GEAE’s USA Program

1. GEAE’s USA Program GE Aircraft Engines University Strategic Alliance (USA) Initiative

2. GEAE’s USA Program Objective of the USA Program Develop “Teaming” Relationships and Strong Interaction with Key Universities to: • Concentrate academic expertise on solving issues of critical technical importance to GEAE business needs • Develop Resource for Global (PTC) Outsourcing • Advance GEAE State-of-the-Art • Promote technology transition • Provide channel for employing top-quality students • Promote scholarship & Enhance Engineering Education

3. GEAE’s USA Program Features of the USA Program • Incorporates university research into GEAE’stechnology roadmaps (i.e. business strategy) • Focuses on a few “key” universities • Provides long-term, formal, rolling, five-year commitment & protection for graduate students • Provides sufficient funding to have critical mass at university • Provides reasonable (but some restriction to): • Academic freedom • Protection of intellectual property rights • Publication opportunity

4. GEAE’s USA Program Criteria for Selecting Universities • Critical mass of professional staff & students • Well-connected with industry • Interested in our problems • Expertise • Renowned leadership in technical area of interest • Produced (demonstrated) results

5. GEAE’s USA Program Benefits for GEAE • Builds critical-mass research teams for each vital technology area • Provides privileged access to university intellectual capability • Concentrates research at university COE’s • Builds resource for global outsourcing • Provides channel for employing top-quality students • Enhances GE’s ability to attract government research funds • Allows technology advancement in downsized times

6. GEAE’s USA Program Benefits for Universities • Provides challenging, practical MS & PhD research projects with student pipeline • Provides long-term commitment, improved financial base with protection of grad student’s tenure • Allows access to GEAE technology base • Enhances ability to attract/retain faculty and students • Provides opportunity for close working relationship with GEAE technologists • Enhances ability to attract more research funds • Provides opportunity for sabbaticals at GEAE

7. GEAE’s USA Program Benefits for the State of Ohio • Promotes synergy between Ohio’s universities and Ohio’s largest air-transportation employer • Keeps researchers employed in Ohio for tax base • Improves Ohio’s technology base • Can attract additional research grants to Ohio For USA Member Universities in Ohio

8. GEAE’s USA Program USA is Resource for Global Outsourcing • Highly educated talent • Already familiar with GEAE issues • Existing high-quality experimental and/or computational capacity for working select issues • Cost-effective Centers of Excellence

9. GEAE’s USA Program The Challenges We Face Large Cultural Differences between Industrial and University Objectives Industry Makes products to sell for profit University Educates students, Advances science

10. Individual oriented Who conceived of the idea? Is it original work? Does it contribute to science? Is it interesting? Will it make archival publication? Let’s run a test to find out. Does this make physical sense? Develop the differential equations etc. from first principles. Is it complete - from a scientific perspective? Ideas can’t be scheduled Publish, Publish, Publish Team oriented Where are the results? Can we “leverage” existing work? Does it contribute to the business? Is it worthwhile - financially? Will it make it into production? Let’s run a test to confirm solution. Does this make physical sense? Fit a curve through the data and/or “anchor” an existing analysis. Is it institutionalized into “system” so that others may use it? Are we meeting budget, schedule? Customer, Customer, Customer Comparison Academia vs. Industry USA program must balance all requirements to be successful!

11. Solve the Problem Each faculty / student doesthings their own way (of course use sound scientific process). Physics approach to solution Informal management process Solve roadblock and schedule issues, etc. as they present themselves PI’s largely in business for themselves Graduate the students and publish the papers Be done by _________ ! Each person follows design practice, company procedures, templates, uses accepted tools Engineering approach to solution Formal management process Identify and manage risks carefully up front with: - Risk abatement plan - Critical path scheduling Each manager is agent for higher manager up to corporate shareholders Sell the product Comparison, Cont’d. Academia vs. Industry USA program must balance all requirements to be successful!

12. GEAE’s USA Program The Toughest Issues We Face Before contract signed: Intellectual Property Rights After contract signed: Technology Transfer

13. GEAE’s USA Program Areas of Tough Contract Negotiation with Universities • Intellectual Property Rights • Publication Rights • Royalties & Licensing Fees • Proprietary Information • Patents • Selection of Student Participants Possible Barriers to Success • Insufficient funding • Lack of buy-in to new process • Impatience with time needed to create synergy

14. GEAE’s USA Program Areas of Tough Contract Negotiation with Universities Intellectual Property Rights IPownership, use & rights is single greatestimpediment to reaching contract agreement - 1980 Bayh-Dole Act (P.L. 96-517) - Protection of our competitive issues

15. GEAE’s USA Program Bayh-Dole Act(Patent and Trademark Act Amendment of 1980) Created a uniform patent policy among FEDERAL funded research that allowed: - Small business and nonprofit organizations retain title to inventions - Universities to retain title to and license their inventions

16. GEAE’s USA Program Bayh-Dole Act fallout • University Position: - Generally applies same policies toALL inventions • regardless of funding source (federal or industrial) • Owns all patents & software developed • using university facilities under any sponsored • research agreement • Manages all its inventions for public good • - Industry sponsors granted first option to license patents arising from the research. Company Position: - Must protect competitive position - Manage inventions for shareholders good - Exclusive license for technology we paid to create

17. GEAE’s USA Program Areas of Tough Negotiation with Universities Publication Rights GEAE encourages publication PROVIDED • Proprietary Information is protected * (our PI or PI findings of program) - Removal - Sanitized - Defer till patent filing • We have review rights * *Conflicts with university’s “Unfettered Rights of Publication” concept

18. GEAE’s USA Program Areas of Tough Negotiation with Universities Royalties & Licensing Fees • GEAEwill not pay royalties * • Won’t pay to use something we paid to create and patent • Too complex to sort out contribution percentage • Requires disclosure of GEAE financial PI • GEAE will consider license fee * • Computer Programs developed at universities *Conflicts with new “$ gain” universities see

19. GEAE’s USA Program Areas of Tough Negotiation with Universities Proprietary Information • MUST BE PROTECTED * - Case Closed • Type of storage specified • Length of time to be protected specified - 5 to 10 years • Option to return PI before specified time - does not diminish obligation to protect *Conflicts with university “open research” idea

20. GEAE’s USA Program Areas of Tough Negotiation with Universities Patents • Joint ownership where joint invention • Some type of one-time payment * to inventor or university • Exclusivity * wrt to gas turbine business - Can’t allow competitor to use what we paid to create *Conflicts with new “$ gain” universities see

21. GEAE’s USA Program Areas of Tough Negotiation with Universities Selection of Student Participants • GEAE / University mutually agree * on • students assigned to USA Program • Only* USA citizens or students with Green Cards or Export Authorization status • No competitors* • No dummies* Students on USA program receive full financial support until graduation even if program terminated *Conflicts with university policy “can’t restrict who university assigns to participate in ...”

22. GEAE’s USA Program Resulting Effects of these Issues • Difficult to achieve “Win-Win” situation • Forcing limitations on “teaming” • Forcing us to go overseas Quality & extent of USA participation inversely proportional to how much we must give up

23. GEAE’s USA Program Transfer of Technology from Academe to Industry • Greatest Challenge After Contract Is Signed • Technology must • - Get “incorporated” into the product • (e.g. via the design / analysis system) - “Arrive in time” to be used • May need change / modification of university culture - What constitutes “acceptable” thesis project - Return to what “engineering really is”

24. GEAE’s USA Program Transfer of Technology • Many systems (sockets) are in place to use university technology at GEAE • The “Lessons Learned” file • The “Best Practices” file • The “Design System” including Design Practices • NPI - the business plan for new product intro. • NTI - the plan for new technology intro. • Design for Six Sigma • e-business All must be considered

25. GEAE’s USA Program Transfer of Technology • How best to introduce university technology • Identify “Sockets” into which information can fit (The “LEGOTM model”) • Present data in format that fits the sockets (system) • Make sure data are accepted by company There are “sockets” begging for input

26. Summary • For GEAE, “Practical” Technology is Technology that Gives GEAE a Competitive Advantage in the Marketplace • Technology Must Make it into the Product to be Advantageous • Design community sees “disconnect” between theory and reality • Research must be aligned with design community’s needs • Research must be accepted by design community • Large Opportunity for Many Technical Areas • Relatively small changes can be a significant factor in product life • Several small improvements can add to be significant • Emphasis on product durability is increasing • Still a lot of empiricism in design process • Very little reliable “3D” data available • Very little reliable “full field” data available • Always look for “a better design solution” - it is the end goal!

27. GEAE’s USA Program The Beginnings - Began with Mike Benzakein’s response to Article seen by Corbett Caudill describing Rolls Royce’s University (UTC) Activities - Continued with MJB appointing Dave Wisler to evaluate and start GEAE university pilot program - Became Wisler’s Green Belt Project 8412 “University Strategic Alliances”:

28. GEAE’s USA Program Average Value of GEAE-funded University Research Contracts 1990-1998, data normalized to per year basis GEAE Average = $43K (105 contracts) Estimate of UTC’s Average = $460K (18 Contracts) Old GEAE Process Many Small-Dollar Contracts New USA Process A Few Larger Dollar Contracts at Key Universities USA $ Number of Contracts Contract Value, K$ per year

29. GEAE’s USA Program Types of University Research Programs by Funding Level • $25K program - run a computer program, short test, say thanks • $50K program - one PhD, very little faculty help, no equipment, one deliverable at end of program. • $125K - 200K program- minimum-level good program,two PhD’s, one faculty (part time). Produces a major finding with good interaction between students, faculty and sponsor. • $400 -$500K program- optimum-level programfor critical mass - Two post-docs, • Three to four senior PhD’s and • Two to three faculty (part-time) • Generates leverage for negotiating department space and resources, • Uses mature students, creates a pipeline of students and causes the faculty to be constantly thinking aboutthe program. • Larger than $500K programs - need ramp up time for staff, can cause inefficiencies if not managed well.

30. GEAE’s USA Program • Turbine Cooling and Heat Transfer &CFD • Ohio State • Stanford • Clemson (Significant Link to GEPS / Greenville) • Aeromechanics • Ohio State • Duke • Design for Six Sigma (Quality Initiatives) • Stanford • Compressors and CFD- Aachen University, Germany • Swiss Federal Institute of Technology, ETH - Zurich, MIT, Georgia Tech,Univ of Cincinnati (In Progress) USA Programs now Underway

31. Sanitized Technology Roadmap Illustrating a New Teaming Relationship 1998 1999 2000 2002 2003 2004 2005 XXXXXXXXX Program Strategy, Definition and Tracking Color Code GEAE GE CR&D Stanford OSU Clemson • Choose CFD Strategy • (GEAE/CR&D/Stanford, Clemson,OSU) • Build/Inst. Rig OSU, Stanford Validated Production Method (GEAE) XXXXXXX Test & Prediction XXXXXXXX B.C.’s • Implement CFD Strategy • (GEAE/Clemson/Stanford) • Identify Needed Tests • (GEAE/OSU/Stanford) • Resolve Instru.Issues • (GEAE/Stanford/OSU) Validated Production Code - Includes XXXXXX - Updated XXXXXX (GEAE/CR&D/OSU/ Clemson/Stanford) • Stationary Tests. • (Stanford) • Full Scale Rotating • OSU • Validated • Unsteady • XXX Model XXXXX CFD Methodology • XXXXXX Invest. • (Clemson/Stanford) • Unsteady Invest. • (Clemson/OSU) • CFD Validated • Film Cooling Method • (Clemson) • XXXXX Model • (GEAE/CR&D/ • Clemson/Stanford) = Maturation = Interim Milestone XXXXXX Validation • Understand • Database • (GEAE/CR&D/Stanford) • Execute Required Tests (OSU) • - stationary • - rotating • Choose CFD Strategy • Identify Needed Tests • (GEAE/CR&D/Stanford) Validated Production Method (GEAE/ CR&D/Stanford)

32. GEAE’s USA Program For Your Consideration in Engineering Education • Integrity • Probabilistic vs Deterministic Thinking - reduce variation about the mean • Globalization of Engineering - Multicultural thinking & coordination - Outsourcing • Knowledge management - One click away - Use of design & analysis tools • e-business

33. GEAE’s USA Program Contact Person for GEAE University Strategic Alliance (USA) Initiative Dr. David C. Wisler, Manager University Programs GE Aircraft Engines Mail Drop A411 One Neumann Way Cincinnati OH. 45215 Phone: 513-243-2905 Fax: 513-243-3254 Dial Com: 8-332-2905 dave.wisler@ae.ge.com

34. No Yes Engr. Review Yes No Legal & Sourcing All Yes No Yes University Review Any No New Process Map for GEAE’s USA Programs Objectives incorporated into GEAE Technology Road Maps Prepares Statement of Work (SOW) GEAE engineer/manager sees need for university research program Yes Funding secured, sufficient for USA No No University Performs Work with strong interaction with GEAE engineers Sourcing Issues Contract to University Yes Sourcing gets competitive bids from universities Rolling Contract, Research Continues Good Interaction; Results incorporated into GEAE technology base or design system; Improved product Contract Negotiations Yes Terminate Work No

35. What is Technology? - Here are Examples • Experimental • Precise data on a simple geometry to validate a theory or concept • Limited data on a realistic geometry at realistic conditions • A new experimental technique • Computational • A new turbulence model • A more robust numerical scheme • An improved gridding strategy • Design • A new concept • Analytical/numerical trade studies • Optimization studies • Manufacturing • A new technique (permitting larger design space or a new material) • A more robust technique (tighter tolerances, better yield) All the above (and more) are legitimate forms of technology