Subaru

Revamp the Core System to Align with Changes in the Business Model 

SUBARU’s Aerospace Company traces its roots back to Nakajima Aircraft and is now built on three core pillars: commercial business, defense business, and helicopter business. In the commercial sector, the company collaborates with Boeing in international joint development, manufacturing critical components for passenger aircraft. In the defense sector, it develops training aircraft and unmanned reconnaissance systems for the Japan Self-Defense Forces. In recent years, the company has been focusing on the helicopter business, producing multipurpose helicopters for the Self-Defense Forces and their civilian variants, while also handling parts supply and periodic maintenance.

The company's decision to revamp its core system was driven by changes in the business environment. When the previous core system was established over 20 years ago, the defense business accounted for the majority of sales. Since orders for Self-Defense Forces aircraft were limited and required several years of lead time, the company followed a process of procuring materials after receiving orders, manufacturing parts, assembling, and then shipping the final product. However, with the recent expansion of the commercial business, the company now needs to adapt to shorter delivery timelines, particularly for civilian versions of helicopters. This requires a production approach that includes stocking parts in advance based on demand forecasts.

"In make-to-order production, we optimize operations using a lot-based management system that assigns a lot number to each order and manages the entire process as a sequence, whereas for forecast-based production, such as commercial aircraft parts, it is necessary to manage components, materials, and processing steps separately, making the revamp of our core system an urgent necessity," says Mr. Osamu Wada, General Manager of the Digital Business-Process Transformation Department.

The previous core system combined a mainframe built over 40 years ago with an ERP package introduced more than 20 years ago to manage operations from order intake to shipment. As these systems were reaching the end of their maintenance lifecycle and adapting them to modern business requirements would require extensive modification costs, the company decided to explore the implementation of a new ERP package. Digital Business-Process Transformation Department Section Manager Mr. Koichi Kita explains, “Continuous modifications to meet business needs had made the system increasingly complex and opaque, significantly raising the burden of maintenance and management. To enable future data analysis and AI utilization, we determined that a complete system rebuild from the ground up was necessary.”

Another key theme in the core system revamp was improving the efficiency of maintenance, repair, and overhaul (MRO) operations. In addition to developing and manufacturing aircraft, the company also handles maintenance and repair of aircraft bodies and parts.

For maintenance parts, it is necessary to secure production, procurement, and inventory in advance to accommodate regular inspections and unexpected repair requests, making MRO management highly complex. Procurement patterns are also diverse, with some critical components for the Ministry of Defense being supplied directly by the Self-Defense Forces.

Traditionally, MRO operations were managed manually using Excel and paper-based processes. However, as the business expanded and the number of maintenance parts increased, the limitations of analog management became evident.

"Managing operations with Excel and manual processes made tasks highly dependent on individual expertise, leading to procurement and production of maintenance parts relying heavily on the intuition and experience of specific personnel. Additionally, paper-based records made it difficult to accumulate and utilize data effectively. To improve management efficiency, we decided to implement an MRO system."（By Mr. Koichi Kita） 

Adopted IFS Cloud, Which Seamlessly Integrates ERP and MRO into a Single Package 

Starting in 2021, SUBARU began evaluating ERP and MRO solutions, comparing multiple products before selecting IFS Cloud, which has a strong track record in the defense and aerospace industries. While assessing various factors, including the functionality and performance of the package and the capabilities of its implementation partner, NEC, the decisive factor was that IFS Cloud could seamlessly integrate both ERP and MRO within a single package.

"MRO requires the same management functions as ERP, including purchasing and inventory of materials, outsourcing, contracts, sales, and cost control. If MRO and ERP were separate systems, integration would be a major challenge. With IFS Cloud, which operates on a single platform, this concern is eliminated. We also highly valued its robust inventory and procurement capabilities specifically designed for MRO operations."（By Mr. Koichi Kita）

For ERP, IFS Cloud was highly rated for its ability to support high-mix, low-volume production, its diverse payment options for suppliers, and its strong alignment with the company's requirements. Additionally, its user-friendly interface facilitates seamless integration with surrounding systems, and IFS’s commitment to continuous product investment ensured long-term usability, which was another key consideration.

SUBARU plans to roll out IFS Cloud across all sites of its Aerospace Company, including the Utsunomiya Plant, its main aerospace hub, and the Handa Plant, which manufactures large components for Boeing. The implementation project is being driven by a cross-functional team from various locations. The system will manage purchasing, manufacturing, project management, shipping, inventory and warehouse operations, cost control, master data, and MRO, with full-scale operation scheduled for August 2025.

"Since the interface is significantly different from the previous system, we are customizing the display elements using IFS Cloud's configuration features while gathering feedback from on-site personnel to ensure usability. IFS Cloud has a standardized screen design with a well-structured UI, making many operations consistent and easy to learn."（By Mr. Koichi Kita） 

Expecting Enhancements in Adaptability to Change, Maintenance Operations Capability, Profitability, and Quality Management 

One of the expected benefits of implementing IFS Cloud is the ability to adapt to new business models, which was a key challenge. "In addition to the traditional production method of starting parts processing after receiving an order, we can now support a production approach that maintains a certain level of parts inventory to accommodate mass production, contributing to more stable manufacturing."（By Mr. Osamu Wada）

Additionally, improvements in MRO efficiency are expected. "By enhancing productivity in MRO operations, we estimate cost savings of several hundred million yen annually based on initial calculations. While on-site personnel are still learning how to use the system, they are highly motivated and have high expectations for its benefits."（By Mr. Koichi Kita）

With the implementation of IFS Cloud, the company aims to drive transformation through four key areas: “Strengthening profitability” by standardizing and optimizing business processes and systems. “Enhancing adaptability” to change by improving cross-departmental collaboration on change management and optimizing resource utilization with constraints in mind. “Improving maintenance operations capability” by enabling long-term product lifecycle management. “Enhancing quality management” through centralized defect management, traceability, and better oversight of quality information.

In the helicopter business, in particular, obtaining approval from the Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism requires strict parts traceability, making the ability to collect quality management data a significant advantage.

"If accurate data is correctly entered, traceability becomes much easier, enabling us to handle high-quality, compliance-driven transactions that were difficult to manage with the previous core system."（By Mr. Osamu Wada） 

Leveraging IFS Cloud Updates to Support the Continuous Evolution of the Company 

After full-scale operation, the company plans to implement an MES solution, introduce a B2B ordering system for suppliers and subcontractors, and integrate with external systems.

"In aircraft manufacturing, schedule changes can occur due to material delivery delays or equipment failures. By utilizing MES, we aim to automate schedule adjustments and record-keeping, reducing the burden of change management,"（By Mr. Koichi Kita）

Additionally, Mr. Osamu Wada emphasizes the company's commitment to continuously leveraging IFS Cloud updates for long-term use. "To stay ahead with advanced technologies like AI, we look forward to updates that further expand the standard capabilities of the package."

Aiming to continuously integrate the latest features and evolve as a company, SUBARU has high expectations for the ongoing advancements of IFS Cloud, which supports its aerospace business from a systems perspective. 

About SUBARU Corporation Aerospace Company   

With its origins in the "Aircraft Research Institute," founded in 1917, and later evolving into "Nakajima Aircraft," the company has inherited its technology and spirit to develop and manufacture a wide range of aircraft. In the commercial sector, it is responsible for the development and production of the "center wing," which connects the left and right wings and the front and rear fuselage of Boeing aircraft. In the defense sector, the company develops and manufactures multipurpose helicopters used for disaster relief, primary training aircraft that support pilot training for the Japan Maritime Self-Defense Force and the Japan Air Self-Defense Force, as well as flight simulators for pilot training. 

Expected Benefits of Implementation   

• Adaptation to Business Environment Changes – Expanding both defense and commercial aviation businesses.
• Efficiency Improvement in MRO Operations – Replacing manual and Excel-based processes.
• Cost Reduction – Saving several hundred million yen annually through MRO systemization.
• Strengthening Key Capabilities – Enhancing adaptability, maintenance operations, profitability, and quality management.
• Enhanced Traceability – Ensuring accurate tracking for compliance and quality control.