2013 bundle case competition - cornell university - ilr school
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GE Aviation:
2013 Bundle Case Competition GROUP 5 Sevana Melikian Alex Caruso Sanjana Kishore Yin Jin Levi Lundgreen Nicholas Born
December 10th, 2013
P R E S E N TAT I O N O V E R V I E W
0 1 Aerospace Industry Landscape 0 2 The Challenge 0 3 Our Approach 0 4 Our Proposed Solution:
The Knowledge Concierge 0 5 Q&A
0 1
G R O W T H Global Aerospace & defense market valued at $910 billion, grew at 6.8% in 2012. Defence sector shrinking, while commercial segment continues to grow
G L O B A L I Z A T I O N Greater focus on international markets like Asia & Middle East as US revenues decline
T A L E N T Steady loss of experienced personnel and need to attract highly skilled talent
I N N O V A T I O N Biggest business priority being cost, efficiency, reliability & safety
R E G U L A T O R Y Strict governmental guidelines for security & compliance will continue
AEROSPACE INDUSTRY LANDSCAPE
A T A G L A N C E :
Source: Air Transport Action Group (2012)
0 2
THE CHALLENGE
W h o h a s t h e k n o w l e d g e w i t h i n G E A v i a t i o n ? W h o n e e d s t h e k n o w l e d g e ? H o w d o w e t r a n s f e r t h e k n o w l e d g e ?
0 3
OUR APPROACH
§ Catering to Millennials • Information on demand • Technology • Ease of Use & Accessibility
§ Avoiding duplication of effort • Using information already in
existence § Measurable & Cost Effective § Ensure NPI commitments are met § Create a method to share both explicit
and tacit knowledge
0 4
OUR PROPOSED SOLUTION
The Kn wledge Concierge
0 5
HOW IT WORKS…
Hmm…This is not something I learning in my training. Who would know about how to approach this problem?
0 6
HOW IT WORKS… I found my
solution!
Connect to the Web Portal
Connect to the Knowledge Concierge
Person-to-Person Connection (Who has the knowledge &
who needs it)
Specific Solution on the Web Portal
0 X 0 7
Identify the Critical Knowledge Through: • Informational Interviews • Design Practices Reviews • Job Shadowing
HOW IT WORKS…
0 8
The Traditional Engineer – Manager or Mentor Relationship
Junior Engineer
Manager or Mentor
0 8
Junior Engineer
Knowledge Concierge
Collective Knowledge of GE Aviation
0 9
W E B P O R TA L
SINGLE SIGN-ON LIVE CONCIERGE CONNECT CONTACT US
1 0
3-D Model Video
Blue Print
The Knowledge Concierge Web Portal Features:
• Senior Engineer Profiles • Design Practices
• Currently hard to find, difficult to search, difficult to read through
• Blogs/Discussion Boards
1 1
T E A M S T R U C T U R E
*Headcount for pilot project in Cincinnati, OH
1 2
PHASE I: Find Knowledge
PHASE II: Share Knowledge
PHASE III: Evaluate
PHASE IV: Begin Expansion
• Hire staff • Engage senior
leaders and build credibility
• Start work on virtual portal
• Timing: Pre-launch (3-6 months)
• Soft launch of the KC • Test with subset of
population • Make changes/edits
as necessary • Timing: At 6-month
mark • Official launch of
Knowledge Concierge
• Marketing and communications
• Timing: At Year 1 mark
I M P L E N TAT I O N T I M E L I N E
• Measure ROI (reduction in rework, reduction training, reduction in errors)
• Revise model as necessary
• Regular surveys • Make changes as
necessary • Timing: Every 6 months
for 2 years
• Launch satellite offices (domestic and international)
• Establish Cincinnati as official hub
• Timing: Years 2 through 5
1 3
Knowledge Concierge Pilot Site: Cincinnati, OH
G E A v i a t i o n E n g i n e e r i n g
PHASE I: Find Knowledge
PHASE II: Share Knowledge
PHASE III: Evaluate
1 4
Knowledge Concierge Hub: Cincinnati, OH
Mexico
UK
Poland
Turkey
India
China
G E A v i a t i o n E n g i n e e r i n g
PHASE I: Find Knowledge
PHASE II: Share Knowledge
PHASE III: Evaluate
PHASE IV: Begin Expansion
1 5
Leadership • Authentic support from leadership
throughout the entire process • Early adoption of new operating
procedures • Relate improvement to culture
Communication • Start as soon as possible • Create a sense of openness around
procedures • Define the why? • Sincerely engage all levels in shaping
communication plan
Redefine Operating Norms • Incorporating knowledge to G&O’s • Reward behaviors at first • Monitor Progress • Empower employees
CHANGE MANAGEMENT NECESSARY
The Change Acceleration Process
1 6
NPV Analysis
Calculated IRR = 51% >
GE’s WACC = 6.35%
FINANCIAL ANALYSIS
Year 1 Year 2 Year 3 Year 4 Year 5 Labor Costs $(1,485,000) $(1,485,000) $(1,485,000) $(2,565,000) $(2,565,000) Tech Costs $(60,000) $(60,000) $(60,000) $(60,000) $(60,000) Admin & Misc. Costs $(140,000) $(140,000) $(140,000) $(140,000) $(140,000) Benefits (Senior Employees) $(600,000) $- $600,000 $600,000 $600,000 Benefits (Junior Employees) $- $2,400,000 $3,600,000 $3,600,000 $3,600,000 Net Benefits $(2,285,000) $715,000 $2,515,000 $1,435,000 $1,435,000 NPV $(2,148,566) $(1,516,400) $574,462 $1,696,228 $2,751,014
NPV > 0 by Year 3
NPV
($)
1 7
The Knowledge Concierge: Overview
T h e K n o w l e d g e H i e r a r c h y ( D I K W )
EFFECTIVE KNOWLEDGE
MANAGEMENT
1 8
Thank You! Q&A
Extra Special Thank You To:
Heather Porzuczek
Larry Caruso
Scott Blosser
Jay Ramachandran
Ravi Ravikumar
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