SC21 Task Force
25 June 2015 Thales, Glasgow
Advancing UK Aerospace, Defence, Security and Space Industries Agenda 25 June 2015
09:00 Registration & Coffee 09:30 Welcome & Introduction – Phil Curnock, ADS 09:40 Thales – Alan Haigh, LAS UK Purchasing Director 10:00 Regional Update – Nick Shields, Scottish Enterprise 10:20 Procurement Excellence – Andy Brown, Procurement Director, Selex ES 10:40 ADS Update – Ian Watson, ADS 11:00 Coffee Break & Visit to company Stands 11:30 SC21 Programme update – Phil Curnock, ADS 11:45 SC21 Case Study – Paul Houston, WB Alloys 12:10 Award Winner presentations 12:30 Lunch 13:30 Thales tour (or extended networking) 14:30 End of meeting Advancing UK Aerospace, Defence, Security and Space Industries
• 09:30 Welcome & Introduction – Phil Curnock, ADS
Advancing UK Aerospace, Defence, Security and Space Industries • 09:40 Thales Presentation – Alan Haigh, LAS UK Purchasing Director
Advancing UK Aerospace, Defence, Security and Space Industries SC21 Task Force
25TH JUNE 2015
www.thalesgroup.com THALES GROUP INTERNAL
Thales Optronics UK
LAND & AIR SYSTEMS Thales Proprietary Information Optronics Business Line
A global capability
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o a o
Glasgow Huizen Basingstoke Eindhoven Bristol Bury St Edmunds
Montreal, Canada
STC, South Korea
Elancourt AIO, Egypt St-Héand
Toulouse Aix-en-Provence
SOFRADIR
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Design and manufacture of
Day/ Night vision equipment
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Land Sea Air
Thales site
Joint Venture company without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 7 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Optronics Business Line
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Glasgow, UK o a o 2,900 m² clean rooms
Sight testing tower
Laser laboratories
Naval, Land & Airborne EO
Élancourt, France
6,000 m² clean rooms
Sight testing tower
Laser laboratories
Airborne EO / Thermal imagers
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8,000 m² clean rooms
40 m length night vision testing chamber
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Pierre Angénieux Movie studio
Night vision Goggles / High precision optics
Montreal, Canada
2,100 m² clean rooms
Complete development facilities
Integrated repair & logistics.
Uncooled vehicle thermal imagers without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 8 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Optronics UK Products
Airborne Products
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o a o Infra-Red Search and Track Systems - PIRATE Image Exploitation Systems - DJRP Reconnaissance Pod - Avni Environmental Protection System Countermeasure Systems
- Vicon XF IR Threat Warning Systems
- Elix-IR
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 11 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Optronics UK Products
Naval Products
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Sensors
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o a o Thermal Imaging Systems
- Catherine MP LW IR Camera
- Catherine MP MW IR Camera
- Catherine EZ MW IR Camera
- Sophie LITE Target Locator
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 13 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Optronics UK Products
Sensors
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o a o Laser Rangefinders and Laser Designators - MELT - microMELT - CELT/ CELT-HR - ESLVDE
- VELT-D
- VELT-I
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 14 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Optronics UK Products
Land Products
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o a o Armoured Vehicle Sighting Systems - Local Situational Awareness (LSA) Systems - DNGS Family of Sights - ORION Panoramic Sight - Drivers Sights
- ROTOS Surveillance System
- Smoke Dispensers
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 15 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Optronics UK Products
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Vehicle Mission Systems Integration
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 16 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Optronics UK Products
Soldier Systems third party third
Future Integrated Soldier Technology (FIST) o a o - Fully integrated communications and LSA capability
- Enhances battlefield capability and survivability
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 17 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Thales Involvement in SC21
25 JUNE 2015
www.thalesgroup.com THALES GROUP INTERNAL Thales UK Involved at all Levels
Prime working Group third party third
BAe, RR, AW,GE o a o SC21 Steering Group General Dynamics Prime’s Selex, Thales SME’s ADS SC21 Project Lockheed, Babcock MOD Team Bombardier, MOD Training Partners
Thales Rep: SC21 Thales Rep:
Jerry Mabey Special Interest groups Jerry Mabey
• Collaborative Working; • Performance, Development and Quality • Design Engineering.
Thales Rep:
Neil Kennedy
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( Mfr/Ops)
Thales Rep:
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Martin Smith
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Thales Rep: Vincent Clot ( Eng) Supplier’s Engaged Thales Strategic in SC21 Thales SC21 Partner: Quintec Programmes Supplier Community
Olaide Olaoye Jerry Mabey without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis Terry Little THALES GROUP INTERNAL 19 VP Supply Chain Visit – 21st May 2015 Thales UK Glasgow : 87204467-DOC-GRP-EN-002
The Thales SC21 Supplier Community
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Community Events • April 2014 • November 2014 • May 2015
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• Next Event Nov 2015
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 20 Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Community Events : Objectives
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without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 21 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Events: Content
April 2014 November 2014 May 2015
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o a o Thales in SC21 Sub Tier Supplier Status against objectives Management Capability
Thales Engineering REACH Energy Saving & Climate Organisation Change
Shared Objective Setting Counterfeit Avoidance SC21 for Rail
Sustainable Procurement RELEX
Cyber Security Cyber Security
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Innovation in Thales
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SYNDICATE SESSION
Barriers and KSF for SC21 Risks to achieving award Thales support for Award Success status & Thales support status & RELEX
without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 22 Thales UK Glasgow : 87204467-DOC-GRP-EN-002 Targets Targets Agreed April 2014
April 2014 Objective End 2015 Gold
Gold 4% third party third
2% o a o Silver 10% Silver 20% Bronze
18%
None Bronze
70% 76%
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Double our Golds, Double our Silvers, 100% Award Status without the prior written consent of Thalesof consent written prior the without This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis THALES GROUP INTERNAL VP Supply Chain Visit – 21st May 2015 23 Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Thales SC21 Community Current Performance :OTIF
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without the prior written consent of Thalesof consent written prior the without Community disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis is Performing at SILVER Level. THALES GROUP INTERNAL 24 VP Supply Chain Visit – 21st May 2015 11Transormation SuppliersThales UK Glasgow : 87204467 at -AchatsDOC Gold-GRP-EN-002 Level – Plans d’actions détaillés – Bilan revues light 2 – 23 Juillet 2012
Thales SC21community – current performance : RFT
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2015reserved.All rights
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without the prior written consent of Thalesof consent written prior the without Community disclosed t or part in or whole any in in way, translated, published, adapted, modified, reproduced, be not may documentThis is Performing at SILVER Level. THALES GROUP INTERNAL 25 VP Supply Chain Visit – 21st May 2015 13Transormation SuppliersThales UK Glasgow : 87204467 at -AchatsDOC Gold-GRP-EN-002 Level – Plans d’actions détaillés – Bilan revues light 2 – 23 Juillet 2012 • 10:00 Regional Update – Nick Shields, Director SMAS, Scottish Enterprise
Advancing UK Aerospace, Defence, Security and Space Industries Scottish Enterprise
Nick Shields Director Scottish Manufacturing Advisory Service
www.scottish-enterprise.com SC21 Support • SC21 is recognised as the “gold standard” of Supply Chain development programmes • Operational excellence is a key attribute of businesses that are profitable and sustainable • 4 SMAS practitioner trained assessors • 3 in training • 47 Scottish Businesses on the SC21 plan • 8 at Bronze recognition • 2 at sliver • 3 working towards silver
www.scottish-enterprise.com Scottish Enterprise Wider Support • National Aerospace Technological Exploitation Programme • NATEP – innovation programme and Scottish SME businesses are encouraged to apply to funding in Autumn 2015. • www.natep.org.uk • Cyber Resilience • SE and the Scottish Business Resilience Centre (SBRC) are partnering to deliver cyber security advice to companies. www.sbcc.org.uk • Sector Strategy: The Industry Leadership Group and SE are in the process of developing a new 5 year strategy for the Aerospace, Defence, Marine and Security sectors due published Autumn 2015 • key themes: Supply Chain, Business Environment, Internationalisation, Operational Excellence, Research & Development and Skills.
www.scottish-enterprise.com • 10:20 Procurement Excellence – Andy Brown, Procurement Director, Selex ES
Advancing UK Aerospace, Defence, Security and Space Industries Aerospace & Defence Procurement Group (ADPG) SC21 Task Force meeting at Thales Glasgow
- Procurement Capability - Co-Procurement - Procurement Excellence
June 2015 SC21 Task Force: June 2015
Background to the requirement • What it isn’t, and what is aims to be • Examples of good/bad practices within Procurement
Some key stakeholders with common aims and objectives • ADPG/CIPS • ADS/SC21
Outline TORs and objectives:
Status and Plan
Follow-up options from today – don’t wait…
32 Procurement Excellence: Not this approach…
33 This approach… Improving Procurement Capability within companies throughout the value chain
END-USERS P P P P
TIER 1 SUPPLY P P P P P P
TIER 2 P P P P P P P P P P P P SUPPLY P P P P P P P P P P P P
P P P P P P P P P P
P P P P P P P P P P
TIER 3+ P P P P P P P P P P SUPPLY P P P P P P P P P P
P P P P P P P P P P
P P P P P P P P P P 34 Background (good/bad examples of Procurement impact)
E.g. added value through a robust Procurement approach, often shared between Customer/Supplier
• Customer Procurement at our Supplier Conferences. Our support at first tier-supplier conferences • Sharing the same cost/price estimating practices to enable back-to-back arrangements • Sharing of ITAR/export licence management training • Approach to “open book” pricing, maintaining accountability in the right places, with joint activities on the cost/risk drivers, including flexibility towards material handling fees • Joint approach to sub-tier supplier gateway/surveillance activities • Collaborative approach to Offset planning • Good forecasting from our perspective has enabled/allowed sub-tier supplier alignment to joint objectives (eg investment, long term contracting)
E.g. added risk through having poor Procurement skills/practices, often hidden between Customer/Supplier
• Sub-tier supplier selection of non-approved, non-compliant companies • Quality and safety exposure (lack of traceability, certification, special process controls) • Poor communication, understanding, control and management of Industrial Governance and Compliance – End-User information for export licences (2 way), leading to Voluntary Disclosures – Plethora of standards …. BS/ISA/AS/REACH/Cyber/Conflict minerals/counterfeit components et al • Cost, schedule and risk exposure due to lack of flow-down of known, important Ts&Cs, resulting in material deliveries being placed on hold • Questionable value for money in areas of Sub-Contracts, impact to relationship and future business • Dependence upon single sources and single point failures without robust Procurement practices • Poor forecasting from our perspective has not enable/allowed sub-tier supplier alignment to joint objectives (e.g. investment, long-term contracting) 35 Developing Procurement skills within the ADS supply base ADPG Sub-Group Action: Proposed Quad’ Of Aims Task: What can ADPG, CIPS and Industry professionals do, in order to improve the skills and knowledge in Procurement & Supplier Management throughout the ADS Sector supply base?
Purpose Customer / Benefits
The development of Procurement & Supplier Management The external Customer is the ADS Sector Businesses of “UK skills and knowledge in order to: plc”, and their end-users. Internal Customer is the . Improve the capability of resources in suppliers & sub- Procurement profession itself. Benefits: tiers – notably the Procurement skills base. . Joint supply chain approach to procurement risk and . Improve the (2 way) management of supplier risk, opportunity management, e.g. opportunity and supply chain vulnerability, e.g. . More sustainable supply chains with a coherent . Due diligence, sustainability, cost/price analysis, approach to procurement counterfeit components, Quality/Process control, . Collective focus on cost, price and value cyber security, export regulations, ethics etc . Enhanced understanding and management of . Encourage an ethos of working in collaboration within the export compliance requirements/regulation Professional family of Procurement (in our Sector) . Enhanced understanding and management of . Analyse and understand what’s important to all parties, material traceability & counterfeit components where the gaps are, and what we can do about it . Enhanced reputation of added value, and increased confidence in the capability of Procurement in our Industry End results / Deliverables Success Criteria
Heightened skills, knowledge and awareness of the key Mobilisation of a project to deliver the results and benefits, Procurement activities adding value to our industry with buy-in from all the key stakeholders (Primes and sub-tier . Methods (TBA) to promote training and education with suppliers – incl SMEs, CIPS, ADS) outline cost/benefit case (eg CIPS/ADA, shared L&D) . Increase in qualified Procurement professionals. . Embedded working practices between the tiers of the . Appropriate priority topics, flowed up/down the supply chain, supply base (e.g. co-procurement agreements) contractually if needed, or at least in improved way of . Joint industry focus upon priority/topical subject matter working . Procurement code of best practice for the ADS Sector? . ADPG, CIPS, Industry (and SC21) collaboration on Procurement Capability development 36 The Aerospace & Defence Procurement Group (ADPG)
ADPG Terms of Reference
. Mission – ‘Driving excellence and professionalism in procurement and supply capability
. Vision – ‘To be the catalyst for skills development and professional standards in the context of the aerospace and defence sector while sharing topical good practices.
• Commitment to people capability development and standards • Collaboratively drive the procurement and supply management capability of the sector, through the primes but also through the multi-tiers in the supply chain, working collectively through initiatives to bring this about • As a sector group influence the building of SME capability in procurement and supply, through increasing knowledge and skills in an accessible way to enhance performance and competitiveness • Influence the establishment of sub-groups associated with the ADPG to drive forward any of the above agenda’s
Members
. CIPS, ADS . Chief Procurement Officers (CPOs) from across Industry (see next slide)
37 Stakeholders with common aims Development of Procurement skills is core to the Mission and Vision and TORs of the Group Represents the voice of Procurement across key Industry players and ADS, and underpinned by CIPS Recognised gap in the SC21 Peer review recognises the gap in programme, not covered by company practices to assess, assure BEM/MEX and develop Suppliers’ Procurement C.I.P.S. / A.D.P.G. A.D.S. Objective to implement a capabilities SC21 & REGISTER “Procurement Excellence” Needed for improved management of pillar into the programme risk and opportunities within the overall supplier chain ADS Register launched, pre- qualification focus, limited covered of this area to date SWEET SPOT with desire to develop in the DESIRE FOR GROWTH IN future PROCUREMENT CAPABILITIES • SKILLS, PRACTICES, PROFESSIONAL STANDING
DEVELOPMENT OF A COMMON A.G.P. D.G.P. PROCUREMENT CAPABILITY FRAMEWORK • FOR THE FUNCTION
• FOR THE RESOURCES Although at different stages of evolution and implementation, both AGP and DGP A SOLUTION THAT MAY BE have a focus upon the development of key skills in their Industry Sectors, with both PROGRESSIVE AND PROPORTIONATE recognising the influence of the Value Chain to their programmes FOR ALL TIERS AND SIZES OF SUPPLIERS INCL. SMEs 38 Stakeholders with Common Aims: (And why ADPG/CIPS best placed to be the vehicle to deliver)
A.D.S. SC21 A.D.S. REGISTER
AIRBUS BOMBARDIER BAE SYSTEMS MARSHALLS RAYTHEON QINETIQ RAYTHEON SELEX ES C.I.P.S.
AG.WESTLAND A.W.G. BOEING G.K.N. MEGGITT LOCKHEED MARTIN M.B.D.A. R.R. THALES A.D.S.
A.G.P. D.G.P. PROCUREMENT CAPABILITY FRAMEWORK (THE FUNCTION – CAPABILITY AND MATURITY MEASURES OF ORGANISATION, PROCESSES, PRACTICES ETC)
PROCUREMENT COMPETENCY FRAMEWORK (THE RESOURCES - SKILLS & KNOWLEDGE)
39 ADPG: Sub-Group for Procurement Capability
#Team1 (Organisational: Capability Framework)
- Alan Martin CIPS (lead) #CoreTeam (Procurement Capability) - Mark Chamberlain BAE Systems - Jerry Mabey Thales - Andy Brown (lead) - Alan Davis Airbus - Nigel Strutt - Andrew Smith, Marshall - Rob Soen - Geoff Hill Astute - Mark Chamberlain - Carl Brown MBDA - Jerry Mabey - Karen Beamish CIPS - Tony Payne - Sarah Barnard ADS - Alan Davis - Geoff Hill - Karen Beamish #Team2 (People: Skills/Competency Framework) - Andrew Coulcher - Emma Scott - Karen Beamish CIPS (lead) - Sarah Barnard - Tony Payne - Phil Curnock - Claire Dicks MDBA - Nichola Clarke AgustaWestland - Helen Bates (or ANO) AWE - Jon McKeown Marshal Aerospace - Steve Lamb Meggitt (TBC)
40 Procurement Capability: TORs To provide a framework for the development and promotion of ‘procurement excellence’ that will be achieved through growth in capability of a Company’s Procurement Organisation (or) Function and of their Resources, that continuously improves the aerospace and defence value chain for the future.
To consider: Engagement through collaboration across all tiers of the supplier chain, company to company engagement with the potential for procurement to procurement engagement
Tailoring of collaborative approach to the environment of the customer/supplier relationships o Through the capability and maturity measurement of the following features within an agreed and defined framework* (Sub-group 1) o Propose an Industry standard procurement capability framework
Utilising the best professional and industry standards and resources - CIPS global and certification standards - SC21 excellence principles as the catalyst for ensuring the alignment with our future challenges - Other recognised and agreed quality standards
The expected maturity levels (proportionate and progressive) set depending on the characteristics of a supplier e.g. Tier Technology, commodity and service spend with an intelligent approach to its application.
Procurement people capability *(Sub-group 2) - Skills and competency framework - Training 41 Procurement Capability: Desired Output
Heightened skills, knowledge and awareness of key procurement activities adding value to our industry:
Agreed, industry and professional standards, and flexible Frameworks to help grow the capabilities of Procurement o Procurement Capability Framework (Organisation and Function) o Skills & Competencies Framework (Resources)
Methods to promote training and education with outline cost/benefit case (CIPS/ADA, Shared L&D)
Embedded working practices between tiers of the supply base
Joint industry focus upon priority/topical subject matter
Procurement code of best practice for the ADS Sector
42 ADPG Sub-Group: Work-packages
#CoreTeam
COMMUNICATIONS, STAKEHOLDER ENGAGEMENT AND MANAGEMENT OF INTER-DEPENDENCIES
TOR, SCOPE, CUSTOMER/SUPPLIER ENGAGEMENT PLANNING HOW TO APPROACH DELIVERY AND OBJECTIVES 1. COMPANY TO COMPANY, 2. PROCUREMENT TO PROCUREMENT SUSTAINMENT
IDENTIFICATION AND DEVELOPMENT OF TRAINING SOLUTIONS
PROCUREMENT CAPABILITY FRAMEWORK (THE FUNCTION – CAPABILITY AND MATURITY MEASURES OF ORGANISATION, PROCESSES, PRACTICES ETC) #Team1
HOW TO APPROACH CONTINUOUS IMPROVEMENT PLANS
PROCUREMENT COMPETENCY FRAMEWORK (THE RESOURCES - SKILLS & KNOWLEDGE) #Team2 HOW TO APPROACH DEVELOPMENT AND TRAINING SOLUTIONS
Planning Milestones + 5 mths, July, early case studies (trailblazers), complete benchmarks, first drafts + 8 mths, October, tailoring, move from “what” to “how”, final versions, mobilisation to launch 43 Development of the Capability Framework (approach)
Objective:
To develop/create the Capability Framework to assess a company’s Procurement organisation, that is in- tune with our industry requirements, and may be proportionate and progressive to the size of the company, and environment that they work within.
Agreed to develop the Capability Framework based upon the following input:
• Industry practices and standards (e.g. IAQG, CIPS Corporate, other benchmarks?) • Company practices that are known to exist today • Key enablers/risks/factors for the Aerospace and Defence sector that need to be prevalent
Tailoring the eventual Framework to A&D sector. Which areas will need greater emphasis/focus, and why? Examples as follows:
• Industry governance and trade compliance demands, such as import/export/ITAR licencing, counterfeit control, cyber, REACH, Bribery Act, and many more… • Quality and safety standards, such as traceability, special process controls, and certification, notably regarding end products and their application • Long-term (in-service) conditions, such as obsolescence, last-time buys, latent defect • Sustainable procurement, BCM/BCP and CSR • Opportunity management, such as offset, Industrial Participation sharing and forecasting • Risk management, such as sub-tier supplier selection and management, sole and single source supply.
44 Development of the Capability Framework (in first draft only)
Work-in-progress • 4 Pillars identified, as below, likely to create 5th to add focus on Organisation & Leadership • Next level themes and areas to measure being identified • SME input to be developed (Geoff Hill - Astute) • Agreement TBA on the measure of maturity to be built into the framework • Engagement process (“how to” guide) still to be developed. Potential with Hellios/JOSCAR - TBA • Training and staff development options running in parallel • Focus remains on developing a Capability Framework of an organisation. Skills/Competency Framework will pre-exist in each company and can form baseline for discussions Pillar 1 - Strategy, policy and leadership Themes Business and procurement strategy Pillar 3 - People and resources Procurement strategy – sourcing strategies (including ethical sourcing) Themes Globalisation Relationship/collaboration Industrial policy:- Technology linkage; geopolitical; offset, industrial Ethics/Honesty and integrity development Emotional intelligence Innovation and New Product Development Developing teams Governance, compliance, legal and CSR Conflict management Customer Focus Pillar 4 - Performance measurement Pillar 2 - Process and Practice Themes Themes Continuous improvement Relationship management Supply chain assessment Risk and opportunity Supply chain development Contract management Supply chain Lean Project/programme management Logistics Supplier capability management KPI’s & metrics Special process controls 45 Financial management SC21 Task Force: June 2015
Your voice/input?
Learning & Development options already available
Scottish Government/CIPS Procurement People of Tomorrow (incl. Modern Apprentice) http://www.gov.scot/Topics/Government/Procurement/Capability/procpploftomo2014
CIPS Health-check (20 Qs) and Procurement Apprentice Programme https://standard.cips.org/healthcheck/default.aspx http://www.cips.org/en/Careers/Apprenticeships-in-Procurement/
The CIPS Procurement Aerospace & Defence Academy (ADA) https://www.cips.org/Documents/Products/Case_Studies/CIPS_CS_AandDPG_AW_WEB.pdf
More info on the CIPS/ADPG https://www.cips.org/en/Community/Groups-listing/Aerospace--Defence-Procurement-Group-ADPG-/
46 Back-up info
Selex ES WIP
Selex ES template
Examples
47 Selex ES work-in-progress Some areas of Selex ES WIP to share/stimulate discussion
• Similar WIP and areas to share within ADPG SUPPLIER PROCUREMENT AREA • Selex ES CSC I.C.T. BUSINESS – Draft Capability & Maturity Matrix (28 Qs) SERVICES I.S.S. FACILITIES – Some initial benchmarks MANAGEMENT – CIPS, Scot Gov. (> 100 Qs) X.P.S. OUTSOURCED PROCUREMENT CAPABILITY & MATURITY MATRIX CATEGORY Section 1. Procurement Strategy & Policy Verify the effectiveness of the company's approach to Procurement and their supplier management Score Maturity Assessment Section 2. Procurement Resources & Skills Target (or Section 3. Supplier Management Practices & Processes COMPANY NAME N/A) 0 1 2 3 4 5 Not Poor Fair Good Very Good Excellent Comments & Improvement Actions Doing MANAGEMENT DEMONSTRATE THE AVAILABILITY AND INFLUENCE OF YOUR PROCUREMENT STRATEGY, 1.1 3 WITH ANY ASSOCIATED VISION, MISSION OR STRATEGIC AIMS SHOW THE PROCUREMENT OBJECTIVES AND HOW THEY ARE SET, CASCADED, & 1.2 3 MANAGED AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR E.G. DELEGATED AUTHORITIES, SEGREGATION OF DUTIES, KNOWLEDGE 1.3 3 THE FUNCTION OF SUPPLIER G&C NEEDS (SEE 3.2) WHAT IS THE ORGANISATIONAL APPROACH TO THE FUNCTION TO SHOW INTEGRATION E.G. BY CATEGORY MANAGEMENT, PROJECT/SUB-CONTRACT 1.4 WITH THE COMPANY OBJECTIVES, THOSE OF THE CUSTOMER'S NEEDS AND FOR THE 3 MANAGEMENT, SHARED SERVICES, CENTRALISED, DE-CENTRALISED ETC ASTEELFLASH SUB-CONTRACT BEST APPROACH TO THEIR SUPPLIERS MARKET AND SUBSEQUENT MANAGEMENT ETC EFFECTIVE SYSTEMS SOLUTIONS TO ENABLE THE PROCUREMENT FUNCTION AND BE E.G. SAP, ERP/MRP, BESPOKE SOLUTIONS 1.5 3 INTEGRATED WITH THEIR SUPPLIERS EFFECTIVE PROCUREMENT PLANNING IN PLACE FOR MATERIAL (FORECASTING) AND 1.6 3 RESOURCES (DEMAND/SUPPLY) MANUFACTURE
PROCUREMENT STRATEGY POLICY& PROCUREMENT 1.7 EFFECTIVES KPIs AND/OR METRICS IN PLACE FOR THE FUNCTION 3 1.8 VISIBILITY OF CONTINUOUS IMPROVEMENT PLANS FOR THE FUNCTION 3 ESTABLISHED PROCUREMENT ORGANISATION WITH CLEAR ROLES AND 2.1 3 RESPONSIBILITIES DEFINED SKILLS AND COMPETENCIES FRAMEWORK IN PLACE, WITH APPROPRIATE LEVELS, E.G CIPS QUALIFIED 2.2 3 QUALIFICATIONS AND NEEDS DEFINED GAP ANALYSIS (SKILLS/COMPETENCIES) REGULARLY REVIEWED AND ALIGNED TO 2.3 3 BAE SYSTEMS SUB-CONTRACT TRAINING PLANS
2.4 TRAINING PLANS AND BUDGETS IN PLACE 3 TERMS OF REFERENCE AND/OR BIO'S IN PLACE FOR THOSE ROLES THAT ARE ALIGNED 2.5 3 RESOURCES & SKILLS& RESOURCES TO THIS COMPANY-TO-COMPANY CONTRACT (INCL. ANY SINGLE POINT FAILURES) E.G. Q.A., TECHNICIAL/ENGINEERING, COMMERCIAL, LEGAL, COMPLIANCE HILLEND MANUFACTURE 2.6 SUPPORT RESOURCES TO PROCUREMENT/SUPPLIER MANAGEMENT CLEARLY DEFINED 3
SUPPLIER ARCHITECTURE AND CATEGORISATION IN PLACE TO BEST UNDERSTAND THE E.G. KRALJIC, SUPPLY MAPPING ETC 3.1 3 ASSOCIATED STRATEGIES AND TACTICS AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR E.G. IMPORT/EXPORT LICENCE MANAGEMENT, ETHICS, GIFTS & 3.2 3 THE SUPPLIERS HOSPITALITY, BRIBERY ACT, COUNTERFEIT RISK, CONFLICT MINERALS SCOPE OF APPROVAL FOR QUALIFIED SUPPLIERS IN PLACE, WITH 3.3 3 REGULAR/APPROPRIATE PLANS TO REVIEW (FROM POINT OF SELECTION) APPROPRIATE SUPPLIER AGREEMENTS IN PLACE, WITH CUSTOMER FLOW-DOWN 3.4 3 WHERE APPROPRIATE, AND WITH TRACKING OF ACCEPTANCE/ACKNOWLEDGEMENT S.T.I. SUB-CONTRACT SUPPLIER PLANNING IN PLACE TO SCHEDULE APPROPRIATE GATEWAY/SURVEILLANCE E.G. QBRs, BUSINESS REVIEWS, IN AREAS OF SPECIAL PROCESS 3.5 3 MEETINGS TO MANAGE RISK, PROGRESS, COMPLIANCE ETC CONTROL ROBUST SUPPLIER SELECTION PROCESS IN PLACE WITH ASSOCIATED CAPABILITY 3.6 3 ASSESSMENT (INCL. MAKE/BUY DECISION MAKING AS APPROPRIATE) SUPPLIER COST/PRICE ANALYSIS, PARTNERING, COMPETITION AND NEGOTIATION 3.7 3 MANUFACTURE PRACTICES TO ENSURE BEST VALUE FOR MONEY E.G. VENDOR VULNERABILITY/SUSTAINMENT RISK AND BCP 3.8 ROBUST APPROACH TO THE ASSESSMENT AND MANAGEMENT OF SUPPLIER RISK 3
3.9 SPECIALIST KNOWLEDGE OF SUPPLIER MARKET AND TRENDS 3
STRUCTURED APPROACH TO SUPPLIER DEVELOPMENT WITH MANAGEMENT OF E.G. SC21 PRINCIPALS, KEY SUPPLIER PROGRAMME 3.10 3 IMPROVEMENT PLANS AND RESULTS E.G. ON-TIME, ON-QUALITY, COST MANAGEMENT/REDCUTION, CASH 3.11 EFFECTIVES KPIs AND/OR METRICS IN PLACE 3 MANAGEMENT, SUPPLIER RELATIONSHIPS SUPPLIER PRACTICES PROCESSES& MANAGEMENT HAAS/FASTEQ OUTSOURCED V.M.I. 3 3.12 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS INVENTORY
3.13 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS CASHFLOW 3
KNOWLEDGE AND CONTROL OF SUB-TIER SUPPLIERS, AND THEIR OWN PROCUREMENT 3.14 3 CAPABILITIES AS APPROPRIATE ASTUTE SUB-CONTRACT 60% 3.0 PROCUREMENT – Pilot engagement plan with 10 suppliers XCEL POWER SUPPLIES Positive feedback with Astute – SOFTCAT I.C.T. PROJECT – Shared Skills/Competency F/W with CIPS SERVICES – BAE Systems, as Customer, TBA for assessment of Selex
– ADS Register (JOSCAR), supplier adoption underway 48 Example Template
PROCUREMENT CAPABILITY & MATURITY MATRIX
Section 1. Procurement Strategy & Policy Verify the effectiveness of the company's approach to Procurement and their supplier management Score Maturity Assessment Section 2. Procurement Resources & Skills Target (or Section 3. Supplier Management Practices & Processes Example N/A) 0 1 2 3 4 5 Not Poor Fair Good Very Good Excellent Doing Comments & Improvement Actions DEMONSTRATE THE AVAILABILITY AND INFLUENCE OF YOUR PROCUREMENT STRATEGY, 1.1 0 WITH ANY ASSOCIATED VISION, MISSION OR STRATEGIC AIMS SHOW THE PROCUREMENT OBJECTIVES AND HOW THEY ARE SET, CASCADED, & 1.2 0 MANAGED AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR E.G. DELEGATED AUTHORITIES, SEGREGATION OF DUTIES, KNOWLEDGE 1.3 3 THE FUNCTION OF SUPPLIER G&C NEEDS (SEE 3.2) WHAT IS THE ORGANISATIONAL APPROACH TO THE FUNCTION TO SHOW INTEGRATION E.G. BY CATEGORY MANAGEMENT, PROJECT/SUB-CONTRACT 1.4 WITH THE COMPANY OBJECTIVES, THOSE OF THE CUSTOMER'S NEEDS AND FOR THE N/A MANAGEMENT, SHARED SERVICES, CENTRALISED, DE-CENTRALISED ETC BEST APPROACH TO THEIR SUPPLIERS MARKET AND SUBSEQUENT MANAGEMENT ETC EFFECTIVE SYSTEMS SOLUTIONS TO ENABLE THE PROCUREMENT FUNCTION AND BE E.G. SAP, ERP/MRP, BESPOKE SOLUTIONS 1.5 3 INTEGRATED WITH THEIR SUPPLIERS EFFECTIVE PROCUREMENT PLANNING IN PLACE FOR MATERIAL (FORECASTING) AND 1.6 3 RESOURCES (DEMAND/SUPPLY)
PROCUREMENT STRATEGY POLICY& PROCUREMENT 1.7 EFFECTIVES KPIs AND/OR METRICS IN PLACE FOR THE FUNCTION 3
1.8 VISIBILITY OF CONTINUOUS IMPROVEMENT PLANS FOR THE FUNCTION 3
ESTABLISHED PROCUREMENT ORGANISATION WITH CLEAR ROLES AND 1 PERSON ACTIVITY IN XPS 2.1 3 RESPONSIBILITIES DEFINED SKILLS AND COMPETENCIES FRAMEWORK IN PLACE, WITH APPROPRIATE LEVELS, E.G CIPS QUALIFIED 2.2 0 QUALIFICATIONS AND NEEDS DEFINED GAP ANALYSIS (SKILLS/COMPETENCIES) REGULARLY REVIEWED AND ALIGNED TO 2.3 3 TRAINING PLANS
2.4 TRAINING PLANS AND BUDGETS IN PLACE 3
TERMS OF REFERENCE AND/OR BIO'S IN PLACE FOR THOSE ROLES THAT ARE ALIGNED 2.5 0 RESOURCES & SKILLS& RESOURCES TO THIS COMPANY-TO-COMPANY CONTRACT (INCL. ANY SINGLE POINT FAILURES) E.G. Q.A., TECHNICIAL/ENGINEERING, COMMERCIAL, LEGAL, COMPLIANCE 2.6 SUPPORT RESOURCES TO PROCUREMENT/SUPPLIER MANAGEMENT CLEARLY DEFINED 3
SUPPLIER ARCHITECTURE AND CATEGORISATION IN PLACE TO BEST UNDERSTAND THE E.G. KRALJIC, SUPPLY MAPPING ETC 3.1 0 ASSOCIATED STRATEGIES AND TACTICS AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR E.G. IMPORT/EXPORT LICENCE MANAGEMENT, ETHICS, GIFTS & 3.2 3 THE SUPPLIERS HOSPITALITY, BRIBERY ACT, COUNTERFEIT RISK, CONFLICT MINERALS SCOPE OF APPROVAL FOR QUALIFIED SUPPLIERS IN PLACE, WITH 3.3 3 REGULAR/APPROPRIATE PLANS TO REVIEW (FROM POINT OF SELECTION) APPROPRIATE SUPPLIER AGREEMENTS IN PLACE, WITH CUSTOMER FLOW-DOWN 3.4 3 WHERE APPROPRIATE, AND WITH TRACKING OF ACCEPTANCE/ACKNOWLEDGEMENT SUPPLIER PLANNING IN PLACE TO SCHEDULE APPROPRIATE GATEWAY/SURVEILLANCE E.G. QBRs, BUSINESS REVIEWS, IN AREAS OF SPECIAL PROCESS 3.5 0 MEETINGS TO MANAGE RISK, PROGRESS, COMPLIANCE ETC CONTROL ROBUST SUPPLIER SELECTION PROCESS IN PLACE WITH ASSOCIATED CAPABILITY 3.6 3 ASSESSMENT (INCL. MAKE/BUY DECISION MAKING AS APPROPRIATE) SUPPLIER COST/PRICE ANALYSIS, PARTNERING, COMPETITION AND NEGOTIATION 3.7 2 PRACTICES TO ENSURE BEST VALUE FOR MONEY E.G. VENDOR VULNERABILITY/SUSTAINMENT RISK AND BCP 3.8 ROBUST APPROACH TO THE ASSESSMENT AND MANAGEMENT OF SUPPLIER RISK 3
3.9 SPECIALIST KNOWLEDGE OF SUPPLIER MARKET AND TRENDS 3
STRUCTURED APPROACH TO SUPPLIER DEVELOPMENT WITH MANAGEMENT OF E.G. SC21 PRINCIPALS, KEY SUPPLIER PROGRAMME 3.10 1 IMPROVEMENT PLANS AND RESULTS E.G. ON-TIME, ON-QUALITY, COST MANAGEMENT/REDCUTION, CASH
3.11 EFFECTIVES KPIs AND/OR METRICS IN PLACE 3 MANAGEMENT, SUPPLIER RELATIONSHIPS SUPPLIER PRACTICES PROCESSES& MANAGEMENT 3.12 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS INVENTORY 0
3.13 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS CASHFLOW 0
KNOWLEDGE AND CONTROL OF SUB-TIER SUPPLIERS, AND THEIR OWN PROCUREMENT 3.14 0 CAPABILITIES AS APPROPRIATE
36% 1.8
49 HOT BUTTONS? POSSIBLE COMMON AREAS IN-SCOPE
CUSTOMER PERSPECTIVE (OF IMPORTANT PROCUREMENT SKILLS/KNOWLEDGE/PRACTICES)
CAPABILITY SUPPLY SUSTAINABI M.R.P. EXPORT INTEGRATED FORECAST ASSESSMENT RISK MGMT LITY ACCURACY LICENCE MGNT PLANNING & SELECTION
OPEN BOOK CYBER U.P.C. BURN- CYBER CATEGORY COST CIPS B.C.P. ETHICS ASSURAN DOWN ASSURANCE MGMT ANALYSIS CE
SKILLS & KNOWLEDGE PRACTICES
CONTRACT RESOURCE CAPACITY TRAINING RELATIONSHIP ACCURATE CHANGE FLOW-DOWN LIMITATIONS PLANNING BUDGET? DEVELOPMENT FORECAST CONTROL (COMM/TECH)
CAPABILITY EXPORT OPEN BOOK SPECIAL LONG- SC21 CASH- GATEWAY/ ASSESSMENT LICENCE COST PROCESS TERM RE-USE FLOW SURVEILLANCE & SELECTION MGNT ANALYSIS CONTROL AGMTS
SUPPLIER PERSPECTIVE (OF IMPORTANT PROCUREMENT SKILLS/KNOWLEDGE/PRACTICES) 50 • 10:40 ADS Update – Ian Watson, ADS
Advancing UK Aerospace, Defence, Security and Space Industries • 11:00 Coffee Break & Visit to company Stands
Advancing UK Aerospace, Defence, Security and Space Industries • 11:30 SC21 Programme update – Phil Curnock, ADS
Advancing UK Aerospace, Defence, Security and Space Industries Trade Association Support
Advancing UK Aerospace, Defence, Security and Space Industries Government Funding Available in all regions SC21 Active company map Primes Updates – Project Office Bombardier and BE Aerospace activity Republic of Ireland and Northern Ireland programmes going well and major benefits seen by bombardier and other primes from suppliers We now have three Clusters in Northern Ireland (2 Bombardier 1 BE Aerospace) . Republic of Ireland SC21 Event held in Dublin in June with a further 20 companies.
Airbus recently visited Northern Ireland to see first hand the excellent work of companies on the SC21 journey. Thales • Launched a 50 company SC21 Thales Community programme in 2014, meetings now place for 2015 to sharing good practice and support supplier development further. Airbus • A structured programme now in place with Airbus. • Airbus meeting now arranged with RTAs to discuss how they can support. • Airbus engaging Key T1s GE Aviation, GKN, Cobham, Safran + others in this work.
Primes Updates – Project Office
Control and Data Systems (Formerly AEC) • Continuing with highly successful “Supplier Association” work which includes SC21 activity as a major part of supplier development • Grown from 10 suppliers in 2010 to 30 active suppliers in 2014 • 4 SC21 Lead practitioners active in delivering diagnostic activity
BAE Systems • Maritime Naval Ships & Services SC21 Supply Chain Management Programme in place
GKN • Working in partnership with Airbus to develop Supply Chain Improvement Programmes throughout GKN supply base. GKN now have there own cluster and are training in house team in delivery the diagnostics. • They also highlighted a further 48 companies they are looking to support on to the programme.
Other Sector work SC21 R
SC21 for Rail model proposal now developed. Thales Rail have mapped the existing programme against Rail sector requirements. Changes only in the followings areas: HSE Excellence being added. Performance metrics for a service sector environment. The rest of the model is the same Steering Board Key deliverables For 2015 • Design and Innovation Excellence special interest group created – Led by Richard Baker, Rolls-Royce this group has design and engineering SMEs engaged within the group and working towards developing an improvement framework based on the radar approach we use in Bus ex. Draft proposal now being reviewed and to be piloted in early 2015. • Procurement Excellence framework now being developed led by ADPG and CIPS. Led By Andy Brown and Rob Soen. This group is looking at a capability and skills competency framework for the industry to help improve the Whole A and D supply chain procurement skills. • Supply chain constraints working group now launched looking at various issues that can be worked on within SC21 and some that will be taken to AGP to deliver. Led by Ian Taylor. • Communication and Branding review • Communication plan in place. • SC21 Buyers Guide – now to be cascaded to all Customer buyers.(suggest it would be good for all the aerospace team to do the online guide) https://www.adsgroup.org.uk/pages/76429384.asp • SC21 Enhanced programme now in early stages of discussion. Shape ,size and topics being discussed and ADS talking to various Government funding bodies who are looking to offer support for the programme. – How can we help companies with there CSIP plans in a greater way.
New Special Interest Groups 2015
Procurement • Chair Excellence SIG • Andy Brown
Design and • Chair Engineering SIG • Richard Baker • Chair Supply Chain Constraints SIG • Ian Bouquet- Taylor 10:30
Design and Engineering Excellence SIG
Richard Baker, Head of Engineering, Rolls-Royce
Advancing UK Aerospace, Defence, Security and Space Industries SC21 Design Excellence
Richard Baker – Head of Supplier Engineering, Rolls-Royce
Problem Statement There is no complete definition of Design For Excellence methodology* which allows an organisation to measure and define its own in-house design capability and that of its sub-tiers to an extent that it misdirects/misunderstands resource to meet customer requirements whilst compromising quality at the cost of effectiveness and efficiency.’
*(Design, Engineering, Technology innovation)
Advancing UK Aerospace, Defence, Security and Space Industries The Competitive Challenge Competition no longer takes place between individual businesses, but between the entire supply chain.
Design helps to deliver a better service to the customer, enabling them to strengthen their position in the market, ultimately leading to business growth. Aim To drive up innovation and design capability within the UK supply chain.
Advancing UK Aerospace, Defence, Security and Space Industries What does success look like? • More robust business
• High design compliance
• Proactive innovation
• Reduced risk
• Improved supply chain
• Reduced cost of supplier management
Advancing UK Aerospace, Defence, Security and Space Industries
Programme Model
CAPABILITY DIAGNOSTIC BEST PRINCIPLES ‘Self assessment’ DESIGN ‘Innovation STANDARD workshops’ ‘Commodity deep dive’
DESIGN EXCELLENCE Capability Development Programme
Advancing UK Aerospace, Defence, Security and Space Industries Programme Key stages
Advancing UK Aerospace, Defence, Security and Space Industries
Task Force Events 2015
18 + 19 Nov 2015
Bristol, Holiday Inn (TBC) Supported by WEAF Annual Dinner Supported by Industry • 11:45 SC21 Case Study – Paul Houston, WB Alloys
Advancing UK Aerospace, Defence, Security and Space Industries WB Alloys: A business improvement journey Paul H. Houston – WB Alloy Welding Products Strictly Private and Confidential
Introduction
• WB Alloys: A business improvement journey . • Case Study: Innovation and process efficiencies • Summary: Key messages and questions
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WB Alloys: Overview
Who are We? Key Facts: • Formed in the UK in 1974 • Welding Group Turnover £16M • Originally a Distribution • Warehouse Facilities 150K ft sq Organisation • Group Employees 35 • Now a Global Welding & Cutting • Average Stockholding £3-4M Solutions Provider (UK, EU, USA, UAE & Australia) Where we want to be? • Welding & Cutting Products • No 1 Welding & Cutting Solutions Designed & Manufactured In- Provider in the UK House (UK, UAE & Italy) • Recognised Global Welding & • Site Service – Welding Cutting Solutions Provider . Engineering/Gas Equipment • Employer of Choice Testing
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WB Alloys SC21 Timeline
A recognition we could improve our business
Business processes and systems were not linked
6 Years Ago Limited ERP System………not linked
There was poor communication throughout the business
A core of good people but all working too hard
‘We thought Lean and 5S were for the ‘big boys’, that it was another way for driving costs down’
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WB Alloys SC21 Timeline
Found the vehicle to support organisation wide change
Invited by Babcock to SC21 cluster event
4 Years Ago Engaged with program in Sept 2010 with the support of SMAS
Subsequently, implemented a change program based on SC21
‘We began to appreciate what Lean meant and we were looking for a vehicle to develop and sustain the progress we were making ’
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Employee Communication and Engagement
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Employee Engagement and Satisfaction
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Best practice Appraisal Process Start
Formal Appraisal process is directly Complete formal Appraisal Program by November annually. linked to the end of the annual Strategy development program. Document completed Appraisals in Employee Appraisal This is so that we can link the Tracker 20xx-20yy individual personal objectives to the strategies. This in turn builds Complete all ‘informal’ Appraisals by October annually awareness, understanding and ownership of contribution throughout the business Document completed informal Appraisals in Employee Appraisal Tracker 20xx-20yy
Informal Appraisal process runs Review effectiveness of Appraisal Process at annual Quality alongside the formal providing Management System (QMS) Review– refer to QMS 5.6.2 regular (approx monthly) and at Quarterly Management Reviews – refer to QMS 5.6.1 opportunities for feedback. End
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Skills Matrix
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Bronze Award Business Excellence Score
April 2012 Target 2014 Key Results Criteria
Society Results Leadership 35 45
People Results Strategy 29 40
Customer Results People 16 45
Processes Partnership & Resources 45 60
Partnership & Resources Processes 27 40
People Customer Results 11 30
Strategy People Results 4 40
Leadership Society Results 4 25
0 10 20 30 40 50 60 Target 2014 Key Results 19 34 April 2012 Excellence score 206 392
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WB Alloys SC21 Program Timeline
Revitalising our operational areas through continuous improvement
3 Years Ago
Before
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WB Alloys SC21 Program Timeline continued
Revitalising our operational areas through continuous improvement 3 Years Ago
After
“we have all become more involved in how all the departments work together, we were given a free reign to re-organise the stores and our working environment with the management support” Andrew Murray Storeman, WB Alloys
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WB Alloys SC21 Program Timeline continued
Bronze Award achieved September 2012
2 Years Ago
“This is a significant achievement for your company and staff”’ Fergus Ewing, MSP for Energy, Enterprise & Tourism
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WB Alloys SC21 Program Timeline continued
Our business is stronger
Better communicators
Now Employees are empowered
Increased process efficiency
More productive working relationships with our customers
A platform for continuous improvement
Carried out RMM with key customers
“We all are working as a team and look forward to coming to our work” Gary MacRae Internal Sales, WB Alloys
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Our Vison / Our Mission
All employees were fully engaged in building our Vision, Mission and company values statements
There is a great sense of pride across the team in being able to say ‘this is us ‘.
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WB Alloys SC21 Program... the future.
Continue to implement our improvement plan (CSIP)
Aiming for SC21 Silver recognition by end 2015 The Future Continue to develop our people Expand our RMM’s with our customer and supplier base
Re-invest our profits to further develop our product range
‘If SC21 goes tomorrow – we will still continue our journey towards Lean and best practice’ Paul Houston Managing Director, WB alloys
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Case Study: The Project
QEC Aircraft Carrier assembly in Rosyth The largest ship ever built for the Royal Navy 65,000 tonnes displacement 2nd ship build also underway
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Case Study: The Problem
Millions of man hours required for the build Small process improvements can save significant amounts Need to work with the supply chain to deliver innovation and save the defence industry money Collaborative working relationships are paramount to project success
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Case Study: The Solution
Innovation Flux Core Sub Arc
Changed Changed from Cored Sub Arc traditional weld flux cored wires gave preparation wires to highest from single “V” automated sub productivity + to square edge arc wires + used high fluxes efficiency flux
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Case Study: The Benefits
Welding productivity up 43%
Preparation time down 22%
Welding man hours down 22%
“A relationship built on collaboration and trust has delivered innovative and cost effective solutions that has saved the QEC Project a significant sum on 3.2 kilometres of welding”
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Key Messages
1. WB Alloys have a better business as a result of implementing SC21 principles 2. Babcock has realised benefits for its customers in the defence industry and other markets 3. Overall there is increased collaboration and trust, leading to a more effective and sustainable working relationship
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Thank You Any Questions?
Mark Gilmour Paul Houston Babcock (Rosyth) WB Alloy Welding Products Ltd [email protected] [email protected]
Colin Allan Robert Cowan Scottish Enterprise Scottish Enterprise [email protected] [email protected]
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• 12:10 Award Winner presentations
Advancing UK Aerospace, Defence, Security and Space Industries Bronze Re-Award Winners
Plexus corporation (UK) Ltd Re Bronze Righton Aerospace Ltd - Bristol Re Bronze Stadium IGT Ltd Re Bronze
Advancing UK Aerospace, Defence, Security and Space Industries Bronze Award Winners
Hydrobond Engineering Ltd Bronze
Advancing UK Aerospace, Defence, Security and Space Industries Silver Re-Award Winners
MEP Ltd Re Silver Righton Aerospace Ltd - Plymouth Re Silver Righton Aerospace Ltd - Portsmouth Re Silver
Advancing UK Aerospace, Defence, Security and Space Industries Silver Award Winners
Axon Cable Ltd Silver HITEK Electronic materials Ltd Silver Thermacore Europe Ltd Silver
Advancing UK Aerospace, Defence, Security and Space Industries 12:30 Lunch
13:30 Thales tour / extended networking 14:30 End of meeting
Advancing UK Aerospace, Defence, Security and Space Industries
Task Force Event 2015
18 + 19 Nov 2015
Bristol, Holiday Inn (TBC) Supported by WEAF Annual Dinner Supported by Industry