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Through Life Costing An Industrial Perspective By Dale-Martin Parker JSF Operations Manager GE Aviation.

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Through Life CostingAn Industrial PerspectiveBy Dale-Martin ParkerJSF Operations ManagerGE Aviation

GE Proprietary Information – The information contained in this document is GE proprietary information and is disclosed in confidence. It is the property of GE and shall not be used, disclosed to others or reproduced without the express written consent of GE, including, but without limitation, it is not to be used in the creation, manufacture, development, or derivation of any repairs, modifications, spare parts, designs, or configuration changes or to obtain FAA or any other government or regulatory approval to do so. If consent is given for reproduction in whole or in part, this notice and the notice set forth on each page of this document shall appear in any such reproduction in whole or in part. The information contained in this document may also be controlled by the U.S. export control laws. Unauthorized export or re-export is prohibited.

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Through life Costing

Over 150 years of continuous development

and components for the first autos in 1900s

exited auto components and clocks c1980

Launch of

JSF 2008

jewellery shops

started making clocks, watches

in at the birth of aviation

Supplied engine indicators to Concorde 1967

Became part of GE 2007

entered US defense sector in 1987

entered US defence sector in 1987

Sam Smith

founded the

company in 1851

Transferred from Cricklewood to Cheltenham in 1939



19th century

20th century

21st C

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Through life Costing

  • Aerospace

  • Vs

  • Consumer

What makes Aerospace so special?

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Through life Costing

  • Consumer products tend to fall into the following categories

    • Low – Medium -High Complexity

      • Light bulbs to mobile phones

    • High Volume

      • 1000s off per week

    • Short Life

      • Replace after 1 year

    • Low Cost

      • £100 not £1000

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Through life Costing

  • Consumer products are designed to meet the mass market and often designed to meet a fixed price

How many features can we get into this product

for say £100?

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Through life Costing

  • Aerospace Systems products fall into the following categories

    • High Complexity

      • Life dependent

    • Low Volume

      • 1 off per year up to 3000 off per year

    • Long Life

      • Up to 30 years and longer

    • High Cost

      • £1000 not £100

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Through life Costing

  • Aerospace Systems products are bespoke

  • Designed to customer requirements

  • Concurrent

  • development

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Through life Costing

  • Gone are the days of Cost Plus

  • Customers now often demand fixed cost pricing at the quotation stage

    • Cost to develop Product

    • Cost to Qualify the Product

    • Cost to manufacture finished product

    • Cost to maintain the Product

  • Year on year cost reductions

    • Through the life of the product

    • Technology refresh

    • Last time buys

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Through life Costing

  • Mean time between fails

    • AOG (aircraft on ground)

  • Requirements of Military vs Commercial Aircraft

  • Specifications

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Through life Costing

  • Complex Manual costing process

    Many departments

    • R & D

      • Total Cost to design and develop product

    • Procurement

      • Cost of parts during life of product

    • Manufacturing Operations

      • Tooling, Labour costs, Capital investment

    • Outsource costing (low cost economies)

      • Is out source an option BABSON

    • Component Engineering

      • New parts, obsolete parts

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Through life Costing

  • Finance

    • Exchange rate

  • Sales & Marketing

    • What can the market take

  • Qualification

    • Very high cost for full qualification

  • Quality & Safety

    • Safety Critical device

  • Customer Services

    • Cost of after sales and warranty

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    Through life Costing

    • Spreadsheet

    • Historical data

    • Internal & External Data

    • Slow Manual Process

    • Toll Gate Process

      • Bid no Bid / Retirement

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    Through life Costing The Future

    • The Discerning Customer

    • Faster turn round for quotes

    • Even more cost conscious

    • Environmental Impact

    • Pay by Flight

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    Through life Costing The Future

    As the competition increases and with increased pressure on product pricing & environmental issues not considering

    Through Life Costing

    will prove fatal to companies who ignore it or get it wrong