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Introduction

This Chapter provides an introduction to some areas of further information which is useful for managing Airbus Projects.

AIRBUS PROJECT LANDSCAPE ...................................................................................................................................................

Fig. 9-1

Commercial Aircraft Programmes Diversification

Programmes

Single Aisle Long Range A380 A350

Pax Series Pax Series Pax Series Pax Series ATR
Production Production Production Production
Freighter Series
A320 NEO Production Head of Version A350-800 Hawker

Sharklets CJ/VIP Series Mod A350-900 Eurofighter

CJ/VIP Head of Version A350-1000 Tornado

Head of Version Series Mod Head of Version Inlet Cowl

Series Mod Series Mod

Corporate Functional Research and

Improvements Improvements Technology IS/IT CapEx

e.g. Optimise
e.g. Power 8 R&T IS/IT CapEx
Inspection
e.g. iShare
e.g. SHAPE e.g. A Project e.g. Clean Sky e.g. A350 FAL
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Deployment

e.g. A Project e.g. A Project

Generic Perimeter Title: Portfolio Development Programme x

Programme + Multi-Project x
Series Programme + Project x

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9.1 Capital Expenditure (CapEx) ............................................................................................................................................ 548
9.2 Engineering Resource Management ........................................................................................................................... 550

The Airbus Project and Programme Landscape is shown in Figure 9-1.

Future
Programmes Military Aircraft Programmes

Transport
A30X A400M Military Derivatives and Mission
Series MRTT CN-235
Production

A400M C-295

Series Mod C-212

P3

Series Mod
to CN-235
Series Mod
to C-295

Methods Customer Air Traffic Business Multi-Programme

and Tools Services Management Development Projects

e.g. Cabin e.g. Services

M&T e.g. SESAR e.g. MPSP
Upgrade Connectivity
e.g. COLOSSUS e.g. Brake
Spare Parts e.g. A Project

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CAE Model to Vacate

Applicable Management Approach:

+ Airbus Programme: Programme Management Approach applies
x Airbus Project: Project Management Approach applies Status: December 2011

Note: Programme Management Approach usually encompasses many,

if not all aspects of the Project Management Approach.
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9.1 CAPITAL EXPENDITURE (CAPEX)

Introduction
A Capital Expenditure (CapEx) is incurred when a business spends money either to buy fixed assets or to add value to an
existing fixed asset with a useful life that extends beyond the taxable year.

Capital Expenditure Projects (CapEx) are expenditures creating future benefits. CapEx is used to acquire or upgrade physical
assets such as equipment, property or industrial buildings (see Figure 91-1). In accounting, a capital expenditure is added to an
asset account (“capitalised”) thus increasing the asset’s basis (the cost or value of an asset as adjusted for tax purposes).

In order to harmonise and integrate the best practices across Airbus, a central CapEx team provides up-front guidance to the
business, allowing the business to proceed in the right direction. The guidance is based on the CapEx process shown in
Figure 91-2.

CAPEX OVERVIEW ...........................................................................................................................................................................

Fig. 91-1

CAPITAL EXPENDITURE (CAPEX)

A CAPEX FILE IS A REQUEST OF BUDGET TO ACQUIRE:

INVESTMENTS TOOLING

MACHINERY LANDS & JIGS & TOOLS

& equipment BUILDINGS
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An essential part of the process is the approval process in which key stakeholders ensure that the optimum investment solution
is realised for an existing and defined problem.

Key aspects of CapEx Projects

• A CapEx file documentation shall be completed for any CapEx request.
• Any Project above 0.1 M€ value at completion will be described according to the CapEx authorisation file (official template).
• In the case of external financing, the approval process will be in accordance with the approval process external financing
document. Approval thresholds are related to the purchase value of the real estate.
• A CapEx file represents technical and financial justification documents for a full CapEx Project.
• A CapEx Project must include all components and costs which are necessary to achieve the target for which the Project has
been designed.
CAPEX PROCESS ............................................................................................................................................................................
Fig. 91-2
Create Cluster MFT
Request provides guidance
A Harmonised solution existing
Local Function/ Frame contract exists
Department A A1 Harmonised solution needed
Central Decision

Frame contract needed

Problem requiring
Cluster MFT

UNDER Cluster Control

Solution
B Harmonised solution
B NOT needed
BUT strategically important
UNDER Cluster Control
MPR (Project by Project)
- Definition of Clusters) C Harmonised solution
- Strategic Framework NOT needed
harmonized across
C NOT strategically important Project MFT
functions (Benchmarks) NOT under Cluster Control processes details
- Frame Contracts
“Fast Track” C Technical
Pr

Procurement C
oc
Single Approval

an

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ure
Le

me

B Project MFT:
nt

Solution
B
Pronag
Ma

Implemented
an l
ce
Fin oca
jec er

A A
t

Programme

Project MFT
PO Approval Prepares CapEx File

MFT: Multi Functional Team MPR: Master Plan Review PO: Purchase Order

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9.2 ENGINEERING RESOURCE MANAGEMENT

Related PM Foundations 1.3.9 Human Resource Management

Aircraft Projects are often competing for the same key resources. It is a key challenge to put the right resources on to a Project
at the right time, working on the right tasks, in order to deliver milestones on-time, on cost and on-quality, securing Project
deliverables and financial performance.

To avoid inconsistent and unfeasible Project plans it is important to synchronise Workforce Adaptation Plans with the planning
process, and to do so across multiple Projects.

The objectives of the process are:

• to manage multi-Project arbitrations with respect to resources constraints
• to validate Workforce Adaptation Plans
• to secure optimal staffing.
In the case of mismatches between demand and supply the process forces:
• the analysis of root causes
• impact on time/quality/cost
• the development of “what-if” scenarios describing possible and feasible solutions for decision making. The solutions
elaborated consider constraints in terms of capacity limitations or headcount policies or business rules such as Make/Buy.

MULTI-PROJECT ENGINEERING RESOURCE MANAGEMENT PROCESS .............................................................................

Fig. 92-1
DEMAND

Multi-Project
Workload
Baselining
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Workload/ Workforce
Workforce Planning and
Matching Development
Workforce
Capabilities Agreed Workforce
Assessment Adaptation Plan

SUPPLY

550
The main elements of the process are described below and are shown in Figure 92-1.

• Multi-Project Workload Baselining is the output of Project Management processes in terms of workload profiles, including
their related risks and buffers, translating Work Packages of different Projects into estimated workload needs. It is the
aggregation of single Project outputs, covering running as well as any new and future Projects.
Workload estimations must be based on robust assumptions, with possible updates on demand. The workload needs from
multiple Projects are consolidated twice a year in order to prepare the Workforce/Workload Matching. The workload needs are
split by skill group, with estimates per quarter for the current and following years.
• Workforce Capabilities Assessment is undertaken by Functions which contribute to Projects, generating workforce profiles,
including their related uncertainties and buffers. The workload profiles from various Functions are consolidated twice a year in
order to prepare the Workforce/Workload Matching.
• Workload/Workforce Matching is the “core” of the overall process, in which supply and demand information is put into a
single picture allowing:
- sharing between the process stakeholders
- validation of the feasibility of the a Project's workload requests
- validation of the resources and subcontracting plan.
Workload/Workforce Matching is conducted twice a year (March-May and September-November), with a top management
decision body (the Program Engineering Review, PER) as the process owner. The key objective is to find the best solution from
an overall Airbus perspective rather than Projects or Functions trying to optimise individually. The main output of the Workload/
Workforce Matching is the agreed Workforce Adaptation Plan for internal airbus workforce and the adaptation of the
subcontracting plan as well (comprising decisions on recruitment plans, main mobilities, reallocations, etc.).
• Workforce Planning and Development implements the actions defined in the Workforce Adaptation Plan, including resource
transfers, recruitments, training activities, and individual resource allocations to Projects.

APPLICABLE DOCUMENTS

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Type Title Reference Access
Policy EADS Policy for Multi-Programme Engineering EADS-CDS-037 Airbus People/
Resource Management P&PM
Management
Community/
EADS Policies

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