusta Westland                                                MBDA          Ansaldo Breda
                                               Space             Airborne Systems

     Alenia Aermacchi                        Telespazio           Galileo Avionica     Oto Melara      Ansaldo Energia
     Alenia Aeronavali
           ATR                                                    Selex Sensors &
                                                                 Airborne Systems        WASS           Ansaldo STS
                                                                        Ltd
                                                                     Selex
                                                                                                            Fata
                                                                  Communication

                                                                   Elsag Datamat

                                                                   Selex Sistemi
                                                                     Integrati

                                                                     Orizzonte

                                                                    Elettronica

                                                                   Selex Service
                                                                   Management




Rome, October 23rd-24th                            Company Confidential                                                  3
Programs


       Alenia Aeronautica investigates and reinforces his technological base (from composite
       materials to Autonomous Flight Technologies) enabling his presence in several segments with
       competitive product and sustaining a growing strategy.

           Combat a/c        Trainers         Regionals              Aerostructures /     Military Airlifters
                                                                    Commercial Aircraft




                                                                                            Overhaul and
                                                                                            Modification
                                             UAV/UCAV




                          Mission Systems




Rome, October 23rd-24th                      Company Confidential                                               4
Civil Programs


  Supplier                                            Risk sharing                   Partner              Prime
                                                        Supplier
                          Dassault Falcon
                          900/2000
                          Fuselage Section Thrust
                          Reverser
                          Engine Nacelle


                                                     Boeing B787
                                                     Stabilizer                  Superjet 100
                          Airbus A321/ A330/         Central and Rear sections
                          A340/300-310               fuselage                    Partner: Sukhoi
                          Tail Cone                  26% 787 structure
                          Wing Components
                                                                                                   ATR CARGO
                                                                                                   Civil & Military
                                                                                                   certification


                          Boeing B767/ 777/
                          717/ 757
                          Control Surfaces, Fin,
                          Fuselage Panels/
                          Barrels Wing Tips         AirbusA380                   ATR42/72
                          Radome                    Fuselage section 15
                                                                                 Partner: EADS-F
                                                                                 Workshare: 50 %
Rome, October 23rd-24th                                 Company Confidential                                          5
Military Programs


         Risk sharing                                 Partner                                         Prime
           Supplier
                                  Tornado                                    AM-X
                                  Interdiction & Strike
                                                                             Primary Responsibility for
                                  Workshare: 15 %
                                                                             Complete Weapon
                                                                             System


                                                                             ATR SM
                                                                             Civil & Military
                                                                             certification
                                  Typhoon
 JSF                              Air Superiority &
 Final Assy in Italy (AMI and     Ground Attack                              C-27J
 other Nations)                   Workshare: 21 %                            Civil & Military
 Logistic Support Center (South                                              certification
 Europe)
 Wing Structure Design
 Wing production & assembly                                                  Sky-X
                                                                             UAV
                                                                             First flight May 2005
                                   Neuron
                                   UCAV
                                   22% Workshare                             Sky-Y
                                                                             MALE UAV
                                                                             First flight June 2007




Rome, October 23rd-24th                               Company Confidential                                    6
Revenues Distribution in the Value Chain Assets


                Alenia is willing to enforce the Prime / Co-Prime role in cooperation with
                                         key Risk Sharing partners

        Il nuovo Business Model A&D                                           Alenia Aeronautica

                          CUSTOMER


                                             Partner
                                         <<Co-development>>                    60 – 70% Revenue (Prime e Co-Prime)
                             Prime          Risk Sharing                          ( C-27J, ATR M3, ATR 42/72, EFA, … )
                                           Business Model


                          Risk Sharing
                           Partners &                  Supplier
                                                                                          30 – 40% Revenue
                          Major System            Contracting Based
                                                   Business Model                            ( A380, 787, … )
                            Supplier


                      System Specialist,
                    Sub-Assembly Supplier



             Component, Part and Tooling Supplier
                      Design Services


Rome, October 23rd-24th                                Company Confidential                                              7
Competitiveness Roadmap

                  Current discontinuity emphasizes that the knowledge is the main enabler factor of
                                            modern competitive system
                                                                                 LEADERS



                                                            RAMPANT



                          25
                                                                                                     Networked
                                                                                                     Knowledge
                                                  FOLLOWERS


                          20



                                                                                  Knowledge
                  Value




                          15                                         Technologies

                                                                Capitals


                                                  Work
                          10   Resources


                                           1960          1980              2000               2020               years




Rome, October 23rd-24th                                   Company Confidential                                           8
The Knowledge Wave

                                                            IP Central to Economic Growth & Competition

                                    US investment in intangible assets (>$1T/year)
                                         equivalent to investment in tangibles                               “Intellectual property is the
                                    14                                                                       backbone of America's
                                                                                                             economy”
                                    12                                                                                    U.S. Commerce Secretary
                                                     Tangibles                                                                    Carlos Gutierrez

                                    10                                                                       Japan intends to “bring about
      % G ross D omestic P roduct




                                                                                                             a nation founded on
                                                                                                             intellectual property”
                                     8                                                                                      Japanese Prime Minister
                                                                                                                                  Junichiro Koizumi
                                                                 Intangibles
                                     6
                                                                                                             “The competition of the future
                                                                                                             world is a competition for
                                     4                                                                       Intellectual Property Rights”
                                                                                                                                    Chinese Premier
                                                                                                                                        Wen Jiabao
                                     2
                                                                                                          ~80% of the value of modern
                                                                                                           ~80% of the value of modern
                                     0
                                                                                                                   companies
                                                                                                                   companies
                                                                                                          comes from intangible assets
                                                                                                          comes from intangible assets
                                      1954           1964    1974      1984    1994     2004
                                                                                                   Sources: US Federal Reserve – Nakamura, Ned Davis Research
Rome, October                            23rd-24th                                Company Confidential                                                          9
Executive Summary



                          The challenges that Alenia is coping with:
          Alenia Aeronautica is subjected to many external and internal factors
          that push both toward new competitive positions and toward a
          reorganization of the company value chain

                Exogenous factors                                 Endogenous Factors

        • Networked Knowledge in a                           • Multiplicity of Roles &
          Cooperative Environment                              Programs
          (Extended Enterprise)                              • Efficiency increasing
             - Project Team de-located
                                                             • Optimization of the supplier
             - “Real-Time” Collaboration                       base
        • Growing Competition                                • Know-how Capitalization
        • Intellectual Property Rights                       • Next 5 years plan: doubled
          management                                           revenues


Rome, October 23rd-24th                    Company Confidential                               10
The New Business Model




                               Traditional Enterprise                          Specialized Enterprise

                          The Specialized Enterprise supports the business imperatives through:


                                               Focusing time management, talents and investments on specific
                      Differentiation          critical components related to the main peculiar strategies




                                               An evoluted business model to cope with changes in market
                      Reactivity               requirements through a networked organization made by
                                               internal and external specialists cooperating


                                               Merging similar activities/business belonging to different units
                                               to reach scale effects, knowledge sharing and increase effect of
                      Efficency
                                               best-in-class partners



Rome, October 23rd-24th                                 Company Confidential                                      11
Enterprise Transformation Roadmap


                                                                  Catalysts
                                                                         Information and
                                                                         Communication
                                                                         Technology



                                                                         Standards




                                                         Main Capabilities

                                                       Differentiation


                                                       Reactivity


                                                       Security


                                                       Standard Processes


                                                       Shared Knowledge

Rome, October 23rd-24th         Company Confidential                                   12
Alenet Model


                          Option Catalog    Certification   Mapping Standard to       Program               Monitoring               Customer
       Customer                                               Serial Numbers         Master Table                                     Delivery
        contract


                                                              Program Steering                                 Conformity
                                           Investigations     Commissions    Decision       Applicability
       As Contracted
                                                                                                                                 Document / Content
                            Change Dossier                                                                     Deviations           Management
                                                              Program Management

                                                                            Change control & Traceability

                                                                                                                                    Workflow
                                                              Change Orchestration
                                                                                                                                   Management




                             Requirement     As Designed       As Planned      Resources         As Built        As Maintained
                             Management                                                       (As Delivered)
                                                                                                                                   Collaboration
                                             Product, Process & Resources Management




                               CAE                 CAD                 CAT                CAM                    CAPP
                                                                                                                                   Knowledge
                            Management           Management         Management          Management             Management          Management

                                  Product / Simulation and Prototyping ( virtual & physical )
                                                                                                                                           Network

                            Catia v4       Catia v5         Word       Excel       HMS CAPP             CASE             Et….
                                                                                                                                    Security /
                                                                                                                                  Communication
                                                                   Creation Tools                                                  Management



                                                               Technology Infrastructure, System Integration

Rome, October 23rd-24th                                                        Company Confidential                                                   13
New Enterprise Model


                                 NETWORK



             Community Management                 Enterprise Model                  Collaboration Management
                                                                                      • Document / Content Management
            • Security
                                                                                      • Knowledge Management
            • Social Network Analysis
                                                                                      • Collaboration Service
            • Key Performance Indicator
                                                                                      • Process Management


                                             Enterprise Resources Planning

                                           HR Finance   Logistic Procurement



                             Customer                                            Supply
                            Relationship                PLM                      Chain
                            Management                  Core                   Management


                                                 Shop Floor Control
                                                         +
                                           FMS   Plant Automation     …….




Rome, October 23rd-24th                             Company Confidential                                                14
Model Based Aircraft Development


                 Model-
                 Model-based Aircraft Development in Extended Enterprise
                Concept phase is the bet and trade-off shall wrap-up requirements,
                functional views, architectures and verification methods
                Multi-disciplinary approach is mandatory for system perspective as “whole”
                Full lifecycle coverage shall anticipate all the implications in design,
                manufacturing, operation and maintenance
                Systems are spread in a deep supply chain, so global collaborative
                environment, federative process governance and information integration are
                key enablers




                                    Concurrent Engineering Enables Risk and Cost Reduction
Rome, October 23rd-24th                              Company Confidential                    15
V-Model Based Product Development


        The virtualization covers the full lifecycle development and the validation process
    Needs &               Concept                                                                                Operation
                                               Assessment            Development             Production
    Requirements          & Definition                                                                           & Support




                                                              SYSTEM




                                                                                              ing
                                 De
                                 De

                                                                                                                 Flight Test
   Operational Scenario
                                                            SUB- SYSTEM
                                                            SUB-
                                    co
                                    co




                                                                                           st
                                                                                         Te
                                       mp
                                       m
                                        po




                                                                                    &
                                         os


                                                            EQUIPMENT
                                           siit




                                                                                   ion
                                              tiio
                                                 on




                                                                                at
                                                   n


           Performance Simulation                                                                        Laboratory Test




                                                                              gr
                                                    &
                                                    &




                                                                            te
                                                       De
                                                       De



                                                                          In
                                                          siig
                                                          sg
                                                              nn




                          Concept Evaluation                                             Synthetic Environment
Rome, October 23rd-24th                                   Company Confidential                                                 16
Design Powered By Virtualization


     Virtualization drives the product development from the concept to the real integration

                Concept                 Validation                    Product




Rome, October 23rd-24th                  Company Confidential                                 17
Virtual Testing and Validation


               Reduce the physical tests to minimize development risks and costs
               Exploit virtual platform when the physical test is not practical




Rome, October 23rd-24th                       Company Confidential                 18
System Engineering and Architecting


        Virtualization drives the model-based system engineering from requirements to
     architecture definition, enhancing the conceptual design as critical phase in lifecycle




                                                                                                                                                                                                                                                                              Downstream BC:



                                                                                                                                                                                                                           Rack 120 VU
                                                                                                                                                                                                                            -31.0 [g/s]
                                                                                                                                                                                                                                                                                         Experimental data
                                                                                                                                                                                                                                                                                                                                               Downstream BC:




                                                                                                                                                                                                                                                                                                                                                  Ptot and y(ng) specified
                                                                                                                                                                                                                                                                                                                                                                                                            Rack 90 VU +
                                                                                                                                                                                                                                                                                                                                                                                                           Panneau Plafond
                                                                                                                                                                                                                                                                                                                                                                                                                         -45.6 [g/s]
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         CFD architectural characterization
                                                                                                                                                                                                                                                                                       IMP


                                                                                                                                                                                                                                                                                      Node




                                                                                                                                                                                                                                                                                                                                                            Equivalent model +restrictors (3x25)



                                                                                                                                                                                                                                                                                        11S21283086-204 diam=45[mm]

                                                                                                                                                                                                                                                                                                                                                         IMP


                                                                                                                                                                                                                                                                                       IMP


                                                                                                                                                                                                                                                                                      Node
                                                                                                                                                                                                                                                                                                                                                       Node

                                                                                                                                                                                                                                                                                                                                                                                                                      Pressure Point                                                                                                                       AHRS
                Cockpit+ E/R radar +                                                                                                                                                                                                                                                                                                                                                                                      1010
                glace sondes                                                                                                                                                                                                                                                                                                                                11S21283056-002                                                                                                                                                                       -7.2 [g/s]
                                                                                                                                                                                                      Restrictor diam
                                                                                                                                                                                                      Sm Valve =54[m ] /
                                                                                                                                                                                                        oke           m
                                                                                                                                                                                                                                                                                         11S21283055-004
                                                                                                                                                                                                                                                                                                                                                                                                                              -148.8 [g/s]
                                                         IMP                      IMP                      IMP                      IMP                               IMP                            IMP                    IMP                       IMP                              IMP                             IMP                               IMP                                                   IMP                                       IMP                                IMP                                  IMP


                                                        Node                     Node                     Node                     Node                             Node                            Node                   Node                      Node                             Node                            Node                             Node                                                Node                                        Node                                Node                                Node
                Downstream BC:   Experimental data             11S21283071-002          11S21283063-002          11S21283062-002          11S21283055-004                       11S21283054-002              Orifice               11S21283055-004          11S21283055-004                       11S21283055-004            11S21283056-002                                 11S21283056-002                         11S21283057-002                                     13S21283310-000             11S21283120-212 diam=19[mm]              Experimental data         Downstream BC:




                                                                                                                                                                                                                                  Pressure Point                                               Pressure Point
                                                                                                                                                                      11S21283086-216 diam=16[mm]                                     1007                                                         1008
                                                     Pressure Point                                                                                                                                                                                                                                                                                                                                                                                                                           13S21283310-000




                                                         1006
                                                                                                                                                                      IMP


                                                                                                                                                                    Node
                                                                                                                                                                                                                                          -72.2 [g/s]                                                        -103.2 [g/s]                                                                                                Pressure Point
                                                                                                                                                                                                                                                                                                                                                                                                                             1011                                                           IMP                               Downstream BC:




                                                       -65.4 [g/s]                                                                                                      Experimental data
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Node




                                                                                                                                                                                                                                                                                                                                                                                                                                  -155.9 [g/s]                                                                                                    -9.2 [g/s]
                                                                                                                                                                                                    -6.7 [g/s]                                                                                                                                                                                                                                                                                13S21283144-206


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Equivalent model

                                                                                                                                                            Downstream BC:


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  IMP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            IMP                                         IMP




                                                                                                                                                    Pylone
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Node                                        Node
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            13S21283144-206                          13S21283144-206




                                                                                                                                                   Electrique
                                                                                                                                                                                                                                                                                                                                                                                                   IMP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Flow @ fan = -228.0 [g/s]
                                                                                                                                                                                                                                                                                                                                                                                              Node
                                                                                                                                                                                                                                                                                                                                                                                                                                 13S21283140-012 / 3140-004 / 3106-002




                                                                                                                                                                                                                                                                                                                                                                  Restrictor -204 ref. 13S21283140 diam=51.4




                                                                                                                                                                                                                                                                                                                                                                 IMP


                                                                                                                                                                                                                                                                                                                                                                Node




                                                                                                                                                                                                                                                                                             Pressure Point                                                         11S21283058-004 (part)

                                                                                                                                                                                                                                                                                                 1012


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             System/sub-system Analysis (Easy5)
                                                                                                                                                                                                                                                                                                                                                                 IMP

                                                                                                                                                                                                                                                                                                     -62.9 [g/s]                                                Node




                                                                                                                                                                                                                                                                                                                                                                                                    Rack 80 VU+
                                                                                                                                                                                                                                                                                                                                                                    Experimental data
                                                                                                                                                                                                                                                                                                                                                                                                    bloc sondes


Rome, October 23rd-24th                                                                                                                                                                                                                                                                                                                              Downstream BC:


                                                                                                                                                                                                                                                                                                                                                                                        Company Confidential                                                                                                                                                                                                                  19
Virtualization Skills Development Roadmap



                                 Vertical CAD-CAE                     Extended Enterprise Lifecycle Virtualization
    Lifecycle Extension




                                                                                                             4
                                                                                                             4
                                                                                                                 Enterprise Integrate
                                                                                                                     Simulation
                                                                                                                    Environment
                                                                                   3
                                                                                   3
                                                                                        Multi-disciplinary
                                                                                        Multi-
                                                                                         Optimization

                                                    2
                                                    2
                                                        CAD-CAE Integration
                                                        CAD-



                             1
                             1
                                 Vertical CAD-CAE
                                          CAD-


                                                                                 Discipline Coverage
Rome, October 23rd-24th                                          Company Confidential                                                   20
Alenet Virtual Prototyping and Simulation Planning



                                                           Alenet Virtual & Physical Prototyping:
                     MSC Prime Integrator
                     Exemplar|Engineous Second Partner

                 2007                                           2008                                           2009                                           2010
    10   11 12   1   2   3   4   5   6   7   8   9 10   11 12   1   2   3   4   5   6   7   8   9 10   11 12   1   2   3   4   5   6   7   8   9 10   11 12   1   2   3   4   5   6   7   8   9 10   11 12



                                                        Prototype
                                 Contract                Delivery

                                                                                                   Integrated
                                                                                                    Solution

                     Extension & Design
                                                                                                                                                              Standardization
                                                                        Implementation



                                                                                                                           Refinement



                                 Phase1                                         Phase2                                                 Phase3



Rome, October 23rd-24th                                                                 Company Confidential                                                                                                 21
Alenet Multi-disciplinary Integration


                          Multi-disciplinary Environment for Product Development




Rome, October 23rd-24th                       Company Confidential                 22
HPC Capabilities


                                         High Performance Computing Center

   Quadrics               QsNetII Quadrics for the structure integration
   Bull                   Storage System and Parallel File System (Lustre)
   Storagetek             Backup Library
   HP                     200 nodes 2x Opteron DualCore
   Bull                   6 nodes 8x Intel Montecito
                                                                               ~2.2 TFlops                     ~2.8 TFlops
   Bull                   36 nodes 4x Intel Montecito




                                                                                  Montecito


                                                                                              Montecito
 •Operative System: Linux




                                                                                    8x


                                                                                                4x
 • Compiler: GNU, Intel C/C++/Fortran, Portland PGCC / PGF90
 / PGHPF                                                                                                                 2 x Opteron
                                                                                                                          DualCore
 • Library: Intel MKL, IMSL, Lapack (Scalapack) FFTW




                                                                                Lustre
 • Parallel Language : MPI-CH, MPI-Quadrics, HP-MPI, OpenMP




                                                                                 PFS
                                                                                              OSS         MDS
 • Debugger: Gdb, Xdb, Totalview, DDT

 • Performance Tools: PAPI, vprof, Vampir




                                                                                                                      Library
                                                                                                                       Tape
 • Parallel File System: Lustre (CFS)
                                                                                                     Storage
                                                                                                      20 TB



Rome, October 23rd-24th                                 Company Confidential                                                           23
The High Performance Computing Center




Rome, October 23rd-24th         Company Confidential   24
Wrap-up

                                           Conclusions

           In order to face successfully the incoming change of the worldwide business
           model, Alenia is engaged in a challenging evolution of technology and process
           This innovation is a mandatory requirement to sustain the market
           competitiveness for a global player role pursued by Alenia
           Alenet Project has been conceived in this perspective through two main
           streams of:
                • New Integrated PLM
                • Virtual Prototyping and Testing
           Virtualization and HPC are key assets in Alenia Aeronautica strategies
           The relevant capabilities are pursued and developed through internal initiatives
           (es. Alenet Project) and research programs (es. CRESCENDO)
           The framework based on strategic alliance system can support the business
           development as “virtualization and HPC” service provider through Alenia
           Aeronautica controlled company (Alenia Improvement)

Rome, October 23rd-24th                    Company Confidential                               25
Virtual Test and Engineering Simulation in A&D
October 23rd-24th

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Alenia speech

  • 1. Virtualization and Simulation As Key Assets for the New Business Challenge Nazario Cauceglia Chief Technical Officer Virtual Test and Engineering Simulation in A&D October 23rd-24th
  • 2. Summary Alenia Aeronautica Context Alenia Aeronautica Vision Virtualization Skills & Highlights Virtualization Roadmap & Achievements Way Ahead and Conclusion Rome, October 23rd-24th Company Confidential 2
  • 3. Alenia in Finmeccanica Aircraft Helicopter Space Electronic for Defence System Transportation & Defence Energy Alcatel Alenia Selex Sensors & Alenia Aeronautica Agusta Westland MBDA Ansaldo Breda Space Airborne Systems Alenia Aermacchi Telespazio Galileo Avionica Oto Melara Ansaldo Energia Alenia Aeronavali ATR Selex Sensors & Airborne Systems WASS Ansaldo STS Ltd Selex Fata Communication Elsag Datamat Selex Sistemi Integrati Orizzonte Elettronica Selex Service Management Rome, October 23rd-24th Company Confidential 3
  • 4. Programs Alenia Aeronautica investigates and reinforces his technological base (from composite materials to Autonomous Flight Technologies) enabling his presence in several segments with competitive product and sustaining a growing strategy. Combat a/c Trainers Regionals Aerostructures / Military Airlifters Commercial Aircraft Overhaul and Modification UAV/UCAV Mission Systems Rome, October 23rd-24th Company Confidential 4
  • 5. Civil Programs Supplier Risk sharing Partner Prime Supplier Dassault Falcon 900/2000 Fuselage Section Thrust Reverser Engine Nacelle Boeing B787 Stabilizer Superjet 100 Airbus A321/ A330/ Central and Rear sections A340/300-310 fuselage Partner: Sukhoi Tail Cone 26% 787 structure Wing Components ATR CARGO Civil & Military certification Boeing B767/ 777/ 717/ 757 Control Surfaces, Fin, Fuselage Panels/ Barrels Wing Tips AirbusA380 ATR42/72 Radome Fuselage section 15 Partner: EADS-F Workshare: 50 % Rome, October 23rd-24th Company Confidential 5
  • 6. Military Programs Risk sharing Partner Prime Supplier Tornado AM-X Interdiction & Strike Primary Responsibility for Workshare: 15 % Complete Weapon System ATR SM Civil & Military certification Typhoon JSF Air Superiority & Final Assy in Italy (AMI and Ground Attack C-27J other Nations) Workshare: 21 % Civil & Military Logistic Support Center (South certification Europe) Wing Structure Design Wing production & assembly Sky-X UAV First flight May 2005 Neuron UCAV 22% Workshare Sky-Y MALE UAV First flight June 2007 Rome, October 23rd-24th Company Confidential 6
  • 7. Revenues Distribution in the Value Chain Assets Alenia is willing to enforce the Prime / Co-Prime role in cooperation with key Risk Sharing partners Il nuovo Business Model A&D Alenia Aeronautica CUSTOMER Partner <<Co-development>> 60 – 70% Revenue (Prime e Co-Prime) Prime Risk Sharing ( C-27J, ATR M3, ATR 42/72, EFA, … ) Business Model Risk Sharing Partners & Supplier 30 – 40% Revenue Major System Contracting Based Business Model ( A380, 787, … ) Supplier System Specialist, Sub-Assembly Supplier Component, Part and Tooling Supplier Design Services Rome, October 23rd-24th Company Confidential 7
  • 8. Competitiveness Roadmap Current discontinuity emphasizes that the knowledge is the main enabler factor of modern competitive system LEADERS RAMPANT 25 Networked Knowledge FOLLOWERS 20 Knowledge Value 15 Technologies Capitals Work 10 Resources 1960 1980 2000 2020 years Rome, October 23rd-24th Company Confidential 8
  • 9. The Knowledge Wave IP Central to Economic Growth & Competition US investment in intangible assets (>$1T/year) equivalent to investment in tangibles “Intellectual property is the 14 backbone of America's economy” 12 U.S. Commerce Secretary Tangibles Carlos Gutierrez 10 Japan intends to “bring about % G ross D omestic P roduct a nation founded on intellectual property” 8 Japanese Prime Minister Junichiro Koizumi Intangibles 6 “The competition of the future world is a competition for 4 Intellectual Property Rights” Chinese Premier Wen Jiabao 2 ~80% of the value of modern ~80% of the value of modern 0 companies companies comes from intangible assets comes from intangible assets 1954 1964 1974 1984 1994 2004 Sources: US Federal Reserve – Nakamura, Ned Davis Research Rome, October 23rd-24th Company Confidential 9
  • 10. Executive Summary The challenges that Alenia is coping with: Alenia Aeronautica is subjected to many external and internal factors that push both toward new competitive positions and toward a reorganization of the company value chain Exogenous factors Endogenous Factors • Networked Knowledge in a • Multiplicity of Roles & Cooperative Environment Programs (Extended Enterprise) • Efficiency increasing - Project Team de-located • Optimization of the supplier - “Real-Time” Collaboration base • Growing Competition • Know-how Capitalization • Intellectual Property Rights • Next 5 years plan: doubled management revenues Rome, October 23rd-24th Company Confidential 10
  • 11. The New Business Model Traditional Enterprise Specialized Enterprise The Specialized Enterprise supports the business imperatives through: Focusing time management, talents and investments on specific Differentiation critical components related to the main peculiar strategies An evoluted business model to cope with changes in market Reactivity requirements through a networked organization made by internal and external specialists cooperating Merging similar activities/business belonging to different units to reach scale effects, knowledge sharing and increase effect of Efficency best-in-class partners Rome, October 23rd-24th Company Confidential 11
  • 12. Enterprise Transformation Roadmap Catalysts Information and Communication Technology Standards Main Capabilities Differentiation Reactivity Security Standard Processes Shared Knowledge Rome, October 23rd-24th Company Confidential 12
  • 13. Alenet Model Option Catalog Certification Mapping Standard to Program Monitoring Customer Customer Serial Numbers Master Table Delivery contract Program Steering Conformity Investigations Commissions Decision Applicability As Contracted Document / Content Change Dossier Deviations Management Program Management Change control & Traceability Workflow Change Orchestration Management Requirement As Designed As Planned Resources As Built As Maintained Management (As Delivered) Collaboration Product, Process & Resources Management CAE CAD CAT CAM CAPP Knowledge Management Management Management Management Management Management Product / Simulation and Prototyping ( virtual & physical ) Network Catia v4 Catia v5 Word Excel HMS CAPP CASE Et…. Security / Communication Creation Tools Management Technology Infrastructure, System Integration Rome, October 23rd-24th Company Confidential 13
  • 14. New Enterprise Model NETWORK Community Management Enterprise Model Collaboration Management • Document / Content Management • Security • Knowledge Management • Social Network Analysis • Collaboration Service • Key Performance Indicator • Process Management Enterprise Resources Planning HR Finance Logistic Procurement Customer Supply Relationship PLM Chain Management Core Management Shop Floor Control + FMS Plant Automation ……. Rome, October 23rd-24th Company Confidential 14
  • 15. Model Based Aircraft Development Model- Model-based Aircraft Development in Extended Enterprise Concept phase is the bet and trade-off shall wrap-up requirements, functional views, architectures and verification methods Multi-disciplinary approach is mandatory for system perspective as “whole” Full lifecycle coverage shall anticipate all the implications in design, manufacturing, operation and maintenance Systems are spread in a deep supply chain, so global collaborative environment, federative process governance and information integration are key enablers Concurrent Engineering Enables Risk and Cost Reduction Rome, October 23rd-24th Company Confidential 15
  • 16. V-Model Based Product Development The virtualization covers the full lifecycle development and the validation process Needs & Concept Operation Assessment Development Production Requirements & Definition & Support SYSTEM ing De De Flight Test Operational Scenario SUB- SYSTEM SUB- co co st Te mp m po & os EQUIPMENT siit ion tiio on at n Performance Simulation Laboratory Test gr & & te De De In siig sg nn Concept Evaluation Synthetic Environment Rome, October 23rd-24th Company Confidential 16
  • 17. Design Powered By Virtualization Virtualization drives the product development from the concept to the real integration Concept Validation Product Rome, October 23rd-24th Company Confidential 17
  • 18. Virtual Testing and Validation Reduce the physical tests to minimize development risks and costs Exploit virtual platform when the physical test is not practical Rome, October 23rd-24th Company Confidential 18
  • 19. System Engineering and Architecting Virtualization drives the model-based system engineering from requirements to architecture definition, enhancing the conceptual design as critical phase in lifecycle Downstream BC: Rack 120 VU -31.0 [g/s] Experimental data Downstream BC: Ptot and y(ng) specified Rack 90 VU + Panneau Plafond -45.6 [g/s] CFD architectural characterization IMP Node Equivalent model +restrictors (3x25) 11S21283086-204 diam=45[mm] IMP IMP Node Node Pressure Point AHRS Cockpit+ E/R radar + 1010 glace sondes 11S21283056-002 -7.2 [g/s] Restrictor diam Sm Valve =54[m ] / oke m 11S21283055-004 -148.8 [g/s] IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP Node Node Node Node Node Node Node Node Node Node Node Node Node Node Node Downstream BC: Experimental data 11S21283071-002 11S21283063-002 11S21283062-002 11S21283055-004 11S21283054-002 Orifice 11S21283055-004 11S21283055-004 11S21283055-004 11S21283056-002 11S21283056-002 11S21283057-002 13S21283310-000 11S21283120-212 diam=19[mm] Experimental data Downstream BC: Pressure Point Pressure Point 11S21283086-216 diam=16[mm] 1007 1008 Pressure Point 13S21283310-000 1006 IMP Node -72.2 [g/s] -103.2 [g/s] Pressure Point 1011 IMP Downstream BC: -65.4 [g/s] Experimental data Node -155.9 [g/s] -9.2 [g/s] -6.7 [g/s] 13S21283144-206 Equivalent model Downstream BC: IMP IMP IMP Pylone Node Node 13S21283144-206 13S21283144-206 Electrique IMP Flow @ fan = -228.0 [g/s] Node 13S21283140-012 / 3140-004 / 3106-002 Restrictor -204 ref. 13S21283140 diam=51.4 IMP Node Pressure Point 11S21283058-004 (part) 1012 System/sub-system Analysis (Easy5) IMP -62.9 [g/s] Node Rack 80 VU+ Experimental data bloc sondes Rome, October 23rd-24th Downstream BC: Company Confidential 19
  • 20. Virtualization Skills Development Roadmap Vertical CAD-CAE Extended Enterprise Lifecycle Virtualization Lifecycle Extension 4 4 Enterprise Integrate Simulation Environment 3 3 Multi-disciplinary Multi- Optimization 2 2 CAD-CAE Integration CAD- 1 1 Vertical CAD-CAE CAD- Discipline Coverage Rome, October 23rd-24th Company Confidential 20
  • 21. Alenet Virtual Prototyping and Simulation Planning Alenet Virtual & Physical Prototyping: MSC Prime Integrator Exemplar|Engineous Second Partner 2007 2008 2009 2010 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Prototype Contract Delivery Integrated Solution Extension & Design Standardization Implementation Refinement Phase1 Phase2 Phase3 Rome, October 23rd-24th Company Confidential 21
  • 22. Alenet Multi-disciplinary Integration Multi-disciplinary Environment for Product Development Rome, October 23rd-24th Company Confidential 22
  • 23. HPC Capabilities High Performance Computing Center Quadrics QsNetII Quadrics for the structure integration Bull Storage System and Parallel File System (Lustre) Storagetek Backup Library HP 200 nodes 2x Opteron DualCore Bull 6 nodes 8x Intel Montecito ~2.2 TFlops ~2.8 TFlops Bull 36 nodes 4x Intel Montecito Montecito Montecito •Operative System: Linux 8x 4x • Compiler: GNU, Intel C/C++/Fortran, Portland PGCC / PGF90 / PGHPF 2 x Opteron DualCore • Library: Intel MKL, IMSL, Lapack (Scalapack) FFTW Lustre • Parallel Language : MPI-CH, MPI-Quadrics, HP-MPI, OpenMP PFS OSS MDS • Debugger: Gdb, Xdb, Totalview, DDT • Performance Tools: PAPI, vprof, Vampir Library Tape • Parallel File System: Lustre (CFS) Storage 20 TB Rome, October 23rd-24th Company Confidential 23
  • 24. The High Performance Computing Center Rome, October 23rd-24th Company Confidential 24
  • 25. Wrap-up Conclusions In order to face successfully the incoming change of the worldwide business model, Alenia is engaged in a challenging evolution of technology and process This innovation is a mandatory requirement to sustain the market competitiveness for a global player role pursued by Alenia Alenet Project has been conceived in this perspective through two main streams of: • New Integrated PLM • Virtual Prototyping and Testing Virtualization and HPC are key assets in Alenia Aeronautica strategies The relevant capabilities are pursued and developed through internal initiatives (es. Alenet Project) and research programs (es. CRESCENDO) The framework based on strategic alliance system can support the business development as “virtualization and HPC” service provider through Alenia Aeronautica controlled company (Alenia Improvement) Rome, October 23rd-24th Company Confidential 25
  • 26. Virtual Test and Engineering Simulation in A&D October 23rd-24th