Modelling the Aerospace Aftermarket with Multi-agents Systems Ken Woghiren Technical Director - Lost Wax

The Aftermarket opportunity The Opportunity Customers buying a service not just a product – power by the hour tm Key driver for long-term revenue & profitability – maybe 60% of product life cycle profit Key driver for customer satisfaction, brand strength and more sales

The Challenge  Planning and operating an Aftermarket is an imprecise art  Very large number of present and future variables impacting services levels and economics  Managers have to make difficult and expensive decisions in the face of these complexities  But these decisions can make or break profitability… The Aftermarket opportunity

What is AEROGILITY Designed for the Aerospace Aftermarket… Powerful and flexible Aftermarket decision support tool Proven with a leading Aerospace manufacturer Based on our expertise in multi-agent technology Built on the Lost Wax Agent Framework Intelligent and adaptive business software Intuitive, visual, interactive software model …understand the options and you make the right decisions!

What is AEROGILITY AEROGILITY is based on an intelligent software model representing the key resources in an Aerospace Aftermarket…  Visually  Intuitively  Interactively assets +processes +people

Operational policies, processes & metrics The software agents represent the resources in the Aftermarket:  Business purpose, goals and objectives  Operating policies and strategies  Business processes and rules  Key Performance Indicators, SLA and operating metrics How AEROGILITY works Operations control MRO Facilities Engineering resource3PL, SCM & Logistics Inventories & SPL

How AEROGILITY works AEROGILITY Aftermarket Model Assets  MRO capacity  Inventory levels Processes  Repair scheduling  Parts sharing Staff knowledge  MRO experience  Engineering know-how Management goals/policies  P&L and KPI goals  Customer requirements The software agents operating parameters are easily configured to your business goals, rules and policies Model Development

How AEROGILITY works Software agents are easily configured for multiple what-ifs & simulations AEROGILITY Aftermarket Model What-if scenarios  Explore new policies  Identify innovations  Experiment with configurations Compare through simulations  Assess decision impact  Work through decision options  Challenge assumptions Benchmark with metrics  Validate P&L and KPI goals  Financial benchmarking  Assess investment business cases DECISION SUPPORT

AEROGILITY what it does for the Aftermarket

AEROGILITY for the Aftermarket Intelligent decision support software for Aftermarket managers:  Fast-forward business simulations to assess impact of decisions  What-if scenarios driving P&L, KPI, SLA & operational metrics  Work-through decisions by comparing a range of scenarios & metrics here & now medium term long term Sourcing and partnering options Operational decisions, scheduling and policies Investment evaluation and planning

Operations control MRO Facilities Customer MRO events Inventories Component suppliers Component suppliers SCM, 3PL, SPL complex logistics SCM, 3PL, SPL complex logistics Engineering teams Managers & Specialists AEROGILITY for the Aftermarket Aftermarket operations

Aftermarket operations and decision support HERE & NOW - questions & issues How should engineering teams be deployed? How do we prioritise jobs to overcome bottlenecks? Should we change our repair procedures? What is the impact of parts sharing? Can we support a customer SLA requirement and how do we price it? AEROGILITY for the Aftermarket

Aftermarket sourcing and partnering MEDIUM TERM - questions & issues What is the impact of different inventory levels Where should components and parts be located? Should we refurbish parts and components or not? How can we work effectively with 3PL and SPL partners? How can we improve our SCM and logistics strategy? AEROGILITY for the Aftermarket

Product Life Cycle - 1 to 30 years Aftermarket MRO events Servicing – Repairs – Overhauls – Upgrades – Swap outs – Decommission AEROGILITY for the Aftermarket Forecast Product Sales AEROGILITY Understanding the complex balance of Aftermarket resources AEROGILITY Understanding the complex balance of Aftermarket resources

Aftermarket investment and strategic planning LONGER TERM - questions & issues How many MRO facilities to do we need for projected product sales? Where should the MRO facilities be located? What capabilities should an MRO facility support? Are we confident in the business case justification for our investment? AEROGILITY for the Aftermarket

AEROGILITY Why AEROGILITY is different

AEROGILITY is based on multi-agent adaptive software… Unlike 2-dimensional spreadsheets, process diagrams and reports… Start with first principles - iterate complexity up to reality Fast-forward the Aftermarket – next 24 hours or 24 years Aftermarket resources interacting dynamically - not just a slice Insight by comparing whole Aftermarket what-ifs & simulations Genuine decision support, not just more data.

AEROGILITY Implementing AEROGILITY

MODEL …understand the balance of resources, evaluate options, decisions, run what-ifs MODEL …understand the balance of resources, evaluate options, decisions, run what-ifs AEROGILITY in 3 phases… MANAGE MONITOR … integrate operational data and processes, monitor the Aftermarket for decision support MONITOR … integrate operational data and processes, monitor the Aftermarket for decision support MANAGE …drive existing systems and processes with adaptive intelligent software MANAGE …drive existing systems and processes with adaptive intelligent software

Operational Metrics driving Decision Support Develop operational Simulations & What-if scenarios Roles-based Analysis Initial model development 6 to 12 weeks…continues over product life Implementation Aftermarket 1 st Model Development Implementing AEROGILITY

AEROGILITY Aftermarket Model Implementing AEROGILITY MODEL - MONITOR Phase 2 OPERATIONAL DATA STAFF INPUT & UPDATES CUSTOMER REQUESTS

Implementing AEROGILITY MODEL - MONITOR – MANAGE - Phase 3 AEROGILITY Aftermarket Monitored Model UPDATES TO EXISTING SYSTEMS INSTRUCTIONS TO 3PL PARTNERS ADAPTIVE SCHEDULING FOR STAFF RFQ TO COMPONENT SUPPLIERS FLEXIBLE SCHEDULES FOR CUSTOMERS

AEROGILITY Benefits of AEROGILITY

AEROGILITY Aftermarket Model In summary Aftermarket stakeholders Business strategy Financial goals Customer requirements Operational realities Constraints Opportunities Deep understanding… What-if decision options Simulate decision impact Inter-relationship of metrics Compare business scenarios Share assumptions Make better decisions…. INPUTSBENEFITS Benefits of AEROGILITY

AEROGILITY delivers real business benefit… Balance your resources more efficiently Effective decision support Opportunity for substantial cost savings Improve customer satisfaction …sustained profitability and competitive edge Benefits of AEROGILITY