Meggitt launches global aftermarket operating model
In May 2015, Meggitt launched the first phase of its centralised Customer Services & Support (CSS) organisation, streamlining the group’s interface with aftermarket customers.
The global operating model, fully launched in January 2016, is designed to develop the agility Meggitt needs to service customers’ needs in the dynamic trading environment for spares and repairs. Its success is one of the group’s strategic priorities. “We will succeed by delivering superb service throughout our products’ lifecycle and, ultimately, helping our airline customers run their operations as cost-effectively as possible,” says Lorraine Rienecker, the new organisation’s President.
The aim of the new organisation is to simplify the interface between Meggitt and its aftermarket customers. “We need to coordinate the efforts of sales and customer support personnel more effectively and build partnerships for growth.” Common metrics will be established for all Meggitt aftermarket operations to ensure that every team rises to the cost, quality and delivery standards set by the best. CSS will facilitate a more efficient feedback loop between customers and Meggitt engineering teams, delivering the data needed to design products that are more easily maintained and last longer.
Phase one saw the establishment of a management team to centralise customer-facing teams. The sales effort has been organised regionally and by key account to offer a greatly simplified interface to customers—one single source of service rather than multiple points of contact across capabilities and regions.
The feedback from customers has been universally positive. “Our customers are starting to see the number of Meggitt phone numbers in their address books cut and their understanding of Meggitt’s full range of capabilities rise, “says Rienecker.
CSS’s initial operational responsibility centred on existing dedicated aftermarket facilities in Singapore, UK, Germany and the United States. At the beginning of 2016, it assumed responsibility for key commercial and military aerospace spares distribution and the MRO operations of two divisions—Meggitt Control Systems and Meggitt Sensing Systems—plus those of Meggitt Aircraft Braking Systems’ UK facility in Coventry. As CSS develops and matures, it will acquire responsibility for all Meggitt’s aftermarket operations. While complete control over operational performance will lead to systemic improvement and best-practice sharing, Rienecker wants to optimise the opportunity to meet customers’ requirements for the long term. “A fully mature CSS organisation will enable us properly align all elements of our aftermarket services across the product lifecycle.”
CSS is not a discrete organisation within the Group. “To guarantee CSS success, we are remaining fully integrated with our original equipment businesses and will retain strong interfaces at all levels,” says Rienecker. Clearly, this is critical if CSS is to maintain high ratings on its customers’ delivery scorecards. However, CSS wants to communicate a greater understanding of operators’ needs and in-service product performance to Meggitt’s original equipment engineering teams. “It’s all about maximising Meggitt revenue across the lifecycle by creating an innovation loop,” she explains. “The opportunities to boost Meggitt’s product pipelines with upgrades and next generation products are significant.”
So that the new organisation is equipped to exploit retrofit, modification and upgrade opportunities, CSS technical teams are now focusing on developing more in-depth reliability and maintenance data for all Meggitt products.
Over the past 18 months Meggitt Control Systems (MCS) has systematised electronic MRO data capture to better understand product performance in the field. This meets the aviation industry’s Spec2000 requirement for industry partners to exchange detailed information easily and cost-effectively.
Having successfully deployed Spec2000 on MCS legacy product lines, CSS will now drive a global project to deploy this data-recording methodology across all Meggitt facilities performing MRO services. “Capturing data is only the start,“ Rienecker emphasises. “Having the processes to accurately assess and interpret the data and act on the findings are critical, which is why designing them will also be a priority for CSS and Group engineering over the next 12 months.” The goal is to provide mid-life, product refreshment opportunities, boosting the operating economics of the airlines, while providing highly profitable business for the Group.
As the original equipment manufacturer, Rienecker believes Meggitt has intrinsic competitive advantage. “Our customers want to keep their parts on wing for as long as possible. With more data and trend analysis behind it, our team of outstanding product designers will be extremely well-placed to redesign longer-life products for retrofit.”
After putting a centralised AOG (aircraft-on-ground emergency) call centre in place last year, CSS is developing it further to meet its obligations for new aircraft entering service. “We want to make it more efficient for the operators and more cost-effective for the Group so 24/7 support will be delivered with fewer points of contact and optimised stock management,” says Rienecker.
CSS operations will be underpinned, as all Meggitt operations, by the Meggitt Production System. This will make fast, efficient service as much a competitive advantage in aftermarket centres as it is for those facilities concerned with the industrialisation of product for original equipment manufacturers. “There are many outstanding aftermarket teams at Meggitt but the competition is becoming stronger and airlines are having a greater influence over their supply chain. Meggitt’s original equipment customers – the airframers and engine-makers – want to partner suppliers who can deliver for their customers. MPS will ensure CSS provides that assurance.”
After spending close to a decade as Meggitt’s Executive Vice President of Strategy, Sales & Marketing, Rienecker is enjoying the opportunity to specialise in one business, albeit a multi-faceted one. “In the OE market, programmes can be very long. The aftermarket is much more dynamic and service-driven. I am, however, delighted to be working within the entrepreneurial service culture of the aftermarket trade, backed by our OE businesses – after all, they are the best manufacturers of our products and the best engineers.”
Headquartered in the United Kingdom, Meggitt PLC is an international group operatingin North America, Europe and Asia. Known for its specialised extreme environment engineering, Meggitt is a world leader in aerospace, defence and energy, employing nearly 11,000 people at more than 40 manufacturing facilities and regional offices worldwide.