Bernhard Lietzmann

Partner, Director Business Unit
Phone: +49 731 93680 228

Stephan Großfuss

Manager Industry
Phone: +49 731 93680 228

Aviation and Areospace

Find the right ways to increase efficiency over the long term

Increasing efficiency is a key lever when it comes to securing business models in the aviation supply industry. This is because improved efficiency ensures that companies are competitive while creating room to maneuver for the future.

Ingenics AG works with its clients to answer the questions this raises for business:

• How is it possible to guarantee the delivery times agreed by OEMs? What are the consequences of deviations for the supplier?
• How does ramping up the production rate affect the supplier? In what areas can action be taken?
• How severe is cost pressure for suppliers in the aerospace industry? What options can be found to optimize costs and increase margins?

With many years of industry expertise, Ingenics has identified three key areas of action for companies:

Increasing delivery efficiency

In day-to-day business, delivery efficiency is a key performance indicator (KPI) for operational success. Deviations from the delivery times agreed with an OEM have a negative impact on a supplier's rating. Furthermore, these deviations cost money in the form of additional internal expenses or penalties. It is an area of concern that often requires attention!

Ingenics AG has demonstrated a pragmatic, solution-oriented approach in numerous projects on this front. Weaknesses are identified in an organizational assessment that includes an analysis of the supply chain as well as manufacturing and delivery processes. In addition to the supply chain, the organization of production plays a central role. Measures such as line balancing can have a positive impact on plant efficiency, for instance.

Such improvements result in greater delivery efficiency and more stable processes. For Ingenics, there is a strong focus on the employees involved in addition to the actual process.

Optimization measures result in valid, robust processes that reveal significant improvements in delivery efficiency as a KPI. If required, the client can also use the Ingenics Intralogistics Cockpit 4.0 to bring together the monitoring, analysis, and control of intralogistics processes.

Reducing cycle times

Cycle times of assemblies and components are another important consideration for suppliers to the aviation industry. Good stability and a high level of efficiency with respect to cycle times guarantees that companies can actually meet the delivery efficiency targets described above. Additionally, shorter turnaround times offer a competitive advantage when it comes to positioning a business as a high-performance partner for customers.

Drawing on their extensive industry experience, the consultants at Ingenics AG work quickly and reliably to identify relevant processes and to identify potential improvements with regard to cycle times.

Using methods such as value stream analysis and strategic process design, they check all the influential factors and simulate process variants before testing and establishing them in the company. The factory layout is optimized and the supply chain management system adapted accordingly. The team is trained so that a collective effort can be made to safeguard changes, helping them to remain stable in the future.

Again, the result is a robust and efficient overall process. At the same time, any necessary adjustments to production technologies, manpower, and IT systems resulting from the optimized process are defined and implemented. If required, the client uses the Ingenics Production Cockpit 4.0, which noticeably reduces the everyday workload for operational managers.

Reducing component costs (recurring costs)

A typical challenge in the industry are regular discrepancies between the technical and financial predictions made during the quotation phase and the actual costs that later emerge when designing and manufacturing components.

Competitive component costs are of considerable importance in the aerospace supply industry for the completion of existing contracts as well as pitches for new orders. Changes in component costs to the detriment of a supplier can seriously call into question any price estimates and the relative success of a component. Keeping tight control of recurring costs is another success factor for suppliers.

In order to examine component costs and identify potential savings, Ingenics analyzes the relevant areas of purchasing as well as internal value creation and logistics, identifying cost reduction measures which are then implemented in collaboration with the client to ensure continued stability in the future. Furthermore, the development and design process is optimized in terms of target costing (design-to-cost approach).

The client benefits from potential reduced costs as well as an established early warning process that tracks component costs and their trends, evaluating deviations and signaling possible courses of action.

Component margins are greater as a result, thus ensuring that offers and orders remain competitive in the future. An associated operational excellence management program guarantees that these cost advantages also apply for future developments.

Ingenics offers its services as a professional sparring partner to companies in the aerospace supply industry, helping them to address the issues mentioned above in a cooperative manner. The consultants at Ingenics have extensive industry experience and a wide knowledge of methods, all of which allows them to tailor their services to suit the demands of individual client projects.