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HCL AXON iMRO Add-On Solution

Driving Excellence in MRO

Duncan CarruthersHead of Aerospace & Defence Europe & Africa – HCL Axon

2nd June 2009



© SAP 2008 /

1. Introduction to HCL/HCL AXON Aerospace & Defence1.1. HCL Aerospace Overview

1.2. HCL AXON in Aerospace & Defence

2. Key Industry Trends and Issues

2.1. Industry Trends & Growth2.2. Solution Requirements

3. iMRO Product Overview

3.1. Introduction to iMRO & the SAP/HCL AXON Partnership

3.2. iMRO Roadmap

3.4 Maturity Model – Industry Input

4. HCL AXON Implementation Templates & Accelerators – Added Value

4.1. Solution Evolution & Implementation Approach

4.2. PCS Components

5. iMRO Customers

Agenda



HCL Aerospace & Defence Overview

•2700+Experts in Engg services for A&D practice

•525+ Experts for IT Solutions for A&D practice

•11200 + Engineers for R&D Services across HCL

•25000+ Experts in IT Services in HCL

• Engineering Services

• Embedded Software

• Electronics Engineering

• Test Engineering

• Mechanical & Structural Engineering

• Product Testing and Manufacturing

• IT Services

• Application Development & Maintenance

• Enterprise packages & Solutions

• Engineering Applications• MRO and After market IT services

• Engineering

• Avionics , Electrical and Power Systems

• Ground support systems and Tools

• Aero structures, Aero Engines and Systems

• IT Services

• Enterprise / Business systems (HR, Finance etc)

• Functional Systems (SCM, PDM/PLM…etc)

• After market support (MRO, RFID and others)



HCL Aerospace Capabilities Overview

S o l u t i o n s

FactorySolutions

MES/ FCS

SPC

APC

Dispatching

Regulatory

EnterpriseSolutions

Enterprise - Plant

Integration

Partner Integration

PLM-ERP-SCM

Integration

CMMS/EAM

Consulting, Solution Development, Ongoing Support Services

Standardization, Migration, Upgrades and Consolidation Services

ConsultingSolutions

Plant Performancebenchmarking

Product Selection

Migration

Frameworks

Manufacturing

Informatics

AutomationSolutions

Process Tool

Integration

QC tools Integration

Data Acquisition &

Reporting

Alerts/Alarms

Implementation, Customization, Integration, Upgrade Services

Product Engineering Lifecycle Services to Manufacturing IT ISVs

S e r v i c e s

PLM Solutions

BOM Design

Workflow Design

ERP-MES-SCMIntegration

Design ToolsIntegration

Product Costing

User Training & Adaptability

Aerospace



HCL Aerospace Practice

Highlights

Total Revenues ---------$ 100m +

Consultants ----------------2500+

HCL Aerospace Consultant BreakupHCL Aero Revenue Split

HCL Aerospace

Services

EngineeringIntegrated Product Design &

Development, Verification &

Validation, Test Engineering,

Analysis, Reengineering, Migration,

Prototyping

ITIT Consolidation, Application

Development, Maintenance &

Support, Supply Chain

Optimization, Manufacturing IT

Services, PLM Services

Revenue Breakup (%)

Manufacturing / PLM

11%

Engineering

73%IT Services

16%

Aero space Resources

IT Consultants

10%

Avionics Engineers60%

Mech. Engineers30%

HCL has the largest ‘dedicated’ Aerospace wing for an Indian

Outsourced Services Provider. This shows our commitment to the

Industry.



HCL A&D Customers



© SAP 2008 /

HCL AXON – Leaders in World Class SAPServices

Global and Major Service Partners

C S S R a t i n g

Global and Major Service Partners

C S S R a t i n g

# 1 for Delivery & Customer Service

• 4,500+ consultants dedicated to SAP delivery• Specialists in SAP Upgrades (150+)

• 8 out of 10 programs are multinational

• Strong local presence in UK, ME, Africa

• End-to-end services, benefits driven approach

• Reputation for on time, on budget delivery

• Global SAP partner – true access to SAP

Key Facts Delivery in all Global markets

Dubai

Dubai



© SAP 2008 /

HCL AXON in SAP Aerospace & Defence

>15 years SAP A&D delivery t rack reco rd

>300 SAP A&D consu ltants, around 100 successfu l SAP A&D impl ement ations (making up 30% of SAP’s c lient l is t)

Axon suppor ts some of the largest and mos t complex SAP A&D cl ients in the world

Working with SAP on solutio ns for Maintenance, Repair and Overhaul (MRO) and Performance Based Logistics

Development Partner for future MRO

Twelve year development collaboration wit h SAP

Packaged solutions for Manufacturing Execution, Labour,Earned Value, Bill ing and Shortages as well as MRO

Add -on pre-conf igured accelerato rs incl . process best-

practices, scripts and two week SAP Training Academy

Enabling other partners to implement iMRO



© SAP 2008 /

1. Introduction to HCL/HCL AXON Aerospace & Defence

1.1. HCL Aerospace Overview






3.2. iMRO Roadmap




4.2. PCS Components

5. iMRO Customers

Agenda



MRO Industry Growth from $47Bn to $63Bn in10 years – CAGR 2.7%



Key Trends Driving Change in the MROIndustry

Increased cost pressure on aviation industry provides unique growth opportunity for

MRO companies

© SAP 2009

Lean Operations

20% of an airline’s

labor is maintenance

Maintenance ranges

from 8% to 23% of

total costs

Improve Asset ‘Up’time

Aging Aircraft

High MRO costs -

Airline fleets' average

age is more than 10

years; 30-year-old

planes are common

Waves of due

maintenance

Outsourcing of EssentialServices

By 2010, 65% of

airline maintenance

will be outsourced

Increase in

outsourcing provides

growth opportunity

for MRO Companies

PBL Contracts

Regulator y &Compliance

Aviation authority

regulatory & safety

requirements

Complex

environmental

requirements

Source: SAP 2008 Sapphire Presentation



Discrete Industr y

Thought Leaders

Lockheed Martin

Pratt & Whitney Otis Elevator Kaeser Compressors Hilti Cisco

Why MRO (Maintenance Repair Overhaul) is akey element of Performance Based Logistic?

OEM sells :

Repair Services

Spare Parts

Engineering Services

Client pays whenasset breaks

OEM sells :

Reliability

Effectiveness

Availabi li ty

Client pays whenasset works

Lower risk &lower margins

Higher risk &higher margins

Then Now

Selling Performance - Not Products



The OEM s Dilemma: Choosing the rightbusiness model

Product

Product

Product

- +

+

Supply Chain / Ecosystem Manage Industry Network /Platform Owner

Non-integrated /Functional silos

P r o f i t M a r g i n

Complexity / Risk

Traditional

Expand toAftermarket

PBL Provider

Limited Services

Total L ifecycleSupport withPerformanceGuarantees

For every 1$ of product revenue7$ are spent on li fecycle support



Key Solution Attributes Required byCustomers

Industry Specific – Addresses Industry requirements

Regulatory Requirements – The application enables

approvals to be achieved & maintained

Usability – The application must be intuitive & easy to use

Support – Strong support network and quick fixes to issues

Cost of Ownership – ROI realised quicker and lower TCO



HCL AXON iMRO – Addressing IndustryRequirements with iMRO

Management & Development teams have hands-on MRO

Experience

Industry Specialists build in best practice

Usability addressed – Usability will be measured againstinternational standards

Built and Supported through our ODC in Malaysia & SAP

OSS

Benefits realised quickly with efficiency gains



© SAP 2008 /






3. iMRO Product Overview3.1. Introduction to iMRO & the SAP/HCL AXON Partnership

3.2. iMRO Roadmap




4.2. PCS Components

5. iMRO Customers

Agenda



© SAP 2008 /

HCL AXON iMRO Product Overview



Introduction to iMRO

SAP completed an evaluation of several software andservices partners in 2007 to form a jointdevelopment partnership for solutions to closeknown “white spaces” in SAP’s core product HCL AXON was selected as the exclusive MRO development

partner on the basis of our ability to develop MRO softwareas a product (due to the maturity of our existing pre-configured solution) and our ability and client references indelivery/consulting

HCL AXON and SAP have been working together since end of 2007 on a three year rolling productroadmap to build a new MRO add-on solutioncalled iMRO First release of iMRO is at version 3, which became available

in Q4-08, on ERP 6 EhP 3

Already we have four customers who have installed thisiMRO software



© SAP 2008 /

iMRO Solution – MRO Reference Model



An SAP/HCL AXON Jointly Developed Product -iMRO

SAP industry solution add-on for Aviation Maintenance, Repair

and Overhaul

Version 3 was released in December 2008 (against ERP 60

EhP3)

Is embedded in SAP’s ERP (SCM) components (currently on

DIMP)

Developed using SAP NetWeaver standards – fully integrated,

consistent user interface, no additional hardware

Licensed from and maintained by HCL AXON

Developed against SAP’s published three-year rolling product

Roadmap

Supported from HCL AXON’s A&D development center in

Malaysia



© SAP 2008 /

iMRO Solution Roadmap



© SAP 2008 /

iMRO Maturity Model – Industry Input

SAPECC 6.0+EP’s

A&D IS

iMRO

Developments

FutureVision

SAPECC 6.0+EP’s

A&D IS

iMRO

BespokeDevelopments

Addi tion of iMRO

SAP 4.7

A&D IS

BespokeDevelopments

Current

A&D IS

BespokeDevelopments

Upgrade

SAPECC 6.0+EP’s



iMRO – Improvement Example EWI

Paper Timesheets

CATS

RaiseDefect

Carry

Forward

MaterialRequest

ViewDocuments

• Manual Time Recording• Range of d ifferent screens

• Non-Integrated UI

• Multiple Transactions

Typical Situation Today

Documents

Order StructureiMRO

Materials

Time Clocking

Goods Mvmts

PRT Links

Create Defect

Deferral

• Integrated functions• Single screen

• Intuitive UI

• Flexible Layout



iMRO – Electronic Work Instructions



© SAP 2008 /








3.2. iMRO Roadmap


4. HCL AXON Implementation Templates & Accelerators – Added Value4.1. Solution Evolution & Implementation Approach

4.2. PCS Components

5. iMRO Customers

Agenda



© SAP 2008 /

SAP Industry Solution Evolution

Traditional project

SAP ECC 6.0 + EhP‘s

SAPIndustry Extension

MRO/M&E

Maintenance Engineering

Maintenance OperationsMaintenance and Service

Planning

Parts & ToolsManagement

Adjustments within project

SAP ECC 6.0 + EhP‘s

SAPIndustry Extension

MRO/M&EMaintenance Engineering

Maintenance OperationsMaintenance and Service

Planning

Parts & ToolsManagement

With Partners Add-On`s andPre-configured Best Practice Solutions

Adjustments within project

Pre-ConfiguredBest Practice

Solutions

HCL AXONiMRO



Current iMRO Clients

AirTanker Operation – UK

Jet Aviation – Switzerland

Lockheed Martin – USA

TEXL - China



Customer Quote

“iMRO will provide enhanced usability features that willallow us to optimise the use of our SAP solution.

This combined with the increased functions available

in ERP 6.0 will ensure we have a strong IT platform

to move our business forward” Andreas Haller – Director of IT Solutions, Jet Aviation



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