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By implementing IFS Applications, two business units in the Saab Group have gone from a patchwork of disparate systems to an integrated, component-based suite of business applications that are designed for the aerospace and defense industry. More efficient processes, easier access to information and, perhaps most of all, less time and money spent on system maintenance are just some of the benefits achieved. Adapting to Change
A decline in military programs coupled with increased focus on commercial aviation meant that Saab had to introduce major changes to adapt to future demands. One challenge was to firmly position the business unit as a major tier I/II subcontractor. Part of the plan was to reduce a range of costs, including the cost of IS/IT support. A review of the legacy systems showed a patchwork of more than 60 different systems supporting various operational and administrative needs. Some were entirely homegrown, others were proprietary, and many were quite simply aging. And apart from the cost of maintaining old last-generation technology, the support organization was unwieldy and it was difficult to get a single view of the entire system. Moreover, vital knowledge often resided with individual operators, so when they moved on, critical competence was lost.
Single, Standard ERP Solution
The solution, as Saab saw it, was to replace this vast, unwieldy array of systems with one system, based on standards, which would cover its manufacturing and logistics requirements including customer orders, invoicing, engineering, planning and scheduling. After examining what a number of ERP providers had to offer, the choice fell to IFS. Torbjörn Nibelius, responsible for procurement and implementation, explained, “We selected IFS for a number of reasons. Firstly, it offered a complete solution for our manufacturing and logistics needs and has solid experience of the aerospace and defense industry. So it knew the challenges we were facing and could help us meet them.” Another factor was local presence, which facilitated communication throughout the project. IFS’ pricing model was also attractive, with transparency as the key word. Nibelius adds, “Actually, a very important factor was the match between our corporate cultures, which made working together so much easier.”
Well-Planned, Well-Executed Implementation
Before commencing the implementation proper, Saab and IFS carried out a feasibility study, with ‘best practice’ and ‘standards’ as the key words. The overarching specifications were determined and a business case was set up. This resulted in a clear picture of how the implementation project would be organized and run. Nibelius adds, “In a project of this size and with such a tight implementation time, sticking to the schedule is crucial. Because our focus was on implementing a standard system, we decided to adapt our routines rather than customize the application. This made for greater efficiency.” A ‘solutions group’ was appointed as well to assess the inevitable requests for customizations and additions. As a result, the number of customizations made was minimal. Another factor in the success and speed of the implementation was the use of proven methodologies: Saab’s project management system and IFS’ application implementation methodology. “This way we didn’t have to ‘re-invent the wheel’ and could guarantee the quality of the project,” said Nibelius, who added, “In fact, the general thoroughness of IFS’ approach to the implementation made it relatively easy to iron out issues before they ever became problems. For example, we specified the resources we wanted, down to individual consultants, and IFS made sure they were available. It’s reassuring and time-saving to have the same speaking partners on a daily basis—and contributed to the fact that the project was implemented on time, despite the magnitude of the challenge.” During the project, there were regular ‘tollgates’, at which progress was checked and necessary adjustments made. Throughout the implementation project, a major focus was placed on continuous, frequent training. As knowledge transfer is an integral part of the IFS implementation methodology, key users at Saab were instructed and took over the training sessions, ensuring that Saab owns the knowledge and competence related to the solution.
Integrated Business Applications Save Money and Increase Efficiency
With the solution going live in the final weeks of 2006, it is still too early to see all the benefits. However, the main benefit has already been achieved. As Nibelius says, “We stand to make significant savings in time and money merely by the fact that we have a single integrated suite of business software in place. Not having to maintain and upgrade a disparate patchwork of homegrown and proprietary systems is already a major gain. And knowledge of the system now resides within the business unit as a whole, not with an individual employee” Saab also appreciates the scalability and agility of IFS Applications, which is being used by between 4,500 and 5000 users at Saab Aerostructures and Saab Aerosystems. With its component-based service-oriented architecture, it can easily adapt to the changes and developments that are inevitable and help Saab meet, and even anticipate the challenges presented by the aerospace and defense industry. Nibelius concludes, “IFS has a long, solid experience of our industry and knows where we are coming from. We see a future with IFS.”
About Saab Aerostructures and Saab Aerosystems
Saab Aerostructures, part of the Saab Group, develops and manufactures aerostructures assemblies as partner to Airbus and Boeing. Saab Aerostructures is also the center of excellence within Saab AB for aerostructures to Saab defense products. Saab Aerosystems, also part of the Saab Group, offers advanced airborne systems, related sub-systems and services during a products whole lifecycle to defense customers and aerospace industries on the world market. Saab Aerosystems includes the multi-role combat aircraft, Gripen.
Benefits
- Single, integrated suite of industry-specific business applications
- Lower system maintenance costs
- Rapid implementation for the size of the project
- Knowledge retained in the business unit
- Scalable solution
- Long-term, committed business partner
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