Continuous improvement in operating performance

The risk profiles of the individual A&D programmes that make up a company's portfolio can vary significantly. In the commercial market, A&D companies take significant upfront risks by investing heavily in long-term programmes alongside OEMs. The financial impact of mistakes, changes in schedules and build rates or mismanagement is high. Likewise, in the defence market, management must decide on which programmes to pursue based on the long-term technology position they wish to maintain and the likely build rates, timing and life cycle of the equipment.

Performance on major programmes must be well managed as it significantly affects both earnings and customer relationships. This has challenged companies to stretch their capabilities and risk profile, but the risks of failure can be high.

The long-term production cycle of a typical A&D program me makes it difficult to recover from errors or mismanagement, which can lead to billion dollar losses, changes in senior management and a loss of market share. Throughout the organisation, there is an emerging push to streamline processes and integrate operations. At the operating management levels, there are increasing rewards and penalties in the area of programme management.

How PricewaterhouseCoopers can help you

PwC works closely with clients to achieve quantifiable process improvements to address their operational needs. We can help design, manage, and execute cost reduction and performance improvement programmes locally and globally. Some of our key A&D strengths are in the areas of: Concept of Operations (CONOPS), Programme Management Effectiveness, Shared Services & Outsourcing, IT Effectiveness, People and Change, and Government Contracts.