Service That Never Rests

Pratt & Whitney Canada has embraced an electronic future by adapting SAP’s complex software to help manage its growing aftermarket service business.

Pratt & Whitney Canada has run its manufacturing business on SAP software since 1997, as has Pratt & Whitney (both units of United Technologies). Missing from that software platform, however, was P&WC’s aftermarket service business, which has grown to the point that P&WC derives 50 percent of gross sales from aftermarket services. "We now serve about half our engine population," said Denis Parisien, vice president-service centers operations.

With that much revenue dependent on the operation of an efficient network of service center businesses, it became apparent an upgrade to P&WC’s computer system was overdue. "We wanted to implement a system to support the complete environment of the service center network," said John MacFarlane, manager, enterprise resource planning. But it was important not to let the information technology department drive the development process, he added. "It was driven by business ownership," he explained, with clearly defined business processes setting the stage for software automation, not software telling the business how it ought to be run.

This didn’t mean P&WC personnel didn’t have to scrutinize their processes. A benefit of automating by adopting a new software platform is that it forces everyone to evaluate all processes, not only to see how they fit into how the software works, but also to decide if a process is efficient and even necessary.

Making sure operators are happy with their engines is a critical part of P&WC’s strategy. One is likely to keep buying aircraft with P&WC engines if one is happy with the service, including that provided by the company that designed and built the engine and a network of independent service suppliers.

P&WC has produced nearly 55,000 engines that fly in more than 100 countries. Like most OEMs, P&WC has its own network of service centers, but it also encourages independent service centers to make sure operators have plenty of choices. "We try to keep good competition out there," said Parisien. "We compete on service, which is healthy. We’re careful to keep a good balance." P&WC owns six overhaul-capable service centers and 10 regional centers that offer many engine service capabilities except for full overhauls.

Cost is a huge driver for operators who need engine services, but turnaround is probably more important. Saving money on an overhaul might not be worthwhile if it means an expensive aircraft can’t earn its keep for a few more days. And the right kind of computer upgrade can help a company like P&WC cut days out of turnaround time. The time needed for a typical overhaul has already dropped to 33 days from 42 after implementing the SAP solution.

It’s not all about software, however. P&WC likes to say the company’s personnel think as though they are the airline customer. This has lead to innovations like P&WC’s mobile-response teams–pools of experienced mechanics who can quickly fly to a customer site to fix an engine on wing. The teams’ tools are pre-packed and ready for shipping from 11 P&WC locations.

Another important component of P&WC’s success is its purchase of engine data company Altair. The Altair system records key parameters during aircraft operation and allows downloading of data to the operator and back to P&WC. The Altair system isn’t just for engine data. It can record items like landing gear and flap position for almost any aircraft, not just those powered by P&WC engines. Having accurate engine performance data helps operators view trends and can help minimize downtime and extend engine life. If a pilot suspects an overspeed or overtorque occurred, Altair data can easily be used to determine if the engine needs additional maintenance or if the event was within limits. "This [Altair] has become a strategy for us," Parisien said, "not a box. We see this as a key differentiator."

IT strategy

P&WC is not new to the idea of an information technology strategy and executives there have been planning for how IT can help the company in the future. In 1997, Pratt & Whitney and P&WC began implementing SAP’s software as part of their IT strategy. The next step was obviously to carry SAP through to the service center network.

"We wanted to implement a system," said MacFarlane "to support the complete environment of the service center network." This includes, for the near-term, the P&WC-owned service centers and, for the future, independent but authorized P&WC maintenance facilities.

The first step in preparing to adapt the service business to SAP (or vice versa) was to break down engine work into major business processes, said MacFarlane. This resulted in making "castles" disappear, eliminating protected fiefdoms and turning the system into a smoothly coordinated series of smaller processes feeding a larger process. "We now have end-to-end processes," he said. "And it’s driven by business ownership, not the IT department."

P&WC turned off its mainframe computer system last August, the first United Technologies company to do so. Information in the old system was not readily available to P&WC managers or customers. "We had to push information through a maze to get it to the customers," said MacFarlane. "Now it’s easy to get information to the customers and get information in [to P&WC]."

SAP didn’t have an MRO module when P&WC began using its software for the service business. "But we didn’t accept that we can’t do an SAP solution for MRO," said Parisien. P&WC ultimately developed an in-house, SAP-based MRO solution tailored to its needs. "It was a big decision to take, going into uncharted territory."

Preparation for the big effort began in January 2001, more than a year and a half before the system was switched on permanently. A P&WC team of 60 people with more than 1,000 people-years of MRO experience was dedicated to the effort, along with consulting teams from SAP and Computer Sciences Corp. P&WC initially planned to switch to SAP within a year, but extra time was needed to marry the MRO solution to P&WC’s back-office systems, a delay that turned out to be well worth while.

P&WC did have to adapt some business processes to SAP’s software. "We had to stick to the SAP implementation process," Parisien said, "and line up the business process with the capability of the system and stick to the SAP methodology."

But that doesn’t mean P&WC didn’t get what it wanted. The biggest part of creating the MRO solution was a fundamental part of the system called the Inspection Workbench. It links to the master P&WC database that contains all engine data, down to the serial numbers of each P&WC engine and the parts it contains. To ensure the quality of the database, said Parisien, "we have a rigorous process that handles master data."

Information such as service bulletins and airworthiness directives become part of the master data for each engine. Anyone working on an engine therefore has instant access to service information including engine configuration and applicable SBs, saving hours of time looking up data. This frees up technician time from constantly validating data and allows him to spend far more time inspecting and repairing an engine. "The biggest benefit is elimination of mistakes," Parisien noted. It used to be easy to enter an engine serial number incorrectly, in many places. "This prevents that. From induction to final billing, it’s all the same database."

The benefits are readily apparent. A detailed engine inspection used to take three to four days, one or two of which was just to gather necessary information on the engine. "We’ve reduced that by 1.5 days," Parisien said. This translates into a huge time savings in determining an engine’s disposition because the customer gets data on the engine’s condition so much faster. "It goes beyond that," he said. "It’s the total information flow that was improved, and the elimination of paperwork issues."

The new system makes a big difference in something as basic as disassembly and cleaning. It used to take days to learn engine configuration details and cycles and hours accumulated on various parts. That data is nearly instantly available now through the Inspection Workbench. Instead of cleaning all parts of an engine, it makes more sense to determine what will be discarded before you start cleaning. SAP makes this very simple. As a result, turnaround times are improving. A hot-section inspection used to take 11 days. That has dropped to 24 hours.

A great aid to speeding engine work is a neat feature P&WC added that stores short videos of engine repair and overhaul processes in the SAP system. A technician needing to review a procedure can do so at one of the many computer terminals in P&WC’s repair and overhaul facility.

P&WC takes its computer data seriously. It backs up every system every night. A backup of the backup is stored off-site each week in case of a major catastrophe.

Future steps for P&WC are to add all of its company-owned service centers to the SAP MRO platform, plus add the capability for customers to view repair tracking of their products online, as well as warranty process optimization, integration with the Altair conditioning-monitoring system to facilitate proactive and preventive maintenance, and possibly electronic logbooks. P&WC would also like to offer SAP MRO capability to its authorized service center network. "We could save them time and money," Parisien said. At the least, he added, "we could still provide access to configuration management even if they’re not on an SAP platform."

Meanwhile, P&WC is sitting pretty with its $15 million (Canadian) investment in the SAP MRO platform, for a few good reasons. Not only did the 1.5-year process help P&WC improve its internal processes and get rid of inefficient and unnecessary procedures, but having the entire company stabilized on the SAP system makes expansion that much easier. "If we want to start a new facility, we have the process. This is just a platform to get continuous improvement," Parisien concluded.

P&WC’s Tips for Adopting SAP Software

• Select the top performers (your best people and best minds) from the business unit to be on the team and empower them to do the job. The executive sponsor must be from the business and the project manager must have a strong information technology background.
• Define and implement robust training and change-management programs that emphasize that the SAP/MRO system is foremost a business solution, not just a technical solution. Investment in user training is critical, as is continuous implication from the business units.
• Clearly define the work scope up front and minimize work scope creep during the project. Keep your sights on the big picture. Never allow the project to be derailed for small technical issues. Follow a proven project methodology.
• Ensure you have a high level of commitment and involvement from the executive level of the business for all phases of the project. This can be accomplished by setting up an effective steering committee.
• Maintain constant, consistent communications on the project to keep everyone informed.