PHM Experience at UTC and Pratt & Whitney: Challenges and Opportunities

Steve O’Flarity

This document is the property of Corporation (UTC). You may not possess, use, copy or disclose this document or any information in it, for any purpose, including without limitation to design, manufactureThe PHM or repair Society parts, or obtain FAA or other government approval to do so, without UTC’s express written permission. Neither receipt nor possession of this document alone, from any source, constitutes such permission. Possession, use, copying or disclosure by anyone without UTC’s express written permission is not authorized and may result in criminal and/ or civil liability. 1 October 2009

Pratt & Whitney Proprietary Focus

United Technologies PHM Overview Pratt & Whitney PHM Overview Defining Value…It’s Not Easy Lessons Learned (and some we’re all still working on)

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page 2 1 October 2009 United Technologies Corporation

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page 3 Public Access Data 1 October 2009 A Tradition Of Innovation

Willis Carrier Elisha Graves Otis Fred Rentschler

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Thomas Hamilton David Sundstrand Charles Chubb Walter Kidde

page 4 1 October 2009 Broad UTC PHM Experience

Remote Elevator Monitoring Multi-Spectral Fuel Cell Remote Diagnostics EHM, ADEM Diagnostics

United Technologies Pratt & Whitney UTC Power Research Center

Otis Health Monitoring HUMS Usage-Based Lifing Health Monitoring

PW625 P&W Canada HamiltonClick Sundstrand to edit Master subtitleSikorsky Aircraftstyle

Diagnostic Sensor Fusion Remote Building Monitoring Health Monitoring and Diagnostics

Pratt & Whitney Rocketdyne Carrier UTC Fire & Security page 5 1 October 2009 Pratt & Whitney

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Large Military Engines Small Engines Power Systems Space Commercial Engines

page 6 Public Access Data 1 October 2009 Experience and Engineering Excellence

New Engine Engines Services

Click to edit Master subtitle style Material and Service Repair Services Solutions

Over 80 Years of Aircraft Engine Design & Maintenance

page 7 1 October 2009 Complete MRO Services

Fleet Management Overhaul Repair $/FH Overhauls

Click to Healthedit Master Management subtitle styleLine Maintenance Water Wash $/FH Monitoring

PW6000 JT9D V2500

CFM56 PW4000 JT8D

PW2000 24-Hr Help Center Engine Leasing Customer Training

page 8 1 October 2009 Customer Issues are MRO Issues

$25.0 Cum Maintenance Cost Availability $20.0 DMC ($M)

$15.0

$10.0

$5.0

PURCHASE $0.0 0 5 10 15 20 25 30 35 40 45 50 55 Year

Example assumes $2M purchase price and $100 / EFH direct maintenance cost (DMC) at 3,500 EFH / yr

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Fuel

Emissions

page 9 1 October 2009 Engine Health Management Integral to managing operations

Automatically process data Detect issues before failures Perform troubleshooting Analyze Plan maintenance Turn aircraft Recommend Inspection Click to edit Master subtitle style Maintenance Manage Life cycle costs Forecasting Supply chain

page 10 1 October 2009 Engine Management Programs (EMPs) Closed loop alert notification and disposition process

Review

Document Confirm

Customer

Maintain Click to edit Master subtitle style Isolate

Communicate

page 11 1-1 1 October 2009 Key Lessons / Challenges

What’s the business case? How do we get data? How do we support small customers, mobile customers (leasing)? How do we solve more of our customers’ problems?

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page 12 1 October 2009 A Generalized PHM Value Model

OBJECTIVE CREATE VALUE

RECIPIENT

VALUE PROP

BUS. PROP

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OFFERING

METRICS

page 13 1 October 2009 A Generalized PHM Value Model

OBJECTIVE CREATE VALUE

RECIPIENT PROVIDER CUSTOMER VALUE VALUE

VALUE PROP

BUS. PROP

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OFFERING

METRICS

page 14 1 October 2009 A Generalized PHM Value Model

OBJECTIVE CREATE VALUE

RECIPIENT PROVIDER CUSTOMER VALUE VALUE

REDUCED REDUCED INCREASED VALUE PROP MAINTENANCE OPERATING AVAILABILITY COSTS COSTS

ADDITIONAL BUS. PROP OUTSOURCE GUARANTEES CAPABILITIES

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OFFERING MAINTENANCE MONITORING BETTER PLANS PLANS FLEET

ASSET / MAINTENANCE OPERATING RESIDUAL METRICS COSTS COSTS VALUE

RELIABILITY AVAILABILITY

page 15 1 October 2009 A Generalized PHM Value Model

OBJECTIVE CREATE VALUE

RECIPIENT PROVIDER CUSTOMER VALUE VALUE

REDUCED REDUCED REDUCE GENERATE INCREASED VALUE PROP MAINTENANCE OPERATING COSTS REVENUE AVAILABILITY COSTS COSTS

GUARANTEED BUNDLED / WARRANTY MONITORING IMPROVE ADDITIONAL BUS. PROP MAINTENANCE ADJACENT OUTSOURCE GUARANTEES MITIGATION PROGRAMS RELIABILITY CAPABILITIES COST SERVICES Click to edit Master subtitle style MAINTENANCE USAGE BY VARIOUS VARIOUS BETTER MAINTENANCE MONITORING BETTER OFFERING COST THE HOUR MODELS POSSIBILITIES PRODUCT PLANS PLANS FLEET GUARANTEES

REDUCED REDUCED ASSET / ADDITIONAL ADDITIONAL ADDITIONAL MAINTENANCE OPERATING MAINTENANCE WARRANTY RESIDUAL METRICS SALES SALES SALES COSTS COSTS COST COSTS VALUE

INCREASED RELIABILITY AVAILABILITY AVAILABILITY

page 16 1 October 2009 Define and Quantify the Metrics!

OBJECTIVE CREATE VALUE

RECIPIENT PROVIDER CUSTOMER VALUE VALUE

REDUCED REDUCED REDUCE GENERATE INCREASED VALUE PROP MAINTENANCE OPERATING COSTS REVENUE AVAILABILITY COSTS COSTS

GUARANTEED BUNDLED / WARRANTY MONITORING IMPROVE ADDITIONAL BUS. PROP MAINTENANCE ADJACENT OUTSOURCE GUARANTEES MITIGATION PROGRAMS RELIABILITY CAPABILITIES COST SERVICES Click to edit Master subtitle style MAINTENANCE USAGE BY VARIOUS VARIOUS BETTER MAINTENANCE MONITORING BETTER OFFERING COST THE HOUR MODELS POSSIBILITIES PRODUCT PLANS PLANS FLEET GUARANTEES

REDUCED REDUCED ASSET / ADDITIONAL ADDITIONAL ADDITIONAL MAINTENANCE OPERATING MAINTENANCE WARRANTY RESIDUAL METRICS SALES SALES SALES COSTS COSTS COST COSTS VALUE

INCREASED RELIABILITY AVAILABILITY AVAILABILITY

page 17 1 October 2009 Diagnostics and Prognostics Mitigate Risks

Reliability typically trades with cost and weight PHM improves reliability, reduces cost Catch small events early before becoming big cost Reporting Turn UERs into pre-planned removals Forecast trends that can be managed on wing Fault Trending Determine overhaul workscope on wing Extend life – usage-based lifing Alerting

Our PHM analysis tool is ADEM – Advanced Diagnostics and Engine Management Click to edit Master subtitle style Watch Lists

ADEM drives hardware and systems technologies Gas path and subsystem sensor coverage Data Visualization Access to operational performance and usage data Accurate engine simulation models

page 18 1 October 2009 Health Management Provides Quantifiable Value

Event Value 35% Time on wing extension 30% 25%

20% 15% 10% Shop visit cost reduction 5% 0% d C T t. r. C . n e P P m st C ys a le H H g In T S F B M il T O G Fuel consumption reduction E Click to edit Master subtitle styleValue Summary 35% 30% Operational cost reduction 25% 20% 15% 10% 5% 0% TOW SVC Fuel Operational

Savings vary by service level, customer, fleet, etc., and do not include significant productivity improvement typically realized.

page 19 1 October 2009 Customer Value – HPT Damage Detected PW4000 engine removed prior to additional damage

Alerts triggered Trend plots point to HPT

Isolation indicates HPT Borescope inspection revealed T1 blade damage Click to edit Master subtitle style Engine removed prior to incurring additional damage

EstimatedEstimated Savings:Savings: $700K$700K (UER(UER potentialpotential –– $Million+ $Million+ // Event)Event)

page 20 1 October 2009 Industry Health Management Value Stream

ACQUIRE DELIVER ANALYZE EXECUTE DATA DATA + REPORT ACTIONS

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WEAK STRONG

page 21 1 October 2009 Improve Data Collection and Delivery Technologies

Current technologies are poor: ACARS, Commercial Engine Data Delivery sneaker-net PHM critically needs various field data BROADBAND for… HIGH HIGH SATELLITE

432K-30M bits/sec Warranty / guarantee mitigation PROACTIVE PROGNOSTIC $/FH risk mitigation QAR / LLP usage-based life extension SNEAKER NET

Interval and cost estimation forecasting 100100 Kbits Kbits / / sec sec

Revenue through health services BANDWIDTHBANDWIDTH REACTIVE Click to edit Master subtitle styleDIAGNOSTIC ACARS Emerging issue detection

FLIGHT 2.4-64 Kbits/sec Fuel conservation services and COUPONS 00 Kbits Kbits / / sec sec 30 30 Mbits Mbits / / sec sec LOWLOW consumption guarantees Delayed 1-5 days As it happens Emissions tracking – ETS, U.S. “Cap & POST REAL FLIGHT LATENCY TIME Trade”

page 22 1 October 2009 How Do We Address Small / Lease Operators?

57% of world’s operators fly 10 or fewer engines

Customers flying >100 engines mostly captive

6% 1%

13%

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57% 10 or less engines Profitability? 23% 11 - 30 engines 31- 100 engines Portability? 101-500 engines 500+ engines

page 23 1 October 2009 How Can We Address More Problems? Technology advancements drive value

Expanded flight Part life A Al / gl s / data algorithms A og r s A ro o r Usage n itr s o a an hit n s t a lay mh e n a t based lsy m e D a is s S D s s S is / Oil condition, lifing Isolation / sub-systems techniques Work scope / operations Expanded Custom instrumentation optimization models Click to edit Master subtitle style Electronic engine Condition-based maintenance Anomaly controls Operational improvements detection

Basic Manual Basic trend monitoring sensors calculations

page 24 1 October 2009 A Holistic Systems Approach

Engine Engine and Mounts Engine Build-Up Pylon and Attaching Hardware

Aft Pylon Fairing Inlet

Primary Exhaust Nozzle

Exhaust Plug or Cone

BFE (Generators, Hydraulic Pumps, Fire Protection, etc.)

Fan Integrated vehicle health and data Cowls Thrust Reverser with management Variable Area Fan Nozzle 100% pylon-on-down (POD) support

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Environmental Control System

Guided Troubleshooting APU

page 25 1 October 2009 Questions?

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page 26 1 October 2009 Click to edit Master subtitle style

Thank You!

page 27 1 October 2009