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Enterprise Process Management at EADS

TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................................................. 1

I. INTRODUCTION: COMPANY PROFILE ....................................................................... 3

1.1 EADS – BUSINESS UNITS ................................................................................... 3

II. INDIAN AEROSPACE INDUSTRY ANALYSIS .............................................................. 5

III. GLOBAL SOURCING ............................................................................................... 6

3.1 ACCESS TO RARE RESOURCES: RISK MANGEMENT .......................................... 7

3.2 IMPORTANCE OF GLOBAL SOURCING ............................................................... 9

3.4 RISKS FROM GLOBAL SOURCING .................................................................... 10

3.5 EADS – STRATEGY FOR GLOBAL SOURCING ................................................... 11

3.6 VISION 2020 ................................................................................................... 12

STRATEGIC GOALS FOR VISION 2020 ................................................................ 13

VISISON 2020 TARGET FOR INDIA SOURCING OFFICE ....................................... 14

IV. EADS: INDIA SOURCING OFFICE .......................................................................... 15

4.1 MAIN CLUSTERS OF INDIAN SUPPLIERS .......................................................... 15

4.2 INDIA SOURING FOOTPRINT ............................................................................ 17

4.3 SUMMARY OF THE DEVELPOMENT STATUS ..................................................... 18

4.4 PERFORMANCE AND QUALITY IMPROVEMENT ................................................ 20

V. OUTSOURCING .................................................................................................... 21

Outsourcing .......................................................................................................... 21

Offshoring ............................................................................................................ 21

Areas of Outsourcing at EADS .............................................................................. 21

Areas of Offshoring at EADS ................................................................................. 22

PROCESS AUDIT ................................................................................................... 22

Five process enablers .......................................................................................... 22

Four levels of process enabler strength .............................................................. 22

Significance ...................................................................................................... 221




Four Enterprise Capabilities ................................................................................. 23

Enterprise Significance ......................................................................................... 23

Colour Distinction ................................................................................................. 24

RESULT – PROCESS ENABLER ............................................................................................................................. 24

Inference ............................................................................................................. 25

RESULT – ENTERPRISE CAPABILITIES .................................................................... 25

Inference .............................................................................................................. 26

VI. PROCESS RE-ENGINEERING ................................................................................ 26

VII. ERP IMPLEMENTATION ....................................................................................... 27

Human Resource Management ............................................................................ 28

Data Management ................................................................................................ 28

VII. FINDINGS AND CONCLUSION ............................................................................. 28

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I. INTRODUCTION: COMPANY PROFILE

1.1 EADS – BUSINESS UNITS

EADS Group has 5 Major Business Units which individually cover all the aspects of Aerospace

industry ranging from commercial Airplanes, Military Airplanes, Combat and commercial

Helicopters, System and Equipment used in Aerospace, Radars and other communication

devices as well. A brief about the 5 business units is as follows:

AIRBUS

Airbus Division comprises Airbus Commercial and Airbus Military. Airbus ‘consolidated

revenues of € 9,978 million show an increase of 7% compared to the same period last year.

Airbus Commercial

Airbus Commercial is market leader in the sector for civil aircraft seating 100 or more

passengers. It offers airlines a highly competitive range of advanced, fuel-efficient aircraft.

Airbus Military

Airbus Military is responsible for the European heavy military transport A400M project and

produces and sells. Special mission aircraft derived from existing aircraft platforms. It is the

global leader for light and medium sized military transport aircraft.

EUROCOPTER Eurocopter is a global leader in the civil and military helicopter market, offering one of the most

complete and modern ranges of helicopters and related services. Overall, the Division’s

products account for 33% of the total world civil and parapublic helicopter fleet.

ASTRIUM

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Astrium is the third largest space systems manufacturing company in the world and the leading

supplier in Europe.It designs, develops and manufactures satellites, orbital infrastructures and

launcher systems and provides space services.

CASSIDIAN

Cassidian is the main pole of EADS’ defense and global security activities. Its wide range of

products and services include the Eurofighter combat aircraft, missile systems, integrated

defense and security solutions, defense electronics and related services.

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II. INDIAN AEROSPACE INDUSTRY ANALYSIS

The Indian aerospace industry has historically been dominated by large Public Sector Units

(PSUs). The first aircraft company, Hindustan Aircraft Limited, was established in 1940 by SethWalchand Hirachand. This company later merged with Aeronautics India Limited and Aircraft

Manufacturing Depot, Kanpur to form India’s largest aerospace major, Hindustan Aeronautics

Limited (HAL). HAL is a prominent Government controlled entity and maintains 19 production

units and 9 R&D centers in seven locations. HAL has been involved in several R&D programs

for both defence and civil aviation and has assumed a significant role in India’s space programs.

• In 1942, the Indian Institute of Science (IISc), India’s premier centre for research and

postgraduate education in science and engineering, offered a two-year Post Graduate course in

Aeronautical Engineering.

• In 1948, the Aeronautical Society of India was established to integrate engineers, professionals

and industrialists towards a common goal of furthering the growth of the aerospace sector in

India.

• In 1958, Defence Research & Development Organization was formed with the merging of the

former Technical Development Establishment (of the Indian Army) and the Directorate of

Technical Development & Production and the Defence Science Organization. Today, the

organization has a network of over 50 laboratories which are engaged in developing defence

technologies covering disciplines like aeronautics, armaments, electronics, combat vehicles,

engineering systems, instrumentation, missiles, advanced computing and simulation, and special

materials.

• In 1959, National Aerospace Laboratories (NAL), Bangalore was formed as a constituent

institution under the Council of Scientific and Industrial Research of India (the premier

industrial R&D organization in India constituted in 1942). It followed a decade of remarkable

consolidation, facility build-up and created R&D divisions in diverse areas of aeronautics. Bythe mid-1970’s, NAL was a major player in Indian aeronautics and one of CSIR’s best-managed

national laboratories. With the approval of India’s Light Combat Aircraft (LCA) project in

1983, NAL strengthened its presence as a major player in the Indian aerospace industry. India’s

space programme also attained a significant level of maturity during this decade.

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III. GLOBAL SOURCING

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Global sourcing is a term used to describe practice of sourcing from the global market for goods

and services across geopolitical boundaries. Global sourcing often aims to exploit global

efficiencies in the delivery of a product or service. These efficiencies include low cost skilled

labor, low cost raw material and other economic factors like tax breaks and low trade tariffs.

Majority of companies today strive to harness the potential of global sourcing in reducing cost.

Hence it is commonly found that global sourcing initiatives and programs form an integral part

of thestrategic sourcing plan and procurement strategy of many multinational companies.

Global sourcing is often associated with a centralized procurement strategy for a multinational,

wherein a central buying organization seeks economies of scale through corporate-wide

standardization and benchmarking. Global sourcing is a strategic sourcing strategy that

effectively broadens the scope of the procurement process to include companies that operate in

other countries. Strategic sourcing is the internal business process used to manage the bidding

and vendor selector process. Procurement is also known as purchasing and refers to the laws

surrounding fair and equitable bidding opportunities. The use of global sourcing has been the

driving force behind the development and expansion of the global economy. Including suppliers

from around the world in the bidding process for large contracts reduces prices and increases

competition. The creation of this type of infrastructure allows firms to create subsidiary offices

in locations around the world. There are three main industries that are ideal for global souring:

manufacturing, skilled services and telephone call centers.

Manufacturing costs vary internationally due to currency conversion and the cost of living in

different countries. The costs of labor and materials are lower in developing nations than in

North America. This difference translates into significant savings in salary and benefit costs.

3.1 ACCESS TO RARE RESOURCES: RISK MANGEMENT

Value for Cost

Eads external spend represents 75% of its Revenues. The Same effort has three times more

impact if applied to sourcing rather than internal added value.

7

http://en.wikipedia.org/wiki/Sourcing

http://en.wikipedia.org/wiki/Geopolitical

http://en.wikipedia.org/wiki/Strategic_sourcing

http://en.wikipedia.org/wiki/Procurement

http://en.wikipedia.org/wiki/Multinational_company

http://en.wikipedia.org/wiki/Sourcing

http://en.wikipedia.org/wiki/Geopolitical

http://en.wikipedia.org/wiki/Strategic_sourcing

http://en.wikipedia.org/wiki/Procurement

http://en.wikipedia.org/wiki/Multinational_company




Market Access

A Major Source of sales growth for EADS are the Asia Pacific region and the Americas to

which sourcing will be a key contributor.

India is a huge

Revenues Spend

Rare Resources

The Aerospace industry uses lots of precious and scarce resources such as Titanium etc. The

resources are scarce and thus should be exported from all over the globe. Thus resources should

be accessed from

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3.2 IMPORTANCE OF GLOBAL SOURCING

Nowadays, global sourcing has been considered by more and more enterprises as positive

strategic activities under the pressures from global competition. Because it is an integration and

co-ordination of procurement requirements across the worldwide business units, looking atcommon items, processes, technologies, and suppliers (Stevens, 1995). According to the study

of John Stevens, several main driving reasons for global sourcing are concluded as follows:

Materials are not available domestically

Due to reasons of geography and technology, some domestic manufacturers may be unavailable

to supply specific materials. Moreover, probably they are incapable of meeting the required

delivery time or supplying some materials due to their limited technical capabilities.

Unsatisfactory quality of domestic products

The quality of products obtained from the domestic market may not meet the requirements of

buyers. The quality of domestic goods may not be sufficient for the manufacturers to sell their

products to international markets where higher standards may apply. In addition to the quality of

the goods themselves, maybe the supplier cannot provide satisfactory warranties or after-sales

services to the manufacturers.

Price

Especially in developed countries, the materials or products supplied by domestic suppliers may

be too expensive, and they can obtain the same goods with a cheaper price elsewhere around the

world.

Technology

Especially in developing countries, some enterprises may have no choice but to source

internationally; otherwise they cannot get access to world-class levels of technology.

3.3 BENEFITS OF GLOBAL SOURCING

The initial motive of global sourcing is cost savings. With the progress of globalization, product

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differentiation in contemporary markets is not that remarkable anymore, to some extent, which

leads to a greater emphasis being placed on price competition. This has especially been the case

with consumer products. Besides cost savings, quality and availability are identified as critical

aspects for global sourcing.

• Availability of new technology and capacity. Many companies source overseas because

domestic suppliers lack the capacity and are not making the necessary investments to stay

competitive.

• Plans to sell or service locally. Some companies source locally to help break the barrier to local

market entry. Or their customers have now moved manufacturing processes to that country and

want to be serviced locally.

• Proximity to raw materials.

• Superior quality. Many companies praise the quality of international sourced products compared

to domestic products. This is typically due to supplier investment in technology and capacity to

attract global business as mentioned above.

3.4 RISKS FROM GLOBAL SOURCING

Factors that can affect the implementation of global sourcing are political, legal, and cultural

differences between various countries. Moreover, enterprises have to face problems like

transportation, technological and capacity weaknesses in production, and lack of managementsystems. Other features are languages barriers, customs, and trade regulations. From another

perspective, some risks of global sourcing are naturally also shared with the risks of

outsourcing. During the process of outsourcing, regardless of whether it is domestic, there is a

risk of confidential information leaking; hence, the competitive advantage of companies is

weakened. Regarding the most important aspect of global sourcing, cost savings, it has been

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shown that some of the cost reductions turn out to be not as great as expected . Finally we can

conclude that global sourcing involves the following risks:

i. Security Risks: Many developing countries identified for low cost global sourcing are

subject to political uncertainty or even internal political turmoil. That risk needs to be

assessed in terms of whether your offshore supplier will be able to provide the products

successfully.

ii. Cost Risk: Because of the different cultures and different time zones, there can be other

hidden costs when a company adopts global sourcing. In addition, monitoring global

manufacturers also means greater costs.

iii. Quality Risks: Global sourcing can lead to quality problems that, if not managed well, can

damage the company's brand and result in a huge financial penalty.

iv. Intellectual Property Risk: The proprietary knowledge regarding design, engineering,

materials and other elements can be exposed to the light of day easily. So the enterprises

have to take the risk of losing intellectual property.

3.5 EADS – STRATEGY FOR GLOBAL SOURCING

Following the initiative of CEO Louis Gallois, EADS has formulated a strategic roadmap called

Vision 2020. This blueprint for EADS' future was presented to the Board of Directors in

January 2008. Since then, it has been turned into a Group-wide action plan, applied by every

Division.

Aims to achieve:A better balance between commercial aircraft and our other activities. Commercial aircraft

is an extremely capital intensive and cyclical business, with great sensitivity to the US Dollar

exchange rate. In 2008 it represented 63% of Group revenues. Our goal is to increase the share

of our other activities, especially Defense and institutional business, in order to reach a 50/50

balance.

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A better balance between platforms and services. With a strong customer base for advanced

platforms and systems, EADS is in a position to develop high-value related services, which are

not only highly profitable but also counter-cyclical. Our target is to raise the services' share of

revenues from 10% to 25% by 2020.

A better balance between our European roots and our global footprint. To gain access to

new markets and technology resources, as well as low-cost and multi-currency-based sourcing,

we need to expand our international footprint. Our target is to have 20% of employees and 40%

of sourcing outside Europe.

Furthermore, we aim to become truly eco-efficient. We are determined to demonstrate our

responsible attitude and to make eco-efficiency a competitive advantage.

Reaching these targets will require significant technological and human resources. We will

continue to deliver the best of European technology, and will encourage greater mobility and

international diversity.

3.6 VISION 2020

A vision cannot be relevant if it does not include an analysis of the world around us and the

challenges we face. For our industry, these challenges are as follows:

• A world of mobility: the huge increase in air traffic – an annual growth rate of 5% –

must comply with increased environmental requirements.

• An increasingly unstable world: mass terrorism, nuclear proliferation and development

of Cyber warfare are giving rise to new security needs.

• A widening gap between the US and Europe: the United States spends twice as much

as Europe on military equipment and six times as much on their military R&D.

• A hyper-competitive world: even though we are suffering from the effects of a weak

dollar, we are facing the recovery of Boeing and the new ambitions of some of our

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competitors and we must prepare ourselves for the arrival of new players (in particular

from Russia and China).

STRATEGIC GOALS FOR VISION 2020

To be worldwide leader in air and space platforms and systems

Become the worldwide leader in air and space platforms and systems (mainly platform-related

systems architecture and integration) with a complete portfolio of products, both commercial

and governmental (commercial aircraft, military transport, mission aircraft, helicopters, fighters,

UAVs, missiles, launchers, satellites, systems and secure networks).

i. Profitability

Achieve best-in-class operational and financial efficiency to reach 10% EBIT in the first half of

the decade 2010-2020.

ii. Focus on core and optimise financial means

Focus on core. This means a new business model approach and the reallocation of

human/financial resources which are currently locked in non-core legacy activities. Divestments

in non-core areas have to be implemented.

iii. Balanced revenues

Achieve around €80bn turnover by 2020 and reach a 50/50 balance in Airbus / other Divisions'

revenues.

iv. Mission-critical service provider to our customers

Achieve a 25% services share – against 10% – of business by 2020 (hence €20bn), focusing on

high-value services initially related to platforms, requiring and developing both customer

intimacy and product intimacy.

v. Globalisation

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Become a true global industrial company with 40% of EADS sourcing and 20% of EADS

employees outside of Europe. Achieve $10bn revenues in North America in non-Airbus

businesses and gain a prime position with US Government.

vi. Moving towards an eco-efficient enterprise

Move towards an eco-efficient company. Environmental issues are to become a transversal

driver towards sustainable development. Airbus' ambitious targets are already defined. To be

done for non Airbus Divisions.

VISISON 2020 TARGET FOR INDIA SOURCING OFFICE

• India has currently achieved sourcing worth 130 million dollars. EADS expects the sourcing to

increase to around 1300 Million Euros till year 2020.

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IV. EADS: INDIA SOURCING OFFICE

The prime work of India sourcing office is to facilitate deals between the Indian suppliers and

EADS global buyers. Here are the main tasks carried out by the India Sourcing office:

• India Sourcing Strategy formulation and support

• Supplier Relationship management

• Procurement Marketing

• Supplier and Product qualification.

• Contract Negotiation.

• Quality Audits

• Supplier Development

• Logistics

4.1 MAIN CLUSTERS OF INDIAN SUPPLIERS

PSU

HAL

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BDL

BEL

BEML

GSL

MIDHANI

GRSE

Rashtriya Udyog Ratna (Private defense companies)

Larsen & Toubro

Mahindra & Mahindra

Godrej & Boyce

Tata Motors

Tata Power Company

Bharat Forge

Infosys Technologies

Wipro Technologies

Tata Consultancy Services

Commercial Sector

IT & Engineering Services

Infosys

Satyam

Wipro Technologies

Tata Consultancy Services

HCL

Detail parts

Triveni Hi-Tech

CIM Tools

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Dynamatic Technologies

Maini Precision Products

TATA group companies

L&T

Bharat Forge

4.2 INDIA SOURING FOOTPRINT

Tier – wise Break up of Sourcing Value

Tier 1 Supplier

They are those suppliers which have a direct relationship with EADS and sell directly to them.

They are suppliers which EADS trusts the most.

Tier 1+ Suppliers

They are the Indian subsidiary of Tier 1 supplier only. They send their stock to their parent

company and the parent company further sell to EADS.

Tier 2 Supplier

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They are the suppliers of Indian origins only but do not have direct contact with EADS. They

also sell to Tier 1 which further sell to EADS.

Analysis of Sourcing footprint

The Tier 1 and Tier 2 suppliers have an equal share in the Indian Sourcing. More and more Tier

1’s are opening their subsidiaries in India now. We Still need to develop our tier 2’s so that they

become tier 1 supplier in future.

Commodity Break up of Sourcing Volume

Engineering and IT services hogs around 80% of the sourcing share in India since India is more

popular in this category than most of the other competing countries and thus has vast potential

and huge capacity.

Aerostructures has been consistent but lacks growth since quality standards and domain

knowledge of the Indian suppliers in this field is still at a very nascent stage.

System and Equipment also needs some development on the supplier side.

4.3 SUMMARY OF THE DEVELPOMENT STATUS

The Indian A&D Industry has grown steadily

large private sector players with manufacturing experience have come in

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few western Tier 1s in Manufacturing

vast contribution from Engineering

The spend has ramped up faster than expected from less than 30 M€ in 2006 to more than 145

M€ in 2010 The India Sourcing Office has developed as per plan and integrated resources in the

country.

Engineering Services Supplier Mapping

Domain knowledge consists of:

• Export Volumes

• Number of development centres outside

• Percentage of onshore employees (Near client side)

High Capacity Suppliers

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Indian Giants such as Wipro, Infosys, TCS and Satyam have huge Delivery capacity but they

need to increase their Domain knowledge in the Aerospace domain. They should try to get as

many certifications of Aerospace Industry as possible to increase their domain and shift to a

more favourable position to the right on the above Map.

High Knowledge Suppliers

Indian Giants such as HAL and ISRO are high on Aerospace knowledge but still need to

Amplify their capacity to take up more challenging orders on the Global front and gain trust of

EADS buyers.

4.4 PERFORMANCE AND QUALITY IMPROVEMENT

• Supply Chain Quality Improvement (IPCA rating ) at HAL (Hindustan Aeronautical

Ltd)

• Supplier development sourcing- Work closely with the suppliers, Develop a list of

potential suppliers for sourcing

• Close coordination with Global Sourcing Network(GSN) team to identify, establish and

develop new suppliers

• Work towards maturity of PQI team in India – Recruitment & Training

• Accountability towards targets on supplier performance

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V. OUTSOURCING

Outsourcing

When some corporations decide to get some aspect or aspects of their business

operations be looked after and performed by other companies to save money or to

escape from hiring of new employees, it is said that they have outsourced some of their

business activities except core activities.

Confined within national boundaries.

Offshoring

The process of getting some business operations done from another company in another

country is called offshoring and it meant cutting down of expenses for big companies in

a huge manner.

The offshore companies have cheap labour in abundance and also have the required

proficiency to carry out the required task.

Areas of Outsourcing at EADS

Marketing of various Aircrafts

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Maintenance of warehouses

Recruitment and Training of Personnel

Managing Customer Queries

Administration of Payroll

Areas of Offshoring at EADS

No offshoring is required since there is plenty of cheap and skilled labour that can be

found in the country

Outsourcing adds to employment for the country

PROCESS AUDIT

Five process enablers

Design: The comprehensiveness of the specification of how the process is to be

executed.

Performers: The people who execute the process, particularly in terms of their skills

and knowledge.

Owner: A senior executive who has responsibility for the process and its results.

Infrastructure: Information and management systems that support the process.

Metrics: The measures the company uses to track the process’s performance.

Four levels of process enabler strength

P-1 à employees are merely aware of the process and its metrics

P-2 à people must be able to describe the process and where they fit into it

P-3 à employees can express how their work affects the company’s performance

P-4 à performers must know how their work affects customers and suppliers

Significance

P-0 à processes work erratically.

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P-1 à process is reliable and predictable; it is stable

P-2 à process delivers superior results because the company has designed and

implemented it from one end of the organization to the other.

P-3 à process delivers optimal performance because executives can integrate it, wherenecessary, with other internal processes to maximize its contribution to the company’s

performance.

P-4 à process is best in class, transcending the company’s boundaries and extending

back to suppliers and forward to customers.

Four Enterprise Capabilities

LEADERSHIP: A company’s senior executives must be committed to the business process approach. Redesigning processes requires extensive organizational change that

often provokes resistance down the line. This can sink efforts that don’t have the

backing of senior executives.

CULTURE: Only organizations whose cultures value customers, teamwork, personal

accountability, and a willingness to change will find it possible to move forward with

process-led change projects. Business processes, which cut across functions, must be

operated by people with those values.

EXPERTISE: Businesses must have some people with skills in, and knowledge of,

process redesign; this is not work for amateurs or improvisers.

GOVERNANCE: Enterprises must be sure to have ways of governing projects and

change initiatives if they don’t want chaos and conflict to bog them down. Unless all

these capabilities

Enterprise Significance

E-1: If an enterprise has E-1 capabilities, it is at the first level of enterprise maturity.

That means different things in the case of each capability. For instance, an organization

at the E-1 level for culture must have some experience with teamwork

E-2: it commonly uses cross-functional project teams and its people are familiar with

teamwork.

E-3: To achieve the E-3 level, teamwork must be the norm inside the company

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E-4: To attain the highest capability level, E-4, teamwork with suppliers and customers

must be routine

Colour Distinction

Green

àthings that aren’t impeding a process’s progress and don’t need a great deal of

focus

Yellow à show areas where the company has considerable work to do

Redà roadblocks that keep the process from achieving a higher level of performance

RESULT – PROCESS ENABLER

Process

Enablers

Elements Element

Level

Process Level

Design

Purpose P2

P2Context P2

Documentation P2

Performers

Knowledge P3

P2Skills P3

Behaviour P2

Owner

Identity P3

P2Activities P2

Authority P2

Infrastructure

Information

Systems

P2

P2

Human ResourceSystems

P2

MetricsDefinition P2

P1Uses P1

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Inference

We observe that all the Process Enablers except for Metrics are placed at P2 Process Level. The

reason being that the Managers did not apply the benchmarking techniques and compared theday-to-day routine work with the standards set by the other EADS offices across the globe.

RESULT – ENTERPRISE CAPABILITIES

Enterprise

Enablers

Elements Element Level Enterprise

Level

Leadership

Awareness E2

E0Alignment E2

Behaviour E2

Style E0

Culture

Teamwork E3

E1

Customer Focus E3

Responsibility E1

Attitude Toward

Change

E2

ExpertisePeople E2

E2Methodology E2

Governance

Process Model E3

E1Accountability E3

Integration E1

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Inference

The organisation lacks in terms of leadership since the organisation structure is the same as

before i.e. a hierarchical approach instead of an open approach. Also, the organisation is lagging behind inn terms of culture since major responsibilities are being shared by the top

management.

VI. PROCESS RE-ENGINEERING

The data collection process from different commodity managers was not organized at all. The

managers used to maintain all the data related to supplier RFP’s and business awarded details

related to each commodity on Excel sheets and had no automatic method to generate all the

statistics and graphs which helps them in future planning and analyzing current state of plans.

Thus a need for an ERP software loomed large on EADS India which was essential for their

growth.

The ERP software needed to reengineer the data collection process from all the commodity

managers and automatically generate all the essential analysis and more importantly if one

manager makes some changes it should automatically reflect everywhere and in everybody’s

system. This provision was absent in the current process followed.

Also the ERP system needed to handle all RFP related data from different suppliers and track all

RFP status from Business request to business awarded and finally to business completion.

Also it needed to point out the shortcoming in the supplier capabilities regarding capacity and

certifications which if improved could award more business to the Indian suppliers.

The Process Reengineering team

The Steering Committee

It consisted of The Director of EADS India, Mr Harvansh Batra and The Assistant Director at

EADS France, Mr Sabastian who was here in India to help reengineer the process.

The Reengineering ‘CZAR’

Mr Philipe Advani, The EADS France Head of operations for Global Sourcing

The Process Owners

The different commodity managers:

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1. Material Sourcing Process: Mr Parag Sharma

2. Aerostructures Sourcing Process: Mr Sukanto Dasgupta

3. System and Equipment: Mr. Harish swami

4. IT And Engineering Services Process: Mr Anil Gupta

VII. ERP IMPLEMENTATION

The major purpose for the EADS India office’s ERP implementation was Supplier handling and

supplier promotion in front of EADS global buyer.

The following were the necessary processes required for supplier management and supplier

promotion

• Supplier database

• Tender/RFP storage database

• RFP Tracking

• Certification process

• Training Process

•Future planning to reduce gap between planned business volume and the target business volume

The ERP implementation was at a very nascent stage and the software requirement documents

were prepared me only under my director’s supervision who explained me what all

functionalities were required from the ERP software.

Vendor Selection

Several meetings with several vendors like Accenture and Wipro were conducted by me and mydirector and RFP from all the vendors was taken and the expected delivery time.

In the end Accenture was selected. Although their quotes were the highest but the level of

software they were providing was very sophisticated. Their main proposition was that they

would make such a software which could easily by updated with more complex functionalities

and would be easily updated in terms of data volume handling in future as well.

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Human Resource Management

Integrated personnel and career and succession planning application optimize personnel

planning by integrating employee qualifications and job requirement profiles. The solution

follows a candidate through the recruitment process from job advertisement, application

tracking and hiring, to employee career planning, succession planning and training eventmanagement.

Data Management

ERP system can be used for accomplish every task by integrating the information system,

seamless flow of information across every department. It is helpful to make automation of every

business process. ERP treats the organisation as single entity and caters to the information needs

of the whole organisation because information is the key resource of every organisation to win

the competition. ERP system provides accurate, relevant and timeliness information to all

department on one software system.

VII. FINDINGS AND CONCLUSION

The managers need to apply benchmarking techniques at the organisation if it wants to

scale up.

Provision needs to be given for the ownership of responsibility to be held by all the

employees and to have an open culture.

There is a lot of scope of Outsourcing some of the processes of EADS like: Recruiting,

Aircraft Servicing, Handling Customer Queries, Payroll generation, Vendor

management, RFP handling , training of suppliers etc.

We observe that ERP implementation is very crucial for the overall integration of

various functions and departments in the organisation

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Epm End Term

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