SC21 Industry Working Together An overview of SC21 and TÜV SÜD Case Study Mike Harrison Director ABSL Slide 1
The challenges to our industry sector growth The aerospace industry is over the next 20 years forecasting new aircraft requirements which are unprecedented in aviation history Airbus Bombardier Boeing Embraer The expanding world market is real a opportunity for the UK aerospace industry but also a threat Slide 2
The challenges to our industry globalisation in context The UK aerospace and defence industry is second only to the US in terms of sales The expanding world market is threatening that position Slide 3
The challenges to our industry supply chain pressures offshoring international economy waste and duplication demand market access Challenges to aerospace and defence supply chains costs people and skills purchasing power regulation and accreditation business behaviours Slide 4
What is SC21? SC21 is an industry change programme designed to accelerate the competitiveness of the Aerospace, Defence and Security (A D S) industries by raising the performance of its supply chains. It is a national strategy, executed regionally Managed by ADS and Industry through the National Status Report Slide 5
Why is SC21 necessary? Standardise processes Remove duplication and hence reduce costs Modernise business relationships Improve communications and collaboration Increase efficiency and simplicity Increase innovation Where we were Disconnected, fragmented supply base Non standardised processes, waste & duplication (i.e. metrics, auditing) Business relationships are sometimes poor The interests of different parties are not aligned Slide 6
The ultimate aim A world class supply chain in the UK to enable UK industry to become No.1 in the world for Aerospace, Defence, Security and Space. Slide 7
Who s involved? Aerospace, Defence, Security and Space Primes and their Suppliers 700 SC21 signatories on the continuous improvement journey Slide 8
Active SC21 companies Slide 9
SC21 How it s delivered Slide 10
SC21 the scope of application 1. Certification & Quality Improvement need to remove repetition, and unnecessary duplication SC21 is implementing 3 action streams to drive transformation and performance improvement 3. Relationship Management need for better end-to-end communication and collaborative planning 2. Development and Performance need increased efficiency and remove waste New business culture Slide 11
AS/EN91XX and NADCAP Slide 12
Aerospace Quality Management System.AQMS International Aerospace Quality Group AS/EN91XX is the quality management system for the aerospace industry and registration is becoming a global requirement Linked to AQAP2110 Slide 13
NADCAP Accreditation Performance Review Institute Nadcap accreditation is fast becoming a global requirement for suppliers using special processes Nadcap accreditation is a contractual requirement and not a mandatory AS/EN9100 requirement Nadcap involves a stringent audit by PRI personnel Nadcap has been up and running for 17 years and now include: Chemical Processing, Coatings, Composites, Elastomer Seals, Heat Treating, Materials Testing Laboratory, Non-destructive testing, Sealants and Welding, Printed circuit boards Slide 14
SC21 the scope of application 1. Certification & Quality Improvement need to remove repetition, and unnecessary duplication SC21 is implementing 3 action streams to drive transformation and performance improvement 3. Relationships Management need for better end-to-end communication and collaborative planning 2. Development and Performance need for increased efficiency and remove waste New business culture Slide 15
Performance metrics Sustainable improvement Improvement framework Recognition Slide 16
Performance metrics Sustainable improvement Improvement framework Recognition Slide 17
Measuring performance Positive improvements in quality, cost and delivery (QCD) performance are achieved by consistent measurement and continual improvement of the processes. As companies improve their processes this will reduce rework and scrap, the need to hold additional inventory, reduce overtime and expediting - all of which increase costs in the supply chain. The aerospace and defence industry sector have an agreed set of measures that may be used by SC21 companies to assess their internal performance. Slide 18
Measuring performance - quality Customer acceptance or reject rate are a good indicator of quality and customer satisfaction. Meeting quality targets not only improves customer satisfaction but also reduces your costs by eliminating scrap, rework and unnecessary inspection. Rejects' = units out of specification and not accepted on concession. Slide 19
Measuring performance - delivery Delivery schedule achievement is fundamental to a high performing supply chain Poor performance in this area has a detrimental effect on both customer satisfaction and customer performance. A product or service may be deemed to be on-time if it arrives to schedule within a defined window. That time window will be set by the customer and may be in terms of hour or days early or late. Slide 20
Measuring performance SC21 Targets Delivery and Quality performance is measured against a 12 month rolling average Slide 21
Performance metrics Sustainable improvement Improvement framework Recognition Slide 22
Sustainable improvement To eliminate duplication SC21 companies have agreed that each company in the supply chain has a single improvement programme that is relevant to all customers. Continuous and sustained improvement will be driven by a clearly defined plan (CSIP) Plans will have a clear linkage to performance metrics such as quality and delivery. The improvement activity must be driven by senior management. sustainable improvement Slide 23
Sustainable improvement Slide 24
Sustainable improvement The sustainable improvement programme shall be managed through the application of a robust plan for the WHOLE business. The plan shall be subject to regular review by the management team and the owners of the sub-elements. Slide 25
Performance metrics Sustainable improvement Improvement framework Recognition Slide 26
Improvement framework Two improvement frameworks have been defined by SC21 to form the basis of a standard approach to supply chain performance improvement, these are: Business Excellence (derived from European Foundation for Quality Management [EFQM] model of excellence) and Manufacturing Excellence (based on the Kawasaki Production System) Acknowledgement The Excellence Model is EFQM copyright. The ADS acknowledges the EFQM copyright and is grateful for the permission granted to reproduce it within this document. Slide 27
Business excellence the excellence model The structure of the model emphasises not only what a business is achieving (RESULTS) but also how the results are being achieved (ENABLERS). Enablers Results Leadership People Processes, Products & Services People Results Business Results Strategy Customer Results Partnerships & Resources Society Results Learning, Creativity and Innovation... the maximum points have been allocated to each criterion based on benchmarks from a range of European blue chip companies Slide 28
Manufacturing excellence A framework for Lean people material processes 5 s housekeeping job standardisation kanban set-up reduction visual controls 7 wastes / SPC / quality tools.supported by design related improvement methodologies VE/VA or QFD Slide 29
Performance metrics Sustainable improvement Improvement framework Recognition Slide 30
Recognition framework Organisation that wish to be recognised for their achievements as a participant on the SC21 programme will be assessed against the criteria described in the recognition framework. ALL 4 criteria must be achieved to be eligible for an Award. The Award level will default to the lowest criteria level. Slide 31
SC21 the scope of application 1. Certification & Quality Improvement need to remove repetition, and unnecessary duplication SC21 is implementing 3 action streams to drive transformation and performance improvement 3. Relationships Management need for better end-to-end communication and collaborative planning 2. Development and Performance need for increased efficiency and remove waste New business culture Slide 32
Code of practice The code of practice comprises five elements, focusing on: Communication Through life capability management Continuous improvement Commercial agreement Ethics Slide 33
Relationship management The highest standard of relationship management will be achieved through a structured engagement process involving all relevant functions with regular reviews at operational and strategic levels. The supply chain Relationship Code of Practice is supported by the Relationship Measurement Matrix [RMM], which is used via a facilitated process, to assess and develop the relationship between organisations throughout the supply chain. RMM application process Slide 34
SC21 Step by Step Slide 35
SC21 the 4 step model at a glance The model (and what it really means) Contact your most important ADS customers, ask them if they want to support you. Ask them to provide regular information on your performance. Agree your quality and delivery and support performance and review regularly Agree the quality certifications needed Undertake a set of diagnostics based on world class performance, covering the management, operations, relationships and business as a whole Use the diagnostics to build an overall improvement plan for the business, with clear actions that lead to world class performance and make a difference strategically and day to day. Review this regularly and keep fresh. When you have met the targets for an award, (diagnostics and quality and delivery), submit a presentation to the community for approval. Awards are given at Bronze, Silver and Gold levels of performance. The order of application of the Diagnostics will be determined during Step 1 Programme Engagement Slide 36
Sc21 Benefits and attributes of award winning companies Slide 37
Attributes seen in award winning companies A strong relationship with their customer. (All have done an RMM Workshop) Clear grasp of their own capacity and capability constraints. (They turn work away if they don't have the capacity or capability) They have customers who know their supplier and manage them well Continuous improvement is done to win more business not because they are told to. Performance is about a mindset, if customer sees the value in a performance based relationship and is prepared to support, so will the supplier A Culture of continuous sustainable improvement through the employees in both supplier and customer. A senior management commitment Slide 38
SC21 award companies SILVER Active Electronics Ltd Aeroflex International Ltd AWS Electronics Ltd Axiom Manufacturing Services (Newport Wales) Axis Electronics Limited Dontaur Engineering Limited Ferranti Technologies Glenair Ltd Groveley Precision Hermitage Sheet Metal Ltd High Tech Engineering J W Kane Precision Engineering Ltd MEP Ltd Moyola Precision Engineering Ltd Propak Sheet Metal Ltd Rebound Electronics Ltd Reliance Precision Ltd Righton Aerospace Ltd (Plymouth) TÜV SÜD Product Service Unipart Aerospace and Defence Ltd Wincanton AW Wincanton Ltd (Wattisham) Wincanton MRO (Yeovil) Wincanton Plc (Blackburn) Wincanton (Telford) 25 GOLD ITT Inter Connect Solutions (ICS) (Basingstoke) Wincanton Plc (Houndstone) 2 89 Slide 39
SC21 award companies BRONZE AAR International AB Precision Able Engineering Ltd Accrofab Limited Aero Stanrew Limited Agusta Westland EMC All Metal Services Ltd Belfast Altran UK Ltd PLM Division Analox LtdBronze Krempell Ltd Antares Ltd Arrowsmith Engineering Artemis Optical Ltd Astute Electronics Ltd Axon Cable Baker Bellfield Ltd Bovill & Boyd (Engineering) Ltd Castle Precision Ltd Cinch Connectors CT Production Electronic Manufacturing Services D & S Engineering Ltd Denroy Plastics Limited Derek Lane and Co Ltd DHL Global Forwarding (UK) Limited Belfast e2v Ed Fagan Europe Ltd Electroservices (Midlands) Ltd Fasteq Ltd Fourmasters Ltd FSL Aerospace Ltd Gooch & Housego Graves Aircraft Components Helander HITEK Electronic Materials Ltd Hone-All Precision Ltd Invotec Ltd (Tamworth) JJ Churchill Ltd Keyford Precision Engineering Ltd Kingfield Electronics Ltd Matt Black Systems Ltd Merlin Flexible Circuits Micro Spring and Presswork Midd Aeromech Ltd Morris Engineering Ltd Murata Power Solutions Nemco New Breed Logistics Newburgh Engineering Ltd NFF Engineering Ltd Old Engineering Ltd Parafix Tapes and Conversions Paramount Precision Engineering Photofabrication Plexus Polamco Ltd Pre-Met Engineering Solutions RD Taylor Ltd Rediweld Rubber and Plastics Rehau Ltd Righton Aerospace Ltd Righton Aerospace Ltd Bristol Rockford Components Limited Rodford Engineering Ltd Rosenberger Micro Coax Rotamic Precision Engineering SL Engineering Ltd South West Metal Finishers Stadium IGT Limited STS Defence Systems Engineering & Assessment Ltd Trimite Technologies Ltd Triumph Actuation and Motion Control TT Electronics Ltd (Rogerstone) TTI Group Ltd (Letchworth) TTI Inc Universal Engineering Ltd Vulcanium Metals International Ltd Wartsila Seals and Bearings Ltd WB Alloys Products Ltd Westminster Engineering Ltd WG Jones Ltd Wheelabrator Ltd Wincanton PLC (Middleton) Wincanton Plc (Kingswinford) Xcel Power Systems ZOT Engineering Ltd Slide 40
SC21 Putting the TÜV SÜD Silver Award into perspective Slide 41
TÜV SÜD TÜV SÜD are not your typical SC21 Company so why did they sign up to the Programme Aerospace, Defence and Machinery Consumer Goods Medical Devices Telecommunications BENCHMARKING Slide 42
TÜV SÜD s Vision Slide 43
Story board Signed up to SC21 August 2007 Continuous Sustainable Improvement Plan Started March 2009 Bronze Manufacturing Excellence Assessment Oct 2009 Bronze Determining Excellence Assessment Mar 2009 Bronze Award Achieved March 2010 Increased RMM activity Q3 & Q4 2012 Silver Operational Excellence Re-Assessment June 2011 Silver Determining Excellence Re-Assessment March 2011 Silver Award June 2013 Regional Partners FAC Strategic Partner Sigma/ABSL SC21 Key Customers BAE Systems, Cobham, Thales, WASP, Meggitt Avionics, Aero Engine Controls Slide 44
Planned improvements Regular internal auditing using the Diagnostic Assessment Toolset Increased training conducted to expand the knowledge of SC21 and LEAN across the company A Kaizan project in the Samples Stores department to bring it in line with the expected levels of efficiency required by SC21 Increased 5S housekeeping activities around the whole site Increased development and use of the Improvement Framework Before 5S Examples in Stores After Slide 45
Improvement framework The LEAN Vision To attain perfection, not when there is no longer anything to add, but when there is no longer anything to take away. Slide 46
Continuous sustainable improvement plan The Strategic Plan is integral to CSIP with all key customer performance data incorporated As at February 2013 290 activities had been initiated by the CSIP with 58% of these activities completed Slide 47
What about now? Customer Delivery Quality Cobham 96.4% 100% WASP 100.0% 100% Meggitt Avionics 100.0% 100% Thales 97.1% 100% BAe Systems 98.7% 100% Slide 48
What next? Implement the LEAN Improvement Framework to improve our overall performance Attract other aerospace customers to participate in our SC21 programme Implement supplier rating and feedback Extend the performance measure metrics across other market sectors Target of achieving SC21 Gold recognition by May 2015 Slide 49
How to get involved? If you would like to know more about SC21 or want to sign up to the programme or just want to talk to an organisation already engaged on SC21, go to the ADS Website: http://www.adsgroup.org.uk Also engage with Manufacturing Advisory Service (in England) who have funding that will support SC21 activities. If you would like help in getting started or progressing your current SC21 activities, talk to me after the session. My details: Email: mike.harrison@atolbsl.co.uk Slide 50
Thank you Any Questions? Slide 51