Complex business software for aircraft maintenance

...aim to make the operation as effective as possible to generate the greatest possible rev-enue at the lowest possible cost.Sounds boring? Not if we consider the increasingly competitive market environment and the consciouslychanging challenges MRO industry faces lately.Now it sounds interesting?

Challenges in the MRO industry

Countless challenges make it hard for MROs to keep their operation effective and increase their productivity.

Continuously increasing security expectations New business models with the low-cost airlines Increasing number of competitors Drastic push by the operators to short outage of aircrafts by maintenance To be flexible for clients while the whole project is under control Fast changing and developing technology, new skills Different economical opportunities around the globe General downturn in economy

Despite all the challenges MRO business is still known globally as a promising industry. So howcan you manage to increase your productivity while handling all the challenges?

The SAP A.G. as a market leader application system provider invested lot of resources togetherwith the market leader MRO companies to provide wide functional support to the business. The developed solutions are supporting the MRO companies' business processes from thecustomer order taking, maintenance project planning, execution, cost control and all materialprocesses including rotable management and inter-changeability. SAP uses the more than 35years and 20.000+ projects experiences to provide high quality proven solution to MRO client's.

The SAP technologies are not only support business processes, but also provides a complexenvironment to the SAP partners to be able to design and deliver client dependent custom solu-tions to meet with companies expectation.

The main processes and the related SAP functionalities in brief:

Sales Manage RFPs and related quotations Contracting Generate Customer Requested Items by using detailed maintenance operation plans Issue down payment, partial and final invoices

Maintenance Manage manufacturer’s specification Recording notification based on CRIs or deferred items Defining standard and exceptional operation routings according to the needs Define maintenance project network to group rationally all related and dependent operations Define material requirements for rotables and all other material Define personal competence dependent capacity requirements with all related standard cost elements based

on on-going fine tuned cost facts from the past Generate job cards by using work centres and shops with all predefined tools to instruct maintenance staff Confirm used operation time and related costs and manage job card statuses on header and operation level Close job cards and maintenance project

Material management MRP II to using stock levels, reorder policies etc. Handling inter-changeability based on manufacturers part numbers Manage purchase requisitions extended with approval workflow Handling supplier selection based on issued RFP and received offers Purchasing materials and services manually or automatically Receiving materials and confirm services with all related workflow and paperwork Inventory management (issue materials to workshops, stock take etc.) Material cost pricing Vendor and supplier invoice receiving with approval workflows

Controlling and Finance Complex cost and revenue collection with automatic integrated financial documents posting Manage profitability analysis on a very deep level of business Manage financial activity with all supplier / customer related bookings Bank accounting Balance sheet and P&L and further analytical reporting extended with complex data warehouse based

business intelligenceHuman Capital Management

Manage organizations Personal development related activities (like competence management, training, selection, recruitment,

assessment etc. Personal accounting with all related activities like time management, complex compensation management etc.

HostLogic is based in Hungary, and has been committed to SAP technology since 1989. We offerthe latest software components with system-integration and implementation consulting services.Being the market leader SAP hosting partner in Eastern-Europe we provide not only implementation,but operation, training and application suppport services to our clients.

These high level services, offered in several countries within the region, help our clients to advanceboth their IT and business capabilities. HostLogic staff have participated in major domestic andinternational SAP projects, by now we have implemented different SAP based solutions in morethan 100 companies. HostLogic’s activities range from consultancy, through system administra-tion, to full life-cycle of Application Service Provision (ASP). We develop, implement and monitorentire SAP solutions that support all corporate business processes.

If you already have SAP:

IT Strategic Consulting Competence Center Advisory Deployment Governance System and Authorization Audit IT Funding and Financing Advisory Roll-Out Upgrade Consolidation Change Management Quality Assurance Hosting Help Desk

HostLogic has extended and continuously extends the functionalities of the MRO solution. Basedon the experience from the complex implementation project at Lufthansa Technik, HostLogic'sMRO solution can be delivered with the following unique features and special functionalities:

Sales Threshold management to define and monitor contract dependent various thresholds to support partial invoicing

and monitor profitability during the maintenance projectControlling and Finance

Define a detailed cost and revenue accounting model to monitor maintenance projects’ profitability Standardized and unified general ledger accounting method to be used in one system for several different

countries to provide local and corporate reporting

Maintenance Developed method to use standard SAP objects to manage tool crib processes in-line with running mainte-

nance operations Clock-on / clock-off process support to monitor on-going operation and simplify time confirmation Design printed job card forms extended with barcodes using predefined standardized texts Customized screens to simplify data entry in workshops and work centres Document management to collect all scanned job cards and other maintenance project related files for easy

control of CRS process (in progress) Automatic import of job cards provided by clients or Lufthansa Technik Hamburg (in case of subcontracting) Provide EDI in case of special customer needs for better and faster communication Reports and queries for operational and higher level management

Material Management Developed new, easy to use functionality to handle rotables by using serial numbering Various enquiries to inform material management about inventory and purchasing processes Integration between SAP material management and external warehouse management system Handling AOG

Human Capital Management Integrate Kaba – Benzing time and attendance terminals for personal outage control Hungarian payroll forms and reports according to the local needs Integrate external payroll system for Malta and Bulgaria

Lean process elements Easy to customize workflow to controll maintenance projects KPI monitoring Extensive controlling and business analysis Real-time Business Activity Monitoring with predictive analysis and optimization techologies

What HostLogic offers to MRO’s:

If you are new to SAP:

Complex industry specific ERP software Special features customed for special MRO needs Easy application for new locations Leading technology User friendly: easy to learn and use Integrated data management, no duplications Stremalined business processes Best practice knowledge Real time information Multilingual software environment

Aircraft maintenance powered by SAP – for Lufthansa Technik

Lufthansa Technik AG has contracted HostLogic Ltd. in Budapest to design and roll-outa new SAP based template for it's subsidiaries in Hungary, Malta and Bulgaria. The mainscope was to maximize the benefits from the latest SAP version while customizing thesystem to the special needs. The project has been formed by three parties, LufthansaTechnik, Lufthansa Systems and HostLogic. It started in Hungary and continued in Maltaand later in Bulgaria. The fourth country is still under planning.

Concept behind the project - One4FourThe start date of the project was July 1st. 2007 and the first system went live in February 2008in Budapest. In this first phase the new template has been designed and implemented inHungary. Later on it was the model for other countries based on the business practice andexperience gained during this phase.Lufthansa Technik Budapest has been using SAP for years, the management decided in 2007 toset up a new functionally enriched solution on the latest available SAP platform. The templatewas planned to be delivered in four countries based on the model of the first country. That's thebackground of the project name One4Four.

Challenging time frameThe business expectation was a real challenge for the project, because the time frame waspredetermined by contracts signed in Malta for maintenance by 2008 July 20th and Bulgaria by2008. September 15th. This time pressure has forced the project to maximize the standard SAPsolutions and minimize extra developments. During the template design only standard solutionswere used with enhancements to meet some special expectations. The new system was set up and ready to use within 7 month, as a result of the hard work andthe commitment of the project team. It was almost the same day, when they started to use the new system in Budapest and the roll-out project was launched in Malta. Within four months the template was successfully rolled out inMalta and later in Sofia as well.

Benefits and future plansThe One4Four (144) project successfully met the challenging deadlines and supports the MRObusiness operation using standard SAP functionalities with enhancements. Currently the systemis used by ~ 450 users in three countries. Lufthansa Technik plans to use the 144 model for othercountries with similar size and operation as Hungary, Malta and Bulgaria. Lufthansa Technik has now standardized business processes supported by a complex andintegrated business software. It makes Lufthansa Technik capable to provide cost effective andhigh quality maintenance for its clients.

HostLogic Ltd. Telefon: + 36 1 237 1730Hungary – 1134 Budapest Fax: + 36 1 350 4113Váci út 45. Email: info@hostlogic.huAtrium Park Office, ‘A’ Building www.hostlogic.com