Manufacturing Capability profile

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1 Manufacturing Capability profile MANUFACTURING

2 Our capabilities and our people BAE Systems offers the Australian Defence Force (ADF) and security customers total capability across the defence and security domains. We combine key skills in engineering and systems integration and work to optimise the ADF s military capability by delivering the most efficient, valuefor-money solutions. We draw on the strengths of our global company to develop greater capabilities that ensure better protection for Australia and our soldiers, sailors and aircrews. For more than half a century, we have designed, integrated, manufactured and maintained military systems for the ADF. We work hard to maximise Australian industry involvement in all of our projects and activities. We are a significant contributor to the Australian economy. We recognise that the future for Australia and companies like BAE Systems Australia rests with our young people. That is why we invest in helping to boost the future skills of Australia s primary, secondary and tertiary students. BAE Systems culture is based upon creating partnerships and long-term working relationships with our customers, our suppliers and our people. As Australia s most capable defence supplier across the defence and security domains, our products and services are designed to give the ADF a real advantage by helping frontline personnel to do their jobs quickly, effectively and safely. Supporting the men and women of the ADF is at the heart of everything we do. We recognise that our customers needs have changed. Defence is striving for enhanced military capability at lower cost. Today s operational environment is also more complex and less predictable than ever.

3 For more than half a century, we have designed, integrated, manufactured and maintained military systems for the ADF. The military is required to deploy at short notice virtually anywhere in the world, fully equipped and with a strong and sustainable supply chain to support expeditionary tasks. BAE Systems is meeting these challenges. Working closely with the ADF and our other customers, we deliver innovative, cost-effective through-life solutions. Our company is structured to ensure we deliver the most effective solutions at every level. We take responsibility for providing a fully integrated end-to-end service to customers, advanced manufacturing of the latest technology equipment, delivering through-life support for existing capabilities and future requirements. We maintain and support products and services that are supplied by our company and others, constantly seeking opportunities to maximise capability and generate synergies.

4 Our global supply chain and local SMEs As the Australia s largest defence contractor, BAE Systems supply chain includes more than 2,400 businesses. In 2011, we spent more than $850 million purchasing goods and services from these companies. More than 80 per cent of these Small and Medium Enterprises (SMEs) are based in Australia. Our supply chain is vital to our success. We engage our major subcontractors and SME suppliers as part of a tried and trusted process known as Life Cycle Management, which directs our efforts from identification of an opportunity right through to the end of a project. We form partnerships within our supply chain early in this cycle to build up the total capability required to win and successfully deliver a project. As a prime contractor, BAE Systems Australia aims to identify and partner with other Australian companies to put together the right package of capability and to perform the systems integration role. BAE Systems Australia supports SMEs within our supply chain to expand and prosper. Central to our commitment is working with SMEs to increase their capability in order to deliver product in accordance with Quality, Cost and Delivery (QCD) requirements to both our Australian and global businesses. We also support suppliers to increase their profile across our chain and thereby boost their potential order intake. This includes implementing joint development and performance plans to improve the performance of specific projects, standardising quality assessments, and ensuring that all our relationships are built on effective communication. In 2012, we formed a specialist team charged with identifying more opportunities for Australian firms to secure work within its global supply chain.

5 With the support of the Australian Government, our new Global Access Program (GAP) team will work closely with existing and new local suppliers, especially SMEs to help identify and capture a range of opportunities. The GAP team will also support development and continuous improvement activities with SMEs, provide advice around regulatory issues and act as a single point of contact into BAE Systems global supply chain. More than 50 Australian companies have already secured contracts within BAE Systems global supply chain, with a total value of over $30 million.

6 Our advanced manufacturing expertise BAE Systems Australia has a comprehensive Manufacturing capability that is able to produce all levels of hardware product from procurement of raw materials/components to piece part manufacture (electrical and mechanical), through to an integrated, tested, unit, assembly or system. Underpinning this capability is a set of robust processes directly aligned to international standards ISO-9001:2008 and AS9100. Mechanical capabilities focus on precision machining of Hard (Titanium) and Soft (Aluminium) metals to produce complex close tolerance parts and subassemblies for international aircraft (F-35, Typhoon Eurofighter), missile and weapon system programs. Also included in this process is part verification through coordinate measurement and Non Destructive Testing. Complementing the machining process is a Military Standard, accredited finishing capability that provides military/aerospace standard surface treatment and painting. Electrical capabilities focus on Wire Harnesses and Circuit Card Assembly (Through Hole and Surface Mount Technology) including conformal coat and potting. Bench level electronic sub-assembly is also conducted in this area. These processes are IPC qualified to produce electronics that are compliant to international military and aerospace standards. Assembly, Integration and Test of electronic and electro-optics are conducted utilising a cellular or integrated product team approach. These activities range from electronic Line Replaceable Units through to full systems integration and environmental stress screening. Embedded within the Manufacturing group is a dedicated Outsourcing team that manages external part manufacture resulting from a make/buy review. This team manages a number of key suppliers/ SMEs with an annual sub contract value of $8m. This supply base consists of both mechanical and electrical production companies along with a range of material and equipment suppliers. Manufacturing is currently involved in R&D activities such as Titanium machining vibration trials in conjunction with the Defence Material Technology Centre and South Australian company, Vipac. Other technology development collaborations exist with the Swinburne University, University of Adelaide, Uni-SA and the University of Queensland on the SCRAMjet project. The Manufacturing group employs skilled staff across multiple disciplines including; Machining, fitting, electronic assembly, testing (environmental

7 and functional), inventory control, production control, engineering and quality. The Manufacturing group also undertakes an active apprenticeship program that maintains a core number of apprentices. Our Manufacturing group has a long history of Build to Print manufacture of avionics, electrooptics and military electronics systems for a range of international OEMs (Original Equipment Manufacturers). Platform/product experience includes, but is not limited to involvement in Joint Strike Fighter Titanium machining, Typhoon (Eurofighter) electro mechanical units, Blackhawk helicopter harnesses and line replaceable units, Evolved Sea Sparrow Missile (ESSM) thrust control and guidance systems, Wedgetail Airborne Early Warning & Control integrated assemblies and the Nulka Decoy line replaceable units. BAE Systems Australia s is committed to providing a highly capable, single source, defence and aerospace manufacturing solution for the international market. This capability is being delivered through a combination of investment in new technologies/processes and a commitment to develop and grow the Australian Small and Medium Enterprise (SME) supply base.

8 BAE Systems Tarananki Road, Edinbugh Parks EDINBURGH SA 5111 AUSTRALIA Telephone +61 (0) Fax +61 (0) Web Postal address PO Box 1068 SALISBURY SA 5018 AUSTRALIA This document gives only a general description of the product(s) or services except where expressly provided otherwise shall not form part of any contract. From time to time, changes may be made in the products or the conditions of supply Copyright BAE Systems

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