Aerospace Meetings Kuala Lumpur 2011

Transcription

1 Aerospace Meetings Kuala Lumpur 2011 Supply Chain development trends and opportunities in Aero Engine manufacture 23 rd May Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies

2 Content Rolls-Royce business overview Aero Engine manufacture Supply Chain development trends Challenges and opportunities Supply Chain requirements

3 Rolls-Royce business overview Aero Engine manufacture Supply Chain development trends Challenges and opportunities Supply Chain requirements

4 Group profile

5 Our consistent strategy

6 10 years of growth

7 We will double turnover in the next 10 years

8 Rolls-Royce business overview Aero engine manufacture Supply Chain development trends Challenges and opportunities Supply Chain requirements

9 Global Supply Chain development Rolls-Royce grown from a UK-based domestic manufacturer to a global player in four growth markets Rolls-Royce turnover will double over the next decade Internal capacity might not grow at the same rate as our business Development of external capacity for advanced technologies required Continuous growth in Asia Pacific requires a regional aligned supply chain Trent Engine build supported by Rolls-Royce Seletar Campus, Singapore in the future Customers respect our superb products and cost is a key challenge

10 Initial scope for external Supply Chain Commodities Low complexity and high volume - Prismatic, brackets Non classified parts Machining of low to medium complex components - Rings, seals, casings challenges and experience Long start up phase, hence high cost of learner High validation effort for manufacturing processes Demanding approvals, e.g. NADCAP, SABRe Supply Chain management - vertical integration Special processes Tooling and fixtures

11 Generic value stream of Aero Engine components module final ore billet forging machining fabrication assemble assemble Forgings Finished Parts Engine Build pass off test Today 2012 medium term Initial scope for supply Ore chain development (mostly driven by cost) Challenges: validation approval, e.g. NADCAP special processes machining Supply Chain Development module assemble final assemble pass off test Rolls-Royce Seletar Campus long term Supply Chain Development Regionally aligned Supply Chain to deliver Competitive Advantage

12 Future trends for external Supply Chain Non classified parts Machining of medium to high complex components - Structures, advanced casings Sensitive and critical parts Machining of high complex parts using advanced technologies - Shafts, discs, blisks, drums Forging Non rotating components Rotating components Materials Ti, nickel alloys Enabler for regional aligned Supply Chain Deliver competitive advantage

13 Rolls-Royce business overview Aero Engine manufacture Supply Chain development trends Challenges and opportunities Supply chain requirements

14 Civil aerospace

15 Rolls-Royce business overview Supply Chain Development trend in Aero Engine manufacture Business growth challenge and opportunity Supply Chain requirements

16 New entrants to Aerospace Aerospace - industry with high barriers to entry Long-term investment business High capital equipment investment Return on investment typically 5-7 years Mid to high-end skills base is needed HOWEVER High value-add industry Governments are keen to help develop Long-term business future

17 Suppliers generic requirements Competitive cost location in emerging market Preferred trading currency - US Dollars Commitment to Long Term Agreement (LTA) Agreed cost modeling / transparency Lean manufacturing / continuous improvement capability World class delivery and zero defect quality

18 Generic requirements - Details AS9100 certification NADCAP (special processes) approval Compliant with Rolls-Royce SABRe (Supplier Advanced Business Relationship) Proven engineering capability Sufficient production capacity Effective supply chain management Direct buy, e.g. raw material Indirect buy, e.g. consumables, fixtures, tooling Strong project management system Financially stable 75 days payment terms

19 Thank you for your attention Christian Mutter Business Development Director Supply Chain Asia Pacific 3 Temasek Avenue #19-01 Centennial Tower Singapore DID: [email protected]

20 Summary Supply Chain development trends and opportunities in Aero Engine manufacture Rolls-Royce, a supplier of sophisticated power systems and services for land, sea and air, will double turnover in the next ten years. Future engine build at Rolls-Royce Seletar Campus, Singapore kick starts development of regional aligned and integrated supply chains for Aero Engine manufacture. High berries of entry and the need for long term investment delivers a long term business opportunity in high value add industry.