Intersecting the Future in Aerospace Composites Manufacturing€¦ · Lucintel: “The Global...

Intersecting the Future in

Aerospace Composites Manufacturing

Presented by:

Paul Marks

CEO, Argosy International

Overview

About Argosy

Composites Industry & Aerospace Market

Trends

Asian Market Trends

Intersecting the Future: Strategy

Intersecting the Future: Supply Chain

Conclusions / Questions

Acknowledgements

Argosy Confidential & Proprietary2

About Argosy


Founded in 1988

The leading supplier of advanced composites and supplies to the

aerospace and composites industries throughout Asia

Manufactures aluminum honeycomb in China for export to global

markets in a joint venture with Xian Aircraft

Provides comprehensive logistics services world wide

Argosy’s Business


Manufacturing DistributionValue Added

Distribution

Services

Honeycombs

Prepregs

Toll manufacturing

Non-wovens

Kitting / cutting

Aerospace coatings, blending / packing

MRO composite material supplies

Core machining

Composites / coating / cores

Warehousing

Haz mat / DG

Cold / frozen

Composite raw materials

Logistics

Global Coverage


Argosy is positioned in growing / difficult to serve

markets with manufacturing and sales services to

interface with suppliers and global customers

USA

FranceChina

India

S. Korea

Japan

Taiwan

Hong Kong

Malaysia

Australia


Composites Industry &

Aerospace Market Trends

Y2014 to Y2030 need 30,000 100+ seat aircraft (US$4.1 trillion)

World air traffic – growing 5% per year

˗ Y2014 5.9 trillion passenger KM

˗ Y2030 12.6 trillion passenger KM

Explosive sales – “The biggest aircraft contract in history…” Emirates

space150 Boeing 777x, 50 Airbus 380s, US$100 billion

New aircraft models – 777x, 737 MAX, A350 XWB, A320 Neo, C Series, MS

21, C919, MRJ, ARJ21

Cost-efficient aircraft, e.g., replacing A340 fleet reduced Emirate’s fuel costs

by 25%

Continued high growth over the long term (20 years)


Industry / Aerospace Market Overview

Delivery build-rate issues (short fall)

˗ Orders increased 6.5% past ten years

˗ Deliveries increased 4.7% past ten years

˗ Backlogs have been consistently increasing

Future – greater consolidation

˗ Risk sharing becomes more global

˗ Primes - systems architects and integrators

˗ Tier manufactures, esp. T1, provide higher integrated systems / “Work”

continues to be pushed down





Areas of Focus for Aviation Industry

Performance

Profitability

Optimizing production processes and value

chains

Communication – IT / Cloud interface

World fleet to double in size over the next 20 years

- 38,050 new airplanes

- $5.6 trillion

Emerging markets to lead growth next 20 years˗ 244% increase in plane deliveries to Asia-Pacific

˗ 246% increase to Latin America

˗ 276% increase to Middle East

Strong sales in developed markets– $2 trillion to Europe and NA alone


Commercial Aircraft Market Forecast

2014 2034

Composites in Aerospace


Weight savings, high corrosion resistance, long life

span and design flexibility recognized as key

enablers for next generation aircraft

Aerospace Composites Sales

2016: $11.12 billion

2024: $15.40 billion

CAGR: 4.1%

70 milLbs.

Past 50 years 70 million lbs

Next 5 years 70 million lbs


Asian Market Trends

China

China’s indigenous commercial aircraft OEM effort

- Multi – decade effort

- Wide body and engines

- Improved supply chain capabilities

- Internal market

Subcontract work for Western OEMs

Subcontract / supply for Chinese OEMs

Next 20 years- China will purchase >5000 large commercial

aircraft

- Y2023 exceed 1 billion traveler market

Strong long term growth in private aviation- 10 years will see western style open skies


Select Platforms

ARJ21

C919

C929

MA700

South Korea

Indigenous aerospace

work is military centric

Multiple new programs:

- Drones

- Helicopters

- Fighters

- Missiles

- Rockets

Large subcontracting

work for Boeing

Argosy Confidential & Proprietary

Select Platforms

KFX

B737 MAX

14

Intersecting the Future:

Strategy


Industrialization of composites Automation

- Design and simulation

- Manufacturing

- Testing and certification

- Repair

Process controls

Real time tracking

- Visibility into production floor

Digital information

- Green, paperless reporting

Smart components


Argosy leverages digital

technology for increased

automation in support of

our customers




Argosy supports lean manufacturing

Industrialization of composites (cont’d)

Traceability from raw material to finished goods (extending back on

the digital thread)

Production and inventory planning improvement by process

automation

Serving audit and quality requirements

Reducing waste

Eliminating errors

Dashboard and reports



Problem: Loss of control with increasing volume eliminates

economies of scale and results in excessive waste

No contractor in the aerostructures industrial base will be

untouched by the need for this competency

Real-time visibility of production assets is fundamental

to sustainable cost reductions and quality control

Where is my stuff?

˗ Materials & WIP: reduce loss of material and WIP due to

expiration

˗ Assemblies: proactively streamline production

˗ Tools: save downtime due to loss or misplaced of tools

Maintain full digital history of materials and parts

˗ Quality control

˗ Traceability

˗ Auditability

1919 Argosy Confidential & Proprietary

Dramatic Inspection gains during past 50 years

Today – Automated, high speed,

noncontact measurement

Mid 20th century – 100% Manual

measurement

Fan blade contour measured with robotic laser

line scanning


So why do we still inspect AFP layups like this?

A350 XWB Spar Layup

Inspection at GKN

NASA 5.5m Cryo Tank Layup

Inspection at Boeing



Automatic Fiber Placement


AFP for NASA Cryotank


Manual Inspection of NASA Cryotank

AFP without Machine Vision, Flaw Detection

is like the blind leading the blind

26

On Tool Defect Sensor Suite


Automated Ply Inspection &

Dynamic Augmentation

Robotic scan of

demonstration article

Layup flaws detected and displayed

against programmed path



Laser Inspection Systems


Automatic Assembly Processes


Embedded Sensors and Smart Composites

RFID Tracking Sensor

Embedded Piezo Sensors for

Load Fatigue and Performance Analysis

“We have to tame the complex so users feel powerful”*

Real-time visibility of production assets is fundamental to sustainable

cost reductions and quality control

- No contractor in the aerostructures industrial base will be

untouched by the need for this competence

We have made dramatic improvements in digital inspection over the

past fifty years

- But we still visually inspect the most advanced fabrication

procedure in composites – AFP

- We must leverage sensor suites to capture the location of

defects and harmonize the manufacturing process and the

material system

Remarks & Observations

31

*The Mission Statement of MAYA


Intersecting the Future:

Supply Chain


Argosy Cutting / Kitting Concept


Customer Nest Design

Argosy Nest Design- Verification of

material utilization / final nest design

Option IVMI Material

Option IINo existing

VMI

Cold Storage for finished kits

JIT shop floor delivery

Argosy GerberCutting

Mass Production


Leveraging RF-ID technology to provide real-time,

accurate information kits and rolls in the freezer



Automatically tracking inventory and kits on the production

floor further increases productivity and reduces waste



Mobility Platforms (tablets, smartphones) and “Wearable”

Technology replace paper forms, barcode scanners and enable

real-time reporting, collaboration (Chat) and immediate action



Visualized WIP reporting



Complete visibility in real time enables corrective action

and consideration of multiple factors


Conclusions:

- Strong long-term growth – airplanes and composites

- Industrialization of composites – automotive model

- Digital technology – the internet of things

- Continued globalization

- Indigenous programs – the world is no longer Boeing / Airbus centric

- Supply chain searching for solutions

- Argosy is focused on optimizing its “space” in the market with value driven solutions

Questions


Conclusions / Questions

Avner Ben-Bassat: “Improved Visibility on the Production Floor Pushes the Productivity Envelope,” 2014

Boeing: “Current Market Outlook,” 2015

Dr. Leslie Cohen: “Design for Affordability,” 2014

Dr. Leslie Cohen: “The Digital Journey Continues,” 2015

Goldman Sachs: “Global: Aerospace + Defense,” June 24, 2014

Goldman Sachs: “The GS Commercial Aerospace Materials Series: Carbon Fiber Composites,” September, 2014

Lucintel: “The Global Prepreg Market 2013-2018 Trends, Forecasts, and Opportunity Analysis,” 2013

Porsche Consulting: “The New Value Chain – Greater Efficiency in the Aviation Industry,” 2013

Visiongain: “Aerospace Composite Market Forecast 2014-2024,” 2014


Acknowledgements

Mr. Paul Marks founded Argosy in 1988, and it is now the leading supplier of

advanced composite materials and supplies to the aerospace and composites

industries throughout Asia. With headquarters in New York and facilities located

throughout Asia and Europe, the company manufactures aluminum honeycomb

products in China for export to global markets in a joint venture with Xian

Aircraft. Argosy distributes advanced composite materials and blends aerospace

coatings. Argosy also provides comprehensive logistics services worldwide.

Mr. Marks is chairman of the boards of Argosy International Inc. and its global

subsidiaries as well as Argosy’s joint venture, Argosy XAC Composite Materials

Ltd., and a member of the board of directors of Argosy Fung Lee Industrial

Company, Ltd. Mr. Marks is also a leading member of the American Chamber of

Commerce, Shanghai where he is Co-Chairperson of the Chamber's Export

Compliance Working Group. He is a member of SAMPE (Society for the

Advancement of Material and Process Engineering) and on the board of SAMPE

China. Mr. Marks is a founding member and frequently serves as a session

chairman at the International Forum on Composite Material Applications for

Large Commercial Aircraft sponsored by the Chinese Society of Aeronautics and

Astronautics. Mr. Marks is also a trustee of Bates College, a coeducational,

nationally ranked and recognized college of the liberal arts and sciences in

Lewiston, Maine.

Mr. Marks did graduate work in Asian studies at Columbia University, National

Taiwan Political University, and Chinese language studies at Beijing Foreign

Language Institute and National Taiwan Normal University. His undergraduate

degree is in Chinese history from Bates College. Paul is fluent in Chinese

(Mandarin), and he currently resides with his family in Shanghai.


Paul Marks – Chairman and CEO, Argosy International Inc.

Intersecting the Future in Aerospace Composites Manufacturing€¦ · Lucintel: “The Global...

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