Supply Chain Project

Download Supply Chain Project

Post on 28-Oct-2014

33 views

Category:

Documents

1 download

Embed Size (px)

TRANSCRIPT

<p>GROUP-2</p> <p>ANALYSIS OF SUPPLY CHAIN OF EUROPEAN AEROSPACE INDUSTRIES</p> <p>Submitted by Tushar bende(20) Sujit Kumar naik(44) Navu Dhillon(30) Pravjot Gandhi(22) Anil Kumar Soni(33) R.Vaishakh(37) Prashant Yadav(36)</p> <p>TABLE OF CONTENTS OBJECTIVE ABSTRACT INTRODUCTION PRESENT PICTURE OF INDIAN AEROSPACE INDUSTRIES MAJOR PLAYERS SUPPLY CHAIN LADDER VALUE CHAIN SUPPLY SIDE ANALYSIS OF THE AEROSPACE INDUSTRY IN EUROPE 1. EADS 2. REGIONAL PATTERN 3. STATE IN TECHNOLOGIES ROLLS ROYS MANUFACTURING FACILITIES AND SUPPLIERS PERFORMANCE METRICS FOR SUPPLY CHAIN SUPPLY CHAIN BUSINESS PROCESSES 1. SUPPLIER FACING BUSSINES PROCESSES 2. SUPPLIER SELECTION AND SEGMENTATION 3. COLLABORATIVE PRODUCT DEVELOPMENT 4. SUPPLIER MANAGEMENT AND DEVELOPMENT TRENDS IN AEROSPACE MANUFACTURING / OUTSOURCING ACTIVITIES TRENDS IN AEROSPACE MRO COMPETITION CONCLUSION RESEARCH METHODOLOGIES</p> <p>ANALYSIS OF SUPPLY CHAIN OF EUROPEAN AEROSPACE INDUSTRIES</p> <p>OBJECTIVE Study and analysis of Indian Aerospace Market, current status and future prospects and a basic representation of the supply chain mechanism used.</p> <p>ABSTRACT India possesses one of the biggest markets in Asia Pacific which is evident from the fact that both the Boeing and Airbus consider this market as their priority market. It has recorded annual growth of over 41% in passenger traffic during in the last two years. These figures are indicative of the European aerospace industry presence in India. In India we have taken HAL (Hindustan Aeronautics Limited) which are into Aircraft manufactures &amp; assembly, design, R&amp;D, Tier-2 &amp; 3 supplier to foreign OEMS. HAL is one of Asias largest Aerospace companies. On the other hand we are focusing on aerospace companies such as Dassault, EADS and Airbus which account for a large share of the global aerospace industry and research effort. Europes Aerospace turnover, accounting for over 20 billion annually alone. EAQG (European Aerospace Quality Group) sets up a platform to provide the Industry Supply Chain with services. This service platform is named API (Aerospace performance improvement). EAQG purpose is to implement initiatives that make significant improvements in Quality and reductions in cost throughout the value stream. We are basically concentration on the contrast of Supply chain mechanism used By HAL in India in contrast with the supply chain ladder with context to European Union.</p> <p>INTRODUCTION:AN OVERVIEW OF INDIAN MARKET India for the past one year had witnessed unprecedented growth during the past one year what can be even termed as growth of the century. From IT to telecom, from nuclear market to automobile India is a emerging as a growing market in all sectors, both in research as well as its market. Now India is on the threshold of entering into a new market what is deemed as one of the most challenging and that is the aerospace industry. India possesses one of the biggest markets in Asia Pacific which is evident from the fact that both the Boeing and Airbus consider this market as their priority market. Though Indian aerospace market is dominated by military segment but it is the commercial segment which has potential for more growth. The civil aviation sector in India is growing rapidly. It has recorded annual growth of over 41% in passenger traffic during in the last two years. In fact, it has contributed significantly to the growth of international civil aviation sector. Indian players in this industry are still in nascent stage which means this industry is currently dominated by foreign player. In the civil and the military fields of aviation, there are two competitors for business from airlines, private companies, individuals, and government agencies and that are the American and European behemoths. That business has not been just aircraft sales; other products and services include airport, aerial navigation, spares, MROs, support services as also space related products and services. According to the DGCA website, scheduled operators in India are flying 184 Airbus and 165 Boeing airliners. These figures are indicative of the European aerospace industry presence in India. End 2009, Airbus signed lease contracts of 2.8 billion with Air India and Jet Airways. Indigo, with a current holding of 32 Airbus aircraft, has regulatory approvals to import 150 - all Airbus A 320 as planned now. GoAir has 10 A 320 and plans to get 10 more over the next two years. Kingfisher plans to expand its fleet of 34 A320. In short, Airbus is robustly ensconced into Indian civil aviation, with a few A320 Business Jets under non-scheduled operations by Kingfisher and Reliance. Jet Airways and Air India are both looking at additional A330 for reinforcing long haul operations. With all Indian private carriers now eligible to undertake international operations, demand for long-haul aircraft would increase further. Meanwhile, in the face of competition, from a possible Boeing 737 upgrade, new single aisle CSeries aircraft from Bombardier due to enter service in 2013 and C919 from China expected in 2016, Airbus plans to introduce the A320 NEO ( New Engine Option) powered by the next generation Pratt &amp; Whitneys engines with better fuel efficiency, lower carbon emissions and less noise than comparable engines. With 15 per cent lower fuel burn on the A320 NEO, savings will be significant. Airbus also plans to install large wing-tip devices known as sharklets, which would lower fuel consumption by at least another 3.5 per cent over long duration flights.</p> <p>Moving to the military market this is one segment which is heavily controlled and influenced by the American and European manufacturers. Despite all the hype and attempts from the Indian DRDO, HAL and its associates, India is yet to produce a single indigenous fighter aircraft worth a mention. After over three decades of development, India finally succeeded to induct the LCA tejas Mk-1 in January 2011 though it was followed with dismayed order of 40 jets because according to the sources from the air force the technology is not sufficient for the current requirement. The Kaveri engine for the LCA, which has been under development for over two decades at GTRE, is not in sight. GE Aviation has won the contract to supply the F414 engine to power the LCA Mark-2, the indigenous fourth generation fighter for the IAF and the Indian Navy. Recently Dassalt Aviation won the long running $ 12 billion MMRCA contract for supplying 126 Medium combat aircrafts and will be supplying 18 Rafaels in fly away condition and rest will be manufactured in India. Currently the bulk of the inventory in the Indian air force is consisted of either Russian, French or American aircrafts like Su-30 MKI, MIG -29,Mirage 2000, Phalcon AWACS and Globe master aircrafts. Even though Indian companies have limited presence in Indian market but they are making strides in this market recently. The behemoth among them is Hindustan Aeronautical Limited( HAL). Hindustan Aeronautics Limited based in Bangalore, India, is one of Asia's largest aerospace companies. Under the management of the Indian Ministry of Defense, this state-owned company is mainly involved in aerospace industry, which includes manufacturing and assembling aircraft, navigation and related communication equipment, as well as operating airports. Hindustan Aeronautics has a long history of collaboration with several other international and domestic aerospace agencies such as Airbus, Boeing, Sukhoi Aviation Corporation, Israel Aircraft Industries, RSK MiG, BAE Systems, Rolls-Royce plc, Dassault Aviation, Dornier Flugzeugwerke, the Indian Aeronautical Development Agency and the Indian Space Research Organization. It is involved in a lot of International and national deals like the $ 10 billion FGFA fifth generation program with Sukhoi, the indigenous AMCA fifth generation project, Multi role transport aircraft with Russia. Multimillion $ contract with Airbus, Boeing and IAI to produce aircraft parts and composite material.It is the major player involved in the development of LCA Tejas, FGFA, AMCA, licensed production of Su-30 and the manufacturer of Dhruv helicopters. Hal is even exporting Dhruv to a number of African and South American nations for commercial and military use. On commercial front they are developing like Saras and Indian Regional Jet in association with Saras, another aviation corporation in India. There are a lot of new players who are entering in the Indian aviation industry which include Tata, L&amp;T, Hero group and M&amp;M.</p> <p>Most of the this players are involved in product offsets especially with corporations like Boeing and Airbus and are also outsourcing their work here.</p> <p>PRESENT PICTURE OF INDIAN AEROSPACE INDUSTRIES Political Influences The commercial and defense-focused aerospace industry in India has been active for a long time; however it has only recently opened up to private sector participation through various government policies and initiatives. Overall, the following issues can be considered as key forces affecting the aerospace industry in India: It has allowed up to 100% domestic private sector participation, although the foreign direct investment is still limited to 26% in the defense-related segment The offset policy requirement of 30% is meant to encourage further development of indigenous production capabilities in land, air and naval defense equipments by allowing co-development and co-production of Indian companies with international manufacturers.</p> <p>The federal tax structure of India imposes a range of taxes. While the Central Government levies income taxes on individuals and corporations, and indirect taxes such as customs duties, central excise and service tax, the State Governments impose other indirect taxes like a Value Added Tax (VAT). Such a multi-tiered tax structure is a disadvantage for domestic manufacturing as imported defense goods are taxed less compared to locally supplied goods. The indirect taxes on aircraft servicing present another challenges for MRO activities in India, which needs to be addressed in the coming years.</p> <p>Technological Influences</p> <p>With several government organizations like Hindustan Aeronautics Limited (HAL),Defense Research Development Organization (DRDO), NAL, ISRO etc. research and development in industry has progressed but at a slow pace. Considering the backlog of defense related aircrafts and technology for the near future, India still needs to invest into the future. Realizing the R&amp;D investment needs, government has also invited domestic and foreign players for participation with an offer of 80% funding. The government is especially looking for joint production with global players in order to transfer technology and know-how into the country.</p> <p>The availability of low cost engineers and scientists has attracted global players to build up captive R&amp;D units in India. For example, the Airbus Engineering Centre located in Bangalore is one of the companys key units in India which works on design tools for aircraft manufacturing and simulation too for analyzing stress, strain and other material properties. Similarly another aircraft companies such as Snecma have established their R&amp;D centers focusing on the development of aircraft components. Other companies like Boeing have collaborated with research and technical institutes like the Indian Institute of Science (IISc), Bangalore, and the Indian Institute of Technology (IIT) Kanpur for high- end research in aircraft design. In March 2009 for example, Boeing also opened its Research and Technology-India Centre which will focus on development of high-technology applications, particularly in the field of aero structure sand avionics. A new trend of Public-Private-Partnerships (PPP) has also emerged wherein private Indian players like Mahindra &amp; Mahindra are collaborating with government bodies such as NAL for the joint production of aircrafts.</p> <p>Although less has been done in the field of research on green fuels so far, government agencies like DRDO and Bharat Electronics Limited (BHEL) have started working on projects to develop Unmanned Aerial Vehicles (UAV). BHEL has, for example, collaborated with IAI-Malat for the development of similar technologies. The development of new composites for the manufacturing of aircrafts is one of the areas where the Department of Science and Technology (DST) is currently focusing on. Such composites will not only help in enhancing the strength of the aircraft but also in increasing fuel efficiency and lowering maintenance costs. As of now, India imports almost all material for manufacturing. Companies such as HAL or Tata Advanced Services are working on new material technologies for the development of composites. However, India has been restricted so far to a 3rd tier supplier to the industry with focus on low-tech design and engineering activities. Therefore, future research efforts in terms of R&amp;D investment and high-technology product developments are expected to increase.</p> <p>MAJOR PLAYERS Public Sectors</p> <p>Private Sector Domestic Firms</p> <p>Major Foreign Players</p> <p>SUPPLY CHAIN LADDER High domestic demand of aircraft, introduction of the defense offset policy in 2006 have provided immense opportunities for companies entering this sector. Over the next five years, the Indian offset market is expected to witness double-digit growth and reach new highs over the next 10 years primarily driven by Indias procurement plans. Low labor costs, coupled with IT competitiveness, is creating JV and partnership opportunities for Indian aerospace supply chain players with global aerospace majors such as Boeing and Airbus for various systems and subsystems manufacturing. Indias Maintenance, Repair and Overhaul (MRO) sector is witnessing increasing interest from foreign and domestic players. Boeing has recently set up its MRO unit in India. Various others companies such as Airbus and Dassault are planning to set up MRO units in India. The coordination and integration of supply chain practices and processes are becoming increasingly important, and requires lots of attention. Traditionally the large aircraft manufacturer would define and specify exactly what their Tier 1 suppliers should produce for them The airframe manufacturers would do the total aircraft design, and give their suppliers detailed specifications and drawings for the manufacture of sub structures and sub systems. This is changing. Airframe manufacturers and Tier 1 suppliers have become large scale integrators (super integrators) and coordinators of airplane production. New strategies adopted by the aerospace industry to achieve this include greater dependence on Tier 1s, increased risk sharing by suppliers, adoption of low cost region suppliers, increased aero structures outsourcing, and an increased transparency in their aircraft program plans and schedules. RFPs are shared openly, and proposal making is more a joint process between customer and supplier. There is...</p>