Program Profitability for the Aerospace and Defense Industry

In the defense business, government customers are holding contractors increasingly accountable to decreasing program budgets. In commercial aerospace, margin pressures and the need to involve multiple partners in a program requires an increased level of program discipline.

Profitability is not simply a matter of cost reduction. It also requires new mechanisms for extracting the value from existing programs and opening new channels for growth such as aftermarket support. Our program profitability assets help us quickly and systematically analyze a program's cost structure to understand primary costs and determine opportunities for potential savings.

We use our deep industry experience, firm grasp on leading commercial practices, proven methodologies and robust tools to help Aerospace and Defense companies seize every opportunity to strengthen their profits. The Accenture Program Profitability Diagnostic analyzes program profitability in the context of shareholder value creation, tying program performance to the levers that control your bottom line. Yet our focus is not purely upon the financial benefits. Our approach also accounts for risk mitigation, change management and organizational alignment, factors that can help to secure the long term staying power of program profitability initiatives.

We help Aerospace and Defense companies target opportunities in areas including strategic sourcing, procurement, supplier collaboration, logistics, internal business processes and engineering. Our approach:

• Rapidly assess and diagnose opportunities (often within weeks, not months)
  
  
• Focus on areas that can help to deliver the most ROI, profit and shareholder value
  
  
• Yield implementation plans that can drive rapid benefit realization
  
  
• Can help to improve program profitability through:
  • Reducing sourcing cost
  • Reducing manufacturing costs
  • Reducing delivery costs

Our program profitability assets include a methodology guide and tools designed to help teams quickly and systematically:

• Assess the current state of an Aerospace and Defense company's program profitability
  
  
• Identify, prioritize and recommend potential profit improvement opportunities
  
  
• Develop a high level implementation road map and detailed work plans to rapidly capture benefits
  
  
• Implement solutions to capture the benefits.