Post on 22-Jan-2015
description
Airbus S.A.S.
(Société par Actions Simplifiée)
Pilot : Naikal Appasaheb (G0701340H)Co-Pilot : Lim Siew Chen (G0701339E)
Air Steward : Wallace Zheng Yu (G0701307F)Chia Sok Mui (G0701327B)Ho Mei Yee (G0701333A)
VIP : Mr Kan Siew Ning
Passenger List : K6226 class
AgendaAgendaAviation History
o Aviation Historyo Industry Overview
Aircraft Maker Industryo Overviewo Key Playerso Porter’s Five Forceso Industry Trends & Outlooks
Dinner Break (Class Exercise)
Airbus S.A.So Overviewo Business Strategy and KM Strategyo Strategy Map and Balance Scorecard
Questions & Answers
Aviation HistoryAviation HistoryActivity : Video watching 1Time : 3min 45secs
Aviation Industry Overview
Knowledge Transfer Between Players
Along with the European Aviation Safety Agency (EASA), the Federal Aviation Administration (FAA) is one of the two main agencies worldwide responsible for the certification of new aircraft.
Air Type Certificate, is awarded by aviation regulating bodies to aerospace manufacturers after it has been established that the particular design of a civil aircraft, engine, or propeller has fulfilled the regulating bodies' current prevailing airworthiness requirements for the safe conduct of flights under all normally conceivable conditions (military types are usually exempted). Aircraft produced under a type certified design are issued a Standard Airworthiness Certificate.[1]
Airworthiness certificate is an FAA document which grants authorization to operate an aircraft in flight. [2]
Sample : Air Type Certificate Airworthiness Certificate
Source: [1] http://en.wikipedia.org/wiki/Federal_Aviation_Administrator
[2] http://www.faa.gov/aircraft/air_cert/airworthiness_certification/aw_overview/
Adobe Acrobat 7.0 Document
Government Regulator: FAA & EASAGovernment Regulator: FAA & EASA
Adobe Acrobat 7.0 Document
Aircraft Maker IndustryAircraft Maker Industry
Key PlayersKey PlayersAirbus and Boeing are the only players in the commercial
aviation industry for 100 or more seats capacity
Source: www.ec.europa.eu/enterprise/ict/conferences/doc/panel-4-slides_mathieu.ppt
Airbus vs Boeing
Airbus BoeingEntity An EADS Subsidiary Public
Founded 1970 (Airbus Industrie)2001 (Airbus S.A.S.) 1916 (Seattle, WA)
Headquarter Toulouse, France Chicago, Il, USA
Key People Thomas Enders, CEO W. James McNerney, Jr. CEO
Industry Aerospace Aerospace & Defense
Products Commercial airliners Commercial airliners
Revenue €23.5 billion (2005) $61.5 billion (FY 2006)
Employees 55,000-57,000 153,000 (2006)
Slogan Setting the standards Forever New FrontiersSource: www.ec.europa.eu/enterprise/ict/conferences/doc/panel-4-slides_mathieu.ppt
Airbus vs. Boeing Products
Source: www.ec.europa.eu/enterprise/ict/conferences/doc/panel-4-slides_mathieu.ppt
Very Large Commercial AircraftVery Large Commercial Aircraft
Source: http://en.wikipedia.org/wiki/Airbus_380
A380 747-8Speed 0.85 mach. 0.855 mach.
Range 10,521 mi 10,254 mi
Wingspan 261 ft 224 ft
Max takeoff weight 1,235,000 lb 970,000 lb
Capacity 525-853 450
Cost US$319 million US$300 million
Taxiway Wider Normal
Operation cost Cheaper Higher
Key CustomersKey Customers
8 more
to come
Source: www.ec.europa.eu/enterprise/ict/conferences/doc/panel-4-slides_mathieu.ppt
Competitive PositioningCompetitive Positioning
Source: Airbus 2005 annual Report
PorterPorter’’s Five Forces s Five Forces AnalysisAnalysis
Five-Forces Analysis
Supplier Power• High technology
• Various supplier needed for specialized in different parts and components
• Supplier dependency on company is low.
Buyer Power• Fewer manufacturer choices
• Costly to switch to another aircraft producer -maintenance, retraining cost.
• Low bargaining power of buyers
Threat of Substitute
• Buyer propensity to substitute low due to nearly no alternative
• Price & performance of substitute not attractive
Industry Rivalry• Equally balanced competitors
• Low Differentiation
Low
Low
High
Low
HighThreat of Entry• High switching costs• High capital requirement• High economies of scale• High Retaliation •Government policy and restriction
Industry Trends Industry Trends & &
OutlooksOutlooks
Industry TrendsIndustry Trends
Source : Airbus
Air trafficdemand will doublein next 15 years.Airport capacitywill not.
Industry Trends Industry Trends -- Aircraft DeliveryAircraft Delivery
Sources : Wikipedia and Airbus
Source: www.airbus.com
Industry OutlookIndustry Outlook• North America and Europe are also expected to remain significant.
• Traffic within China is now expected to add more RPKs than any other flow in the next 20 years, with the domestic and intra-European flow next in order of importance using this measure.
2nd highest growth
Highest Growth
Industry Outlook Industry Outlook
Dinner Break!Dinner Break!(Class Exercise)(Class Exercise)
Class Exercise : Who are these Airbus customers?
Lufthansa
Air France
QantasEmira
tes
Airbus S.A.SAirbus S.A.S((SociSociééttéé par actions par actions simplifisimplifiééee ))
Toulouse
subsidiaries
Airbus ofNorth America
AirbusChina
AirbusJapan
Airbus Worldwide Presence
History of Airbuso Airbus established in Dec 1970o Place : Toulouse, Franceo Employees : 57,000o Shareholders :
* EADS (80%) * BAE Systems (20%)
Training Centerso Toulouse (France)o Miami, Florida (USA)o Hamburg (Germany)o Beijing (PRC)
Main Subsidarieso Airbus North Americao Airbus Chinao Airbus Japan
Mission & ValuesMission & Values
Mission : create the best and safest aircraftMission : create the best and safest aircraftAirbus' mission is to meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market, complemented by the highest standard of product support.
ValuesValuesAirbus fosters values of excellence and innovation among its culturally-diverse employees and considers its customers, contractors and suppliers to be partners working in the interests of safety, quality and performance.
Source: http://www.airbus.com/en/corporate/ethics/mission_values/
Airbus ResultsAirbus Results
Source: http://www.airbus.com/en/presscentre/
Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Aircraft orders 556 476 520 375 300 284 370 1111 824 1458
Value of orders 39 30.5 41.3 44.7 24.3 24.3 34.4 95.9 75.1 181.1(US$ billion)
Cumulative orders 3203 3633 4125 4399 4632 4886 5252 6307 7097 8555
Aircraft deliveries 229 294 311 325 303 305 320 378 434 453
Turnover US$ 13.3 US$ 16.7 US$ 17.2 Euro 20.5 Euro 19.5 Euro 19.3 Euro 20.2 Euro 22.2 Euro 26.0 N/A(billion)
Cumulative deliveries 1894 2188 2499 2824 3127 3432 3752 4130 4564 5017
Order backlog 1309 1445 1626 1575 1505 1454 1500 2177 2533 3538
Number of customers 160 169 173 180 191 186 204 225 271 287
Number of operators 158 178 188 188 188 210 232 249 250 286
Aircraft orders = 62% ^Value of orders = 78% ^
Sources : Airbus
AIRBUS FLEET STRUCTURE
Airbus Business StructureAirbus Business Structure
Source: www.ec.europa.eu/enterprise/ict/conferences/doc/panel-4-slides_mathieu.ppt
Airbus SWOT AnalysisAirbus SWOT Analysis
Source: www.ec.europa.eu/enterprise/ict/conferences/doc/panel-4-slides_mathieu.ppt
Airbus Cost StructureAirbus Cost Structure
Source: EADS
Business StrategyBusiness StrategySupply• Airbus announced it would axe more than 80% of its supply base.
• It would reduces the company’s supplier rolls from the current 3000 to just 500, to reduce material costs by ₤1 billion (US$1.9 billion; S$2.8 billion) over the next three years.
• Supplier consolidation will also cut administrative costs by an additional ₤235 million (US$446.5 million; S$665.3 million)
Support Strategy• Rather than becoming a standalone business unit, building an integrated customer
support can help make Airbus airplanes more attractive. • To create a network of MRO (maintenance, repair, and overhaul) providers - Airbus "e-
solutions" for maintenance.
Business Strategy Business Strategy
Innovation• Align strategic vision and innovation goals with implementation of throughout the
organization, focusing on collaboration both vertically and horizontally.
• Managing boundaries enables collaboration across organizations, establishing structures and processes regarding governance, operations and technology.
• Finally, an ongoing commitment is required to orchestrate and systematize collaboration for innovation throughout the organization and its extended enterprise over time.
Customer• Establish stable relationships with all customers, from the biggest to the smallest,
from major airlines to regional airlines and start-ups
AirbusAirbus KM StrategyKM Strategy5 Strategies Codification Focus Personalization FocusCompetitive Re-use
Business emphasises commonality in fleet design.
Provide high quality, reliable, and fast implementation by reusing codified knowledge.
CustomisationBusiness emphasises highly customised
service offerings.Provide creative and rigorous solutions by
focusing on centres of excellence.
Economic Reuse economicsCustomize Spares Logistics: Airbus is taking
responsibility to deliver spares & kits directly to the customer, generating additional revenues.
Expert economicsCharge high fees for highly customised
solutions to unique problems.
Knowledge Management
People-to-documentsMigration of technical documents from paper to
digital support. Provide innovative e-portal solutions for
customers and suppliers.Promote knowledge reuse through EBOK.
Person-to-personForm CoPs across functions boundaries to
bring together experts with different interests.Marketing and Story-telling success stories Form “College of Experts” network.Strong collaboration with institutes, partners
and universities.
Information Technology
RepositoriesInvest heavily in IT to provide e-solutions
(AIRMAN, AIRNET, AIRTEC, LPC etc) to customers and suppliers.
NetworksInvest moderately in IT to facilitate
conversations and the exchange of tacit knowledge
Human Resources Re-usersHire people suited to reusing knowledge and
implementing solutions.Provide best possible training to employees.Reward people for using and contributing to
document databases
InventorsHire talented and creative people.Regular performance reviews and personal
development planning.Introduce “Awards of Excellence” for individual
and team success.
AirbusAirbus KM SharingKM Sharing
- Bounce recovery – Reject Landing- Preventing Tailstrike at landing- Crosswind Landings
Landing Techniques
- Flying Stabilized approach- Aircraft Energy Management during Approaches
Approach Techniques
- Decent and approach Profile ManagementDescent Management
- Revisiting the ‘STOP’ or ‘GO’ Decision- Preventing Tailstrike at Takeoff- Understanding the takeoff speeds- Response to Stall Warning aviation at Takeoff
Takeoff and Departure Operations
- Enhancing Terrain Awareness- Birdstrike Threat Awareness- Wake Turbulence Awareness / Avoidance- Volcanic Ash Awareness
Operation Environment
- Human Factor Aspects in Incident / Accidents- CRM Aspects in Incident/Accidents- Managing Interruptions and Distractions- Effective Pilot / Controller Communications- Enhancing Situation awareness- Error management- Visual Illusion awareness
Human Performance
- Operating Philosophy- Optimum Use of Automation- Operation Golden Rules- Standard Calls- Normal Checklists- Conducting Effective Briefings
Standard Operating Procedure
- FSF ALAR Task Force Recommendation - From Non-precision to Precision-like Approaches
Industry safety initiatives
- Forward- Introducing the Briefing Notes Concept- Glossary of Terms and Abbreviations- Use of Hyperlinks
How-to-use briefing notesFlightOperations
DocumentsDocument GroupCategory
AirbusAirbus KM Sharing KM Sharing
- Ground Support Equipment and ToolsBest Practices
- Human Performance and Limitations- Error Management
Human PerformanceMaintenance
- Effective Briefings for Cabin Operations- Cabin Smoke Awareness- Management In-flight Fires- Planned Ground evacuation- Unplanned Ground evacuation- Cabin decompression Awareness- Turbulence threat awareness
Cabin OperationsCabin Operations
KM Metrics @ AirbusKM Metrics @ Airbus
Number of documents publishedNumber of unique usersNumber of answers users providedNumber of frequently-asked questions
documents created
Knowledge Management
Reduction of errors in issue resolutionDefine commonality of folder structures and
adherence to that commonalityIncrease in reuse and efficiency of knowledgeIncrease in accuracy of information capturedUsability and retrieval of information
Economics/ReuseKM MetricsKM Strategy
Community of Community of Practice@AirbusPractice@AirbusBook of KnowledgeKnowledge repository for engineers that helps to share best practices and lessons learned.• Leverage the sharing of tacit knowledge across organizational boundaries,• Reuse experience (Preservation of knowledge)• Reduce learning curve for new engineers
Source: Enabling Communities of Practice at EADS Airbus
Airbus Strategy MapAirbus Strategy Mapandand
Balance Score CardBalance Score Card
Strategy Map
Strategy Map (cont.)
Strategy Map (cont.)
Strategy Map (cont.)
Strategy Map (cont.)
BSC - THE FINANCIAL PERSPECTIVE
No of gross orders
No of backlog orders
No of new customer orders vs fleet models
Increase new business orders
Achieve 20% more in total gross order by FY08
Achieve 10% more in total backlog order by FY08
Achieve 10% order from new customers per models
Market and Technology leader
% market share
No of innovation products and services
Total no of aircrafts delivery
% of reduction in CO2
> 50% market share
2 or more major products/services/yr
Achieve 15% increase for FY08
10% reduction in FY08
MEASUREMEASURESTRATEGICGOAL
% of order from various fleet models
TARGETKPI
TARGETKPI
XX% A320XX% A3XXXX% A380
INITIATIVESINITIATIVES
Participate in air shows globally
Tell/Publish success stories on various medias
Provide innovative solutions to customers
Introduce new aircraft model
Provide financial solutions to leasing companies, corporate, budget and full service airlines and air-cargo companies
Broaden Revenue Mix
BSC - THE CUSTOMER PERSPECTIVE
Technical dispatch reliability rate
Provide rapid responseto customers Achieve more than
99% operating reliability for all fleets
Leading-edge manufacturing
Time to market
No of defective products from suppliers
Supplier Rating
Production rate per aircraft model per month
Reduce cycle time by 30%
<10% defective rate per suppliers
<10% of supplier rejection
XX A320XX A340XX A380
MEASUREMEASURESTRATEGICGOAL
No of patents and innovations invented
No of innovations adopted
TARGETKPI
TARGETKPI
Increase 30% by FY08
10% improvement from FY07
INITIATIVESINITIATIVES
Collaboration with institutions and universities
Leveraging Information Systems and Experts for knowledge creation and reuse
Increase employees collaboration around the world
Improvement in manufacturing processes
Effective supply chain management
Develop new technology
Improve collaboration with partners
No of collaborations with partners
Participate in at least 10 new initiatives in FY08
BSC - THE INTERNAL BUSINESS PERSPECTIVE
Customer Satisfaction Rating
Customer retention rate
Increase customer satisfaction
Improve customer rating by 10% by FY08
Increase no of repeated customer orders by 10% per year
Cost & Time Reduction in Production & Maintenance
Training cost for ground crews, pilots, etc(AirbusCross Crew Qualification (CCQ))
Less than 2wks of training for pilot conversion and crew maintenance
MEASUREMEASURESTRATEGICGOAL
Maintenance downtime
TARGETKPI
TARGETKPI
Require less than 1hr per model
INITIATIVESINITIATIVES
Provide innovative solutions to customers
Improvement in manufacturing processes
Conduct Customer Satisfaction Surveys, Email and Mail Surveys
Provide excellent after sales service
Implement design commonality in all fleets
Ensure compliant to EASA and FAA requirements
Effective supply chainmanagement
Provide Safe & Quality fleets & Services
No of test flight hours conducted
No of on-time delivery
Compliance to ISO14001 standards
Reduce accident rate
10% more than regulatory requirement
99% on target
Zero NCN per audit
Reduce accident rate by 10%
Increase customer confidence
Increase new aircraft models
Total no of choices available for customers
10% increment in amount of choices available
BSC - THE LEARNING AND GROWTH PERSPECTIVE
Career development Staff attrition rate
No. of employees promotion
Not more than 20% in FY08
5% increase for capable employees
MEASUREMEASURESTRATEGICGOAL
No of Master and PhD qualifications
No of training hours per annual
Employee skills assessment
Percent of employee awards related to quality
Employee satisfaction/organization climate surveys
TARGETKPI
TARGETKPI
Achieve 20% from recruitment exercises
Attain at least 48hrs of training per employee/year
Cross training of core knowledge and technical skills
50% increase in number of awards related to quality by FY08
Achieve more than 80% by FY08
INITIATIVESINITIATIVES
Hire Key Technical Employee.
Improve employee work conditions.
Provide excellent and extensive training courses for employees
Provide language training and promote intercultural awareness
Conduct regular reviews plus personal development planning with employees
Celebrate and reward individual and team performance
Tie incentives to quality
Provide mentoring to new employees
Form CoPs
Develop, train, retrain current and new employees. Attract, develop and retain knowledge workers(Skill Development)
No of intercultural activities conducted
No. of woman graduate recruits.
Achieve at least 1 activity per month
At least 20% of total recruits
Diversified Workforce
Promote Knowledge Sharing
No of ideas created and codified/published
At least 2 new ideas from each employee
Remember :
What Get Measure Get Done!!!
Airbus Innovative Customer Services - AIRTAC
Activity : Video watching 3Time : 4mins 7sec
Demonstration of KM practice
Thank youThank youfor your attentionfor your attention