Interview with Espen Olsen

Citation

(2007), "Interview with Espen Olsen", Aircraft Engineering and Aerospace Technology, Vol. 79 No. 5. https://doi.org/10.1108/aeat.2007.12779eaf.001

Interview with Espen Olsen

Interview with Espen Olsen

Espen Olsen is currently IFS Global Industry Director – Commercial Aviation. IFS is a global enterprise applications company which provides software solutions that enable organizations to become more agile.

Espen Olsen (Figure 1) (IFS Global Industry Director, Commercial Aviation) was a Keynote speaker at this year's Asian Aircraft Maintenance Conference 2007 which was held in Singapore last month www.marcusevans.com/events/CFEventinfo.asp?EventID=11942#2

Figure 1 Espen Olsen

Espen began his professional career with the Norwegian Air Force. Working at the air material command, he was responsible for all logistics activities for the helicopter fleet within the Norwegian Air Force. After completing the Air Force Academy he also, worked on a project implementing the new maintenance repair and overhaul (MRO)/enterprise resource planning (ERP) solution for the air force.

Since, 1999, he has worked with IFS and their solution for aerospace and defense. He has held several positions within project management, consulting, sales as well as research and development. Some of the key projects he has developed are for GE Aircraft Engines, Finnair Technical Services, BAE Systems, Hawker Pacific, Bristow Helicopters and many more. Espen holds a Master's degree in leadership, management and logistics.

Question: How did your time in the Air Force prepare you for a career in the aerospace industry?

Espen Olsen: Having worked in an operational environment both at the Air Material Command as well as on a squadron, I have worked with engineers, technicians, pilots as well as support people on purchasing and finance. Being a logistician, I feel that both the education we get and the job we are doing underpins the importance of integrating the different business areas. It is important to work as a team rather than divide into functional hierarchies.

We are all dependent on each other and we work in the same value-chain. As long as, we understand our place in that chain and what contribution we make to the end goal, we are in a better position to do a great job. This is universal across many industries whether you are in the military, commercial aviation, industrial manufacturing or automotive industries.

The aerospace industry is quite broad, if you look at both the defense side and the commercial aviation side but the players in the markets are more or less the same. You have the large original equipment manufacturers (OEMs), you have the smaller MRO shops but there are a number of defined standards you have to apply. The terminology may be a bit different between sectors and the defense side may be slightly more restricted by standards.

Another difference I see is that, in many defense (governmental) organizations you have a budget and the aim is to get as much out of that budget as possible. On the civil side there is quite a bit more cost focus. Having said that I also see that many defense organizations are changing their way of doing business to become more cost conscious.

Looking back at my years in the air force it was a period where, I could test theories and learn from the results. I started to build a network of people from the aerospace industry not necessarily, because I had a clear strategy to make a career in the aerospace industry but because it was a very interesting area to work in. I liked the operational environment and doing all kinds of jobs from replenishment of inventories to setting up a deployed operation of helicopters for UN mission in Bosnia to assisting with exercises for the Special Forces and the Delta Force.

Question: What were the most valuable lessons you learnt from your project implementing the new MRO/ERP solution for the Air Force?

Espen Olsen: There are many lessons that I learnt during my close to three years working on the MRO/ERP project. The first crucial lesson I learnt is the importance of choosing a vendor that you can talk to and who will listen and discuss possible solutions with you. There are so many factors, other than functionality, price, etc that could be decisive factors. You need to be sure that you can work together with your consultants, that you are talking the same language, and that they are demonstrating expertise in the business you are in and so on. In the project, I was working on we actually ended up replacing the preferred vendor for just those reasons.

Another lesson I learnt was that it is crucial to agree on a clearly defined project scope and align the expectations between the customer and the vendor. Too many projects have been jeopardized because the vendor has over-sold in the sales phase, and then the delivery team comes in and implements a solution which is not required.

Agreeing on the scope of the project is of utmost importance as we all need to understand what has to be done and when. As long as everybody has a deadline to relate to the job will be done. It is important not to extend the deadlines just to improve the result marginally. There will always be things that can be improved and you will end up in a never-ending story if you do not draw a line and say that this is as good as it gets right now.

The third lesson I want to emphasize is that the sooner you get people to start using the system the better. Most people are resistant to new systems but the sooner they use a new system, the sooner they will actually see the benefits and find that their job can actually be done using this new system.

It is also critical that top management is committed and support the project, but also do not make the mistake of using the new system as an excuse to get rid of people. If an employee knows that after the implementation of this system they will be redundant, he/she will not work as a team player and support it. Find alternate jobs/activities to be done when the business has become more efficient. Expanding into new business areas might also be an option but do not let the system become a scapegoat for job-cuts.

Finally, cultural differences between different areas of the business are important. Imagine convincing a 60þyear old inventory clerk to change the daily work procedure that he/she has followed in the same way for the last 40 years. This is quite a daunting task. However, with proper information and written instructions on what needs to be done and why, they just might listen and follow your suggestion. What each employee needs is good and simple documentation on how their job is going to be done in the future. You do not need any complicated process charts or figures, etc. All you need is a simple description. Simplicity is probably the most important thing to remember in this.

Question: Have there been any common themes linking the projects you have worked on? (i.e. GE Aircraft Engines, Finnair Technical Services, BAE Systems, Hawker Pacific, etc)?

Espen Olsen: These companies all wanted to change their way of doing business. They all believed that they had areas that could be improved. They understood the benefits of getting a new ERP/MRO system not least to keep their competitive edge and advantage even if they did not necessarily want to implement a Commercial-off-the-shelf system.

Despite, their idiosyncracies these companies want to keep going forward, and they should do so because their individuality makes them different. Their success means that they are definitely doing some things right today but there may still be room for improvement in their processes.

Question: Could you detail the aerospace applications for IFS's product lifecycle management?

Espen Olsen: Product lifecycle management (PLM) is in simple terms the support of equipment from cradle to grave. The main market challenge is that the pace of innovation is faster and there are shorter introduction intervals meaning fiercer competition and less time between product implementations.

The second challenge is that product platforms are becoming more and more complex and lifecycles are becoming longer. This means, that the aftercare market provides an increasing share of your profit. Overhauls and updates are increasingly business opportunities. You have unique customer designs and programs and the software they are using is an increasing portion of your business.

Figure 2 Master the product lifecycle with IFS applications

And the third major challenge is that markets have become truly global. You may need to consider outsourcing or off-shoring certain parts of your business and you may need to look at systems integration as opposed to manufacturing (Figure 2).

In the area of PLM there are internal factors that need to be considered:

• •

  total product configuration management;

• •

  reusable information; and

• •

  reduced error.

  The opportunities are within the areas of:

• •

  cost reduction;

• •

  impact analysis of changes; and

• •

  project control.

And the external views you may have are:

• •

  collaboration; and

• •

  project and service quality.

PLM applied to aerospace means that you can now manage deliveries in a timely manner, you have traceability and you can manage complex configurations throughout the lifecycle of the product. We have observed that customers using our PLM products have improved their processes from engineering through to delivery of their products. We have examples of customers cutting their throughput time in half, standardizing parts and acquiring more detailed control of the manufacturing process.

In the area of PLM there are four important areas to focus on:

1 It is important to master the product lifecycle by ensuring accurate, timely and relevant data. This is achieved by integrating all phases in the lifecycle with high data consistency and quality. It is also important to keep control of delivered solutions with configuration management covering design through to end of life cycle (Figure 3).

Figure 3 Ensure accurate, timely, and relevant data

2 It is important to gain control using program and project management tools. It is possible to keep budget time to market and delivery date with complete project control (Figure 4).

Figure 4 Gain control using program and project management tools

3 It is vital to maintain flexibility to meet customer specific demands by building quality into the entire process (Figure 5).

Figure 5 Maintain flexibility to meet customer-specific demands

4 Finally you can grow your aftermarket sales with total lifecycle solutions. (Figure 6).

Figure 6 Grow aftermarket sales with total lifecycle solutions

In September 2006 IFS announced the launch of IFS Applicationse 7 for the construction industry with specialized contract and case management tools. IFS Applications 7 enables enterprise agility so that organizations can take advantage of rapidly changing international market conditions. The new release gives enterprises a service- oriented architecture with reusable business components designed for improved user productivity, faster implementation, lower total cost of ownership and easier upgrades.

Question: IFS Applications 7 incorporates a fully integrated material review board and quality control functionality that provide a closed-loop system for quality control. Do you have any examples related to aerospace maintenance?

Espen Olsen: The material review board (MRB) process is common in the OEM/defense manufacturing area. The MRB functionality has made it possible to initiate the MRB process from purchase order receipt, shop order component handling and inventory management as well as shop order work in process. Also, inspection and disposition activities are included.

The MRB is a case tracking tool for handling non-conformance material in:

1. 1.

   inventory;

2. 2.

   purchase receipt;

3. 3.

   shop order processing:

   • •

     work in process (WIP); and

   • •

     components.

A board of experts decides what to do with the parts, and a dedicated person (e.g. planner) executes the decision of the board Figure 7.

Figure 7 MRB Enhancements summary

An example of the MRB flow:

An MRB Case is created for non- conformance parts from inventory part in stock, purchase order receipt, shop order WIP or shop order material. All of these, except WIP, may have material tracking information – serial numbers, batches, etc. Inspection and tests of the part(s) are added as results to the MRB case. After inspection, the MRB determines the disposition of the part(s). The disposition action is performed and confirmed. The MRB co-ordinator reviews the MRB information and completes the MRB case.

This MRB solution has been in use for some years especially in the US Defense Manufacturing market but also in other industries outside aerospace and defense.

Question: “IFS' support for mixed-mode manufacturing is said to be especially important to companies whose facilities combine make-to-order, engineer-to-order, and repetitive production environments.” Could you provide some aerospace examples?

Espen Olsen: To succeed profitably manufacturing companies (both civil and defense) should have the ability to perform in a range of modes depending on their strategies. To meet their strategic objectives, no matter whether a company is customer order driven or forecast driven or both it is important to have performance capabilities that support a wide range of supply chain strategies. These strategies enable companies to achieve the right balance between efficiency and responsiveness. Additionally, having the flexibility to mix the different modes or to switch quickly and easily between them will enable planning for greater returns on investment and profitability. Improved profitability is achieved by using the most balanced performance mode at every point in time throughout the product's lifecycle.

Depending upon the industry, IFS provides support on a depth of functionality for a wide range of execution modes. It is important to choose the mode that best fits with the current demand situation, e.g. to switch between order-based, order network- based, rate-based manufacturing as well as mixed mode (or any combination of these) depending on whether your business is customer order driven or forecast driven.

Simultaneously it is possible to operate rate- and order-based execution modes from within the same application software for greater flexibility and to achieve a balance between efficiency and responsiveness.

IFS incorporates native capabilities that enable companies to run a single execution mode or a mixed-mode environment all at the same time. In order to become efficient and maximize throughput, it is important to gain economies of scale through a limited product range and long production runs. It is important to have capacity to handle fluctuations in demand and the ability to meet very special product requirements through, for example, configuration and make to order strategies.

Product requirements can include make to stock (MATS), make to order (MTO)/configure to order (CTO) or engineer to order (ETO) as well as any combination of these (mixed-mode) potentially using a project driven (project) approach. The choice of a competitive supply chain strategy must be reevaluated continuously and the supply chain must be flexible enough to adapt to changing requirements to remain competitive.

Interesting cases studies in the aerospace industry would be Ensign Bickford, Ball Aerospace and Lockheed Martin as well as Gables Engineering and Williams International. These organisations are similar in that they all run a combination of ETO, MATS and repetitive/kan-ban processes.

Ensign-Bickford Aerospace & Defense Company (EBA&D), based in Simsbury, Connecticut, is a global provider of reliable, dynamic solutions for military demolition, minefield breaching, vehicle protection, tactical weapons, space and strategic applications. Although most of Ensign- Bickford's operation consists of ETO and MTO processes, the company sees significant opportunity to leverage a CTO approach on certain key product lines. CTO offers not only potential cost savings but also improved service to the company's most valued customers. The products that EBA&D is targeting for CTO processes share common components but vary in length, energetic outputs, initiation timing, physical interfaces and packaging.

By adopting this new approach EBA&D will also gain efficiency on the ETO side of its business because IFS' projects module allows the company to track expenses from engineering through manufacturing. EBA&D also wants a system that could provide an integrated earned value management (EVM) methodology for its projects. This is a performance reporting system developed by NASA and, at times, imposed on government contractors. EVM helps the government and contractors manage both schedule and program cost goals. This enables them to quantify what a contractor or field activity is achieving with program dollars. It also enables the company to predict future performance-based on trends and to account for risk management. EBA&D plans to use this methodology to manage all of its projects.

Gables Engineering, based in Coral Gables, Florida, is an avionics manufacturer that builds custom cockpit controls for the airline and airframe industry. Gables manufactures traffic collision avoidance systems panels, radio control panels and audio systems. As well as designing and building the electrical assemblies, Gables also designs and builds switches, housings and LCD display modules. Their customers include Boeing and Airbus Industries.

In 1995, Gables formed a team to examine its business processes and decided it needed a new enterprise application package. At that time, Gables had a pseudo-MRP system based on reorder points. The system looked at current customer demand, as well as historical demand, and then the buyers had to work out, “What do I really need to buy?” It was a process best described as moving forward by looking backward.

Once Gables deployed IFS they were able to calculate demand using actual customer orders and a forecast, something their previous system would not allow. Now they “move forward by looking forward” – they order and build parts by looking at forecasts and not at history thus reducing work in process by 50 per cent and overall inventories by 30 per cent.

The software also facilitates APICS functionality as inventory and subassembly control. It used to take two days to get a spare part shipped out from time of order to time of shipment. With IFS same day shipping is now possible.

As for part traceability, the software tracks the history of changes made to a particular product right down to its serial number. Everything that goes into building the part – including the parts removed from inventory to manufacture it – all of that information is maintained in the system. It will always be there to trace back if Gables receives a faulty batch of parts.

Recently, a Gables customer carried out a product audit. The auditor selected a part that had already been shipped with the intent of tracing it through the system. Gables was asked to demonstrate the traceability of a component used in the audited part's sub-assembly. This would never have been possible before the IFS implementation. The maintenance side of the application is also used to control equipment calibration.

The software has changed Gables' business in other ways. With IFS, they have reduced kitting time down to less than a month before assembly. Since, they can now depend on their data they are kitting almost 99 per cent of the whole product just prior to assembling it. They have also note books which allow stockroom personnel to review the pick lists online from IFS applications and update inventory instantly. The new e-business capability of the system will allow customers to place orders and track information online.

Question: Please could you explain how performance-based logistics would be applied to aerospace maintenance?

Espen Olsen: Performance-based logistics (PBL) are normally put in place to improve productivity and provide complete solutions to customers. contractor logistics support (CLS) and PBL providers are always looking for ways to free up working capital and reduce costs. Software systems such as IFS applications can improve efficiency and drive down costs through universal, real-time access to extended supply chain and product data anytime, anywhere.

CLS and PBL are often used by the OEMs in the aftercare market providing their existing customers added value such as multi-year contracts on repair/ overhaul and other MRO services. The vendor often has to guarantee availability of an asset in return for a fixed price contract on all covered assemblies/equipment.

In the global aerospace environment more and more companies are outsourcing maintenance, repair and overhaul functions to service providers. To meet this need service providers often need software support for CLS and PBL. In IFS applications these are solutions derived from a combination of IFS service management and industry- specific components which address the contracting and performance management requirements of aerospace.

The areas that could be covered by such a solution are:

• •

  forecasting of maintenance, resources, material, tools and equipment;

• •

  maintenance and Repair planning;

• •

  materials management – demand;

• •

  logistics management – supply;

• •

  inventory control – transactions in/ out;

• •

  repair/overhaul – internal/external – depot/line;

• •

  technical data collection and analysis; and

• •

  fleet management – configuration control, engineering and more.

In another case study general electric Government Industry Logistics Support program deployed IFS modules for purchasing, inventory, customer orders, work orders, planning, and configuration management to support servicing of the US Navy's F414-powered F/A-18 E/F Super Hornet fighter. The user benefits that they reported were:

• •

  increased availability;

• •

  significantly reduced backorders;

• •

  adaptation of lean principles;

• •

  less WIP, more space for new work;

• •

  load leveling/less OT;

• •

  self-sustainment via six sigma;

• •

  cost avoidance; and

• •

  one stop shopping.

Question: Could you define planning preventive maintenance and corrective maintenance activities in relation to aerospace maintenance?

Espen Olsen: The set up of preventive maintenance is usually undertaken through a maintenance program. For commercial aircraft operators this program should be approved by the local aviation authorities. The maintenance program can be based on authority requirements, manufacturer's requirements and the operators own requirements. authority and manufacturer's requirements are usually airworthiness directives (ADs), service bulletins (SBs) and MRB/MPD specified tasks and they are usually mandatory. The operators own requirements are usually based on service experience or policy (reduced lubrication intervals, exterior cleaning or cabin appearance).

Planning preventive maintenance is usually assisted by an IT system containing a maintenance program which keeps track of the aircraft utilization. This enables planners to know which tasks are due next and plan them in with available maintenance slots.

IFS applications support this area with functionality for the entire process flow as follows:

1. 1.

   Capturing and managing aircraft configurations.

2. 2.

   Setting up maintenance programs.

3. 3.

   Capturing and tracking pertinent information such as:

   • •

     service bulletins (SBs);

   • •

     airworthiness directives (ADs);

   • •

     service letters (SLs) and similar;

   • •

     minimum equipment lists (MELs);

   • •

     configuration deviation lists (CDLs); and

   • •

     life-limited parts.

4. 4.

   Recording aircraft data such as:

5. 5.

   aircraft utilization;

6. 6.

   faults; and

7. 7.

   condition measurements.

8. 8.

   Planning maintenance.

9. 9.

   Managing maintenance execution.

10. 10.

    Managing line maintenance.

11. 11.

    Capturing and analyzing reliability data.

12. 12.

    Additional work that has been done e.g, on invoices, warranty management and Materials Management/Purchasing.

Corrective maintenance is a retroactive action where the operated system is maintained by run-to-fail philosophy. system reliability, redundancy and safety have increased over the last 30 years and recently corrective maintenance represents a large proportion of the total aircraft maintenance. Owing to manufacturers MEL and/or CDL, the corrective action to a reported system failure can be postponed and planned with the necessary personnel, tools and replacement parts.

A reliability centered maintenance (RCM) process will monitor all maintenance performed and analyze the effectiveness of the preventive maintenance. Some actions might prove unnecessary or too frequent; some might prove too seldom. An RCM process will also analyze the performed corrective maintenance on systems, components or even serials to determine if a preventive maintenance action can improve system and despatch reliability.