Capacity planning adding to ramp-up challenge woes

Airbus first announced plans to ramp up its A320 programme in 2021 and some manufacturers were unsure whether it would be possible to meet this level of demand, particularly as many were still suffering the after-effects of the pandemic shutdowns, which left them with depleted resources and a lack of skilled labour. With the rate increases firmly underway, aerospace and defence (A&D) manufacturers know that more challenges lie ahead as Airbus moves closer to its target to make 75 jets per month by 2025.

To learn more about how the industry is coping with the rate ramp up, management consultancy Vendigital has delivered a rate readiness assessment project within the A&D manufacturing supply chain, comprising over 100 suppliers based in Asia, Europe and the US. The assessments carried out revealed that 38 per cent had inadequate processes for capacity planning.

In a statement, Paul Adams, director and A&D sector specialist at Vendigital, said: “We know that the rate ramp up has been challenging for manufacturers across the supply chain. The project we carried out provided an under-the-bonnet assessment of how the industry is coping with the rate increases and it is clear that a lack of focus on capacity planning is holding some businesses back.”

The suppliers that undertook the rate readiness assessment were facing a steep ramp-up challenge, as their upstream customer was looking to increase production output, sometimes in a matter of weeks. The upstream customer had itself completed a comprehensive review of its internal processes with the aim of optimising operational efficiency. The report warns that any manufacturer planning to undertake a rate readiness assessment should look inwardly and outwardly.

Adams said: “It’s easy to think that meeting the ramp-up challenge depends solely on the readiness of suppliers. While this is important, there is no point investing resources in strengthening supply relationships and building in extra capacity if your own processes are underperforming. To be truly collaborative, each business must look both inwardly and outwardly, and data is key to this.”

The lack of focus on capacity planning identified within the supply chain was primarily due to a lack of skills. Many A&D manufacturers are still operating with a depleted skills base, which they have not yet managed to rebuild in the wake of pandemic-related disruption. In some instances, it was found that a lack of knowledge about key plant and machinery, and lapsed maintenance programmes were making it difficult to predict production output reliably. In other instances, even if capacity planning was taking place at a senior level, a lack of focus on communication and process efficiency was preventing the message from reaching the production floor.

While less marked than the lack of capacity planning, other supply-side deficiencies were identified during the rate readiness assessment, including challenges accessing skilled labour, difficulties sourcing raw materials and components, substandard production tooling and equipment, and issues with operational efficiency.

Vendigital said its report provides advice for A&D manufacturers across the supply chain on steps they can take to assess their own ramp-up readiness.