Case Study

Advanced business process for engineering, supply chain, and aftermarket services delivers more than US$90 million annual impact for a global aviation OEM

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Client:
A global leader in manufacturing jet engines, components, and aircraft systems with an extensive global service network

Industry:
Industrial manufacturing

Business need addressed:
Low-cost, effective, and profitable business operations with faster NPIs and highly satisfied customers

Genpact solution:

  • Global engineering support
  • Inventory optimization
  • Streamlined service operations

Business impact:

  • More than $90 million annual impact from increased cash flow and cost savings
  • Faster time to market for new engines
  • Increased supply chain visibility

Business challenge

The client has large and complex operations spanning 30+ product lines, 20,000+ components, and multiple assembly lines and service centers located all over the world. Cost control, faster new product introductions (NPIs), enhanced service profitability, and improved customer satisfaction were some of the key business imperatives for the client to grow and be competitive.

However, multiple challenges existed:

  • Engineering – Delay in NPIs due to long design cycle time and lack of skilled and technically qualified resources
  • Supply chain – High raw material inventory and delayed production across the global manufacturing units due to lack of real-time visibility
  • Aftermarket services – Low service profitability due to fewer contract renewals, limited installed base analytics, lack of failure forecasting, and manual contract terms and conditions monitoring)

Genpact solution

Globally located engineering support

  • Augmented the client team with skilled, ready-to-deploy resources and established a global governance framework
  • Customized the CAD tools to speed up file conversion and enhance the design review processes

Inventory optimization

  • Implemented a web-based inventory analysis tool to provide a real-time, enterprise-wide view of inventory, structured decision support for planners/forecasters, and inventory dashboards
  • Developed advanced analytical models to calculate safety stocks and ordering criteria based on the inventory and service-level targets
  • Implemented e-Kanban for select parts: A real-time automated demand signaling process across the supply chain for better and more accurate demand forecasting

Streamlined service operations

  • Ensured robust data management (service history, remote monitored data, ambient conditions etc.)
  • Designed and implemented reliability-based failure forecasting protocols to improve forecast accuracy
  • Redesigned field service and parts availability processes using industry benchmarks

Business impact delivered

  • $31 million annual impact on working capital through increased inventory visibility and 48% decrease in raw material inventory
  • Incremental annual revenue of $42 million over the contract tenure
  • Improved profitability by $15 million annually through service contract analytics
  • 10% faster time to market at lower cost for the new engine design

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