An Industrial perspective on Through-Life-Costing

Presented by:
Ankit Khurana
SE-4
IIPM
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Welcome
totheworldof

afewfacts
Airbus

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 Passengers at heart. Airlines in mind.
Welcometotheworldof Airbus

Airbus’ achievements by the end of 2007 included

An annual turnover of €32.1 billion

A gross market share (units) of 51 %
Delivering 453 aircraft and selling 1,341 in 2007
Surpassing 8,000 aircraft ordered by 286 customers
Supporting 5,000 aircraft in service with 287 operators
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Regularly achieving over 50% of large civil aircraft orders

and deliveries

Data to end Dec 2007

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 Evolution of the Airbus family
aworldof innovation

9,175 orders
300 customers
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5,366 delivered to date

453 delivered in 2007
Data to end Sept
Page 2009
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 European Roots with global outreach
aworldof cultural diversity

20 languages
3 customer support centres More than 5,000 aircraft delivered
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16 manufacturing sites
56,000 employees 296 operators 5 spares centres
88 nationalities
298 customers more than
290 resident customer support managers 4 training centres
9 engineering design centres
160 offices
50 24 hour customer support (365 days a year)
flight simulators

1 global company
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 Though Life Costs
Throughlifecosts
When we mean to build, we first survey the
plot, then we draw the model; and when we
see the figure of the house, then we must
rate the cost of the erection; which if we find
outweighs ability, what do we then but draw
the model in fewer offices, or at least desist
to build at all?

William Shakespeare
Henry IV, Part 2,1.iii, 1598

If we can’t afford it don’t build it?

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

David Gore
Airbus UK, 2008

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 Through Life Cycle Costs, Why are they important ?
Throughlifecosts
Environmental Impacts
 Reductions in greenhouse gas emissions to prevent global warming
 Reductions in Noise output Possibility that authorities will legislate to
achieve these, probably through
 Airport congestion increased taxation.

Diminishing world resources Mitigating the Risk and realising the

opportunities associated with these will
 Fuel & commodity prices will only go up become increasingly important.

 Recycling & or disposal will become more important

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Understanding the drivers for these is key

 To enable Airbus to meet these challenges.

 To enable Airbus to maintain its position.

 Because our Customers are asking for it
Throughlifecosts

easyJet has become the

first airline to outline the
environmental requirements
that must be met by the
next generation of short-
haul super-clean aircraft;
and unveiled its design of
what such an aircraft could
look like for operation by
2015.

Dubbed the “easyJet ecoJet”, the aircraft would need to be 25% quieter and
would emit 50% less CO2 and 75% less NOx than today’s newest aircraft (the
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

737 and A320 families of aircraft).

Key features include:
Rear-Mounted ‘open rotor’ engines for short haul flying due to their efficiency
A lower design cruise speed to reduce drag and a shorter design range to reduce weight
Noise reductions to come from a gearbox between the engine and the open rotor blades
Airframe to be made of advanced materials such as carbon fibre
 What does this mean ?
Throughlifecosts

Evolution or Revolution: The history of Aircraft design has arguably

been one of conservative evolution, however the problems
addressed previously require a revolution.
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The problem Airbus and other design professionals face is not so

much a lack of ideas; ideas are historically what designers have
been best at providing. The task facing designers today is in dealing
with ‘limited resources’ in such a way that the optimum design is
chosen.
 Understanding the Challenges
Throughlifecosts

Market Requirements
 High productivity
 Low cost of operation
 Superior reliability / maintainability
 Comfort / health driven cabin design
 Low cost of acquisition

Environmental Pressures
 Low noise
 Reduced emissions
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 Low manufacturing impact

Integration in the System

 Airport congestion
 Good airport compatibility
 What do we need to do.
Throughlifecosts

We need to develop high levels of competence in the area of

cost control and cost awareness, to enable our new design to
meet these challenges, for example:-

 Development costs and over runs effect Low cost of acquisition.

 There may be restrictions on travel as resources run out, we need to
address this now with our future designs, however these must be cost
neutral.
 We must be able to balance the benefits of a technology with respect to
performance, against the cost to implement.
 We must be able to balance the benefits of a technology with respect to
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

operating cost, against the cost to implement.

 Addressing the challenge – current initiatives
Throughlifecosts
Airbus participating in the multi partner Integrated Wing project.
This programme is of particular importance as it addresses the step changes
called for by the The Aerospace Innovation and Growth Team (AeIGT) and
the Advisory Council for Aeronautics in Europe (ACARE), set up to form
partnerships between Government, Industry and Academia, under the
heading of working together to ensure the competitiveness of the UK
Aerospace Industry over the next twenty years.

Airbus, Design to Cost Department collaborating with Queens University

and QinetiQ:

To create an integrated “Life Cycle Costing” model that will allow project
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partners to evaluate the impact of technologies being evaluated in the

project.
How: By creating a Knowledge Landscape that provides a Life Cycle cost
modelling framework, where competing technologies can be evaluated.
Resulting in the capability to trade off performance improvements
against cost, and enable informed judgements to be made.
 Balance of Investments (illustration)

Active Health Monitoring

The use of smart sensors to predict the occurrence of an incident and
reduce:
 Unscheduled maintenance
 Increase utilisation

What cost would this technology bear:

 To maintain manufactures and airlines Internal Rate of Return?
 Without penalising the customer.
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
 Future Initiatives & Conclusions
Throughlifecosts
Airbus is leading the MDOW research and technology programme
in collaboration with 15 leading British industrial and research
companies to develop low-cost manufacturing methods that will
enable high-volume wing manufacture for next generation aircraft.
Future design processes will help reduce airline operating costs,
airframe weight and maintenance.

The programme will build upon, develop and enhance current

knowledge both in the materials and especially in enabling rapid
and cost-effective manufacturing whilst maintaining their excellent
weight performance and the eco-efficiency benefits these bring to
the Through Life Cycle Model.
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The Multi Disciplinary Optimised Wing (MDOW)

 © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Thankyou
foryourattention

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