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Success story | Drive an efficiency platform for an aircraft manufacturer

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Arnaud Guerin

Principal / France

Paris

Drive an efficiency platform for an aircraft manufacturer

 

CHALLENGES

Our client, a leading aircraft manufacturer, wanted to prepare for the future, freeing up some financial capacities to facilitate investments in new programs.

They decided to implement a company-wide plan, addressing all costs and revenues of the P&L as well as the cash.

 

SOLUTIONS

  • To explore new efficiency levers on a company scale an efficiency platform has been set up. Breaking silos between organizations, the platform included the Programs, Aftermarket, Engineering centers of competency, and Procurement commodities. It aimed at setting ambitions, exploring promising topics, prioritizing, and coordinating improvements.
  • Governances have been adapted to support ideation, ease decision-making, and transform ways of working in the long run.
  • The efficiency platform allowed to develop specific sets of improvement levers covering cost reduction, new revenues, and inventory reduction.

 

KEY DELIVERABLES

  • Ambition aligned with key stakeholders covering both EBIT and Cash (Inventory)
  • Levers for each P&L component: Systematic screening of buy parts, engineering development, new revenues and inventory
  • Improvement projects portfolio: Structure and size impact of concrete projects supporting the ambition

 

CUSTOMER BENEFITS

DOUBLE-DIGIT IMPACT (%) (in 4 years, in a context of deliveries ramp-up)

  • on full-year EBIT in 4 years
  • on inventory reduction

 

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