Supplier Development - · PDF fileSupplier development approach Airbus Supplier a Supplier b ... defence industries by raising the performance of its supply chains. ... • Engineer

The sky’s the limitSupplier Development

AIRBUSStephen Gregory

Supplier Development Manager

© AIRBUS Operations LTD. All rights reserved. Confidential and proprietary document.

Airbus today…

• Airbus is growing

Month 20XX Use Tab 'Insert - Header & Footer' for Presentation Title - Siglum - Reference

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0

200

400

600

800

1000

1200

1400

1600

1800

Airbus orders and deliveries 1989 to 2014

Orders

Deliveries

Current backlog of >6300 A/C

Equivalent to ~10 years of

work


Airbus and the supply chains future…


PositiveProduction rateSupply chain demandOpportunitiesGrowthProfits

NegativeMissing partsLate deliveriesQuality issuesConfusionCapital outlay


Supplier development (POL) is evolving…

• Supplier Development is global with regional teams

• Primary focus is Tier 1 suppliers

• Reactive to preventative• Less firefighting more proactive development• Tackle root cause issues

• Airbus wants to derisk the supply chain• Tackle the negatives, • promote the positives


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Sub Tier development (POLT) – the next evolutionary cycle

A new department in POL(Born July 2014)


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The mission: based on a deep knowledge on the

whole supply base, promote and enable continuous improvement at TiersN, in order to get maturity and to secure the AIRBUS supply Chain.


Supplier Mapping

January 2014 Procurement Leadership Seminar


Tier 2 and below – Use local CIprogrammes e.g. SC21 / SPACE

Tier 1 – Use current Airbus processe.g. IPCA+, SQIP, Etc.

Supplier development approach

Airbus

Supplier a

Supplier b

Supplier c

Supplier h

Supplier d

Supplier e

Supplier f

Supplier g


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Global Approach

Local Approach

Airbus committed to supplier development at all tiers within the supply chain


UK centric CI programmes


Page 8Government funding is available for qualifying companies

Cost

Time


Why?

• Who has an EN9100 or ISO 9000 (series) approval?

• Who thinks their business is the market leader for a product or service you provide?

• Who thinks their business could be more efficient?

• Who thinks their business makes enough profit?

• How many of you want to make more profit?

• Who wants to compete in a global market?


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Supply Chain 21st Century - SC21 an opportunity…

• SC21 is an independent view on your potential to be efficient and decrease costs / working capital

• SC21 identifies your current strengths and opportunities for improvement

• SC21 elements are now required by the EN 9100 standard

• SC21 membership is free,• Assessment time involved is very low• What do you have to lose…

• Management can’t control resource costs, but you can control activities which cause costs.


What is SC21?


• Change programme to accelerate the competitiveness of aerospace and defence industries by raising the performance of its supply chains.

• UK equivalent of SPACE (POLT also deploying in Europe)• MOU between SPACE and SC21

• Started in 2006

• Has over 700 members• Over 400 awards presented to qualifying companies

• Managed by UK trade body (ADS)

• Run by primes (Airbus, GKN, Rolls Royce, BAE, Etc)

• International presence in Australia, Middle East, USA, and India


SC21


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• SC21 is a structured proven approach for business development

• Ideal for SME’s who want to continuously improve or those companies who want to develop their supply base

• By industry – for industry• Improving business efficiency• Increasing delivery performance• Decreasing cost of quality and improving

customer quality• Management and business approach• Metrics to drive the right behaviours• Planned improvement

Visual Control

Businessefficiency

Relation-ship

Manage-ment

Best Practice

LT reduction

Standard-ised

processes

Quality tools

Workplace organis-

ation

Comm-unication

Manage-ment

commit-ment


Ask yourselves some questions?

• Is your organisation the first choice of your customer for the product or service you provide?

• Are you meeting your customers expectations and delivering on time every time?

• Do you consistently provide 100% quality and delivery?

• Is your organisation receiving the recognition its performance deserves?

If not, why not?


What is in it for my organisation?

• Leaner production• Decreased cost of quality• Decreased inventory• LT reduction

• Workforce involvement / motivation• Improved skills and knowledge

• Better business information• Visual controls

• Improved customer / supplier relationships• Better quality and delivery performance to customers• Increased competitiveness

• Don’t just believe me, • Chris Steel from AVPE is an SC21 award winner ask him about the benefits…


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• SC21 directly affects working capital and profitability

• SC21 is a journey, not a quick fix…• You must engage with the programme• It will not be done to you.

• SC21 is not ‘Jobs for the Boys’

• SC21 is about your company being competitive in world markets

• If you are not engaged, Google SC21, contact ADS, WEAF or me!

SC21


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A warning from history…

• Dr William Edwards Deming• Engineer• Statistician• Professor• Lecturer• Management Consultant

• Second world war• Promoted statistical techniques to

mass production• Higher quality, lower cost

• Post war• Was ignored by US - mass produce,

low quality• Deming went to Japan to develop

Japanese industry


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A warning from history…

• Detroit• Former world capital for motor manufacture• Declared bankrupt in Dec 2013• Debt $18.5 billion

• What went wrong• Poor quality inefficient cars• 1970’s petrol crisis• Customers moved to better quality more

efficient, cheaper cars• Only in 1970’s did the likes of Ford realise

the advances the Japanese had made


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Dr William Edwards Deming


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“It is not necessary to change. Survival is not mandatory.”

“Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.”

“Any manager can do well in an expanding market.”

“It is not enough to do your best; you must know what to do, and then do your best.”


Any questions…


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Your only constraint is you...

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Supplier Development - · PDF fileSupplier development approach Airbus Supplier a Supplier b ... defence industries by raising the performance of its supply chains. ... • Engineer