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Intelligent MRO for Intelligent Age

Intelligent MRO for Intelligent Age . Kenneth Chang Senior Practice Director APAC Consulting Services. Program Agenda. IT Technology Trend Oracle In Airline Industry Oracle Consulting Services Study Case Q&A. IT Technology – Rapid Changes.

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Intelligent MRO for Intelligent Age

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  1. Intelligent MRO for Intelligent Age Kenneth ChangSenior Practice Director APAC Consulting Services

  2. Program Agenda • IT Technology Trend • Oracle In Airline Industry • Oracle Consulting Services • Study Case • Q&A

  3. IT Technology – Rapid Changes • How are you preparing for these major “shift”??? • There has also been a major shift in Aircraft Technology

  4. To fill a shape with an image. Use existing picture box, DO NOT delete and create new picture box. Right click on the shape. At the bottom of the submenu select “Format Shape” Select “Fill” at the top of the “Format Shape” dialog box. Select “Picture or Texture fill” from the options. And select “File” under the “Insert from” option. Navigate to the file you want to use and select “Insert” On the “Format” tab, in the Size group, click on “Crop to Fill” in the Crop tool and drag the image bounding box to the desired size DELETE THIS INSTRUCTION NOTE WHEN NOT IN USE Oraclein Airline Industry

  5. Oracle Solution Strategy for Airline Industry Investments – Acquisitions • Endeca, Eloqua (Big Data) • Hyperion (Financial Planning, EPM) • BEA (Middleware) • Sun (Hardware) • ATG (E-Commerce /Chat/Live Help) Investments -- Build Differentiation • Demantra (VCP) • Oracle Complex MRO • Distributed Warehouse Management • Oracle Airline Data Model • AIA, Fusion Middleware & Fusion Applications • Governance Risk & Compliance solutions Optimize Execution • Empower Airline sales and marketing with industry expertise • Drive industry strategy and investments with global / regional boards and the Aviation Strategy Council Empower the Ecosystem • Continue developing a strong Airline professional s and community within Oracle • Collaborate with partners to build best of breed solutions • Collaborate with IATA on Industry Regulations Industry Leadership • Leader in ERP, HR Management • Leader in CRM , E-Commerce • Leader in Database, Middleware, Hardware

  6. Oracle Presence in Airline Industry

  7. Oracle Oracle’s Airline Footprint ISV Partners Customer Channels Call Center Marketing Sales Customer Service Self-Service Partner Mgmt Analytics Business Operations Analytics Maintenance, Repair& Overhaul Supply Chain &Warehousing CRM Flight Operations Human Resources Flight/Crew Scheduling Revenue Management Purchasing & Inventory Asset Management Financials Passenger Reservations Cargo Management Loyalty Management Helpdesk Supply Chain Corporate Administration CPM Financials (Revenue Acctg) Human Resources Facilities Management HR IT Indirect Procurement Projects Compensation Infrastructure Mobility Hubs / Master Data Mgmt Integration Framework / SOA Development Tools Identity & Security Services Networking Database Operating System Virtual Machine Server Storage Systems & Data Center Mgmt

  8. To fill a shape with an image. Use existing picture box, DO NOT delete and create new picture box. Right click on the shape. At the bottom of the submenu select “Format Shape” Select “Fill” at the top of the “Format Shape” dialog box. Select “Picture or Texture fill” from the options. And select “File” under the “Insert from” option. Navigate to the file you want to use and select “Insert” On the “Format” tab, in the Size group, click on “Crop to Fill” in the Crop tool and drag the image bounding box to the desired size DELETE THIS INSTRUCTION NOTE WHEN NOT IN USE OracleConsulting Servicesin Airline Industry

  9. Oracle Consulting is a Critical Element of Oracle’s Solution: We Deliver on Oracle’s Commitment Oracle Consulting Service “OCS” Is Oracle with Global Scale – Regional Presence • 145 Countries Coverage • 29 Local Languages • 18,000+ Oracle experts serving over 20 million users

  10. Oracle Consulting Service OCS Position in the Market • “Oracle consultants showcase deep vertical knowledge in industries… In addition, Oracle consultants bring solid expertise around areas such as business strategy and business process.” • -- Ali Zaidi and Sebastian Ruest, IDC • “Oracle Consulting has a portfolio of offerings for E-Business Suite, PeopleSoft and JD Edwards, and it uses its functional and technical skills to both supplement and lead initiatives with subject matter experts for Oracle products.” • -- Alex Soejarto and Susan Tam, Gartner

  11. Oracle Consulting Services OCS Strategy for Airline Industry

  12. To fill a shape with an image. Use existing picture box, DO NOT delete and create new picture box. Right click on the shape. At the bottom of the submenu select “Format Shape” Select “Fill” at the top of the “Format Shape” dialog box. Select “Picture or Texture fill” from the options. And select “File” under the “Insert from” option. Navigate to the file you want to use and select “Insert” On the “Format” tab, in the Size group, click on “Crop to Fill” in the Crop tool and drag the image bounding box to the desired size DELETE THIS INSTRUCTION NOTE WHEN NOT IN USE Implementation Study CaseKorean Airlines

  13. Case Study – Korean Airlines • Solutions – Business Units • Financials, including Revenue and Managerial Accounting • Procurement • Catering • Facilities • Aerospace and Defense (Manufacturing and Maintenance) • Aircraft, Engine and Component Maintenance

  14. Execution Aircraft Comp. Engine Requirements Configuration Study Case – Korean Airlines Maintenance System Overview -ComponentRemoval Forecasting Data -Non-RoutineMan Hour AnalysisData Decision Making Support( BIEE) Reliability Goal/Performance -Economical(Cost Saving) -Safety/On-time -Productivity Plan Flight (On-Wing) Data Collection Visit Work Packaging Production Scheduling -Work Volume Plan -Resource Plan . Man Hour . Material . Equip. / Facility Monitoring Data -BSI, -Oil Consumption Statistical Analysis System Defect Data Decision-making Support (BIEE) Reliability Program Performance Monitoring A-FAS (ACARS) Visit Scheduling Calculate Work volume Man hour Equip. /Facility Forecast & planning Corrective Action Reliability Failure Search Guidance Analyzing Reliability Data Long-term Forecast Yearly Plan Short-term plan (monthly) Defect/Removal Forecast Life Cycle Costing Real Costing Standard/ ActualM&E Cost Engineering -Unplanned material performanceData -ComponentRemoval, MTBR Data -Maintenance Requirement -M&E Standard . Standard Operation . Standard Material . Standard Man Hour Inventory -StandardMan Hour Maintenance -Asset in Stock -Part Price Inventory -Resources Use History . Man Hour . Material . Equipment Repair TAT Operation Hour Engineering Reliability Data (ex: MTBR) Calculate Appropriate Inventory Demand -Material Demand -Material Supply Material Supply-Demand Plan per Period - Man Hour Output Removal Forecast per period • Master Configuration Control • Maintenance Requirement • -Operate Standard M&E (Progress, Material, M/H) Qty Reliability Based Material Requirement Time Volume of Availability -Failure & Maintenance History(Routine/Non-Routine) -Component Install/Removal History -Resource Use History(Man Hour, Material, Equipment) Install/Removal Forecast Volume

  15. Study Case – Korean Airlines Engineering • Maintenance standard management • - Maintenance index management • - Standard process management • Electronic maintenance manual and • integrated manual management • . Integration with other process chain • . Revision management • Maintenance standard management • . Maintenance index management based • on MPD • . Standard process management • . Job Card creation/revision • . Job Card publish • Configuration management • . Configuration management based on IPC • . AIG management at position level • Manufacturer/OEM Manual • Manufacturer/OEM Document • Configuration Management • Master Configuration • Unit Configuration Digital Library • Job Card publish • Manual View • Digital Data support Inventory Planning Execution AIG information Demand forecasting Job Card Manual View Scheduling * AIG : Alternative Item Group

  16. VWP (Visit Work Package) Study Case – Korean Airlines 3rd Party Order data Fleet Plan & F/H Plan Historical Data Engineering MR Planning Engine/ Component Removal Quantity Workload Calculation Line Maintenance VWP Standard Work Process Visit Scheduling (Work Bench) Available Capacity ( TR, PR/PO, Non-Routine ) ( including Simulation function ) aircraftOperation Schedule P2P(Push to Production) Confirm Workload & Visit Schedule Execution (Production Schedule) ( Long Term, Annual, Short Term(Monthly/Weekly) ) * MR : Maintenance Requirement

  17. Study Case – Korean Airlines MaterialDemand Planning Execution Maintenance Requirement Route Operation - Skill / Tech Level - Competency - Resources . Resource Type . Duration Time - Material / Tool - Standard Procedure Work Order Scheduling Material RequiredSchedule ReliabilityAnalysis Synchronized Work schedule ProductionAnalysis Tech level(Skill Level) Job Assignment Competency CostAnalysis My Work Order Non-RoutineCreation ACARSMessage Provide decision support information Standardization of Non planned maintenance Optimized Scheduling and Execution

  18. Study Case – Korean Airlines PS cMRO Execution – Production Scheduling • Rescheduled Work Orders from PS • Revised Work Order Dates Daily Interface • Open Work Orders from cMRO • New & Existing Work Orders • Work Breakdown Structure • Work Order Relationships • Production Scheduling • Uncompleted Work • Monitoring • Completed Work Operation Section Resource Section

  19. Study Case – Korean Airlines • Inventory reduction by Improving demand forecasting • Reduce Forecasting deviation by Separating planned, unplanned demand • Improve accuracy of forecasting by using various forecasting model Inventory Planned Demand Unplanned Demand DEMANTRA Planning (Long term) Apply 15 forecasting models and blending Demand forecasting Unplannedmaterial Usage data Total demand on Time Horizon Execution (Daily) Safety stock Remove Outlier andCalculate demand deviation Compare demand and supply Somtimes Continuous Create PO for Net Quantity Demand >Stock? 15Forecasting models Qty Trend Mature curve Demand for Planned maintenance Estimation variation Demand for unplanned demand Month

  20. Study Case – Korean Airlines cMRO Reliability Feedback Action Reliability Alerting Configuration PerformanceStandard Data Analysis Data Collection (Periodic Operation) Line Job Order Data BIEE Reliability Program DB • Information • Time/Cycle • Defects • Part change Report Base Inquiry data Shop Failure probability Material demand NRAnalysis Statistical Analysis System Tech. Standard Productioncapability • Modification of A/C, Components • Maintenance method/interval revise • Publish engineering information Corrective Action • Training • Procedure revision Other Action

  21. Study Case – Korean Airlines Maintenance Cost Improvement Costing Subdivide Standard Cost Actual Product Cost Provide division estimated cost Application of Maintenance interval Separate BT, Cycle Cost - C & D Check - Engine, APU, L/G - Other Material components - Factory/Team//Shop • Work Order Level - A/C: Program Sub Type - Engine: Module Level - ATA Chapterlevel Cost calculation criteria improvement • Maintenance interval: Using previous 5 years history • Material Electronic parts: Using previous 3 years history • Application overhead cost: Factory level  Shop level • Cost creation timing: once/month  Daily • Labor cost rate: Shop level, Skill set level  Personnel level • Accounting principal: Completion base  Period base • StandardM/H : Skill level, MonthlyUpdate Estimated/Actual Cost Accuracy improvement Cost control for Progressing job Accurate Route cost Budget control By Shop Remove monthly Cost deviation • Reduce settlement duration: D+5 • Provide decision support information appropriately through BI • Accurate actual cost

  22. Study Case – Korean Airlines • BI environment supporting effective strategic decision making • Integrated Daily/Monthly operation summary analysis Analytics - Business Intelligence Data Hub ODS ERP Engineering Planning Execution … … …

  23. Case Study – Korean Airlines • Benefit • Maintenance • Reliability Based Forecasting • Optimized Inventory • Tail-Based Costing • Maintenance Synchronization • Overall • End to End Integration – Data Accuracy • Route Profitability within 3hrs of departure • Single and Strategic Sourcing and Procurement • Realtime Project Management • Optimized Catering Operation

  24. Exploited For Maintenance Insight Stringer Clip Corrosion Fuselage Frame Repair Fatigue Fuselage Structure Repair Crack hole Inspection via Single data sources

  25. Exploited For Maintenance Prediction To gain insight into likely failures

  26. Oracle and Oracle Consulting Services • Your partner in the Aircraft Technology “shift”

  27. Oracle and Oracle Consulting Services the only “Vertically Integrated Service Provider” Designed for AVIATION, Engineered FOR INTEGRATION

  28. Your Future Mechanics Back office Management Thank You!

  29. Graphic Section Divider

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