BOEING AUSTRALIA LIMITED

IMPLEMENTING AN E-PROCUREMENT SYSTEM

SWASTYAYAN SENGUPTA
TIRUMULA SASHIKANT
UTPAL BHOWMICK
VAQAR NUSRATH
VINAY JOSEPH
Agenda
Company Background
Management Team
Customers
As-is Analysis
 IT Site Layout
 System Architecture
 Current Procurement process
 SWOT analysis
Proposed Scenario
 Integrated procurement system
 Advantages of moving to an Integrated procurement system
 Answers to the questions
Gaps and Value Drivers
 Conclusion
The Company Background
• In 1937,Commonwealth Aircraft Corporation
licensed to build NA33 training aircraft for
Northern Aviation Incorporated Military
MilitaryAerospace
AerospaceSupport
Support
•Further Contracts : Aerospace Technologies
of Australia(ASTA)---sold for 40 Million to the
Rockwell Systems Australia in 1995.
•RSA extended to aircraft production, Commercial
CommercialAviation
AviationServices
Services
modification and servicing.
•BAL formed on 6th December, 1996 when
Boeing acquired Rockwell’s aerospace and
defence business
Knowledge
KnowledgeSystems
Systems
•BAL shifted headquarters to Brisbane( 1998)
and centralized operations supporting 4 key
divisions.
• Greater Synergies through centralized and Space
Space&&Communication
CommunicationServices
Services
standardized operations but still autonomous
• In 2002, BAL had 3000 employees and had 12
locations(strategically located) around Australia.
Customers
•Major customer- Australian Defence Force( RAAF, RAN, Australian Army)
annual spend of 12 billion dollars- defence and security of Australia.
•Some on going contracts
 Management and maintenance of military sites
 Modification and upgrade projects
 Providing the RAAF with an Airborne Early Warning and Control
 Providing new ground based air defence, command, control and communication
systems at RAAF Tindal and NSW
•The military needed to monitor the status of aircraft and submarines BAL was
working on.
•BAL also needed to update its military readiness systems
•All the suppliers needed to be certified
AS – IS ANALYSIS
BAL’s IT Site Layout
Seattle
Seattle

Brisbane
Brisbane
System Architecture

Pro-Pricer Programme
(Bids) WDS ERP Mgmt
OPP/COBRA Customer
(Scheduling) MRP/WO Reporting
E-Matrix M/SCM Supplier
(SOW /Design) Management
Work Place (Time)
e-SFTR (shop floor)
Oracle Fin. Business Management
Management (Budgets, Forecasting & Reporting)
Pro-Master (e-Proc)

Catia Payroll / Labor / People

Aurion HR Management
Eng. tools Mangement
Current Procurement Process
Vendor Purchase
Selection Order

Authorizati
Quotation
on

Place Receive
Order Invoice

Make Receive
Payment Goods

Enter Order in
Credit Card Purchasing
•High Volume, Low Value, non-critical purchases brought outside ERP
•Orders made through a single application
•Single point authorization
•Reduced duplication of effort
•Automated update of accounts system
SWOT Analysis
Strengths
Opportunity
- Benefit of supply deals
Cost savings in negotiated with Parent
Global supplier Boeing
market place - Rationalized suppliers
- Low value, High
through Reverse
volume purchases done
auction thru electronic system

Threats Weaknesses
Improve procurement Legacy ERP system
processes to reduce
which cannot be
time consuming
integrated with
purchasing to stay
ahead to competitors supplier web-based
for its major customer ordering systems
SDF
Value Chain Analysis

Procureme Operations Outbound Sales &

Service
nt /R & D Logistics Marketing
FEEDBACK & QUESTIONS

THANK YOU