K3 Syspro’s managing director, Nick McGrane

According to Nick McGrane, managing director at K3 Syspro, it’s time to reboot aerospace manufacturing.

From the decrease in commercial aircraft demand to disruptions in the supply chain, 2020 was a rough year for aerospace manufacturing. Despite the challenges, the need to quickly deploy technology to adapt to the ‘new normal’ was also a wake-up call.

For many, pre-pandemic, digital transformation was a long term plan. However the events of the past year have given us a glimpse into the future; a world in which digital is central to every industry. This new perspective gives us the perfect opportunity to transform aerospace manufacturing. In fact, Deloitte sees 2021 as the year the sector will focus on restructuring business processes and accelerating supply chain transformation. Whether it is to recover from Covid-19, or to drive future growth with new technology, such as hydrogen-powered aircrafts, it’s time for an industry reboot.

The four stages to reboot aerospace manufacturing

When a computer goes through a reboot, it completely changes the way it operates, and the same logic applies for aerospace manufacturing. A reboot may seem daunting at first, but with the right technology investments, and the boldness to do things in a new and better way, true transformation can be achieved. To make this happen, organisations should follow the four stages of a reboot: review, innovate, commit, and, finally, reboot.

• Review: A complete process overhaul won’t happen overnight. Businesses need to start somewhere, and the first step should be reviewing current operations to identify the “low hanging fruit”. These are the easiest and quickest transformations that can be actioned now. For example, a shopfloor control process that can be automated, or a system that’s been already deployed but isn’t being used to its full capacity. It’s important that these first changes are also aligned with key corporate goals, to ensure leaders are prioritising not simply what is easier, but also what is critical and will generate ROI.
• Innovate: When the review stage is complete and it’s clear which tasks need to be prioritised, aerospace manufacturers should take the reboot as an opportunity to innovate. For example, by deploying technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI). Implementing cheap industrial IoT devices to track energy usage on aircraft component production can be a simple but powerful solution to cut costs. While also preparing manufacturers for aerospace’s future which will have sustainability as a key priority, as pointed out by PwC.
• Commit: To make the most of innovations such as IoT and AI, manufacturers will also need to invest in upskilling the workforce so that everyone is committed to the reboot. This is important as employees fear technologies like AI may put them out of their jobs. However, often AI brings opportunity and employees can develop new skills in order to work alongside machines, as pointed out by the World Economic Forum. Organisations should have a training programme in place, to retain the talent they currently have, while ensuring they don’t feel threatened by the adoption of new technologies. This will prepare staff to embrace technology in their daily activities and help make them feel valued and motivated to work towards the same digital transformation goals.
• Reboot: Besides implementing the previous steps successfully, aerospace leaders must ensure they avoid failure in their reboot. Tony Saldanha, a former Procter & Gamble executive, describes in his book the final stage of digital transformation as the “Living DNA”. In this phase, the transformation has become fully sustainable, and all areas of the business share the same common purpose, with a focus on innovation. In this final stage of the reboot, aerospace manufacturers will need to successfully implement digital infrastructure, adapt their business model to accommodate it, and have an innovative culture in place. By doing so, the entire organisation is aimed towards evolution. Here businesses can drive innovations that will impact the industry as a whole, such as preparing for electric propulsion to reduce carbon emissions.

The role of an ERP system to power transformation

As we saw in the four stages from above, a full reboot involves many moving parts. Keeping track of them will be crucial to ensure a manufacturer is moving in the right direction. Because it brings together all aspects of business operations, an intelligent Enterprise Resource Planning (ERP) system can be a powerful foundation in the journey towards the “Living DNA” stage. A solution that is fit for Industry 4.0 can improve the performance of aircraft components inventory, streamline processes, and offer supply chain traceability — all in one centralised system that is accessible by all decision makers. Furthermore, it can be an easy way to help staff get acquainted with technology like IoT devices, as it centralises the data they are collecting in a digestible way. Teams can, in turn, action these insights to continuously improve the production process, committing to an innovation mindset.

Embracing innovation for future growth

While Covid-19 is still keeping aerospace manufacturers on their toes, they should take this year as an opportunity to transform. By following the four stages of a reboot, with the support of a modern ERP system, manufacturers will be able to deploy new technology and embed innovation into their DNA. Then, they will be ready to not only remain resilient as they recover, but drive future growth.

www.k3syspro.com

Mike Richardson

Mike Richardson

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Source: https://www.aero-mag.com/review-innovate-commit-reboot/