1 “supply chain management handbook” scmh overview and survey presenter: darryl hue – boeing...

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““Supply Chain Management Handbook”Supply Chain Management Handbook”

SCMHSCMHOverview and SurveyOverview and Survey

Presenter: Darryl Hue – BoeingPresenter: Darryl Hue – BoeingJuly 30, 2009July 30, 2009

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Purpose:Purpose:– Overview of SCMHOverview of SCMH

• Objective and ScopeObjective and Scope

• Project Team and infrastructureProject Team and infrastructure

• SCMH Chapter and work in progressSCMH Chapter and work in progress

• How to access (Demo)How to access (Demo)

– Survey Survey • SCMH Assessment model SCMH Assessment model

Supply Chain Management HandbookSupply Chain Management Handbook(SCMH)(SCMH)

33

Objective:Objective:• Provides “How to” guidance material to help improve the Provides “How to” guidance material to help improve the “On-Time and On-“On-Time and On-

Quality”Quality” performance of products and services throughout the Aviation, Space performance of products and services throughout the Aviation, Space and Defence industry. and Defence industry.

Scope:Scope: Guidance Material to include: Guidance Material to include:• Deployment support to implement requirements contained in the IAQG (91xx) Deployment support to implement requirements contained in the IAQG (91xx)

developed series of Quality Management Systems standards. developed series of Quality Management Systems standards. • Material to support performance improvement of Supply Chain Processes. Material to support performance improvement of Supply Chain Processes.

The SCMH The SCMH • Is structured in line with a Supply Chain process model covering the entire Is structured in line with a Supply Chain process model covering the entire

product lifecycle from development through in-service operationsproduct lifecycle from development through in-service operations• Is provided for use by companies at all levels in the value chain. .Is provided for use by companies at all levels in the value chain. .• Will be completed progressively and include regularly updated to incorporate Will be completed progressively and include regularly updated to incorporate

feedback and “lessons learned” from its application.feedback and “lessons learned” from its application.• The contents have been developed by the member companies of the IAQG. The contents have been developed by the member companies of the IAQG.

SCMH Objective and ScopeSCMH Objective and Scope

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Focus on “How” through SCMHFocus on “How” through SCMH

9100

Requirements

Supply Chain Mgmt.

Handbook

Inputs for future revision of 9100

New or revised IAQG published documents(Standards, guideline)

91xx9131

91039102

Links to

SCMH Guidance material, tools,

trainings

Includes

Providing guidance material and best practices on how to meet requirements

and achieve objectives

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Project Management InfrastructureProject Management Infrastructure

In work In Revision Not assigned Completed

Key Characteristics

Requirements and flow downRCA & Problem

SolvingNon-Conformance

Work Transfer

Source Selection

IAQG Work Space

Available Sections

• Active Work storage• Standard Processes• Standard templates

Future Topics Not assigned

Work InstructionPreventive Action

People Capability (PCAP 001)Notification of

ChangeMaster Schedule

Counterfeit Part PreventionCI for Small

Business

Priorities

SCMH Leadership Team

Technical Project MgrProject Manager

Lean Assess. Tools

CI for Small Suppliers

Risk Management

FAI

New Product Introduction

Pro

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tru

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re/R

es

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sA

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ve

Pro

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• Central project templates• Std. plan and processes• Documented expectations

9115 Guidance Material

SQM Basics

Special Requirements

Assessment Checklists

Requirements & Flowdown

Work TransferFODOther Topics

Other Topics

Configuration Management

Support Resources:D. Hue (Boeing) – Proj MgrR. Pardons (IAQG) – Tech mgrM. Iwadare – APAQG SupportContractors - Technical WritersMember Company Volunteers

LT Core Members:S. Armstrong – UTC (AAQG) C. Buck - Safran (AAQG)

L. Weng- Boeing (AAQG) B. Lauras – Airbus (EAQG)S. Komori – FHI (APAQG)

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IAQG Member Company ParticipationAirbus Gulfstream

ATK Liebherr

Avio Lockheed Martin

Bell Messier Dowty

Boeing MHI

Boeing Canada MTU

Bombardier Parker

Dassault Safran

Dassault Aviation Spirit AeroSystems

EADS Sukhoi

Embraer, BrazilEmbraer, Brazil Thales

ESA UTC

Eurocopter Volvo Aero

Fuji Heavy industries, LTD Vought

GE Aviation Zodiac

Goodrich

Non-Members Participation

JPL-NASA

NQA-USA

Progress Casting

SEA

Spirit Aero

Triumph

UL DQS Inc.

Verify Inc

Plus Member (and non-member) Plus Member (and non-member) Company ParticipationCompany Participation

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SCMH Chapters and Work in ProgressSCMH Chapters and Work in Progress

2. Contract Requirements and

Flow Down

4. Suppliers sourcing selection

& approval

5. Plant, material, skills, capacity

planning & scheduling

7. Manufacturing and inspection

10. Customer Support (Control

of service operations)

9. Control of non conformities, corrective and

preventive actions

6. Order Management and logistic (Internal &

external)

1. Sales, Master Scheduling & Sequencing

11. Business Management and Customer Satisfaction Monitoring

3. Design and development

8. Supplier operational

management and product validation

Exists

Work Transfer

9103 education package (Key characteristics)

Root Cause Analysis & Problem Solving

Supplier Selection and Capability Assessment

Requirements and flow down templates

CI for Small Business

New

New Product Introduction - Quality

Lean Assessment Tool

Supplier Quality Mgt Basics

Risk Management

Special Requirements Critical items


In Work

Product Performance Detailed Assessment Checklists

Control of non conformities9102 Education package (First Article Inspection)Foreign Object Debris (FOD)

9100 Rev C Deployment Support

Supply Chain Management Handbook

2. Contract Requirements and

Flow Down

4. Suppliers sourcing selection

& approval

5. Plant, material, skills, capacity

planning & scheduling

7. Manufacturing and inspection

10. Customer Support (Control

of service operations)

9. Control of non conformities, corrective and

preventive actions

6. Order Management and logistic (Internal &

external)

1. Sales, Master Scheduling & Sequencing

11. Business Management and Customer Satisfaction Monitoring

3. Design and development

8. Supplier operational

management and product validation

Exists

Work Transfer





Exists

Work Transfer





CI for Small BusinessCI for Small BusinessCI for Small Business

People Capability (PCAP 001)

New



Risk Management



Priority 1



Risk Management



In Work




Appendices:

In Work




In Work




Supply Chain Management Handbook

9115Software Guidance

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Available materialAvailable material

Chapter Section SCMH Content

Chapter 2 – Contract requirement flow down 2.1 Requirements and flow down templates

Chapter 4 – Suppliers sourcing selection & approval (Purchasing process)

4.1 Supplier Selection and Capability Assessment

Chapter 7 – Manufacturing and inspection (Production and service provision)

7.1 9103 education package (Key characteristics)


7.2 9102 Education package (FAI)

Chapter 9 – Control of non conformities, corrective and preventive actions (On Time - On Quality)

9.1 Root Cause Analysis & Problem Solving

Chapter 9 – Control of non conformities, corrective and preventive actions (On Time - On Quality)

9.2 Control of Non-Conformities

Chapter 11 – Business Processes Performance Management and Customer Satisfaction Monitoring

11.1 Work Transfer

Appendix A.1 9100 Rev C Deployment Support

Appendix A.2 People Capability (PCAP 001)

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Material In WorkMaterial In Work

Chapter Section SCMH Content

Chapter 3 – Design and development 3.1 Special Requirements/Critical items

Chapter 3 – Design and development 3.2 New Product Introduction - Quality

Chapter 6 - Order Management and logistic (Internal/external)

6.1 Lean Assessment Tool

Chapter 8 - Supplier operational management and product validation (Purchasing process)

8.1 Supplier Quality Mgt Basics


11.3 Risk Management


11.4 Configuration Management

Chapter 3 – Design and development 3.3 9115 Guidance Material (Software)

Chapter 4 – Suppliers sourcing selection & approval (Purchasing process)

4.2Product Performance Detailed Assessment Checklists (PPDA)


7.3 Foreign Object Debris (FOD)

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Some Frequently Asked QuestionsSome Frequently Asked Questions

• Are all of the requirements of the standard addressed in the handbook?Are all of the requirements of the standard addressed in the handbook?

• What is the schedule to complete the handbook or will it be in a continual What is the schedule to complete the handbook or will it be in a continual state of change/improvement?state of change/improvement?

• When will the AS9100 Rev C changes be incorporated into the handbook?When will the AS9100 Rev C changes be incorporated into the handbook?

• The handbook has training material, procedures and a matrix with The handbook has training material, procedures and a matrix with guidance. Where did all of this material come from and how is it intended guidance. Where did all of this material come from and how is it intended to be used?to be used?

• What are the restrictions on the use of the material? Is it copyrighted?What are the restrictions on the use of the material? Is it copyrighted?

• There are guidance materials identified as “Best Practices” listed in the There are guidance materials identified as “Best Practices” listed in the handbook. Will the auditors hold companies to this level of performance? handbook. Will the auditors hold companies to this level of performance? Will companies hold their suppliers to these “Best Practices”?Will companies hold their suppliers to these “Best Practices”?

• Don’t “Best Practices” vary dependent on the size and complexity of the Don’t “Best Practices” vary dependent on the size and complexity of the company? Has it been determined that the “Best Practices” included in the company? Has it been determined that the “Best Practices” included in the handbook will work in any company?handbook will work in any company?

• Some parts of the SCMH have a matrix that gives examples of what the Some parts of the SCMH have a matrix that gives examples of what the different users can expect from a particular type of company. Are there different users can expect from a particular type of company. Are there any instructions on how and when to use the matrix?any instructions on how and when to use the matrix?

• Will training on the use of the SCMH be available through IAQG?Will training on the use of the SCMH be available through IAQG?

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http://www.iaqg.sae.org/iaqg/

SCMH Access - DemoSCMH Access - Demo

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SCMH Survey SCMH Survey

SCMH Survey – SCMH Survey – • Information pageInformation page

– Your Statement of workYour Statement of work

– Types suppliers you work with Types suppliers you work with

• 11 survey areas – aligns with SCMH chapters11 survey areas – aligns with SCMH chapters

– Utilize Assessment Maturity ModelsUtilize Assessment Maturity Models

– Rate your supply base as a wholeRate your supply base as a whole

• Provide a rangeProvide a range

• Provide a mediumProvide a medium

– Identify specific “areas of concern”Identify specific “areas of concern” - Possible future topics for the SCMH - Possible future topics for the SCMH

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SCMH Survey – Information PageSCMH Survey – Information Page

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Supplier Assessment ModelSupplier Assessment Model(SCMH Section 4.1)(SCMH Section 4.1)

Scope:Scope:– To assess a supplier’s capability to a set of main domains To assess a supplier’s capability to a set of main domains

impacting supply chain performanceimpacting supply chain performance

Purpose of the Model:Purpose of the Model:– Use as a guide to assess the maturity of a supplier to achieve and Use as a guide to assess the maturity of a supplier to achieve and

sustain customer expectations, especially for “On Time” and “On sustain customer expectations, especially for “On Time” and “On Quality” deliveryQuality” delivery

It is suitable for:It is suitable for:– Different product typesDifferent product types

– Different company sizesDifferent company sizes

– Total or partial applicationTotal or partial application

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Four domains :• Process• People & Organisation• Tools & Data• Performances Metrics

Five levels of maturity

Supplier Assessment ModelSupplier Assessment Model(SCMH Section 4.1)(SCMH Section 4.1)

A separate matrix for A separate matrix for each process with :each process with :

Expectation

Supplier performance

1: Undefined and not capable2: Defined and applied, but not 100% efficient or not applied everywhere in the company3: Defined, applied and effective4: Predictable 5: Optimised

Items for ImprovementAction Plan between

supplier and customer

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Assessment matrices in joined Excel fileAssessment matrices in joined Excel file

11 sheets, one per 11 sheets, one per business domainbusiness domain

Title and Definition of the Title and Definition of the Business DomainBusiness Domain

Content for each level (from 1 to 5) and Content for each level (from 1 to 5) and each parameter (Process, People and each parameter (Process, People and

Organisation, etc…)Organisation, etc…)

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Rating Example Rating Example

Provide your expertise as what “Specific Areas of Concern” need to be addressed as “Possible Topics” to add to the SCMH

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Exemple of results synthesis(10. Customer support not assessed in this exemple)

Expected capability levelExpected capability level Assessement resultsAssessement results

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2 – Contract requirement flow down• Strength 1• Strength 2• Strength 3

Exemple of results summary: Processes with Strengths

3 – Design and development• Strength 1• Strength 2• Strength 3

7 – Manufacturing and inspection• Strength 1• Strength 2• Strength 3

9 – Control of non confomities, corrective & preventive actions• Strength 1• Strength 2• Strength 3

11. Business Processes Performance Management and Customer Satisfaction Monitoring• Strength 1• Strength 2• Strength 38 – Supplier operational management and product validation• Weakness 1• Weakness 2• Weakness 3

1. Sales, Master Scheduling and Sequencing

• Weakness 1• Weakness 2• Weakness 3

4 – Supply sourcing selection and approval• Weakness 1• Weakness 2• Weakness 3

5 – Planning of product realisation• Weakness 1• Weakness 2• Weakness 3

6 – Order management and logistics• Weakness 1• Weakness 2• Weakness 3

Exemple of results summary: Processes with Strengths and weaknesses

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Example of results by area

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Help needed – Your expertise is needed!Help needed – Your expertise is needed!

• Fill out the survey and return to me by end of WorkshopFill out the survey and return to me by end of Workshop

• Or mail to: Or mail to:

The Boeing CompanyThe Boeing Company

P. O. Box 3707 mailstop 08-50P. O. Box 3707 mailstop 08-50

Seattle, WA 98124-2207 Seattle, WA 98124-2207

Attention: Attention: Darryl E. HueDarryl E. Hue

• Or scan and email to: Or scan and email to:

““[email protected]”[email protected]”

• Remember – Important to identify those critical Supply Chain Remember – Important to identify those critical Supply Chain “Areas of Concern”“Areas of Concern”

• Receive input by COB Friday, August 7, 2009Receive input by COB Friday, August 7, 2009

• Names are Names are optionaloptional but if you would like to get a copy of the but if you would like to get a copy of the results, please provide email address via separate emailresults, please provide email address via separate email

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Questions?Questions?

For any further question or comment, please contact: [email protected]

Questions?Questions?

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SCMH Back-Up MaterialSCMH Back-Up Material

Back Up Material

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Chapter Chapter Titles and contentsTitles and contents

• 1 - Sales, Master scheduling and Sequencing: 1 - Sales, Master scheduling and Sequencing: Balancing and forecasting Balancing and forecasting Medium-Long term customer demand with operational & financial capabilities by Medium-Long term customer demand with operational & financial capabilities by optimizing sequence of operations, schedule and resources.optimizing sequence of operations, schedule and resources.

• 2 - Contract requirements flow down: 2 - Contract requirements flow down: Managing Review and flow down of Managing Review and flow down of contract requirements from the customers, through all functions internally & to contract requirements from the customers, through all functions internally & to suppliers.suppliers.

• 3 - Design and development: 3 - Design and development: New product introduction activities impacting New product introduction activities impacting supply chain performances including product and process essential supply chain performances including product and process essential characteristics management, changes and obsolescence management.characteristics management, changes and obsolescence management.

• 4 - Supplier sourcing selection & approval: 4 - Supplier sourcing selection & approval: Make or buy process and mapping Make or buy process and mapping of the supply chain responsibilities, including partners, suppliers…, Sourcing, of the supply chain responsibilities, including partners, suppliers…, Sourcing, Negotiating, & Contracting in line with Make or Buy strategy and Approving Negotiating, & Contracting in line with Make or Buy strategy and Approving suppliers.suppliers.

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ChapterChapterTitles and contents (continued)Titles and contents (continued)

• 5 - Planning of product realisation (Plant, material, skills, capacity planning 5 - Planning of product realisation (Plant, material, skills, capacity planning and scheduling): and scheduling): Plan & optimize the use of resources and means to meet Plan & optimize the use of resources and means to meet operations planning at plant level.operations planning at plant level.

• 6 - Order Management & Logistic (internal & external): 6 - Order Management & Logistic (internal & external): Issuing orders, Issuing orders, resolving unplanned events & following up till completion including receipt. resolving unplanned events & following up till completion including receipt. Collaborative Management of material, services & information to & from the Collaborative Management of material, services & information to & from the supplier; Optimizing material flow, stock and inventory through the supply chain., supplier; Optimizing material flow, stock and inventory through the supply chain., up to final customer delivery. Customer property included.up to final customer delivery. Customer property included.

• 7 - Manufacturing & inspection (Production & service provision): 7 - Manufacturing & inspection (Production & service provision): Manufacturing and product integration processes, including inspection.Manufacturing and product integration processes, including inspection.

• 8 - Supplier operational management and product validation (Purchasing 8 - Supplier operational management and product validation (Purchasing process): process): Operational monitoring and surveillance of suppliers to ensure Operational monitoring and surveillance of suppliers to ensure purchased products and services meet customer requirements (includes initial purchased products and services meet customer requirements (includes initial product validation). Working with suppliers to continually raise their performance product validation). Working with suppliers to continually raise their performance levels (Supplier Development activities when required).levels (Supplier Development activities when required).

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Chapter Chapter Titles and contents (continued)Titles and contents (continued)

• 9 - Control of non conformities, corrective & preventive actions : 9 - Control of non conformities, corrective & preventive actions : Non Non conformance management and root cause analysis process for all business conformance management and root cause analysis process for all business domains. Raising, notifying, deciding and acting to manage and prevent non domains. Raising, notifying, deciding and acting to manage and prevent non conformities (product, processes, documentation, delays, etc...). conformities (product, processes, documentation, delays, etc...).

• 10 - Customer Support: 10 - Customer Support: Supporting the customer to ensure end user Supporting the customer to ensure end user satisfaction during "in service" phase (Maintenance & Repair, Spares, Training satisfaction during "in service" phase (Maintenance & Repair, Spares, Training and Documentation, Operating Data feedback and analysis). This includes when and Documentation, Operating Data feedback and analysis). This includes when applicable, supporting the customer during the product integration activities, up to applicable, supporting the customer during the product integration activities, up to delivery to the end user (Entry Into Service).delivery to the end user (Entry Into Service).

TRANSVERSAL PROCESS:TRANSVERSAL PROCESS:

• 11- Business Processes Performance Management and Customer 11- Business Processes Performance Management and Customer Satisfaction Monitoring: Satisfaction Monitoring: Survey, Consolidation and continual improvement of Survey, Consolidation and continual improvement of Supply Chain performance (Internal/External), risk and change management, Supply Chain performance (Internal/External), risk and change management, overall decision process to meet customer satisfaction and business objectives overall decision process to meet customer satisfaction and business objectives throughout Life cycle throughout Life cycle

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Definition and content of the 5 levels :Definition and content of the 5 levels :– 1: Undefined and not capable (No Process, Methods, Tools and/or 1: Undefined and not capable (No Process, Methods, Tools and/or

inappropriate behaviours)inappropriate behaviours)

– 2: Defined and applied : but not 100% effective or not applied 2: Defined and applied : but not 100% effective or not applied everywhere in the company (capable for low risk products and everywhere in the company (capable for low risk products and services)services)

– 3: Defined, applied and effective: repeated satisfactory 3: Defined, applied and effective: repeated satisfactory performance capableperformance capable

– 4: Predictable : performance of proactive improvements towards 4: Predictable : performance of proactive improvements towards planned targets, but not systematically on all processes / areas / planned targets, but not systematically on all processes / areas / productsproducts

– 5: Optimised : best in class, continual improvement fully deployed, 5: Optimised : best in class, continual improvement fully deployed, involving all stake holders as part of company cultureinvolving all stake holders as part of company culture

Supplier Selection and Capability Supplier Selection and Capability Assessment ModelAssessment Model

1 “supply chain management handbook” scmh overview and survey presenter: darryl hue – boeing...

Documents

scmh guidance material

requirements supply

value chain

supply chain process

overview of scmh objective

infrastructure scmh

scope project team

scope slide