GE Aerospace AI Demo Showcase

Interactive Demonstrations of Anthropic AI Solutions for Supply Chain Transformation

๐Ÿ”ง

Demo 1: Supplier Quality Incident Resolution

From 24 Hours to 6 Hours - AI-Powered Root Cause Analysis

The Scenario

A priority supplier at the Muskegon, Michigan facility (hot section components for CFM LEAP engines) reports a batch of defective turbine blades with micro-cracks discovered during quality inspection. This is blocking $2M+ of engine assemblies and threatens delivery schedules.

Traditional Approach
24+ Hours
Manual investigation and documentation
โ†’
With Claude Enterprise
6 Hours
AI-powered analysis and automation

Traditional Approach (24+ Hours)

  • Engineer receives defect report via email
  • Manually searches through 100+ previous defect reports for similar issues
  • Reviews supplier's manufacturing specs (200-page PDF)
  • Consults with materials expert (schedule delay)
  • Drafts root cause analysis report (4-6 hours)
  • Creates corrective action plan
  • Submits for AS9100D compliance review
  • Communicates back to supplier

With Claude Enterprise (6 Hours)

Engineer prompt to Claude:

"Analyze this turbine blade micro-crack defect report from Muskegon supplier. Cross-reference with our historical quality database and identify root cause."
Claude Response (generated in ~15 minutes): Analysis of Defect Report: Turbine Blade Micro-Cracks (Part #LEAP-TB-4428) ROOT CAUSE IDENTIFIED: Based on analysis of 127 similar historical defects, this pattern is consistent with heat treatment process deviation during solution annealing. EVIDENCE: 1. Historical Pattern: 23 similar micro-crack incidents (2018-2024) - 19 of 23 traced to annealing temperature variance >ยฑ15ยฐF - Supplier's furnace #3 showed similar patterns in Jan 2024 incident 2. Material Analysis: Inconel 718 superalloy requires precise thermal cycle - Specification: 1750ยฐF ยฑ10ยฐF for 1 hour - Deviation creates residual stress โ†’ micro-cracks during cooling 3. Supplier Equipment: Furnace #3 thermocouple calibration overdue - Last calibration: 180 days ago (spec requires 90-day intervals) - Similar equipment issue caused 2024-01 batch rejection RECOMMENDED IMMEDIATE ACTIONS: 1. Quarantine all parts processed in Furnace #3 since last calibration (est. 450 parts) 2. Emergency thermocouple calibration and furnace validation 3. Re-process quarantined parts through validated furnace 4. Implement automated calibration alerts (preventive measure) SUPPLIER IMPACT: - Affected batch: 87 turbine blades (current) - Potentially affected: 450 parts (precautionary quarantine) - Recovery timeline: 5-7 days with expedited re-processing CORRECTIVE ACTION PLAN: See attached AS9100D-compliant CAPA document (auto-generated)
  • Rapid Analysis (15 minutes): Claude analyzes defect report against 10,000+ historical quality reports
  • Automated Documentation (30 minutes): Generates 8D report, CAPA form, supplier notification, updated scorecard
  • Expert Consultation (AI-Assisted): Engineer asks follow-up questions for risk-weighted analysis
  • Preventive Measures (45 minutes): Claude suggests automated monitoring and updated procedures
Time Saved
75%
24 hours โ†’ 6 hours resolution
Quality Impact
450
Potentially defective parts identified
Cost Avoidance
$12M+
$2M immediate + $10M+ field failures
Documentation
100%
AS9100D compliant (automated)

Business Value Demonstrated

AI processes vast quality databases instantly (1M token context = 500+ reports), generates compliant documentation automatically, provides predictive recommendations to prevent recurrence, and calculates business impact for informed decision-making.

โšก

Demo 2: Supplier Integration Project Acceleration

From 6-9 Months to 6 Weeks - Claude Code in Action

The Scenario

GE Aerospace needs to integrate a new secondary supplier in Durham, NC for LEAP compressor blades as part of the 80% dual-sourcing goal and $16M Durham facility investment. Traditional supplier integration takes 6-9 monthsโ€”AI accelerates this to 6 weeks.

Traditional Approach
6-9 Months
Manual development and integration
โ†’
With Claude Code
6 Weeks
AI-accelerated development

Week-by-Week Breakdown

  • Week 1: Requirements & Analysis
    Claude Code analyzes supplier data format and GE integration requirements, creates comprehensive technical design document (50 pages), generates data mapping matrix, produces API integration architecture diagram
  • Week 2-3: Development
    Data extraction layer (SFTP + validation), transformation & validation logic, SAP & Teamcenter PLM integration, monitoring & alerting dashboardsโ€”all generated with Claude Code assistance
  • Week 4-5: Testing & Validation
    Comprehensive test suite (unit, integration, end-to-end), automated test data generation, performance testing (10,000+ parts/day), security testing for ITAR compliance
  • Week 6: Deployment & Documentation
    Deployment automation (Infrastructure as Code), operations runbook, user training materials, API documentation, maintenance and support guide

Code Generation Example

Engineer prompt to Claude Code:

"Create Python module to extract data from supplier's SFTP server, validate against XSD schema, and stage in AWS S3"

Claude Code Produces (automatically):

โœ“ SFTP connection handler with retry logic
โœ“ XML validation against aerospace data standards (SPEC2000)
โœ“ S3 upload with encryption and metadata tagging
โœ“ Comprehensive error handling and logging
โœ“ Unit tests with 95%+ coverage
โœ“ Complete documentation

Timeline Reduction
75-90%
6-9 months โ†’ 6 weeks
Cost Savings
$300K
$200K project + faster ROI
Code Coverage
95%+
Comprehensive testing included
Scalability
49+
Template for remaining suppliers

Proven Results: Altana Case Study

2-10x developer velocity improvement for supply chain systems. GE Aerospace achieves similar results, supporting 80% dual sourcing goal and accelerating $16M Durham facility ROI.

๐Ÿ“Š

Demo 3: Real-Time FLIGHT DECK SQDC Monitoring

From Weekly Reports to Real-Time Insights in 30 Seconds

The Scenario

GE Aerospace has deployed FLIGHT DECK methodology across 15 priority suppliers, achieving 26% material input increase. Leadership needs real-time visibility across the supplier network to scale these gains to 200+ suppliers while maintaining >90% on-time delivery.

Traditional Approach
Weekly
Manual reports with 24-48 hour lag
โ†’
With Claude Enterprise
Real-Time
Instant insights via natural language

Executive Natural Language Query

Executive asks Claude:

"Show me SQDC status for all 15 priority suppliers. Highlight any concerning trends and recommend actions."
Claude Response (Generated in ~30 seconds): โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• FLIGHT DECK SQDC DASHBOARD - Priority Suppliers (15 sites) Last Updated: October 27, 2025 10:45 AM EDT โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• ๐Ÿ“Š OVERALL HEALTH: ๐ŸŸข STRONG (13 sites) | ๐ŸŸก ATTENTION (2 sites) | ๐Ÿ”ด CRITICAL (0 sites) โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• ๐Ÿ›ก๏ธ SAFETY (Priority #1) โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• Status: ๐ŸŸข ALL SITES COMPLIANT โ€ข Days Since Last Recordable: 847 days (industry-leading) โ€ข Near-Miss Reports: 23 this week (โ†‘ 15% vs. last week) โ†’ Trend: Increased reporting = positive safety culture โ€ข Leading Indicator: All sites completed monthly safety training โš ๏ธ ATTENTION ITEM: โ€ข Muskegon facility: 3 near-misses related to hot section handling โ†’ Recommended Action: Supplemental PPE training scheduled Nov 2 โ†’ Risk Level: LOW (preventive measure) โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• โœ“ QUALITY โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• Status: ๐ŸŸก ATTENTION NEEDED (1 site) โ€ข Network-Wide Defect Rate: 0.23% (โ†“ 12% vs. last month) ๐ŸŸข โ€ข Supplier Quality Index: 94.7/100 (target: 95+) ๐ŸŸก โ€ข AS9100D Compliance: 100% (15/15 sites certified) ๐ŸŸข โš ๏ธ ATTENTION ITEMS: 1. Muskegon Facility - Turbine Blade Micro-Cracks โ€ข Issue: Heat treatment furnace calibration overdue โ€ข Impact: 87 parts quarantined, 450 parts under review โ€ข Status: Corrective action in progress (ETA: Nov 1) โ€ข Root Cause: Equipment maintenance scheduling gap โ€ข PREDICTION: Issue resolved within 5 days, no delivery impact 2. Greater Cincinnati - Minor Paint Adhesion Issues โ€ข Issue: Humidity control variance in coating booth โ€ข Impact: 12 parts require rework (non-critical path) โ€ข Status: Facility HVAC adjustment scheduled Oct 28 ๐ŸŽฏ POSITIVE TRENDS: โ€ข Durham facility: 45-day streak of zero defects (RECORD) ๐ŸŽ‰ โ€ข Lafayette facility: Quality index improved 18% since AI tools deployed โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• ๐Ÿ“ฆ DELIVERY โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• Status: ๐ŸŸข EXCELLENT โ€ข Network On-Time Delivery: 92.3% (โ†‘ from 50% in early 2024) ๐ŸŸข โ€ข LEAP Engine Components: 94.1% OTD (target: 90%+) ๐ŸŸข โ€ข Material Input Increase: 26% vs. 2024 baseline (FLIGHT DECK success) ๐ŸŸข ๐Ÿ”ฎ PREDICTIVE INSIGHTS: โ€ข Next 30 Days Forecast: 93.1% OTD (โ†‘ 0.8 points) โ€ข Risk Factors: 2 suppliers showing early capacity strain signals โ†’ West Chester: Production lead time increased 1.5 days (โ†‘ 12%) โ†’ Asheville: CMC material yield declining 3% (still within spec) โ†’ RECOMMENDED ACTION: Deploy engineering support to both sites (proactive) โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• ๐Ÿ’ฐ COST โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• Status: ๐ŸŸข ON TARGET โ€ข Cost Performance Index (CPI): 1.04 (4% under budget) ๐ŸŸข โ€ข Supplier Investment ROI: $100M+ deployed, 22% faster ROI vs. forecast ๐ŸŸข โ€ข Cost Avoidance: $12.3M YTD (prevented quality issues, disruptions) ๐Ÿ’ก OPTIMIZATION OPPORTUNITIES: 1. Energy Costs: 4 suppliers eligible for LED lighting rebates ($75K/year) 2. Material Waste: AI-optimized cutting patterns = $200K/year savings 3. Logistics: Consolidated shipping from Cincinnati region = $150K/year Total Identified Savings: $425K/year with <6 month payback
Response Time
30 Sec
vs. 24-48 hour reports
Data Sources
15
Suppliers monitored real-time
Predictive
30 Days
Forecast accuracy: 95%+
Scalability
200+
Suppliers (same effort)

Scale FLIGHT DECK Success: 26% โ†’ 40%+ Material Input Increase

AI enables real-time visibility and predictive analytics across entire supplier network, maintaining >90% on-time delivery while scaling from 15 to 200+ suppliers.

๐ŸŽ“

Demo 4: New Engineer Onboarding & Knowledge Transfer

From 6 Months to 2 Months - AI-Accelerated Learning

The Scenario

GE Aerospace is hiring 5,000 engineers in 2025 and deploying 550+ to supplier sites. Traditional onboarding takes 6 months before engineers reach full productivity. Claude Enterprise acts as a 24/7 AI mentor, accelerating onboarding to 2 months.

Traditional Onboarding
6 Months
To full productivity
โ†’
With Claude Enterprise
2 Months
AI-assisted ramp-up

Day 1: AI-Powered Orientation

New Engineer asks Claude:

"I'm a new mechanical engineer assigned to support the Muskegon supplier site for CFM LEAP turbine blades. What do I need to know?"
Claude Response (Comprehensive Onboarding): Welcome to GE Aerospace! I'll be your AI assistant throughout your career here. ROLE OVERVIEW: Supplier Site Engineer - Muskegon Facility โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• FACILITY PROFILE: โ€ข Location: Muskegon, Michigan (70 miles north of Grand Rapids) โ€ข Products: Hot section turbine blades for CFM LEAP engine โ€ข Materials: Inconel 718, Inconel 738 (nickel-based superalloys) โ€ข Processes: Investment casting, heat treatment, machining, coating โ€ข Production Volume: 2,500 blades/month (ramping to 3,000/month by Q2 2026) โ€ข GE Engineers On-Site: 12 (including you) โ€ข Your Manager: Sarah Johnson, Senior Manufacturing Engineer STRATEGIC IMPORTANCE: โ€ข Critical path component for LEAP engine (each engine requires 80 turbine blades) โ€ข Supplier performance directly impacts GE's 15-20% LEAP delivery increase goal โ€ข Recent challenge: Heat treatment quality issues (Oct 2025 - being resolved) โ€ข Part of $70M Muskegon facility expansion (new equipment arriving Q1 2026) YOUR KEY RESPONSIBILITIES: 1. Quality assurance: Monitor and improve First Pass Yield (target: 98%+) 2. FLIGHT DECK implementation: Lead daily SQDC standup meetings 3. Process improvement: Identify and execute kaizen opportunities 4. Supplier collaboration: Bridge between GE and supplier engineering teams 5. Technical problem-solving: Root cause analysis for quality escapes GETTING STARTED - FIRST 30 DAYS: โ–ก Week 1: Facility tour, meet the team, safety certification โ–ก Week 2: Learn turbine blade manufacturing process end-to-end โ–ก Week 3: Shadow senior engineer on quality incident investigation โ–ก Week 4: Lead your first SQDC meeting, present findings to team KNOWLEDGE BASE ACCESS: I have access to: โ€ข 15,000+ engineering documents for LEAP engine program โ€ข 10 years of Muskegon facility quality history โ€ข GE's manufacturing processes and standards library โ€ข FLIGHT DECK methodology best practices โ€ข AS9100D aerospace quality requirements Ask me anything, anytime. I'm here 24/7 to support you.

Week 3: Technical Deep Dive

Engineer asks for technical guidance:

"Explain the heat treatment process for Inconel 718 turbine blades and why temperature control is so critical."

Claude Provides:

โœ“ Graduate-level materials science explanation
โœ“ Phase transformation diagrams
โœ“ Precipitate formation chemistry (gamma prime, gamma double prime)
โœ“ Microstructure photos from GE's database
โœ“ Case studies of heat treatment failures
โœ“ Quality checkpoints and inspection criteria

Week 4: First Quality Issue (AI-Guided Problem Solving)

Engineer faces first challenge:

"I'm investigating a batch of blades with dimensional non-conformance. Blade trailing edge is 0.015" thicker than spec. Walk me through root cause analysis."

Claude Guides Through 8D Problem-Solving:

1๏ธโƒฃ Defines the problem in technical terms
2๏ธโƒฃ Implements immediate containment actions
3๏ธโƒฃ Guides root cause investigation (5-Why, Fishbone diagram)
4๏ธโƒฃ Helps develop corrective actions
5๏ธโƒฃ Generates AS9100D-compliant documentation
6๏ธโƒฃ Suggests preventive measures

Result: Engineer successfully resolves issue in 1 week (vs. 3-4 weeks traditional)

Onboarding Time
67%
Reduction: 6 months โ†’ 2 months
Productivity Curve
70-80%
Effective at Day 30 (vs. 30-40%)
Knowledge Access
24/7
Expert guidance anytime
Mentor Ratio
1:10+
One senior engineer supports 10+ new hires

Business Value: $262M/Year

5,000 new engineers ร— 4 months earlier productivity ร— $175K average cost = massive organizational capability acceleration. Plus knowledge retention and best practice sharing across 550+ deployed engineers.

๐Ÿญ

Demo 5: Advanced Manufacturing System Development

From 18 Months to 3 Months - Production Control for $51M Auburn Facility

The Scenario

GE Aerospace is investing $51M in Auburn, Alabama facility to scale additive manufacturing (3D printing) for LEAP engine fuel nozzles. Traditional software development for production control takes 18 months. Claude Code accelerates to 3 months.

Traditional Development
18 Months
Requirements โ†’ production deployment
โ†’
With Claude Code
3 Months
AI-accelerated development

Month 1: System Architecture

Engineer prompt to Claude Code:

"Design production control system for 10x EOS M400 3D printers manufacturing LEAP engine fuel nozzles. Requirements: real-time monitoring, quality prediction, MES integration, AS9100D traceability."

Claude Code Delivers:

1. System Architecture Document (75 pages)
โ€ข Hardware interface design (printer APIs)
โ€ข Cloud infrastructure (AWS)
โ€ข Database schema (time-series + relational)
โ€ข Security architecture (ITAR compliance)
โ€ข Scalability plan (10 printers โ†’ 50 printers)

2. Technical Specifications
โ€ข Real-time data collection (50+ sensors per printer)
โ€ข Machine learning model for print quality prediction
โ€ข Automated defect detection using computer vision
โ€ข Digital twin simulation for process optimization

Month 2: Development Sprint (4 Major Applications)

  • Real-Time Monitoring Dashboard
    React/TypeScript frontend with WebSocket updates, Python FastAPI backend (1M+ data points/hour), TimescaleDB for time-series sensor data, mobile-responsive design
  • Predictive Quality System
    ML model predicting quality 4+ hours before completion, 94% accuracy, automated alerts for intervention, explainable AI (SHAP values)
  • MES Integration & Traceability
    Dassault DELMIA API client, automated work order processing, material traceability (powder lot โ†’ finished part), AS9100D documentation generation, blockchain for tamper-proof records
  • Computer Vision Quality Inspection
    CNN-based defect detection (trained on 50,000+ images), automated dimensional measurement, pass/fail decision with confidence scoring, continuous learning from human corrections

Production Results (After Deployment)

Print Success Rate
96%
Up from 89% (predictive quality)
Inspection Time
87.5%
Reduction: 2 hours โ†’ 15 min/part
Documentation
Automatic
AS9100D compliance (4 hours โ†’ 0)
Throughput
+20%
1,200 parts/month (vs. 850 target)

ROI: $1.6M Saved + 15 Months Time-to-Value

Traditional approach: $2M + 18 months. With Claude Code: $400K + 3 months. Faster ROI on $51M Auburn facility investment, plus template reusable for $14M West Chester expansion and future advanced manufacturing initiatives.

๐Ÿ’ผ

Demo 6: Executive Decision Support

From 2-3 Weeks to 4 Hours - Strategic Capital Allocation

The Scenario

Technology & Operations leadership needs to decide: Should we accelerate Durham secondary supplier ramp-up or invest in additional capacity at existing Muskegon supplier? $25M capital allocation decision requiring comprehensive cross-functional analysis.

Traditional Analysis
2-3 Weeks
Multiple teams, meetings, spreadsheets
โ†’
With Claude Enterprise
4 Hours
Comprehensive AI analysis

Executive Natural Language Query

Executive asks Claude:

"Analyze two options for increasing CFM LEAP turbine blade capacity:

Option A: Accelerate Durham secondary supplier ramp-up ($25M investment)
Option B: Expand existing Muskegon supplier capacity ($25M investment)

Provide comprehensive analysis including: financial ROI, risk assessment, supply chain resilience, technical feasibility, and recommendation."
Claude Response (Generated in ~5 minutes): โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• EXECUTIVE DECISION ANALYSIS: LEAP Turbine Blade Capacity Expansion โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ•โ• INVESTMENT COMPARISON: Option A (Durham) vs. Option B (Muskegon) ๐Ÿ“Š FINANCIAL ANALYSIS OPTION A: Durham Secondary Supplier Acceleration โ€ข Capital Investment: $25M โ€ข Implementation Timeline: 12 months to full production โ€ข Incremental Capacity: 1,500 blades/month โ€ข Cost per Part: $1,850 (10% higher due to learning curve) โ€ข Payback Period: 2.3 years โ€ข NPV (10% discount rate): $67M over 10 years โ€ข IRR: 24.5% OPTION B: Muskegon Existing Supplier Expansion โ€ข Capital Investment: $25M โ€ข Implementation Timeline: 8 months to full production โ€ข Incremental Capacity: 1,800 blades/month โ€ข Cost per Part: $1,680 (mature process, economies of scale) โ€ข Payback Period: 1.9 years โ€ข NPV (10% discount rate): $79M over 10 years โ€ข IRR: 28.2% FINANCIAL WINNER: Option B (Muskegon) - Higher NPV, faster payback โš ๏ธ RISK ANALYSIS OPTION A: Durham (LOWER RISK - 3.2/10) โœ“ Supply Chain Resilience: Achieves 80% dual-sourcing strategic goal โœ“ Quality Diversification: Durham has 45-day zero-defect streak โœ“ Geographic diversity: NC vs. MI (reduces weather/labor risks) โœ— Execution Risk: New supplier in ramp-up phase OPTION B: Muskegon (HIGHER RISK - 6.8/10) โœ“ Execution Certainty: Mature supplier (15+ years) โœ“ Faster time-to-production: 8 vs. 12 months โœ— Concentration Risk: Single supplier for critical component = vulnerability โœ— Recent quality issue (Oct 2025 furnace calibration) demonstrates risk โœ— Strategic misalignment with 80% dual-sourcing goal RISK WINNER: Option A (Durham) - Better strategic risk profile ๐Ÿ’ก RECOMMENDATION RECOMMENDED DECISION: Option A - Durham Secondary Supplier Acceleration RATIONALE: While Option B (Muskegon) offers superior financial returns ($12M NPV difference), Option A (Durham) is strategically superior: 1. RISK MITIGATION: Recent Muskegon quality issue demonstrates single-source vulnerability. Durham secondary source provides resilience. 2. STRATEGIC ALIGNMENT: Directly achieves 80% dual-sourcing goal and aligns with GE's supply chain transformation vision. 3. LONG-TERM VALUE: $12M NPV difference is small compared to risk mitigation value. A single major disruption costs $10M+/month. 4. COMPETITIVE DYNAMICS: Dual sourcing creates healthy competition, driving quality and cost improvements from both suppliers over time. HYBRID ALTERNATIVE (If Budget Allows): $35M investment: $25M Durham + $10M Muskegon process optimization โ€ข Achieves both goals: dual sourcing + immediate capacity boost โ€ข Best of both worlds with 40% additional budget

Real-Time Executive Discussion

  • CFO asks: "What if Durham ramp-up takes 18 months instead of 12? Does recommendation change?"
    Claude provides: Sensitivity analysis in 30 seconds showing break-even scenarios
  • VP Operations asks: "Show me the risk-adjusted return calculation."
    Claude generates: Monte Carlo simulation with risk-weighted NPV across 1,000 scenarios
  • CEO asks: "If we do Durham, what contingency plans do we need for LEAP delivery in the first 6 months?"
    Claude outlines: Bridge strategies including overtime at Muskegon, inventory buffer, tertiary source partial qualification
Decision Speed
90%+
Reduction: 2-3 weeks โ†’ 4 hours
Data Integration
Cross-Functional
Finance, Ops, Engineering, Supply Chain
Analysis Quality
Comprehensive
Financial + Risk + Strategic
Scenarios
1,000+
Monte Carlo simulation capability

Strategic Value: Better, Faster Capital Allocation

Enable executive team to evaluate 10x more strategic options, make risk-aware decisions with quantitative analysis, and accelerate $25M+ capital allocation decisions from weeks to hoursโ€”all while maintaining comprehensive analysis quality.

โ† Back to Home View Full Strategy โ†’