Bar Is Raised On Nimrod Support
13 Jun 2005
Reductions in the RAF’s Nimrod MR2 fleet size announced last year mean that recent aircraft availability and cost reduction improvements will not be enough in the future.
A BAE Systems Customer Solutions & Support-led team under a MOD contract known as the Nimrod Integrated Support Contract (NISC) carries out day-to-day maintenance at the aircraft’s Kinloss main operating base. The team includes people from both the RAF and FRA.
The UK Defence Logistics Organisation’s Nimrod IPT leader Group Captain George Baber has told the team, “The fleet reduction will create a real challenge to both the IPT and BAE Systems. Under NISC1, from a fleet of 21 aircraft, 12 were required each day.
“With NISC2, from a reduced fleet of 16 aircraft, we will need to produce 10 aircraft each day - a huge proportional increase in efficiency.”
Prior to the award of NISC some four years ago, upkeep for Nimrod was provided through over 20 traditional contracts for various elements of support.
By bundling these together into incentivised arrangements and introducing modern asset management software, the joint team is boosting aircraft availability while cutting the cost of support – currently by eight per cent.
Baber views the NISC program as a journey of transformation, undertaken in a number of measured steps. These allow him to control the transfer of work and risk from the MOD to industry.
The NISC whole-life support program is broken essentially into three major packages:
* NISC1, a 75m contract awarded in October 2002, transferred on-aircraft depth maintenance and spares management to Customer Solutions & Support (CS&S).
* This will evolve in late 2005 into NISC2, valued at some 80m. Under this CS&S will expand its involvement in on-aircraft maintenance, take over fleet management and be incentivised to deliver agreed levels of air vehicle availability.
* NISC3, with a potential value of 350m, will be launched in May 2006. It will deliver integrated weapons system availability, taking on much of the off-aircraft component repair and maintenance.
Mike Raettig, CS&S head of reconnaissance, explained: “This stepped approach allows us as a company to de-risk processes and prove our capacity to deliver before we move to the next stage.”
NISC1, together with a similar arrangement the IPT has struck with Rolls-Royce for the support of the Nimrod's Spey engines, has increased the number of available aircraft from 9 to 12 per day. The increased demands of the more integrated contracts in the pipeline will require slicker support processes.
Mike Raettig explains that by introducing new IT tools such as Xelus, currently used by the supermarket industry to stock shelves, the team can look at seasonal demands for spares across the aerospace industry and order, transport, track and stock according to future demands.
“The demands placed on us are driven by the use of flying hours, by maintenance schedules and where the aircraft might be used. If we understand that and understand historical demands, then we can project future requirements and make sure that we have got enough stock and orders in place,” added Mike.
“From now until the aircraft go out of service, if we've got it wrong that's our risk!'”
Group Captain Baber concludes: “There are major change programmes going on in the RAF and at RAF Kinloss at the moment – End-to-End, Forward/Depth and Provider-Decider. The depth organisation process at Kinloss and the NISC contracts do very strongly support that organisational model.”
“The opportunities presented by NISC are win-win to all parties. The real challenge for BAE Systems and us is to ensure that we generate better value and produce greater effectiveness. MOD gains increased aircraft availability, the British taxpayer gets true value, and if industry deliver they make a profit.”
“Although we will be launching the NISC3 bidding process before we have even started NISC2 we have to keep that level of pace going to meet the challenge of reducing budgets.”
These new processes proven on Nimrod MR2 will also underpin MRA4 aircraft support. Similar support transformation programmes are being introduced for most BAE Systems-designed RAF aircraft, including Tornado, Harrier and VC10.
About BAE SYSTEMS
BAE Systems is an international company engaged in the development, delivery and support of advanced defence and aerospace systems in the air, on land, at sea and in space. The company designs, manufactures and supports military aircraft, surface ships, submarines, fighting vehicles, radar, avionics, communications, electronics and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years. It is at the forefront of innovation, working to develop the next generation of intelligent defence systems.
BAE Systems has major operations across five continents and customers in some 130 countries. The company has more than 90,000 people and generates annual sales of over 13 billion through its wholly-owned and joint venture operations.
For further information, please contact:
Mike Sweeney, BAE Systems
Tel: +44 (0)1772 856034 Fax : +44 (0) 1772 852713
mike.sweeney2@baesystems.com
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