Virtualization and Simulation As Key Assets for the New Business Challenge

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1 Virtualization and Simulation As Key Assets for the New Business Challenge Nazario Cauceglia Chief Technical Officer Virtual Test and Engineering Simulation in A&D October 23 rd th

2 Summary Alenia Aeronautica Context Alenia Aeronautica Vision Virtualization Skills & Highlights Virtualization Roadmap & Achievements Way Ahead and Conclusion Company Confidential 2

3 Alenia in Finmeccanica Aircraft Helicopter Space Electronic for Defence Defence System Transportation & Energy Alenia Aeronautica Agusta Westland Alcatel Alenia Space Selex Sensors & Airborne Systems MBDA Ansaldo Breda Alenia Aermacchi Alenia Aeronavali ATR Telespazio Galileo Avionica Oto Melara Ansaldo Energia Selex Sensors & Airborne Systems Ltd WASS Ansaldo STS Selex Communication Fata Elsag Datamat Selex Sistemi Integrati Orizzonte Elettronica Selex Service Management Company Confidential 3

4 Programs Alenia Aeronautica investigates and reinforces his technological base (from composite materials to Autonomous Flight Technologies) enabling his presence in several segments with competitive product and sustaining a growing strategy. Combat a/c Trainers Regionals Aerostructures / Commercial Aircraft Military Airlifters UAV/UCAV Overhaul and Modification Mission Systems Company Confidential 4

5 Civil Programs Supplier Risk sharing Supplier Partner Prime Dassault Falcon 900/2000 Fuselage Section Thrust Reverser Engine Nacelle Airbus A321/ A330/ A340/ Tail Cone Wing Components Boeing B787 Stabilizer Central and Rear sections fuselage 26% 787 structure Superjet 100 Partner: Sukhoi ATR CARGO Civil & Military certification Boeing B767/ 777/ 717/ 757 Control Surfaces, Fin, Fuselage Panels/ Barrels Wing Tips Radome AirbusA380 Fuselage section 15 ATR42/72 Partner: EADS-F Workshare: 50 % Company Confidential 5

6 Military Programs Risk sharing Supplier Tornado Interdiction & Strike Workshare: 15 % Partner AM-X Primary Responsibility for Complete Weapon System Prime JSF Final Assy in Italy (AMI and other Nations) Logistic Support Center (South Europe) Wing Structure Design Wing production & assembly Typhoon Air Superiority & Ground Attack Workshare: 21 % Neuron UCAV 22% Workshare ATR SM Civil & Military certification C-27J Civil & Military certification Sky-X UAV First flight May 2005 Sky-Y MALE UAV First flight June 2007 Company Confidential 6

7 Revenues Distribution in the Value Chain Assets Alenia is willing to enforce the Prime / Co-Prime role in cooperation with key Risk Sharing partners Il nuovo Business Model A&D Alenia Aeronautica CUSTOMER Prime Partner <<Co-development>> Risk Sharing Business Model 60 70% Revenue (Prime e Co-Prime) ( C-27J, ATR M3, ATR 42/72, EFA, ) Risk Sharing Partners & Major System Supplier Supplier Contracting Based Business Model 30 40% Revenue ( A380, 787, ) System Specialist, Sub-Assembly Supplier Component, Part and Tooling Supplier Design Services Company Confidential 7

8 Competitiveness Roadmap Current discontinuity emphasizes that the knowledge is the main enabler factor of modern competitive system LEADERS RAMPANT 25 FOLLOWERS Networked Knowledge 20 Value 15 Capitals Technologies Knowledge 10 Resources Work years Company Confidential 8

9 The Knowledge Wave IP Central to Economic Growth & Competition % Gross Domestic Product US investment in intangible assets (>$1T/year) equivalent to investment in tangibles Tangibles Intangibles Intellectual property is the backbone of America's economy U.S. Commerce Secretary Carlos Gutierrez Japan intends to bring about a nation founded on intellectual property Japanese Prime Minister Junichiro Koizumi The competition of the future world is a competition for Intellectual Property Rights Chinese Premier Wen Jiabao ~80% of the value of modern companies comes from intangible assets Sources: US Federal Reserve Nakamura, Ned Davis Research Company Confidential 9

10 Executive Summary The challenges that Alenia is coping with: Alenia Aeronautica is subjected to many external and internal factors that push both toward new competitive positions and toward a reorganization of the company value chain Exogenous factors Networked Knowledge in a Cooperative Environment (Extended Enterprise) - Project Team de-located - Real-Time Collaboration Growing Competition Intellectual Property Rights management Endogenous Factors Multiplicity of Roles & Programs Efficiency increasing Optimization of the supplier base Know-how Capitalization Next 5 years plan: doubled revenues Company Confidential 10

11 The New Business Model Traditional Enterprise Specialized Enterprise The Specialized Enterprise supports the business imperatives through: Differentiation Focusing time management, talents and investments on specific critical components related to the main peculiar strategies Reactivity An evoluted business model to cope with changes in market requirements through a networked organization made by internal and external specialists cooperating Efficency Merging similar activities/business belonging to different units to reach scale effects, knowledge sharing and increase effect of best-in-class partners Company Confidential 11

12 Enterprise Transformation Roadmap Catalysts Information and Communication Technology Standards Main Capabilities Differentiation Reactivity Security Standard Processes Shared Knowledge Company Confidential 12

13 Alenet Model Customer contract Option Catalog Certification Mapping Standard to Serial Numbers Program Master Table Monitoring Customer Delivery As Contracted Investigations Change Dossier Program Steering Commissions Decision Applicability Program Management Conformity Deviations Document / Content Management Change control & Traceability Change Orchestration Workflow Management Requirement Management As Designed As Planned Resources As Built (As Delivered) Product, Process & Resources Management As Maintained Collaboration C A E Management C A D Management C A T Management C A M Management C A P P Management Knowledge Management Product / Simulation and Prototyping ( virtual & physical ) Catia v4 Catia v5 Word Excel HMS CAPP CASE Et. Creation Tools Network Security / Communication Management Technology Infrastructure, System Integration Company Confidential 13

14 New Enterprise Model NETWORK Community Management Security Social Network Analysis Key Performance Indicator Enterprise Model Collaboration Management Document / Content Management Knowledge Management Collaboration Service Process Management Enterprise Resources Planning HR Finance Logistic Procurement Customer Relationship Management P L M Core Supply Chain Management Shop Floor Control FMS Plant Automation. + Company Confidential 14

15 Model Based Aircraft Development Model-based Aircraft Development in Extended Enterprise Concept phase is the bet and trade-off shall wrap-up requirements, functional views, architectures and verification methods Multi-disciplinary approach is mandatory for system perspective as whole Full lifecycle coverage shall anticipate all the implications in design, manufacturing, operation and maintenance Systems are spread in a deep supply chain, so global collaborative environment, federative process governance and information integration are key enablers Concurrent Engineering Enables Risk and Cost Reduction Company Confidential 15

16 V-Model Based Product Development The virtualization covers the full lifecycle development and the validation process Needs & Requirements Concept & Definition Assessment Development Production Operation & Support SYSTEM Operational Scenario Performance Simulation Decomposition Decomposition & Design Design SUB- SYSTEM EQUIPMENT Integration Integration & Testing Testing Flight Test Laboratory Test Concept Evaluation Synthetic Company Confidential Environment 16

17 Design Powered By Virtualization Virtualization drives the product development from the concept to the real integration Concept Validation Product Company Confidential 17

18 Virtual Testing and Validation Reduce the physical tests to minimize development risks and costs Exploit virtual platform when the physical test is not practical Company Confidential 18

19 Downstream BC: Experimental data 11S S S S S Orifice 11S S S Downstream BC: 11S diam=16[mm] Experimental data Restrictor Smoke Valve diam=54[mm] / Downstream BC: Experimental data 11S diam=45[mm] 11S S Downstream BC: Ptot and y(ng) specified Equivalent model +restrictors (3x25) 11S S S S S diam=19[mm] Experimental data Downstream BC: Restrictor -204 ref. 13S diam=51.4 Downstream BC: 11S (part) Experimental data 13S / / S S S Downstream BC: Equivalent model 13S System Engineering and Architecting Virtualization drives the model-based system engineering from requirements to architecture definition, enhancing the conceptual design as critical phase in lifecycle Rack 120 VU [g/s] Rack 90 VU + Panneau Plafond [g/s] CFD architectural characterization Cockpit+ E/R radar + glace sondes Pressure Point [g/s] AHRS -7.2 [g/s] Pressure Point [g/s] -6.7 [g/s] Pressure Point [g/s] Pressure Point [g/s] Pressure Point [g/s] -9.2 [g/s] Pylone Electrique fan = [g/s] Pressure Point [g/s] Rack 80 VU+ bloc sondes System/sub-system Analysis (Easy5) Company Confidential 19

20 Virtualization Skills Development Roadmap Vertical CAD-CAE Extended Enterprise Lifecycle Virtualization Lifecycle Extension 3 4 Enterprise Integrate Simulation Environment 2 Multi-disciplinary Optimization CAD-CAE CAE Integration 1 Vertical CAD-CAE CAE Discipline Coverage Company Confidential 20

21 Alenet Virtual Prototyping and Simulation Planning MSC Prime Integrator Alenet Virtual & Physical Prototyping: Exemplar Engineous Second Partner Contract Prototype Delivery Integrated Solution Extension & Design Implementation Standardization Refinement Phase1 Phase2 Phase3 Company Confidential 21

22 Alenet Multi-disciplinary Integration Multi-disciplinary Environment for Product Development Company Confidential 22

23 HPC Capabilities High Performance Computing Center Quadrics Bull Storagetek HP QsNet II Quadrics for the structure integration Storage System and Parallel File System (Lustre) Backup Library 200 nodes 2x Opteron DualCore Bull 6 nodes 8x Intel Montecito Bull 36 nodes 4x Intel Montecito ~2.2 TFlops ~2.8 TFlops Operative System: Linux Compiler: GNU, Intel C/C++/Fortran, Portland PGCC / PGF90 / PGHPF 8 x Montecito 4 x Montecito 2 x Opteron DualCore Library: Intel MKL, IMSL, Lapack (Scalapack) FFTW Parallel Language : MPI-CH, MPI-Quadrics, HP-MPI, OpenMP Debugger: Gdb, Xdb, Totalview, DDT Lustre PFS OSS MDS Performance Tools: PAPI, vprof, Vampir Parallel File System: Lustre (CFS) Storage 20 TB Tape Library Company Confidential 23

24 The High Performance Computing Center Company Confidential 24

25 Wrap-up Conclusions In order to face successfully the incoming change of the worldwide business model, Alenia is engaged in a challenging evolution of technology and process This innovation is a mandatory requirement to sustain the market competitiveness for a global player role pursued by Alenia Alenet Project has been conceived in this perspective through two main streams of: New Integrated PLM Virtual Prototyping and Testing Virtualization and HPC are key assets in Alenia Aeronautica strategies The relevant capabilities are pursued and developed through internal initiatives (es. Alenet Project) and research programs (es. CRESCENDO) The framework based on strategic alliance system can support the business development as virtualization and HPC service provider through Alenia Aeronautica controlled company (Alenia Improvement) Company Confidential 25

26 Virtual Test and Engineering Simulation in A&D October 23 rd th

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