Contents	5
	Introduction: Supply Chain Integration Challenges in the Commercial Aviation Industry	7
	1 Development of the Aviation Industry Over the Last Decades	7
	1.1 Airlines	8
	1.2 Aircraft Makers and Suppliers	9
	1.3 Motivation for This Book	10
	2 Overview of the Book	11
	2.1 Product Development	11
	2.2 Configuration and Demand	13
	2.3 Component Manufacturing	15
	2.4 Assembly and Integration	16
	2.5 Life Cycle Business Models and Aftermarket	17
	2.6 Outlook	19
	References	20
	Part I: Product Development	22
	Aviation´s Future Is as Bright as Its Past	23
	1 Putting Aviation´s Place in Transportation History into Perspective	23
	2 Market Drivers, a Global Context	25
	3 Benefits Beyond People	29
	4 Things Passengers and Manufacturers Can Look Forward to	30
	References	33
	Cabin Densification: SpaceFlex2 and Beyond	34
	1 The Issues	34
	2 The Solution	35
	3 Optimizing the Aircraft	36
	4 Passenger Comfort	37
	4.1 Seats and IFE	37
	4.2 Monuments	38
	4.3 Bins, PSE, and Lighting	40
	5 Conclusion: The Optimized Cabin	44
	Innovation Challenges in the High-Tech, Long-Cycle Jet Engine Business	46
	1 Introduction	46
	2 Engine Innovations	47
	3 Innovation Versus Conventional Wisdom	49
	3.1 Geared Engines in Perspective	49
	3.2 Fan Drive Gears	51
	3.3 Variable-Pitch or Variable Area Nozzle	51
	3.4 Large Diameter Nacelles	52
	3.5 Fan Blade Construction	53
	3.6 Combustors	54
	3.7 Turbomachinery	55
	3.8 The Whole Versus the Sum of the Parts	56
	4 Business Value from Technology Innovation	56
	References	58
	Open Innovation in the Aviation Sector	60
	1 Introduction	60
	2 Theoretical Background	61
	3 Methodology	67
	4 Findings and Analysis	68
	4.1 Boeing	68
	4.2 Airbus	68
	4.3 Open Innovation at Airbus	69
	4.4 Open Innovation at Boeing	70
	5 Conclusion	72
	References	72
	Disruptive Innovation Through 3D Printing	75
	1 Additive Manufacturing	75
	2 Additive Manufacturing in Turbomachinery	78
	3 SLM Machine Concepts	79
	3.1 High Power Selective Laser Melting	79
	3.2 Multi-Scanner Selective Laser Melting	81
	3.3 Multi-Spot Selective Laser Melting	82
	4 Functional Adapted Component Design	83
	4.1 Topology Optimization and SLM	83
	4.2 Functional Adapted Lattice Structures and SLM	85
	References	87
	Part II: Configuration and Demand	90
	Fulfil Customer Order Process: Customization of Commercial Aircraft	91
	1 Introduction	91
	2 Basics on Aircraft Purchase Decisions	92
	3 Aircraft Customization Process	94
	4 Innovation and Customization	97
	5 Aircraft Customization: Different Approaches	98
	6 Outlook/Future Collaboration in Customization and Digitalization	103
	References	103
	End-to-End Demand Management for the Aerospace Industry	105
	1 Introduction	106
	2 Current Challenges in the Aerospace Supply Chain and Possible Solutions	106
	2.1 Hybrid Forecasting Implementation: Increasing Demand Availability by Using Information on Previous Aircraft Configuration	107
	2.2 Supply Chain Transparency Creation: Improving Demand Availability by Enhancing Communication	109
	2.3 Ordering Strategy Selection: Setting Standards by Harmonizing Logistics and Ordering Solutions	110
	3 Practical Examples from Aerospace and Automotive Industries	112
	3.1 Case Study: Disaggregation of Demand for a Large Supplier	112
	4 Looking Beyond: Benchmark Automotive and Aerospace	115
	5 Conclusion	116
	6 Porsche Consulting and the Aerospace Industry	116
	References	117
	Main Differences and Commonalities Between the Aircraft and the Automotive Industry	119
	1 Trends and Main Fields of Action for Production and Supply Chain	119
	1.1 Improving Energy Efficiency in Drive Concepts	120
	1.2 Developing Alternative Electric Drives	120
	1.3 Technology and Premium Brand Leadership Because of Large Investments	121
	1.4 Extending the Product Portfolio	122
	1.5 Extending the System Strategy	122
	1.6 Exploiting Emerging Markets Through Allocating Development and Production Capacities	123
	1.7 Digitization and Visualization of Product Development and Production	123
	1.8 New Business Models	123
	2 Solutions in the Automotive Production and Transferability	124
	2.1 Multi-Product and Multi-Brands Plants	124
	2.2 Line Production and Production Segmentation	125
	2.3 Standardization and Modularization	126
	2.4 Ramp-Up Management	128
	2.5 Change Management	129
	2.6 Production and Supply Chain	130
	2.7 Continuous Improvement Process 2.0	131
	2.8 Digitization and Visualization in Production	132
	2.9 Optimization During Assembly	134
	3 Summary	136
	References	137
	Part III: Component Manufacturing	139
	Trends in the Commercial Aerospace Industry	140
	1 Introduction	141
	2 Demand	141
	2.1 Commercial Aircraft Demand Is Shifting Rapidly to Emerging Markets	142
	2.2 Aerospace Is Less Exposed than Other Industries to the Need for Market Proximity	143
	2.3 Demand for Aftermarket Services Continues to Grow	143
	3 Supply	144
	3.1 New Locations Will Continue to Grow as Sources for Global Aerospace	145
	3.2 Talent Shortages Are Especially Critical for the Aerospace Industry	146
	3.3 Wages Are Rising Rapidly in `Low-Cost´ Locations	146
	4 Business Risk	147
	4.1 New Competitors Are Emerging from the Asia-Pacific Region	147
	4.2 Low-Cost Sourcing May Become More Critical but Remains a Challenge	148
	4.3 Supply Chain Complexity Poses a Formidable Challenge	149
	5 Technology	150
	5.1 Aerospace Manufacturers Could Face Supply Challenges for New Materials	150
	5.2 Additive Manufacturing Continues to Make Inroads in Complex Applications	151
	5.3 Aerospace Supply Chains Can Benefit from the Digital Thread	152
	6 Policy	154
	6.1 Governments Continue to Build Enablers for the Aerospace Industry	154
	6.2 Policy Initiatives Are Tilting the Playing Field	155
	7 Conclusion	156
	References	157
	Success Through Customer Co-Development, Global Footprint and the Processes In-Line with the Customer	159
	1 RECARO Aircraft Seating and the Automotive Heritage	159
	1.1 The Heritage of RECARO	159
	1.2 Learning from the Automotive Industry for the Aviation Industry and Vice Versa	160
	2 What Are the Chances and Challenges of an Aircraft Seating Supplier?	161
	2.1 Strong Market Growth Worldwide	161
	2.2 Variety of Customer Types	163
	2.3 Variety of Products	164
	3 A Global Footprint Tailored to OEMs and Airline Customers	164
	3.1 Product Development Philosophy and Innovation	167
	3.2 Product Architecture	168
	3.3 Project Management	169
	3.4 Global Supply Chain	170
	3.5 Holistic ``Lean´´ Approach	171
	3.6 Extended Enterprise	172
	4 Conclusion	172
	References	173
	Vertical Integration: Titanium Products for the Aircraft Industry	175
	1 Introduction	175
	2 Theoretical Framework	177
	2.1 Vertically Integrated Companies	177
	2.2 Advantages and Disadvantages of Vertically Integrated Structures	178
	2.2.1 Vertically Integrated Companies in the Aircraft Industry	180
	3 Methodology	180
	4 Findings and Analysis	182
	5 Conclusion	186
	References	187
	Part IV: Assembly and Integration	189
	Quality Gates	190
	1 Introduction	190
	2 An End-to-End Scope of Application	191
	3 Definition, Intentions and Benefits	191
	3.1 Quality Gate Process Key Principles	193
	3.2 A Quality Gate for Each Production Phase	195
	3.3 Clear and Systematic Governance Principles	195
	3.4 Key Behaviours in the Quality Gate Process	196
	3.5 Quality Gate Implementation Steps	197
	3.5.1 Define	197
	3.5.2 Run	198
	3.5.3 Improve	201
	4 Early Warning System	201
	5 Process Sustainability	203
	6 Success Stories	203
	7 Conclusion	204
	Lean Complexity Through Tailored Business Streams	205
	1 Value of Variety Versus Cost of Complexity	205
	2 Understanding the Drivers of Complexity Costs	207
	3 Limiting Complexity by Understanding Its Value	208
	4 Managing Complexity Through Smart Product Architecture	209
	5 Tailored Business Streams (TBS)	210
	6 Cultural Change	214
	Reference	215
	Driving the Digital Enterprise in the Aerospace Industry	216
	1 Introduction	216
	2 Aerospace Production Processes	218
	2.1 Parts Manufacturing	218
	2.2 Structure Assembly	219
	2.3 Robotics	220
	2.4 Simulation	221
	2.5 Work Instructions	222
	2.6 Automation Code Generation	223
	2.7 Bill of Process Authoring	223
	2.8 Bill of Process Execution	225
	2.9 Data Analytics	227
	3 Conclusion	228
	References	228
	Part V: Life Cycle Business Models and Aftermarket	230
	The Aero-Engine Business Model: Rolls-Royce´s Perspective	231
	1 Introduction	231
	2 The Business Model: Comparing Aircraft and Engines	234
	2.1 Aircraft	234
	2.2 Engine	234
	2.3 Business Models Compared	235
	3 Business Model: The Outcomes	236
	4 Services: Structuring the Aftermarket	236
	5 Optimizing the Business Model	237
	6 Suppliers: Risk and Revenue Sharing	238
	7 Working with Airbus: Innovation in Business Structure	238
	8 Secure the Future	239
	Reference	241
	The Material Value Chain Services in Commercial Aviation	243
	1 The Structure of the Aviation Material Services Market	244
	2 Strategies in the Material Services Value Chain	246
	2.1 Customer Demand for Material Services	246
	2.2 Supplier Approaches to the Material Services Market	248
	2.3 The Role of Distributors in the Material Value Chain	250
	3 Future Trends in the Material Market	251
	References	256
	Predictive Maintenance: How Big Data Analysis Can Improve Maintenance	260
	1 Introduction	260
	2 From Preventative to Predictive	261
	3 Data	262
	4 Analytics	263
	5 Digital Twin	264
	6 Intelligent Machines	265
	7 Supply Chain	266
	8 Better Together	267
	9 Outcomes Delivered	268
	9.1 Asset Performance Management	268
	9.2 Maintenance Optimization	268
	9.3 Operations Optimization	269
	9.4 The Power of 1%	269
	9.5 Analytics-Driven MRO	269
	9.6 Reduced Downtime	269
	10 Conclusion	270
	References	270
	Outlook	272
	1 Introduction	272
	2 The Future May Hold: The Standard Scenario	273
	3 How the World Might Develop: Alternative Scenarios	274
	4 Shaping the Future	276
	4.1 Studying the Supply Chain	277
	4.2 Catalyzing Cabin Industry	278
	4.3 Foresight: Vision Cabin/Cargo	278
	5 Technology: The Mean to Shape the Future	281
	5.1 Improving the Supply Network: Industry 4.0	281
	5.2 Improving the Product: Technology Roadmap	285
	6 Preparing for the Future	289
	References	289