INNOVATIVE MINDSET Swaran Sidhu - Head of Fleet Technical management

IATA MCC SEPTEMBER’16

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something about us…

> What we do:

We are low-cost European point-to-point short-haul airline.

> Where we do it:

Intra-European short-haul network.

> Our ambition:

Is to be Europe’s preferred short-haul airline, delivering market leading returns.

> Our cause: Is to make travel easy and affordable.

255 aircraft

68.6m passengers

730+ routes

26 bases

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46.2 48.9

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something about us…

SAFETY SIMPLICITY ONE TEAM INTEGRITY

> Our values

PASSION PIONEERING

SAFETY UNDERPINS EVERYTHING WE DO

> WE ARE GROWING!

Number of passengers million 68.6

Profit before tax £ million 686

Capacity growth per country %

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58%

42% A319

A320

our aircraft

> Entry 2013

> Entry 1995 / Exit 2011

> Entry 2003

> Entry 2009

> 255 aircraft… and growing!

> Average age: 6.5 years

> 5,900,000+ hours flown with Airbus

> 3,750,000+ flights flown with Airbus

255 A/C

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our FUTURE aircraft

> Entry 2017

> More growth is coming!

Number of aircraft units

> Delivery of first A320 NEO in Jun’17

> Delivery of A320 CEOs until 2018

> 26% of the fleet will be A320 NEO by 2022

4.9% 7.1% 8.7% 7.9% 6.3% 7.9% 6.0%

Base Case seat

capacity

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Engineering & maintenance overview

> Support 255 Airbus A320 family aircraft at present.

- Single type operator

- Set to receive A320 NEO aircraft with CFM LEAP engines from 2017

> Employ 255 staff.

- 55% Part M and Part 21

- 45% Part 145

> Maintenance spend of £229 million in FY15 (£3.06 per

seat flown).

Maintenance 6%

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> Ensure the easyJet fleet is maintained safely and efficiently, to a high standard whilst ensuring regulatory compliance.

> Provide smart solutions to maintain high levels of

aircraft reliability and availability.

> Ensure that aircraft are available in a timely fashion to

meet operational requirements by adopting smart maintenance philosophies.

How do we achieve the above?

By providing leading edge, innovative solutions that reduce costs and improve the passenger experience based on a continuous improvement concept

Engineering & maintenance Key functions

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innovation

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Why innovate? Creative destruction

On Winning Enterprises…. “ It is not the kind of competition which counts but the competition from the new commodity, the new technology, the new source of supply, the new type of organization …. ….competition which commands a decisive cost or quality advantage and which strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very lives. “

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1960 2010

Adapt or die Technology is evolving…

1970 1980 1990 2000 FUTURE

Television

radio

internet

? PHONE

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Adapt or die Technology is evolving…

Adapt Or die !

Accelerating Growth In Technology (condensed)

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Where good ideas come from Steven johnson

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Where good ideas come from Steven johnson

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HOW DID WE CREATE AN Innovative mindset?

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STARTING WITH LEAN INNOVATIVE MINDSET

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IS IT… or…

What is lean?

> The relentless removal of all waste and non-value adding activity.

…a recipe for quick success that can be implemented in 6-9 months.

…a management initiative.

…common sense.

…a set of tools for improving a business.

…a set of principles that work most effectively in a manufacturing setting.

…an evolutionary search for better processes that is never complete.

…a total change in the way business people think and act.

…straightforward principles tied to often deceptively difficult execution.

…a focus on getting processes right from the perspective of customers.

…a set of principles that can apply to any process.

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Why lean?

> Eliminate waste

- Deliver exactly what we need.

- Eliminate all that does not add value.

> Change the culture

- Encourage learning by doing.

- Set clear goals with real-world consequences.

> Grow the business

- Optimise service, cost and asset productivity.

- Segment, integrate and accelerate information flow.

> Improve performance - Employ proven tools to eliminate waste. - Deploy cross-functional problem solving teams.

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History of lean It’s nothing new!!

> Lean is the culmination of a number of techniques learnt over hundreds of years.

Adam Smith (1723-1790)

> Free Trade / Capitalism > Invisible Hand > Division of Labour

Eli Whitney (1765-1825)

> Cotton Gin > Standard Parts for Guns

Frederick Taylor (1856-1915)

> ‘One best way’ > Principles of Scientific Mgmt

Henry Ford (1863-1947)

> Moving Assembly Line > Standard Parts

Kiichiro Toyoda (1894-1952)

> Textile Industry > Automatic Looms > Toyota Motors > Ford System > Just in Time

Edwards Deming (1900-1993)

> Quality at the Source > Statistical Methods > Plan Do Check Act > 14 principles of Management

Taiichi Ohno (1912-1990)

> Father of TPS > Toyota Production System > Just in Time > Jidoka

Jim Womack (-1952)

> Textile Industry > Automatic Looms > Toyota Motors > Ford System > Just in Time

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THE TOYOTA PRODUCTION SYSTEM

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The SEVEN WASTES MUDA

ransportation cost & time for staff, equipment and parts.

nventory - too much people or stuff just in case; incorrect inventory

i.e. tickets when there is no demand.

otion - waste by people and machines moving around - applies to

customers as well.

aiting for service, products, colleagues, information, personnel,

materials, availability of machines.

verproduction.

ver-processing - duplicate data entry, inefficient stocking, multiple

contact points.

efects in the operation, or service errors.

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In a service environment, unclear or unnecessary communications and lost opportunities can also be considered ‘wastes’

SIMPLICITY COST

EFFICIENCY

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> “Material and information flow mapping".

> Analyse the current state – develop the future state.

> Identify wastes, defects, friction points

> Develop an action plan -> implement change quickly.

INNOVATIVE MINDSET VALUE STREAM MAPPING

VSM

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GEMBA

> Japanese term meaning “the real place”.

> The place where value is created.

> Gemba walk: management visit the ‘scene of the crime’

> Gemba rules:

- ‘Go see; ask why; show respect’

- Any process or location can be walked

- Pay attention to how exceptions are handled, these could be future ‘delighters’

- Align ‘people’ and ‘process’ to achieve ‘purpose’

- Make a plan to go and watch; look and learn; then reflect. Make Gemba part of your routine

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ExAMPLES OF Innovative mindsetS

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No more boarding passes

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DEALING WITH FLIGHT DISRUPTION

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> Customer hotel self service

INNOVATIONS IN EASYJET ENGINEERING

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Jul‘10 Start of the development of AVOID.

Our journey so far

Jan‘10 easyJet brings Part M organisation in-house.

Feb‘10 Introduction of AMOS as maintenance system.

Mar‘11 Introduction of STREAM for digital documentation management.

Feb’12 Creation of digital D&B

within AMOS.

Sep‘12 Start of

Engine Wash campaign.

Sep‘13 Initial development of

Drone Inspections.

Nov‘13 Delivery of first

aircraft with Sharklets.

Feb‘14 Development of

3D D&B, Flight Watch & Real Time

Transmission

May‘14 Entry into service of BladeFix as software for quick fan blade replacement.

2010 2011 2012 2013 2014

Apr‘14 Installation of toughpads across all EZY fleet.

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Our future journey

2015 2016 2017 2018 2019

Feb’15 Automated flight of a drone.

Jun‘15 Telemetry trial.

4Q‘15 Release of BladeFix V2 for SBR.

Aug‘15 Paperless Cabin trials.

3Q’16 Future Cabin I

3Q‘17 Neo and LEAP EIS.

Mar‘16 First base to use drones for lightning inspections.

3Q‘17 Drone NDT roll-out.

Connected A/C Optimised Maintenance Programme

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Volcanic ash detector avoid

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stream PAPERLESS OFFICE

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stream PAPERLESS OFFICE

> Fleet size of 225 aircraft and growing.

> Around 1,400 flights per day.

> Approximately 200,000 Tech Log Pages per year.

> 80,000 equalised Work Packages per year.

> 34,000 component changes per year.

> e-sign to be implemented by end of 2016.

2011

2011 Introduction of Stream

2013 Real time re-delivery Records management

End of 2016 AMOS/Stream

integration + e-sign

2012 2013 2014 2016

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Paperless aircraft Toughpads & e-paper

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Rapid software change Fan blades management

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planning OPTIMISATION toolS MAINTENANCE OPTIMISATION software

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Remote inspections drones

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Dent and buckle Augmented reality

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Reverse engineering 3d scanning

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OPERATIONAL SITUATION Awareness TRACKING DEVICES

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Predictive failure technology Aircraft systems

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The Future of Fleet technical management

http://www.blooloop.com/news/electrosonic-installs-videowall-and-operator-conso/3275#.U0Vh7_ldXbw

http://www.avispl.com/outfitting-a-modern-operations-center/

http://processengineering.theengineer.co.uk/centralised-control-room-operations/1016661.article

INNOVATIVE MINDSET

How DOES AN INNOVATIVE MINDSET HELP TO REDUCE COST?

IATA MCC September 2016

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> Lower TAT

> Less manpower resources

> Lower inventory

> Reduction in AOGs and quicker recovering through more predictable failures

> Increased aircraft reliability and availability

> Proactive versus reactive maintenance

> Systems automation allows for fleet growth whilst maintaining current resource levels

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Fleet size Engineering Headcount Headcount Ratio

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INNOVATION IS A STATE OF MIND!

THANKS!