Managing Automation- July 2008

airplanes. Those technologies include ERP systems with lot-level tracking, sensors for assessing the real-time performance of critical parts, systems for pulling together all quality-related information, and RFID-enabled systems that can help OEMs and suppliers more easily track parts and recognize their pedigrees. ties. Boeing, for example, has rolled out a Gold Care Program, a business that provides maintenance support for Boeing and non-Boeing aircraft. “In order to move into this MRO business, the OEMs need reliable, up-to-date traceability information,” says Joe Marino, vice president for aerospace and defense industries at Oracle Corp. “They need quick, easy access to configuration INCREASED SCRUTINY and operational data.” Of course, aerospace OEMs’ move to an outUnfortunately, in many cases, OEM access to sourced business model isn’t the only factor placing that kind of information has been neither quick nor pressure on suppliers to more fully automate the easy. Take aerospace fuel control system manucollection and dissemination of part traceability facturer Pointe Precision, for example. Until reinformation. The specter of increased regulatory cently, the company collected quality data related to scrutiny from the Federal Aviation Administration the testing and field performance of its parts in sevand other organizations is also beginning to drive eral disconnected spreadsheets and homegrown OEMs to demand easier, electronic access to part databases. As a result, the company was often traceability information from suppliers. thrown into reactive mode when an aerospace cusRecent headlines about increased FAA regulatomer requested specific quality information or to tory attention have focused mainly on airlines’ audit Pointe Precision’s quality processes. shortcomings in maintaining documentation re“We were pretty good at putting out fires, but it lated to their maintenance, repair, and overhaul was all a very disjointed, manual situation,” says (MRO) processes. There have been indications, Brett Castine, CFO at Pointe Precision. “We’d get however, that the FAA is paying more attention an e-mail from a customer, but nobody knew whose to how well OEMs and their suppliers are doing at responsibility it was to respond. We’d wait until updating flight readiness documentation that is the follow-up e-mail, then go into crisis mode.” required on all aircraft and major subsystems. Not surprisingly, Castine says, “Many customers Recently, for example, aerospace engine mandidn’t trust our quality systems or processes.” ufacturer General Electric revealed that it was Recently, Pointe Precision decided to upgrade its being questioned by the FAA about concerns reputation with customers by deploying a new that the company had failed to properly docuquality management system and processes. The ment engineering analysis before upgrading CFsystem, from IQS, integrates with the company’s 6 engines installed on commercial aircraft. The Epicor ERP system and manages information genmissing documentation was to have detailed how erated by product return transactions. It provides long upgraded parts should stay in service and workflows so that Pointe Precision can analyze how often they need to be inspected. quality problem patterns, take corrective actions, “All of the major OEMs and tier-1 suppliers feel and provide aggregate quality information and they are subject to increasingly strict rules of comeven quality audits to customers. The system has pliance,” says Tom Captain, a principal at Deloitte allowed Pointe Precision to improve its standing Consulting LLP. “Historically, the compliance piece with customers while also spotting flaws in its own processes. That has helped the company reA new quality management system has duce its scrap costs by 50%, Castine says. Other allowed Pointe Precision to improve its investingmanufacturers, such as Leach, are in new ERP capabilities to support standing with customers while also easier part traceability. The company, says spotting flaws in its own processes. Susan DeGraaff, ERP systems manager, has long provided full traceability on all of its has been up to companies, not subject to police acparts, down to the raw materials used in a given tions. But, because of increasing charges from part. That process, however, was largely manual, whistle-blowers, the compliance focus from the sometimes taking days, partly because the comFAA is increasing.” pany’s MRP system could track parts only by seAt the same time, aerospace OEMs need better rial number, not lots. access to part traceability and quality information So, last year, Leach officials set out to more because, even as they outsource more design and fully automate part traceability by bringing in a production processes, many are attempting to take new ERP system that supports lot-level tracking. on more of the MRO responsibility that has hisSurprisingly, Heer says, very few systems Leach torically been performed by airlines or third parlooked at support the feature. In the end, Leach July 2008 35

Table of Contents Feed for the Digital Edition of Managing Automation- July 2008

Managing Automation- July 2008 Contents Take 1 HP's Acquisition of EDS May Face Integration, Global Delivery Challenges Rimini Plans to Woo SAP Support Users Rockwell Steps Up Its Activities in Software Microsoft Targets the Process of Innovation Supply Chain Standouts Honored by AMR Notes Who Are Today's Influential Thinkers? The Robot Revolution Is the Price Right? Without a Trace Harvesting the Suggestion Box Product Scan Advertiser Index Next

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