Aero-SIGFocus Groups (FG) Kick-off Session

NASSCOM

18th February 2013

Vision:

To make India as an Engineering hub of Tier1 supplier for the OEMs in next 5 years and reach a revenue

of $4b in the Aerospace by enabling/building right talent, partnerships, policies and frameworks

Objective

Project Team

Executive Sponsor K S Viswanathan, NASSCOM

SIG Chair Bejoy George, Axis IT

Co Chair Gajbir Singh, Defiance

Core group members Ravindra nuguri, HCL

Munirathnam, Assystem

Suggested SIG members

(not limited to)

OEMs, Suppliers, NASSCOM, Other industry participants…

317-Jul-13

Proposed Structure

Deliverables:

Projects of Focus Groups

Best Practices, challenges

Talent developme

nt

Evaluation framework

for DRDO…

Leverage NASSCOM

Policy

Enablement

collaborating

/leveraging

Global

players

Mentoring

Emerging

Suppliers

Certification

Research

ReportsBranding/

Marketing

….

Outcomes from SIG Kick-off

A. Form Focus Groups around different tracks discussed during SIG

1. Enabling an Ecosystem for Development of SMEs – Lead – Bejoy George

2. SME Evaluation Framework for DRDO/PSUs – Lead – Bejoy George

3. Talent / Branding – Lead – Munirathnam

4. Standards/Certification – Lead – Ravindra Nuguri

5. Policy enablement – Lead – Gajbir Singh

B. Develop a governance schedule which includes a meeting plan, deliverables and

periodic update

C. Plan kick off meeting for Focus Groups

1. Enabling an Ecosystem for Development of SMEs

There are around 6000 SMEs in India who work in the Indian A&D, and every year about 600 nos.

(10%) get added. These SMEs possess certain competencies and lack other things required to

grow and succeed

2. SME Evaluation Framework for DRDO/PSUs

DRDO/DPSU are willing to partner with the industry. Frame work to be created for them while selecting

supplier for Engineering work

3. Talent / Branding

Align to overall talent development team. Identify the university willing to roll out, provide the subject

matter specialist for training faculty and provide the course content

4. Branding

Consolidate the case studies about the engineering happening out of India

5. Standards

Create awareness about the standards amongst the Aero industry

6. Certification

Compile the list of testing Laboratories , facilities in India for Aero industry

7. Policy enablement

517-Jul-13

Focus Topics

1. Enabling an Ecosystem for Development of SMEs

There are around 6000 SMEs in India who work in the Indian A&D, and every year about 600 nos. (10%) get added. These SMEs possess certain competencies and lack other things required to grow and succeed, as below:

SMEs have the following traits/competencies

- technocrats running the SME, hence ability to identify technologies to enter

- ability to absorb and adapt new technologies

- risk taking ability

- quick decision-making

- lower costs than large business houses/MNCs

- passion for the A&D industry

- hunger for success

SMEs also require the following parts in the ecosystem, for success

- access to easy and inexpensive funding

- sales & marketing channels

- mentoring on business management/running efficient operations/financial effectiveness/etc.

- access to testing/certification facilities in order to be able to do complete product/system development

- knowledge of how to patent/protect IP that is developed inhouse

617-Jul-13

Focus Topics

2. SME Evaluation Framework for DRDO/PSUs

Current Government policies encourage the development of Domestic capabilities in the A&D sector, in order to become self-reliant and self-sufficient, and conserve foreign currency through reduction of A&D imports. DRDO Labs & DPSU have been mandated to work with the private sector to co-develop products and systems for the Indian Armed Forces. Subcontracting to the Indian private sector is being encouraged further. However, DRDO Labs & DPSUs do not have a robust framework for evaluating and selecting suppliers/partners from the Indian private sector, especially amongst SMEs. The current requirement of selecting L1 (i.e. lowest cost) suppliers has more often than not resulted in unsuccessful relationships/partnerships, thus discouraging the DRDO Labs and DPSUs from working with the Indian private sector in a big way. A robust and exhaustive framework that evaluates vendors based on various aspects (as below), would give more confidence to the DRDO Labs & DPSUs to use Indian private sector in A&D work. This framework should have the ability to give different weightages to different evaluation parameters, depending on the product/system to be developed (or depending on some other important criteria that the DRDO Labs & DPSUs will use from time to time).

Framework requirements (partial), to evaluate SMEs:

- ability to evaluate technical competence (breadth as well as depth)

- ability to absorb and adapt technology

- investments in R&D

- talent pool available based on various competencies/ability to retain talent

- existing infrastructure/machines/equipment/software licenses

- existing testing & certification capabilities/ability to do end-to-end product development

- partnerships to enable full product/system development

- prototype development capabilities

- financial staying power (access to funds/investment)

- reputation in the market based on past execution

- evidence of similar work already done in the past

- customer referrals

- costing/pricing

- etc.7

17-Jul-13

Focus Topics

3. Talent

Talent - Nurturing

Need to work out cohesive plan with selected universities (A), industry (B) to chart out a detailed plan of topics to be covered from

first to final year covering.

a. Design aspects : design houses like OEMs/Tier 1,2 service providers(B) will play a role.

b. Manufacturing: OEMs, Tier 1 manufacturing houses, contract manufacturing houses etc will play a role. Case studies need to be

created/presented by these companies (B)

c. Operations: Airline operators will need to get involved in fine tuning the course content, training etc. Currently DGCA is playing a

major role in defining and implanting via flying clubs etc. They formulate the certification A, B, C, D and X process.

However focus to be more on first two aspects - Design and manufacturing.

Template for this frame work has to be defined by a working group under SIG. Two players will play an important role - A:

Universities, B: Industries. We have to identify who will be these A & Bs.

Talent - Validation

Talent validation can be taken up by SAE Aero board, Nasscom

SAE Aero board can guide, mentor and encourage the students and professionals in participating in workshops/seminars/high

level aero modelling at SAE international level competitions.

Nasscom can come up with frame work of regular interval evaluation approach both on theory and practical. There could be a

duplication of what some of the universities are already doing it. Currently in Tamilnadu, Anna university made it compulsory for

the students to attend x numbers of seminars in a year for their marks!.

817-Jul-13

Focus Topics

4. Branding

Branding - Collaterals:

Collaterals from the industry need to be collected and many white papers need to be created without divulging confidential details of

the customer. These case studies/white papers need to highlight few important aspects.

- Technological challenged faced

- Project management challenges

- Time and Cost involved,

- Final outcome - in cost, quality, diversification, geographical expansion of sourcing, offset obligation etc.

P & W, Honeywell have developed good case studies in this regard, probably Rolls Royce also. This is the story on engine side,

however there has not been much on aero structures side . On the systems side I think Good rich/Eaton has done a good job.

We need to decide : my suggestions in brackets.

- Time frame: (3- 5 months)

- Who will do : (member company of the SIG need to nominate one person from their company - steered by SIG)

Branding - Marketing

Once these materials are ready, we need to work on Branding/marketing approach.

- Participate in every possible major event in India/abroad by member companies

- Invite high level delegation as part of Nasscom/Eng Forum to India and have road shows. Best is to time this during major events

like Aeroshow/Premier visits.

- Proactive participation in global aerospace events with good delegation from India. Please note that SIATI does take few of their

members for these shows, but generally represented by SME companies.

- Measurable target on achievements - events, seminars, results in order booked over a 6 months to 8 month period. (eg. EADS

collates total amount of outsourced work to Indian companies, foreign companies present in India on regular basis)

917-Jul-13

Focus Topics

5. Standards

Industry Awareness of standards

Global Aerospace standards are pretty mature and in place (DO standards for Civil Aviation and Mil standards for Military aviation). Civil aviation standards are typically more stringent than military aviation.

There is a clear lack of awareness about standards in the Indian Industry, especially among players who do not interact with

Global primes. Aero SIG could focus on the following

Create a mechanism to instil strong awareness and build knowledge in the Industry on Aerospace standards.

o Leverage existing repository of current Aerospace standards available at http://www.rtca.org/. NASSCOM can explore interfacing with RTCA - and get active involvement and concessions if any (for example special membership rates for Nasscom members?).

o Monitor and track the changes in Aerospace standards landscape ; do relevant analyses for industry consumption – for example, new DO 178C standard and their impact.

o Take the lead in information dissemination on standards, their applicability and how Industry can be prepared;

1. Decide on the channels to be used like workshops and other NASSCOM events;

2. Could explore induction and adoption of a basic curriculum on standards in Aerospace/Avionics streams in engineering colleges

Adaptation of standards

We have a multiplicity of development standards for both Defence and Commercial Applications such as Mil Standard, DO, ARINC, Def Stan etc.

Could explore consolidating applicability (based on process/equipment/electronic line/sw of standards) applicable to Commercial applications and Military applications

1017-Jul-13

Focus Topics

6. Certification

DGCA

DGCA acts as the regulatory arm and does audits for aircraft licensing, crew licensing, AME licenses and other operational aspects of aircrafts within Indian territory. It has a published CAR 21 for doing the design approvals. Most of the approvals are delta modification to FAA approved designs and endorses the certifications given by FAA for design, development and standardization.

In keeping with the vision of Aero SIG to make India as a Tier 1 engineering hub, it is imperative that DGCA is equipped to scale up so that the equipment designed & developed in India has global acceptability..

Focus Areas:

NASSCOM Aero SIG to research current policy scenario and discuss policy changes that might be needed to help DGCA scale up globally and To equip DGCA to certify design and development of systems/aircrafts on its own.

o Agreement with FAA to allow Indians to become DERs and allow certification of DGCA to be valid for global aviation – To this points, hold Joint discussions with DGCA representatives to understand their perspectives on the same

o Analysis of existing gaps and estimating the Investments in people , infrastructure etc that will be required for effecting these changes

o Decisions on the kind of standards that will be covered and the kind of certificates that the agency will issue

o Identification and Formation national SME from standards and certification perspective to subsequently act as DER/FAA auditors

Enable/facilitate frequent interaction between DGCA and FAA ; at present the interaction is minimal in the design certification aspects ; explore avenues to facilitate more interaction between the representatives of the two bodies for a mutually beneficial association

Compile a list of the list of testing Laboratories , facilities and other infrastructure in India for Aero industry 1117-Jul-13

Focus Topics

6. Certification

CEMILAC

CEMILAC, the regulatory body for military aircraft certification, does have an established certification process in place for the entire gamut including design and development. It has a committee of certification subject matter experts who are from various related institutions like DRDO , HAL et al.

Action Plan with respect to CEMILAC

Joint discussions with CEMILAC representatives to review and evolve CEMILAC policies for certifying companies. While the policy is in place currently, it is a bit stringent and static in nature and will need amendments for future.

With the volumes of offset business expected to kick in, NASSCOM can work along with CEMILAC will need to increase number of subject matter experts (equivalent to FAA DERs) as well as their competency levels.

1217-Jul-13

Focus Topics

1317-Jul-13

Next Steps

Next Steps

1. Create short term, mid term and long term goals

2. Partner with other bodies based on the identified focus areas and leverage

agencies like SAE and others

3. Expand the core team to include the following

Dynamite – Subodh (Muni ) – Mr. Anil Kumar Katti nominated

Mahindra Sathyam – Karthik (Nasscom)

Moog – David (Muni) – Agreed to join

ISRO – (Gajbir)

DRDO – (Nasscom)

4. Group leader to identify the team member

5. Group to define the charter

6. SIG to explore curetting 1 or 2 teams for the propose engineering summit

1417-Jul-13

Meeting Schedule

Group Telco Face-to-Face Responsible

Core group Once in fortnight Quarterly Nasscom

Project Group Project leader

• Core group meeting to be organised by Nasscom ,Telecons will be facilitated by NASSCOM (logistics)

• Project group meeting to be organized by the project Leader, agenda and minutes to be circulated to core team

Telecon nr to be used:

+91-(std code)-39406000

Participant PIN: 1650706#

Thank You