© Rolls-Royce Group plc 2004
Legal information
Developing the aftermarket The development of TotalCare packages in civil aerospace is representative of the focus on aftermarket development across the Group. In particular, we are developing a comprehensive and integrated support capability, from data collection and analysis to repair and overhaul. Similar aftermarket offerings are being introduced in all of our business sectors: Mission Ready Management Solutions (MRMS) in the defence sector; and Long-Term Service Agreements in the marine and energy sectors. TotalCare is a generic name for an integrated menu of aftermarket services offered to our civil aerospace customers. We offer a long-term rate per hour engine maintenance service and take full responsibility for the provision of aftermarket services. The service is tailored for each operator and might include logistics, spare engines, accessories and powerplant and engineering support. Our growing installed base of civil engines has created an embedded value in the form of future spare parts sales which is worth US$28.5 billion, based on the fleet size at the end of 2003. In addition, there is an opportunity in the form of aftermarket services, a significant proportion of which is being secured in the form of TotalCare packages. These now cover 35 per cent of the flying hours of the existing These long-term agreements average 12 years and represent secure future revenues. Their market acceptance is widespread and growing. In the airlines sector they cover 2,800 engines, with a high proportion in the latest generation of engines. In the corporate sector (where our service name is CorporateCare) they cover 660 engines, a 50 per cent increase over the past year. These contracts provide a long-term revenue stream to Data and knowledge management are at the heart of our TotalCare offerings. We have invested in software called Service Data Manager which allows us to monitor the fleet and capture data on a real time basis. We have more operational data about the behaviour of our products in service than anyone else and this enables us to offer our customers lower cost solutions which keep engines flying longer. It also enables us to take a pro-active and predictive approach to maintenance. aeromanager.com is our web portal, with 268 airline and overhaul shop customers around the world. In Aeromanager, customers can look at repair status; view technical reports on line; book repair and overhaul slots; determine work scope; view the state of the engine to make component scrap/repair decisions; see any applicable engine upgrades; and order lease engines and consumables. To develop the tools, processes and services to complement the TotalCare offering, we established Data Systems & Solutions in 1999. This 50/50 joint venture between Investment in engine health monitoring technology avoids unplanned events and provides real benefit for the customer in terms of maintaining schedules. For We have also enhanced our diagnostic tools, making interpretation easier as data is transformed to actionable information. We have increased efficiency through automation. One performance engineer can now manage over 250 engines – a fivefold improvement in five years. We set out to develop our repair and overhaul network in the mid 1990s. At that time we overhauled less than 25 per cent of the Our investments in capability and the integrated way we have approached our service offering have enabled us to optimise value both for ourselves and for our customers. As a result the TotalCare business is growing rapidly. The trends within the civil market are evident in all our other business sectors and we are able to share best practice across the Group to further exploit our capability. |
|
 |
|
|
|||