Skills and Competencies Buyers - EIPM - The source for ... · PDF fileSkills and Competencies Buyers ... Assessment by the purchasing hierarchy compared with self assessment by the

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Direction Achats Groupe / Novembre 2007

Skills and Competencies Buyers

EIPM conference from 2007 December

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Contents

About SAFRAN

Why set up a purchasing skills management process?

Mains principles

The purchasing skills management system

Specific tools helping the manager during and after the individual

evaluation

Process for assessing potential for development within purchasing

What we consider new in this project?

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an internationalSAFRAN

Technology Leader

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SAFRAN at a glance

An international high technology group

More than 11.3 billion euros sales in 2006

62,000 employees in over 30 countries

Four branches of activity:• Aerospace propulsion• Aircraft equipment• Defense Security• Communications

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SAFRAN Group businesses(Main companies)

Aerospace propulsion

• Snecma • Snecma Services• Snecma Propulsion Solide• Turbomeca• Microturbo• Techspace Aero

Aircraft equipment

• Aircelle• Hispano-Suiza• Messier-Dowty• Messier-Bugatti• Messier Services

• Labinal• Teuchos • Technofan• Sofrance

Communications

• Sagem Mobiles• Sagem Communications

Defense Security

• Sagem Défense Sécurité- Sagem Avionics- Vectronix

• Sagem Sécurité- Sagem Morpho- Sagem Monetel- Sagem Orga

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2006 key figures

Sales 11.33 billion eurosOperating income 465 million eurosNet income - Group share 177 million euros

2006 sales by branch

27%

9%10% 54%

45%

23%

13%

19%

Sales by region

Other

Asia

North America

Europe

Aircraft equipment2,664 MEuros

Defense Security1,445 MEuros

Aerospace propulsion 5,073 MEuros

Communications2,167 MEuros

* most reexported by prime contractor customers

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30.8%

40.1%

Areva

20.0%

7.4%

SAFRAN capital structure

Employees Public

Treasury shares1.7%

State

At March 31, 2007

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SAFRAN worldwide

Production and commercial facilities in more than 30 countries

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SAFRAN in Europe

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SAFRAN in North America

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SAFRAN in China

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Why set up a purchasing skills management process?

Due to the increasing purchasing part of the SAFRAN turn over, it was decided toreinforce the buyers competencies on two axes:

• Increase the recruitment level

• Increase by specific action the skills and competencies of the buyers in place taken into accountthe function evolutions

A project managed at Group level was considered as the best solution to reach these objectives

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MAIN PRINCIPLES

• All SAFRAN level 1 companies (14) involved in the project and the deployement

• The process can be adopted (with minor changes) to each organisation company

• The process as to be a “tool“ to expand the purchasing picture in the company

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The purchasing skills management system

Aims of the process

• Design a simple-to-use progress tool to enhance Purchasing efficiency throughout all Group companies inFrance and abroad

• Have full corporate commitment from the start with:

• Support of the head of human resources

• Promoted by human resources managers network and CPO network

• Project mode with dedicated team:

• Each group company as well as corporate represented by 2 persons: Human resources and purchasing

• Consultants from the start until the pilot phase

• Assessment by the purchasing hierarchy compared with self assessment by the buyer on a limited list ofskills and competencies

• Assessment of the potential for development within Purchasing jobs

• Limited list of managerial competencies completed by human resources specialists to evaluate the

Potential if any ( for ex: breadth of vision, delegation...)

• Expand the profile to handle the future evolutions of the purchasing jobs

Promote mobility by sharing the purchasing skills tool between companies

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One example of the skills reference base

• The skills reference base

• 17 skills with 4 levels for each and 6 jobs models describing missions (program buyer, lead buyer…)

Example of skill and levels:

Know your market, forecast changes in needs and the market, make dynamic changes to the supplier panel (in line with the supplier assessment) and make sure these changes are complied with

MARKETING

• Determine the changes required on their own panel by integrating analyses on the risks, opportunities and expectations of internal customers

• Lead implementation of the changes required to the panel and make sure internal customers respect these changes

• Propose features for Purchasing policy

• Based on the Purchasing policy:• Evaluate the current panel's ability to

meet future needs• Identify new sources capable of meeting

future needs (in particular by exploiting other companies' choices, including competitors)

• Understand market developments• Be informed of competitors' choices• Perform a technological watch• Scout for new sources (gather

information from an identified potential supplier)

• Collate and be familiar with the data on their own supplier panel (business area, history, contracts)

• Be familiar with the data on the main market suppliers (business area, turnover, customers, etc.) using pre-established tools

LEVEL 4LEVEL 3LEVEL 2LEVEL 1GENERIC SKILL

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Specific tools helping the manager during and after the individual evaluation

• 1 radar chart per job model given theoretical graph and real graph coming from the assessement

Example: Lead buyer

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1

2

3

4Marketing

Purchasing policyFormalization of need and support to

Internal customers

Negotiation

Economic performance analysis

Contractual management

Handling the supplier relationship

IS tools specific to Purchasing

Methods and capitalizationPurchasing AdministrationAnalysis and appraisal

Strategic analysis

Cross-sectorial team leadership

Communication

Proficiency in English

International outlook

Management

Level required Level assessed

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Specific tools helping the manager during and after the individual evaluation

• The skills picture at team level

Input data

Business area developments and impact on skills

• Yes• No

•

•

•

Individual ambitions

• Yes• No

•

•

•

How

• Yes• No

•

•

•

Why

• Yes• No

•

•

•

• Job A• Job B• Job C



•…

FeasibilityMobility areaIndividualemployees

Mobility/recruitment needs

2-3 year target organization(number of jobs)

Current organization (number of jobs)

Target organization

+1

=

+1

2

1

6

1

1

5

Domain Manager

Lead Family Buyer

Family Buyer

=

-2

2

1

2

3

Program / Project Buyer

Buyer

-123Purchasing Administrator

Staff review

Purchasing policy

IS tools specific to Purchasing

Group-wide follow-up

Assessment of potential for development

within Purchasing

Act

ions

Act

ions

Tota

lTo

tal

33%33%

67%67%

67%67%

33%33%

67%67%

% A

chet

eurs

Fam

ille

au n

ivea

u re

quis

% F

amily

Buy

ers

at

Leve

l req

uire

d

Moy

enne

Ach

eteu

r Fa

mill

eFa

mily

Buy

erA

vera

ge

Mon

sieu

r FM

r F

Mad

ame

EM

rs E

Mon

sieu

r DM

r D

100%100%

--

--

100%100%

33%33%

% R

esp.

de

Dom

aine

au

niv

eau

requ

is%

Dom

ain

Man

ager

s A

t lev

el re

quire

d

Moy

enne

R

espo

nsab

le d

e D

omai

ne

Dom

ain

Man

ager

A

vera

ge

Mon

sieu

r CM

r C

Outils SIIS tools

NégociationNegotiation

Gestion contractuelleContract management

Déploiement politique achatDeployment of Purchasing policy

TotalTotal

ActionsActions

Analyse et diagnosticAnalysis & appraisal

Mad

ame

BM

rs B

Mon

sieu

r AM

r A

CompétencesSkills

Job

CommentairesComments

Com

men

taire

sC

omm

ents

Individual assessment

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Process for assessing potential for development within purchasing

Future job 1• Simple negotiation• English• ....

Possible acquisition procedures

Standard acquisition timeframe

Current job

Possible future jobs

• ...• ...• ....

Future job 2

Future job 3• Skill a• Skill b• Skill c

• ...• ...• ....

• Training• Situation scenarios• ...

• ...• ...• ....

• Background training• Situation scenarios• Coaching

• Buddy system• ...• ....

• 1 year• ...• ....

• ...• ...• ....

• 6 months• 1 year• 3 months

• ...• ...• ....

"Mobility area"

Future job 4

Development of theNecessary skills

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WHAT WE CONSIDER NEW IN THIS PROJECT?

• The possibility to adapt it to each company context without loosing the homogeneouness withthe other compagnies applications

• The managers can exploit on two diffents axes: competencies and jobs, the collectivedepartments pictures

• The system helps managers to indentify and develop the potential of the buyers (training,coaching...)

• The different job models give clearly the evolutions possibilities to the buyers and is used tomanage mobility at company level and Group level

• The system can be used by the purchasing managers without Human Ressources involvment,the management assessment stay in charge of the RH people

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State of two years experience

12 companies are using the system

Minor evolutions have been done to adapt to the context companiesExample:

- The 17 competencies described are exiting. The bigger step between levels is “1”- Only 2 profiles are modified or not used in some companies

Results:- More than 60% of the buyers have now the benefice of this system- The training is now more oriented to the real needs of the function and evolutions- The managers have the complete picture of the competencies team to adjust therotation portfolio- Mobility of people at company and Group level is more efficient- The recruitment (internal and external) is now based on the profiles described in thesystem- We can, at corporate purchasing level, adjust or modify the training program to the realneeds

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Back up

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Major evolutions of the market will have an high impact on the skillsand competencies for the buyers

Impact on purchasing competencies

Evolutions to be treated

l'Aerospace & Defence tendencies

low high

low

high

Suitability to SAFRAN strategy

• Supplier development – Joint Process Improvement

• Low cost sourcing

• Common purchasing strategy and industrial strategy

• Early Involment of purchasing ( marketing,research&dev.)

• Global purchasing

• ...

strong middle

Normal Sourcing

Risk Sharing Partnership

Volume pooling

Global purchasing

TCA / contract management

Early involvement of purchasing

Make or buySpecifs

standardisation

Joint Process Improvement

Redesign to cost

Supplier development

Low cost sourcing

SI use

Common purchasing strategy and industrial

strategy

low

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Skills and Competencies Buyers - EIPM - The source for ... · PDF fileSkills and Competencies Buyers ... Assessment by the purchasing hierarchy compared with self assessment by the