Airbus Balancescorecard Ppt 130923225913 Phpapp01

Airbus S.A.S. (Socit par Actions Simplifie)

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 Porters 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


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


Competitive PositioningCompetitive Positioning

Source: Airbus 2005 annual Report

PorterPorters 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?

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Airbus S.A.SAirbus S.A.S((SociSocitt par actions par actions simplifisimplifiee ))

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


Airbus SWOT AnalysisAirbus SWOT Analysis


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 companys 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 customisedservice 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 customisedsolutions 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.)

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%

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

MEASUREMEASURESTRATEGIC

GOAL

Maintenance downtime

TARGETKPI

TARGETKPI

Require less than 1hr per model


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


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

Airbus Balancescorecard Ppt 130923225913 Phpapp01

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