SC21 Task Force 21St November 2013 RAF Cosford Shifnal UK

SC21 Task Force

21st November 2013

RAF Cosford Shifnal UK

Advancing UK AeroSpace, Defence and Security Industries Agenda 21st November 2013

09:30 Registration & Refreshments 10:00 Introduction Neil McManus, GKN SC21 chairman Executive Vice President Business Development & Strategy

10:15 SC21 programme update Phil Curnock, ADS Group Ltd PDQ SIG Update – Pete Laurie Head of Supply Chain

10:30 Major industry growth and innovation Neil McManus, GKN projects: AGP, DGP and ATI SC21 Chairman Executive Vice President Business Development & Strategy

11:00 Sharing In Growth Programme Andy Page, Sharing in Growth UK Ltd CEO 11:30 Coffee Break

11:45 Defence Cyber Protection Partnership Malcolm Carrie, BAE Systems Plc Head of Global Information Management & Technology Strategy and Architecture

12.15 NATEP Programme Dave Dawson, ADS Group Ltd NATEP Programme Director

12:45 Awards presentations

13:15 Networking Lunch

14:15 SC21 Midlands region update Annette Rothwell, AEC Vice President Supply Chain

14:45 Coventry and Warwickshire Aerospace Group Kevan Kane, Technoset Managing Director

15:00 Funded business improvement training Paul Lloyd, Wincanton – BTEC / NVQ Apprenticeship opportunities SC21 Implementation Manager

15:30 AeroMSc bursary scheme Angela Ringguth, RAeS Project Manager

15:45 Closing remarks Neil McManus, GKN SC21 Chairman Executive Vice President Business Development & Strategy 16:00 Close and networking

Advancing UK AeroSpace, Defence and Security Industries 10:00 Introduction

Neil McManus, SC21 chairman

10:15 SC21 programme update

Phil Curnock, ADS Group Ltd

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.

Circa 700 SC21 signatories on the continuous improvement journey.

• Over 50 new signatories over the last few months • Over 250 awards presented to date (33 to be presented at this event) • 115 current awards in industry • Re-recognitions increasing drastically, demonstrating sustained performance in line with the challenging award standards of SC21

Who • Aerospace, Defence, and Security suppliers

Schunk UK Ltd GENERAL OPTICS (ASIA) LIMITED Standard Fuel Oils Ltd Rider Levett Bucknall UK Ltd Hutton Engineering (Precision) Ltd H Roberts & Sons DI Limited Rainford Solutions Mainframe Communications Ltd Survitec Group PDL Fabrications limited Schivo Precision Ltd Westley Group Neville Precision Engineering Rider Levett Bucknall UK Ltd JPAERO-COM-ENG CO LTD West Country Tool Company Limited HARRY BARKER PROPERTIES LTD Hydro Group plc. Midland Steel Equipment Data Patterns India Private Limited KINGSBEECH LIMITED Webber Precision Engineering Metaltech Limited Ford Component Manufacturing Orchard Materials Ltd Forth Engineering Cobham Mission Equipment Surface Technology PLC HE Electronics Ltd TRaC Global Ltd Omnitool Ltd Advanced Industrial Rewinds Ltd TEG Seacon Europe Takumi Precision Engineering Elma Electronic UK Limited DPF Engineering Mitsubishi Materials UK dcs Sonovision UK Hansatech EMS Teknoflex Interconnect Solutions Ltd Wilsons Limited Hyspec Engineering Sanmina Corporation SC21 Active Signatory Google map Diagnostic updates

SC21 Business Excellence model training now in place for Lead Practitioners and to be launched in January 2014.

SC21 Relationship Excellence tool now being piloted and ready for launch January 2014.This will be incorporated

in to the recognition process21st for 2015.

SC21 Enhanced tools available in Export maturity and Innovation.

New Design / Engineering Excellence SIG to be brought together during 2014*

* A small number of SMEs will be called to support this group

International Update

India – SC21 India Steering Board How do we get UK companies partnering with Indian companies to develop greater export opportunity.

SC21 Australia programme New extended Agreement for a further 4 years being finalised 52 Defence suppliers now active and 14 Rail suppliers.

Regional Update

SC21 Now launched in Republic of Ireland. Excellent response and suppliers already signed up and diagnostics taking place before year end.

Northern Ireland programme progressing very well with companies evidencing huge step change improvement and doubling of turnover.(Slides attached)

Scotland continues to increase active members and award resubmissions.

Prime Update

Airbus SC21 now part of Airbus Global Supply Chain Strategy. UK Supplier list to be reviewed between Airbus and ADS for increasing awareness.

Thales New signatories increasing and21st further companies submitting for awards

BAe Systems Large training programme on RMM practitioners in place.

Cobham Defence Now signed and actively leading suppliers.

ADS Events and Comms

Task Force events:

• 21st November 2013 – RAF Cosford, Shifnal • 18th February 2014 – North of England.Venue (TBC) • 17th July 2014 – Farnborough International Airshow (Planning stage) • 18th November 2014 – Belfast Titanic Museum.

Comms:

Farnborough Airshow “First Magazine” is now available via the FIA2014 website, it includes the SC21 Video and the SC21 event at Farnborough Airshow 2014.

Sarah Barnard, SC21 Project Manager, will be editor of a new SC21 electronic newsletter. Please submit case studies, news items and any other SC21 news stories to [email protected] for consideration in the newsletter. Product Lifecycle View – Agreed Industry Programmes Skills Engineering Skills Bid

Talent Retention scheme

500 MSc

SC21/SC21 Enhanced/SIG REVENUE JOBS /REVENUE Manufacturing & Supply Chains NATEP

ATI

Technology

PRE LAUNCH LAUNCH GROWTH MATURITY PHASE OUT •R&T Activities •Product •OE ramp-up •OE •Recycling development •Spares •Decommissioning

•MRO STAGES

www.aerospace4growth.org.uk SC21 PDQ SIG Update

21 November 2013 RAF Cosford

Peter Laurie – Selex ES The EFQM Excellence Model

The EFQM Management Document provides a simple format for describing how the strategic objectives of an organisation are being implemented. It uses the framework of the EFQM Excellence Model to describe the key approaches adopted, how they are being deployed and the results achieved. ASSESSMENT APPROACH 1. Templates There are 3 templates for assessing a business against the EFQM Excellence Model and these align to the 3 levels of SC21 Recognition of Bronze, Silver and Gold.

 Bronze: Self-assessment using EFQM Determining Excellence and reviewed in a workshop facilitated by a SC21 Practitioner. Scored as ABCDE.

 Silver: Self-assessment using EFQM Determining Excellence including completion of an Enabler Map and Results Section and reviewed in a workshop facilitated by a SC21 Practitioner. Scored by RADAR.

 Gold: Assessment against the EFQM Excellence Model through completion of an Enabler Map and Results Section against the 32 criterion parts and reviewed in a workshop facilitated by a minimum of 2 SC21 Practitioners. Scored by RADAR.

Note: It is expected that the Practitioner will advise the Business involved on which format should be used for assessment. This will be dependent on maturity against the Excellence Model, positioning against SC21 Recognition levels or the Business’s requirements for improvement or benchmarking.

Bronze template E D C How do you…. Question EFQM Determining Excellence 2013 Some Approaches (Look for's, taken from EFQM Excellence Model) No Approach Approaches delivering implemented some results Establish and define the core purpose of the organisation and what it wants to achieve? 1.1 Our leaders shape the future and make it happen Communicate the direction and strategic focus and encourage all to achieve the organisation's Vision, Mission and strategic goals?

Inspire people and create a culture of involvement, ownership, empowerment, improvement 1.2 Our leaders act as role models for our values and accountability through actions, behaviours and experience? Support people in achieving their plans, goals and targets and recognise their efforts? Work with your customers, suppliers and society to improve the way things are done? 1.3 Our leaders inspire trust at all times Understand, anticipate and respond to the different needs and expectations of external stakeholders? Demonstrate your ability to make sound, timely decisions, based on available information, 1.4 Our leaders are flexible previous experience and knowledge, with consideration of their potential impact? Consider "People, Planet and Profit" when balancing requirements?

E D C SC21 guidance: Have you… Question EFQM Determining Excellence 2013 In a few (Look for's, taken from EFQM Excellence Model) No Results About half areas Defined customer perception measures on: reputation and impact; product and service value; product and service delivery; customer service, relationship and support; customer We have defined the key Customer Results loyalty and engagement. 6.1 required to achieve our strategy Defined internal performance indicators on: product and service delivery; customer service, relationship and support; complaints handling; involvement of customers and partners in the design of products, processes and services. Obtained feedback from customers on the above perception measures to determine which aspects of your products and services are most important to them? Customer Perception results are positive for 3 Monitored and analysed customer perception data to determine the successful deployment 6.2 years of strategy? Tabulated customer perception data and loyalty levels over time to show improving trends or sustained high performance? Recorded and analysed data from the above performance indicators to understand and Our internal customer measures are positive for 3 6.3 improve the performance of processes that impact customer perception? years Tabulated this data over time to show improving trends or sustained high performance? Silver template

Cross Ref to How do you…. Assessment & Questions Excellence (Look for's, taken from EFQM Approach Deployment Results linkage refinement Model Excellence Model)

Establish and define the core purpose of the organisation and what it wants to 1.1 1a achieve? Communicate the direction and strategic Inspire people and create a culture of involvement, ownership, empowerment, 1.2 1d improvement and accountability through actions, behaviours and experience? Work with your customers, suppliers and society to improve the way things are 1.3 1c done? Understand, anticipate and respond to the

Cross Ref to SC21 guidance: Have you… Relevance & Usability Performance Question Excellence (Look for's, taken from EFQM Excellence (Define the Results used) (of the Results) Model Model)

Defined customer perception measures on: reputation and impact; product and service value; 6.1 6a product and service delivery; customer service, relationship and support; customer loyalty and engagement. Obtained feedback from customers on the above perception measures to determine which aspects of your products and services are most important to 6.2 6a them? Monitored and analysed customer perception data to determine the successful deployment of strategy? Recorded and analysed data from the above performance indicators to understand and improve 6.3 6b the performance of processes that impact customer perception? 10:30 Major industry growth and innovation projects: AGP, DGP and ATI

Neil McManus, GKN SC21 Chairman Executive Vice President Business Development & Strategy 11:00 Sharing In Growth Programme

Andy Page, Sharing in Growth UK Ltd CEO

See PDF Version via the ADS SC21 website

Andy Page CEO – Sharing in Growth UK Ltd

www.sig-uk.org

Coffee Break

11:45 Defence Cyber Protection Partnership

Malcolm Carrie, BAE Systems Plc Head of Global Information Management & Technology Strategy and Architecture

Defence Cyber Protection Partnership

COLLABORATIVE – CONSULTATIVE – PROPORTIONATE

SC21 Conference, Nov 2013

26 CONTEXT

Cyber attack is a “Tier 1” threat to the Largest APT1 data theft nation National Security Strategy, 2010 from a single organiszation:

6.5 Terabytes Longest time period within which APT1 has over 10 months continued to access a Mandiant report 2013 victim’s network:

4 years, 10 months Detica Report 2011

Mandiant report 2013

“We ignore the cyber threat at our peril…. 93% of large corporations… have had a cyber security “…the greatest transfer of wealth in history." breach in the past year.” General Alexander, Director of the NSA Francis Maude, Minister for the Cabinet Office

The cyber threat is real and growing 27 WHY SHOULD YOU CARE?

Private Sector Public Sector • Revenue, profit & share price • Prosperity & Growth – Intellectual property – Intellectual property – Competitive position – Competitive position – Disruption of production – Reputation – Reputation – Destruction • Security – Disruption • MOD intention to mandate – Destruction cyber standards – Military capability

BACKGROUND

2010 • Cyber attack a “tier 1” threat – National Security Strategy 2011 • “Government will… encourage industry-led standards and guidance…help companies who are good at security make that a selling point.” – UK Cyber Security Strategy 2012 • Informal group of 6 companies recognising emerging threat to the supply chain and the need to improve and maintain protection of the defence sector. • Recommended actions: information sharing; measurements & standards; supply chain awareness; and skills & education 2013 • SoS endorsed recommendations (February); requested greater inclusivity and clear participation by MoD, GCHQ and CPNI • DCPP formal construct launched (April) – still self funded • Executive Group • HMG: BIS, CPNI, GCHQ, MoD • Industry: BAE Systems, BT, CGI, EADS, HP, Lockheed Martin, Rolls-Royce, Selex ES, Thales • Trade associations: ADS, techUK • Associates: General Dynamics, QinetiQ, Raytheon

29 OUTCOME

Senior leaders can make informed decisions to mitigate against and manage the impact of cyber attacks eg • What do I need to do? • Informed by shared awareness of primary targets across the sector • How do I do it effectively and efficiently? • Informed by shared tradecraft intelligence (best practice), fit-for-purpose standards and performance measurement • What about my supply chain? • The means to identify and protect the weakest link

Organisations can execute these decisions through the use of a skilled work force, appropriate processes and technology

Team Defence UK is able to function effectively despite the increasing number and sophistication of cyber attacks

30 DCPP ENABLING WORK

Information Sharing • Reducing adversaries’ window of opportunity by:- • Timely sharing of information across industry and government – some of it sensitive Measurements & Standards • Providing clarity in terms of where we are and where we need to get to by:- • Defining the proportionate and practical cyber security standards required in all defence contracts Supply Chain Awareness • Raising awareness of cyber security by:- • Briefing a common message and surveying readiness

31 WHAT CAN YOU EXPECT?

Information Sharing • Information security staff (yours or your service provider’s) invited to join Cyber Information Sharing Partnership

Measurements & Standards • BIS will announce a “level 0” organisational standard for cyber security (November) • DCPP’s “level 1” controls will be over and above but proportionate to the risk • eg who you are, what you’re doing and how you’re doing it • Practicality of “level 1” controls will be tested in Q1 2014 • MOD intends to make cyber security standards contractual during 2014

Supply Chain • A common message across HMG and industry • Readiness survey will be improved to be more clearly linked to required level of assurance (H1 2014) • DCPP will produce implementation guidance

32 WHAT CAN YOU DO TO PREPARE?

Don’t Panic • This is a difficult problem but it’s solvable • Don’t stop any current cyber security improvement activities

Use Existing Best Practice • Check your organisation and your IT service provider(s) against HMG’s “10 Steps to Cyber Security” http://www.cesg.gov.uk/News/Pages/10-Steps-to-Cyber-Security.aspx • Ditto BIS “level 0” organisational standard for cyber security • Ask your information security staff to join Cyber Security Information Sharing Partnership (CISP) for threat information http://www.cisp.org.uk/ • Access Technology Strategy Board’s voucher scheme for funding to improve cyber security https://vouchers.innovateuk.org/cyber-security • Ask for advice: ADS, techUK, primes

Educate Your Staff

33 Targeted attack - modus operandi

BeCorporate suspicious: External Network email attachmentsBackdoor Controller .zip

links to webLateral sites Internet Movement

Delivery Exploitation Command & Control Exfiltration Spear Phishing Email User opens malware Computer beaconing Stealing data

34 35 Defence Cyber Protection Partnership

Vic Leverett, Chair, [email protected] Malcolm Carrie, Programme Leader, [email protected]

36 12.15 NATEP Programme

Dave Dawson, ADS Group Ltd NATEP Programme Director NATIONAL AEROSPACE TECHNOLOGY PROGRAMME (NATEP)

Background presentation Dave Dawson Director, NATEP

21 November, 2013

www.aerospace4growth.org.uk

NATEP

www.aerospace4growth.org.uk NATEP – Helping to innovate technologies for new aerospace products

Delivered by UK Aerospace supply chain companies Supported by the UK’s regional aerospace alliances Programme managed by ADS, the UK national aerospace body Funded by BIS as part of AMSCI

Working together to deliver 100 novel technologies

www.aerospace4growth.org.uk Objectives of NATEP

○ Deliver 100 new technology capabilities in the UK aerospace supply chain

○ Develop 250 UK aerospace supply chain companies technology and business capabilities and capacities

○ Deploy developed technologies in global aerospace platforms by 2020/25

○ Align aerospace OEMs, mid-caps, SMEs and HEIs/Catapults within ‘Lifting Off’ Strategy and its Implementation

○ Create/sustain 1200 high value jobs in the UK aerospace supply chain o Using a proven model

o (Midlands Aerospace Alliance Aerospace Technology Exploitation Programme (ATEP) (2006-12) -- 11 successful projects funded)

www.aerospace4growth.org.uk NATEP Process and Timing Access to NSB Launch Regional/National Programme team in support of Dissemination with Global Customers Marketing of new RAA market the Call 1 – Outline application 14 Aug 2013, full Application capability NATEP programme to 19 Dec 2013 – now closed regional suppliers Call 2 – Outline application 20 Mar 2014, full Application 23 May 2014 Final Report/Project Collaboration Group Call 3 – Aug 2014, Call 4 – Nov 14, Call 5 – May 2015 Closure Identify Project Programme end - March 2017 Opportunity Note: Collaborative group can be from any UK region (incl Progress Reviews via Qtly Contact RAA Team Directed Universities) Management report (Spend, resource, technical progress, jobs creation, risk mitigation, feedback on Use Regional/National Identify Potential Collaboration support) Group and End User team in support of Project and its Management/Sustained Mentoring Create Draft/Final Bid Project Use Regional/National 18 month Delivery Project team in support of bid Submit Bid to RAA through facilitated Technology Planning

RAP review of bid, RAA NSB Gives provide feedback and Approval and recommendation to Makes Grant NSB Offer

www.aerospace4growth.org.uk Call 1 summary for NSB

Outline Proposals Received 9 Participating companies from North, Midlands, South West and South East 28 Different Primes/end users 15 Universities 3 Catapult Centres (MTC) 1 Funding requested £1.2M

Subjects covered: Software development Improved Manufacturing Processes New materials or coatings Documentation for manufacturing info Safety equipment New mechanical designs

www.aerospace4growth.org.uk NATEP

£40M programme running until March 2017 Phased over five 6-monthly competitive calls

. the collaboration must involve a supply chain partnership and could include academic partner/HVM Catapult centre

. technology developed must have exploitation potential – preferably with end user involvement

. grant, usually 50% of spend, ranging from £50k to £150k

. projects must have potential to create or safeguard jobs

. should have a duration of up to 18 months

If you have a potential project – apply now….

www.aerospace4growth.org.uk NATEP Contacts [email protected] [email protected] www.NATEP.org.uk Or your regional aerospace alliance

www.aerospace4growth.org.uk SC21 Award Presentations

SC21 Bronze Award

Award Company Award type Sponsor Arrowsmith Engineering (Coventry) Ltd Bronze Self Starter Cinch Connectors Bronze Self Starter Electro services (Midlands) Ltd Bronze Self Starter Helander Bronze Self Starter Murata Power Solutions (Celab) Ltd Bronze Self Starter Rodford Engineering Ltd Bronze Self Starter Xcel Power Systems Bronze Self Starter

Advancing UK AeroSpace, Defence and Security Industries SC21 Re-recognition Bronze Award

Award Company Award type Sponsor Axon Cable Re Bronze Self Starter Graves Aircraft Components Re Bronze Self Starter Keyford Precision Engineering Ltd Re Bronze Self Starter Nemco Re Bronze Thales New Breed Logistics Re Bronze Self Starter Paramount Precision Engineering Ltd Re Bronze Self Starter SC21 Silver Award

Award Company Award type Sponsor Dontaur Silver Self Starter Ferranti Technologies Silver Cobham Wincanton AW Silver Self Starter Wincanton MRO Yeovil Silver Self Starter Wincanton Telford Silver Self Starter SC21 Re-recognition Silver Award

Award Company Award type Sponsor

AWS Electronics Ltd Re Silver GD UK Groveley Precision Re Silver Self Starter High Tech Engineering Re Silver Self Starter Reliance Precision Ltd Re Silver Self Starter Networking Lunch

14:15 SC21 Midlands region update

Annette Rothwell, AEC Vice President Supply Chain

SC21 Midlands regional update 21st November 2013

Annette Rothwell – VP Supply Chain, Aero Engine Controls Midlands Aerospace Alliance (MAA) board member, MAA SC21 working group chair. SC21 in the Midlands

• A quarter of all SC21 signatories are located in the Midlands

• Of those 163 companies: – 79 are self starters – 44 are key customer sponsored – 38 are regionally led

• 20% of recognition awards presented to Midlands suppliers

• 139 are members of the Midlands Aerospace Alliance (MAA)

• 23 led by Aero Engine Controls

• £3 million funding supporting SC21 deployment

* All figures taken from ADS national status report August 2013

SC21 MAA working group objectives

SC21 is considered so important in the Midlands we’ve supported our own regional working group since circa 2008

“To gather an industry voice from Midlands companies deploying SC21. The membership will ideally include regional primes, OEMs, tier 1s and SMEs, representing the range of commodities and capabilities based in the region.”

The output from the group is used:

– to inform the SC21 governance process via ADS, the national industry body – to highlight common issues, share best practice and identify improvements relating to SC21 – to promote SC21, its impacts and benefits, by engaging key customers and their regional supply chains – to provide steerage to funded support projects

MAA SC21 working group members

• Annette Rothwell (Chair) – Vice President Supply Chain, Aero Engine Controls • Jason Aldridge – Managing Director, Arrowsmith Engineering • Steve Boyd – Managing Director, G&O Springs • Andrew Clarke – Quality Manager, Atlas Composites • Phil Curnock – SC21 Project Manager, ADS • Rachel Eade – Supply Chain Specialist, Manufacturing Advisory Service-WM office • Tim Holmes – Supplier Development Manager, Aero Engine Controls • Phil Houlton – MAS Advisor, Manufacturing Advisory Service-EM office • Tim Jackson – Head of Supplier Quality, Rolls Royce Submarines • Cliff Johnson – Operations Director, Midland Precision Engineering • Kevan Kane (vice chair) – Managing Director, Technoset • Yvette Lawlor – Group Quality Manager, TTI Group • Andrew Mair – Chief Executive, Midlands Aerospace Alliance • Terry Mansell – Director of operations, Arden Precision • Reg Machin – Supplier Development Manager, UTAS • Andy Page – Global Supplier Development Executive, Rolls-Royce PLC • David Street – Director Nuclear Systems Development. Sheffield Forgemasters • Tim Tatton – Managing Director, Invotec Circuits • Ian Taylor – Global Supplier Development Manager – Meggitt

Current focus of the working group

– Identifying existing and potential future funding for SC21 related activity within the region

– Sharing load & capacity issues within the sub tier to inform industry activities

– Supporting the development of the SC21 relationship excellence model (Rel Ex)

– Group members participation in SC21 governance • Two members sit on the SC21 steering board • Two members sit on collaborative working special interest group (CW SIG) • One member sits on performance, development and quality special interest group (PDQ SIG)

– Establishing the supplier development approach of the region’s key customers and OEMs • Aero Engine Controls, Meggitt, Moog, Rolls-Royce, UTAS/UTC Supplier Development focus at Aero Engine Controls

G1. Relationship G2. Developing G3. Building G4. Develop Building Strategy Excellence and Grow

Business Assessment Action, Sustain, Advance, Control, Spread, Excel, & Basics Improve, Tell Exceed, Impress, Share Expect, Surprise, Teach World Class Business SC21 Process Extend to Supply Assessment (see separate presentation) Sub-Tier Chain

Continually Perfect Quality Challenging Action on Perfect Quality Convention FOBIs Step 3 Step 4

Commitment to Supplier Association Membership Lean More ways the MAA helps its members…

• MAA continues to support the AGP with board directors or the CEO participating on the AGP steering group, strategy group and three working groups

• The next MAA annual conference will be held 18th March 2014 at the Rolls-Royce Learning and Development Centre, Derby - last year we had 160 delegates

• The MAA is working with UKTI to take suppliers from across the UK to ILA Berlin Airshow in May contact [email protected]

• 60% of all pods on the MAA stand at Farnborough in July are already sold! - contact Emma to reserve yours

• Midlands companies that want to discuss their NATEP new technology ideas for Call 2 should contact [email protected]

• The MAA now has 300 members and continues to grow! 14:45 Coventry and Warwickshire Aerospace Group

Kevan Kane, Technoset Managing Director