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A New Standard in DATA Exchange The Smart Step Codification Project Phase III Delivered in Partnership between The NATO Codification System & BAES GCS

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A New Standard in DATA Exchange

The Smart Step Codification Project

Phase III

Delivered in Partnership between

The NATO Codification System & BAES GCS

Agenda

The importance of information to the supply chain – Brigadier David Martin

Data Driven Supply Chain – Mr Sean Culey BAES

The importance of Global Standards for Team Defence – Mr Steve Shepherd UK CeB

Break

ISO 8000, ISO 22745 and the Source Supplied Codification Project Introduction

Lunch

SSC III Project results, The way forward and ISO 8000 contract inclusions.

A demonstration of the process and available software

Project Participants certificate presentations

Questions and Answer for the panel

Close of event

suplimentary session for interested IT experts to see the software in more detail

Brigadier David Martin

Head of DE&S Supply Chain Management

4

The Data Driven Supply Chain

Sean Culey

July 2010

Sean Culey

5

Member of Supply Chain Council’s European Leadership Team

Extensive end-to-end supply chain experience in four continents,

including 10 full life-cycle ERP implementations

Ex-Global Supply Chain troubleshooter for multi-national FMCG

Experienced implementer of S&OP, Integrated Business Planning (IBP)

and Demand Control (Sense and Respond) process and SAP solutions

Working with BAE Systems since Jan 2009

Agenda

6

Brief SCOR overview

The Importance of Supply Chain Process Design and Data Management

Integration

Understand Strategic Competitive Drive

Data Integrity Requirement

Process and Systems Requirement

Data Management Ownership

Supply Chain Council:

An independent, non-profit global association

Formed in 1996 to create and evolve a standard industry process reference model of the supply chain for the benefit of helping companies rapidly and dramatically improve supply chain operations

SCC has established the supply chain world’s most widely accepted framework – the SCOR® process reference model – for evaluating and comparing supply chain activities and their performance

It can be used to describe supply chains that are very simple or very complex using a common set of definitions and enabling a common understanding

It lets companies quickly determine and compare the performance of supply chain and related operations within their company or against other companies

SCC continually advances its tools and educates members about how companies are capitalizing on those tools

With membership open to all interested organizations

Global Scope With Over 800 Member Organizations

Also developing chapters in India and the Middle East

Member Affiliation

Member Distribution

SCOR ® = Extended Supply Chain

DeliverSource Make

Return

Plan

Plan

Plan

Return

Plan Plan

DeliverSource Make

Return Return

DeliverSource Make

Return Return

Deliver

Return

Source

Return

Supply Chain Operations Reference model represents;information, material & cash flows

Your Company CustomerSupplier

Software – Supply Chain’s silver bullet?

“Less than 25% of IT projects will deliver hard, monetary benefits that exceed the cost of the implementation” Information Week

30 - 40 per cent of systems to support business change deliver no benefits whatsoever

Office of Government Commerce (OGC)“We have all of the technology that we want and need for today – and tomorrows – supply chain”. Alan Waller OBEProfessor of International Supply Chain Management, Cranfield School of Management & President of the Chartered Institute of Logistics

“The real question is: - have we got the people we need to manage this technology?”

European Council on Global Supply Chain

Same software, different results

Definition of Maturity Class Mean Class Performance

Best-in-classTop 20% of aggregate performance scorers

21% reduction in inventory levels97% inventory accuracy3.6 days to close a month95% manufacturing schedule

adherence96% complete and on-time

shipments

Industry AverageMiddle 50% of aggregate

performance scorers

11% reduction in inventory levels91% inventory accuracy5.3 days to close a month88% manufacturing schedule

adherence90% complete and on-time

shipments

LaggardBottom 30% of aggregate

performance scorers

2% reduction in inventory levels83% inventory accuracy7.6 days to close a month75% manufacturing schedule

adherence82% complete and on-time

shipments

Results from 650 companies that use ERP – source: Aberdeen Group

Integration, integration, integration………

14

SALES & OPERATIONS PLANNINGSALES & OPERATIONS PLANNING

COMMERCIAL COMMERCIAL PLANNINGPLANNING

SUPPLY CHAINSUPPLY CHAINPLANNINGPLANNING

CU

STO

ME

R’S

CU

STO

MER

CU

STO

ME

R’S

CU

STO

MER

CU

STO

ME

RC

US

TO

ME

R

VE

ND

OR

VE

ND

OR

SOURCESOURCE MAKEMAKE DELIVERDELIVER

RETURNRETURN

VEN

DO

R’S

VEN

DO

RV

EN

DO

R’S

VEN

DO

R

ENABLEENABLE

Tactical Objectives

Strategic Goals

People & Culture

Business Processes

Systems and supporting technology

Data Integrity

Operational Activities

Performance & Conformance Reporting

Roles & Responsibilities

OBJECTIVE: Strategy, data, SAP, process and people alignment

Business processes and Data should support the business strategy

Performance Excellence

Data Management

Owned, appropriate, accurate and quality DATA

to enable Supply Chain and business performance

Strategy

Business Processes

Integrated, efficient and effective PROCESSES to enable Supply Chain and business performance

D1.7Select

Carrier & Rate

Shipment

D1.3Reserve Inv. & Determine

Delivery Date

D1.2Receive, Enter & Validate Order

D1.1Process

Inquiry & Quote

D1.8Receive

Product from Source/Make

D1.9Pick Product

D1.10Pack Product

D1.15Invoice

D1.12Ship Product

D1.11Load &

Generate Documents

Information Flow

Material Flow

Financial Flow

Align Processes & Systems

Business Processes

Integrated, efficient and effective processes enable supply chain Performance

Value destroying behaviours and data

Not trustedNot UsedNot understoodNot working correctly

DEMANDSUPPLY

SUPPLIER WAREHOUSE PROCUREMENT PRODUCTION ORDER MANAGEMENT

No / Invalid NSN reference

Late deliveries Incomplete deliveries PO # not reflected Poor communication

No / Invalid NSN reference Unprocessed Purchase

Requisitions Spurious Purchase

Requisitions Undelivered Purchase

Orders / PO Items Incorrect supply lead times Delivery date not aligned

with requirement date Order quantities adjusted Manual Purchase Orders Text based Purchase

orders and requisitions

Limited forward planning Broad planning windows Incorrect BOM’s Poor scheduling, routing

and capacity planning in SAP

Incorrect repair BOM’s Delayed recording of

consumption

No / invalid NSN reference No sight of impact of supply

issues IPT view of the supply chain SAP scheduling not used Picking dates not known Transit times not reflected OTIF measures missing No sales order ownership Goods issue after delivery

GET CONTROLGET CONTROLFoundation and Integration

Incorrect inventory analysis Stock obsolescence SAP data and reality

mismatch High inventory levels Large amount of ‘dead’ or

slow moving stock Incorrect parts / old versions Stock issues without order No inbound / outbound

visibility ‘Day Book’ goods receipt

End-to-End Supply Chain – High Level

Customer3th Party LogisticsCompanySupplierSupplier’s Supplier

Sub assemblies Manufacturer Outsourcing CustomerComponents

delivermakesource delivermakesource delivermakesource delivermakesource

End-to-End Supply Chain – High Level

SupplierSupplier’s Supplier

Sub assembliesComponents

Data Integrity Requirements

Finance & Costing : Plan & Actual Cost / Revenue / Profit

Lead Time

(Procurement LT Production LTGR/GI Time

Pick/Pack TimeLoading TimeTransit Time)

MRP Strategy

Requirement/Demand

Min-Max stock level/ Safety

Stock

Load profileProduct profile

Lot sizes

Material Dimension

Weights / Volume

Nato Stock Number (NSN)

.Source Lists

PIR/MOQ /Scales

MRP Strategy / Standard Cost

X-Plant Material Status

Purchase Order Requirement

Date

Tax classificationForeign trade

data

Vendor Master Data

STATIC

DYNAMIC

ProcurementPlanning/Scheduling

End-to-End Supply Chain – High Level

3th Party LogisticsCompany

Manufacturer Outsourcing

Finance & Costing : Plan & Actual Cost / Revenue / Profit

Lead Time

(Procurement LT Production LTGR/GI Time

Pick/Pack TimeLoading TimeTransit Time)

MRP Strategy

Requirement/Demand

Min-Max stock level/ Safety

Stock

Load profileProduct profile

Lot sizes

X-Plant Material Status

Purchase Order Requirement

Date

Tax classificationForeign trade

data

Vendor Master Data

ProcurementPlanning/Scheduling

Material Dimension

Weights / Volume

Nato Stock Number (NSN)

Source Lists PIR/MOQ /Scales

MRP Strategy / Standard Cost

Data Integrity Requirements

Finance & Costing : Plan & Actual Cost / Revenue / Profit

Lead Time

(Procurement LT Production LTGR/GI Time

Pick/Pack TimeLoading TimeTransit Time)

MRP Strategy

Requirement/Demand

Min-Max stock level/ Safety

Stock

Load profileProduct profile

Lot sizes

X-Plant Material Status

Purchase Order Requirement

Date

Tax classificationForeign trade

data

Vendor Master Data

BOM Routings

Changeover Time

Stock status(UR/ R / Blocked)

Production Order (Release/Start/Finished Date)

Inventory level (Surplus

Shortage)

Batch / Shelf life Information

STATIC

DYNAMIC

Quality / Inspection Report

Planned & Actual GR/GI Date

Inventory level (Surplus

Shortage)

Batch / Shelf life information

Storage LocationBin information

Stock status(UR/ R / Blocked)

WH/LogisticsProductionProcurementPlanning/Scheduling

Material Dimension

Weights / Volume

Nato Stock Number (NSN)

Source Lists PIR/MOQ /Scales

MRP Strategy / Standard Cost

Production Versions

NSN Number(s)

Vehicle Schedules

NSN Number(s)

End-to-End Supply Chain – High Level

Customer

Finance & Costing : Plan & Actual Cost / Revenue / Profit

Lead Time

(Procurement LT Production LTGR/GI Time

Pick/Pack TimeLoading TimeTransit Time)

MRP Strategy

Requirement/Demand

Min-Max stock level/ Safety

Stock

Load profileProduct profile

Lot sizes

X-Plant Material Status

Purchase Order Requirement

Date

Tax classificationForeign trade

data

Vendor Master Data

BOM Routings

Changeover Time

Stock status(UR/ R / Blocked)

Production Order (Release/Start/Finished Date)

Inventory level (Surplus

Shortage)

Batch / Shelf life Information

Quality / Inspection Report

Planned & Actual GR/GI Date

Inventory level (Surplus

Shortage)

Batch / Shelf life information

Storage LocationBin information

Stock status(UR/ R / Blocked)

WH/LogisticsProductionProcurementPlanning/Scheduling

Material Dimension

Weights / Volume

Nato Stock Number (NSN)

Source Lists PIR/MOQ /Scales

MRP Strategy / Standard Cost

Vehicle Schedules

NSN Number(s)

Production Versions

NSN Number(s)

Data Integrity Requirements

Finance & Costing : Plan & Actual Cost / Revenue / Profit

Lead Time

(Procurement LT Production LTGR/GI Time

Pick/Pack TimeLoading TimeTransit Time)

MRP Strategy

Requirement/Demand

Min-Max stock level/ Safety

Stock

Load profileProduct profile

Lot sizes

X-Plant Material Status

Purchase Order Requirement

Date

Tax classificationForeign trade

data

Vendor Master Data

BOM Routings

Changeover Time

Stock status(UR/ R / Blocked)

Production Order (Release/Start/Finished Date)

Inventory level (Surplus

Shortage)

Batch / Shelf life Information

Production Versions

NSN Number(s)

STATIC

DYNAMIC

Quality / Inspection Report

Planned & Actual GR/GI Date

Inventory level (Surplus

Shortage)

Batch / Shelf life information

Storage LocationBin information

Requested Delivery Date

Customer Master Data

Tax categorizationVAT Number

Pricing ConditionNSN Number(s)

ITAR detailsSerial Number

Order StatusCompliance Requirement

Requested Quantity

Stock status(UR/ R / Blocked)

Vehicle Schedules

NSN Number(s)

Sold To/Ship To/Bill To/Payer

CustomerWH/LogisticsProductionProcurementPlanning/Scheduling

Material Dimension

Weights / Volume

Nato Stock Number (NSN)

.Source Lists

PIR/MOQ /Scales

MRP Strategy / Standard Cost

Production – integrated process

UpgradeUpgradeRepairRepair

StandardStandard

ServicesServices

ProcurementProcurement Lead Lead timestimes

Update Update delivery delivery

schedulesschedules

OverdueOverduePO/PReqPO/PReq

Purchase Purchase PricesPrices AccurateAccurate

RequisitionsRequisitions

Accurate delivery Accurate delivery schedulesschedules

AccurateAccurateCommitmentsCommitments

StocksStocks

ZRW1ZRW1ZRWKZRWK

Pl OrdPl Ord

ProductionProduction

PlanningPlanningHorizonsHorizons

Cycle Cycle TimesTimes

AvailableAvailableCapacityCapacity

ExceptionExceptionMessagesMessages

MRPMRP

GenericGenericBOMsBOMs

FCAC AccuracyFCAC Accuracy

Stock Stock ReconciliationReconciliation

SalesSales

SalesSales

ContractContract

BillingBilling

AccurateAccurateDemandDemand

MR

PM

RP

OverdueOverduePWOPWO

PP01PP01

Accurate Accurate Delivery Delivery

DatesDates

Accurate Accurate RequirementsRequirements(NSN / Rev No)(NSN / Rev No)

Accurate Accurate Material InfoMaterial Info

Product Product Details Details

(NSN / Rev no)(NSN / Rev no)

Data Control is important regardless of whether your strategy is to

compete on Cost or Asset performance versus Reliability,

Responsiveness or Agility

Understand Strategic Competitive Drive

Competitive Supply Chain Strategies

PerformanceAttribute

PerformanceAttribute Definition

SCOR L1Metric

Reliability

The performance of the Supply Chain in delivering: the correct product, to

the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct

documentation, to the correct customer

Perfect Order Fulfillment

Responsiveness

The speed at which a supply chain provides products to the customer

Order Fulfillment Cycle Time

AgilityThe agility of a supply chain in

responding to marketplace changes to gain or maintain competitive

advantage

Upside Supply Chain Flexibility

Supply Chain Adaptability * (Upside

or Downside)

Cost The costs associated with operating the supply chain

Supply Chain Management Cost

Cost of Goods Sold (COGS)

Assets

The effectiveness of an organisation in managing assets to support demand

satisfaction. This includes the management of all assets: fixed and

working capital

Cash-to-Cash Cycle Time

Return on Supply Chain fixed Assets

Return on Working Capital

Cus

tom

erIn

tern

al

SCOR Level 1: Reliability Metric

Metric: Perfect Order Fulfillment

Definition:

The percentage of orders delivered on-time, in full.

Components include all items and quantities on-time using

customer’s definition of on-time and complete documentation

-packing slips, bills of lading, invoices, etc.

Calculation:

[Total Perfect Orders] / [Total Number of Orders]

67 Days Lead-time`

67 Days Lead-time

Accurate data, improved reliability

TransitPack

and GIPick

Production & Purchasing Lead Times

Actual Order Capture

Date

Requested Delivery

Date

Forward Schedule

TransitPack

and GIPickProduction & Purchasing

Lead Times

New Proposed Delivery Date

Backward Schedule

Pl. GI Date

Pl. MAD Date

TodayStart date in the past

Delivery by ‘Requested

Delivery Date’ not possible

Pl. TP Date

29

GR / QITime

GR / QITime

Competitive Supply Chain Strategies

PerformanceAttribute

PerformanceAttribute Definition

SCOR L1Metric

Reliability

The performance of the Supply Chain in delivering: the correct product, to

the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct

documentation, to the correct customer

Perfect Order Fulfillment

Responsiveness

The speed at which a supply chain provides products to the customer

Order Fulfillment Cycle Time

AgilityThe agility of a supply chain in

responding to marketplace changes to gain or maintain competitive

advantage

Upside Supply Chain Flexibility

Supply Chain Adaptability * (Upside

or Downside)

Cost The costs associated with operating the supply chain

Supply Chain Management Cost

Cost of Goods Sold (COGS)

Assets

The effectiveness of an organisation in managing assets to support demand

satisfaction. This includes the management of all assets: fixed and

working capital

Cash-to-Cash Cycle Time

Return on Supply Chain fixed Assets

Return on Working Capital

Cus

tom

erIn

tern

al

SCOR Level 1: Responsiveness Metric

Metric: Order Fulfillment Cycle TimeDefinition: The average actual cycle time

consistently achieved to fulfill customer orders.

Calculation

: [Sum Actual Cycle Times For All Orders Delivered] / [Total Number Of Orders Delivered]

04/19/23

32

Scheduling and planning

Order Cycle Time: 67 Days

Customer Authorized

ORDER CAPTURE

Electronic Fax/Email

1 day

Order Entry

3 days

Start Manufacturing

21 days

Manufacturing ship to Receive at Warehouse

2 days

Order receive at warehouse to Order ship to customer

1 day

Transit Time

4 days

Order receive to Customer Installation

Customer

5 days

In order to plan, the system needs to know this information.In order for the plan to be accurate......

Procure Components

30 days

Questions ?

Do your supply chain teams appreciate and understand the need for accurate and timely data?

How accurate is the data in your system?

Where are the biggest areas of inaccuracy?

How do you control and measure transactional data integrity?

Is their clear ownership of the master data (materials, customers, vendors, stocks etc)?

33

What key information, if available, would make a significant difference to the running of your supply chain?

What’s stopping you from obtaining this information?

Who would own this data and it’s accuracy?

Is it clear in the organisation...

Who owns master data? Who owns inventory? Who owns customer service? Who owns the forecast

34

Data owner & Metrics

Data MetricsData Owners

People involved in Data Management activities are educated so that they understand the use and impact of master data across processes and systems.

Master Data Quality is part of the personal objectives of Data Owner Carried out by right people, right time, and right sequence

Data owner & Metrics

Open Inquiries > 30

days

Quotations Expiring in 30

Days

Expiring Contracts

Milestones Expiring < 30

days

Overdue Sales

Orders

ATP Failures

Commercial

Overdue Deliveries (not picked

TODAY) Actual GI <> Plann GI

Despatch Admin.

Overdue PWO

Late Release PWO

Late START PWO

Overdue ZRWK order

Shop Floor

Open Inquiries > 30

days

Quotations Expiring in 30

Days

Expiring Contracts

Milestones Expiring < 30

days

Overdue Sales

Orders

ATP Failures

Commercial

Data owner & Metrics

Performance Metrics

Conformance Metrics

Overdue Deliveries (not picked

TODAY) Actual GI <> Plann GI

Despatch Admin.

Overdue PWO

Late Release PWO

Late START PWO

Overdue ZRWK order

Shop Floor

37

Master Data

Transactional Data

Management Data

MDA Roles & Responsibilities

‘Responsible’Role &

Responsibility Document

Master Data Conformance

Reporting & Metrics

Operational (Conformance)

Reporting & Metrics

‘Accountable’Role &

Responsibility Document

Senior Management Dashboard

Management (Performance)

Reporting & Metrics

Central Reporting Repository

From Master Data to Business Performance

38

Master Data

Transactional Data

Management Data

MDA Roles & Responsibilities

‘Responsible’Role &

Responsibility Document

Master Data Conformance

Reporting & Metrics

Operational (Conformance)

Reporting & Metrics

‘Accountable’Role &

Responsibility Document

Senior Management Dashboard

Management (Performance)

Reporting & Metrics

Central Reporting Repository

From Master Data to Business Performance

EiBS KPI Dashboard – by IPT

Mas

ter

Dat

a K

PI’s

Co

nfo

rman

ce

KP

I’sP

erfo

rman

ce

KP

I’s

SOURCE MAKE DELIVER

> 98% = In Control

80% - 98% = Needs

attention

< 80% = Critical

• All results shown are fictitious and for demonstration purposes only

Elapsed Time

Pro

cess

Mat

urity

Supply Chain Data ManagementMaturity progression

Look Back• Data Cleanse• Remove Overdue data• Focus on Past Performance• Lag measure of project – OTIF

(past GI)

Look Forward• Planned dates correct• Looking for abnormal loadings• More pro-active reporting• Lead Measure – OTIF Service

(open orders)

Exception MGT• Manage by exception only• Clearer issue identification• Set tolerances• Analyse reports• Identify potential bottlenecks

Target• Agree targets for KPI’s• Highlight by target failure• Focus on continuous process

improvement• Drill down to lower levels• Tighten targets when applicable

DATA INTEGRITY PROCESS IMPROVEMENT

Focus on getting continuous improvement…….

41

Inputs:• Key performance metrics that measure the Reliability, Responsiveness and financial

performance of the Project or IPT• Role based Conformance Metrics• Exceptions to the process that need review• Any significant customer information received that may influence future demand (i.e. UOR

Requirements )Outputs: • Impact analysis of these changes and agreed actions to mitigate issues – All

Source: Every AngleReport: 1. RL_1_OTIF – TSS REPAIRSDescription: BAE’s ability to meet the customers Requested

Delivery Date and the required qty and if we are late, how late.The report looks at deliveries made in the last 30 days and analyses whether we delivered the full quantity and the agreed date.

Purpose: To drive continual improvement in the customer’s perception of BAE as a supplier through increased reliability of supply against agreed quantities and dates

42

Reflect the business in ERP Remove all overdue transaction data Implement key housekeeping roles

and assign responsibilities Create single, trusted source of truth Enable ERP financial, operations and

management reporting Create co-operation between process

areas and x-process meetings Create Process Conformance

dashboards Establish Business rules and align

data to these rules Enable MRP and ATP functionality Integrate purchasing and financials Create x-process meetings and work-

teams and communication Enable outbound scheduling and

aligned activities`

Move from ‘data’ to ‘information’ Deliver new ERP functionality Monitor and improve Supplier service Enhance existing ERP functionality Add new functionality and process

improvements Manage by exception Improve Customer Service Reduce inbound lead times Monitor and control forecast activities Implement S&OP process and tools Create balanced scoreboards of

management and financial information

Establish Best Practices Create ‘Process Champions’ Increase process optimisation and

flexibility Create Alignment between strategy,

people, process and technology Manage stock value across the

business

Use information to drive greater effectiveness and efficiencies

Move to Integrated Business Planning

Consolidate Supplier base Orchestrate supply chain through

collaboration Identify and remove excess

inventory Increase revenue through cost

identification and reduction Improve management information

that drives strategyCreate culture of continuous

improvementMinimise Supply Chain

management costs Identify and implement technology

that drives competitive advantage Identify and remove ‘waste’ across

the organisation

GET CONTROLFoundation and Integration

INTEGRITY & RELIABILITY

PROCESS INTEGRATION and OPTIMISATION

SUPPLY CHAIN ORCHESTRATION

From transactional recording to business planning

SAP financial benefits realised

Continuous improvement Identify and eliminate non value

adding activities

OWNERSHIP & ACCOUNTABILITY

GET VALUEEnhance and Drive Value

GET LEANEliminate Waste

Deliver intended functionality Utilise integrated processes Create ‘one version of the truth’

Pyramid of SCM Benefits

INSIGHTinto business improvement opportunities

VISIBILITYof end-to-end supply chain

CLARITYaround issues and bottlenecks

EFFICIENCYRemoval of ‘fat’ from the process - focus always on the value add

SPEEDQuicker decision making via rapid, accurate info

CONTROLof processes and information

CREATES

PROVIDES

GENERATES

ENABLES

DELIVERS

04/19/23 Seven Collaborative Solutions Ltd. 44

Improved SCM = ValueATTRIBUTE

Reliability

Responsiveness

Agility

Cost

Assets

Perfect Order Fulf ilment

Order Fulf ilment Cycle Time

Supply Chain Agility

Supply Chain Adaptability

Supply Chain Management

Cost

Cost of Goods Sold

Cash to Cash Cycle Time

Return on Supply Chain

Fixed Assets

Return on Working Capital

Revenue Lift Improved Service Product Availability Improved responsiveness Greater visibility of supply

capabilities

Reduction of Supply Chain Costs Margin Improvement Reduction in inventory costs Lot size and ordering cost

reductions Improvement on ROI from

IT Reduced warehouse &

transport costs

Reduction of Working Capital Requirements Inventory reduction in

Supply Chain Improved Accounts

Receivable Duty payment deferment

Supply Chain related Capital Reductions Enhanced Fixed Asset

Utilisation Future CAPEX Spend

Avoidance Returns processing costs

+

SCOR L1 METRIC

BUSINESS IMPACT BUSINESS VALUE FROM ‘CONTROL’ PHASE

Service Improvements: Improved master and transactional data integrity Increased stock availability / ATP failure

reductions Improved ability to react to service issues Customer service bottleneck identif ication

Reduction in Lead Times: Inbound lead time reductions Improved master and transactional data integrity Improved ability to react to service issues Lead time bottleneck identif ication

Increase in Supply Chain Agility: Correct utilisation of MRP and ATP tools Improved ability to identify service issues early Accurate supply chain bottleneck identif ication

Reduction in Supply Chain Cost: Better ROI f rom existing SAP investment Correct utilisation of MRP and ATP tools Reduction in ‘f ire-f ighting’ activities through more

accurate demand & supply balancing Alignment of process activities / adherence to

plan Better visibility of plan deviations through

reporting improvements Use of existing SAP technology to identify

capacity waste

Improvement in Asset Utilization: Outbound sales order pipeline reporting Inbound pipeline reporting Accurate and timely processing of goods receipt

and issue Identif ication and reduction in inventory ‘dead

stock’ Transactional data integrity improvements Clarity in aged debt reporting AP and AR process improvements

Net OperatingProfit

(NOPAT)

Revenue

Cost of Capital (efficiency)

-

Capital Charge

BVABusiness

Value Added

Expenses

-

BALANCE SHEET & INCOME STATEMENT IMPACT

RESULT

45

Try and ensure that data integrity is achieved, and the importance of this is understood throughout your organisation and your suppliers

Reflect the business reality in the system Create ‘transactional data’ owners at every step of the process Drive housekeeping discipline within your teams Create ‘master data’ owners – incorporate a staged gate PLM process if

possible Report on data integrity at an executive level – create a data dashboard

showing master, transactional and performance data integrity Align data requirements with strategic drivers – turn data into information

Remember - what’s measured is managed

Call to action – what should we be doing now?

Thank You.

[email protected]

+44(0)7779 237462

47

The Importance of Global Standards for ‘Team

Defence’

Steve ShepherdExecutive Director UKCeB

28 July 201028 July 2010

A New Standard in Data Exchange – Abbey Wood

A New Standard in Data Exchange – Abbey Wood

UKCeB comprises over 850 individuals representing more than 80 organisations that are drawn from the Ministry of Defence (MOD), the Industry Providers and Consultants

Lead Industry Sponsors of UKCeB

Ministry of Defence

Trade Associations

UKCeBUKCeB is an Association tasked with bringing together Team Defence for the benefit of all of its members. Governance includes the Joint Information Group comprising senior representatives from MOD and Industry

The Path to Interoperability

• Many standards and initiatives have the potential to satisfy part of the overall requirement for interoperability– Between companies and business partners– Between functions in an organisation– Between application systems

• Challenge:– Reduce overall cost and complexity by identifying the

most appropriate solution components – Provide concrete guidance on how to satisfy specific

business requirements using an appropriate selection of those components

The Importance of Standards to UK MOD

• Through Life Support;“In the quest to drive down the costs of Through Life Support it is essential that we support the development and adoption of global standards”

- Brigadier Martin Boswell, Head of Through Life Support

• Log NEC Programme;“ The adoption of global information standards within Log NEC is a critical underpinning factor to all our initiatives in enabling joint working between MOD and our industry partners. It is the key to enabling us to respond more quickly to changing requirements, to drive out unnecessary costs associated with integration and to improve data quality”

- Brigadier Alan Clacher, Head Log NEC Programme

The scope for a co-ordination roleacross stakeholder organizations & initiatives that have an interest in the

development & deployment of information-related standards

* standards development organizations

UKCeB

MoD Industry

OEMsIS providersconsultants…

CIOACDS (Log Ops)

D ISS JSC

IMWGSEIWG…

JIG

Log Info CoIJIG PMB

ISOASD / ATA / AIAOAGiOASIS…

CDGJTLS SG

SDOs*

ILS standards workstream

S1000D, S2000M …

Information standards portfolio project

PLCS, OAGIS 9, S1000D …

JISCOT

The Joint Information StandardsCoordination Team - JISCOT

MoD Industry

projects

The joint implementation context

contracts

open standards

information exchange

AOF (SSE …)

JSP 329, 602 …

industry policy

Log NEC Architecture and Through Life Support

The role of JISCOT

Overall concept of operations of JISCOT is to:• Solicit, identify and rationalize specific business requirements for

interoperability• Identify and assess key standards and initiatives, as framework

components within an overall framework for eBusiness• Develop position statements on relevant standards/initiatives• Initiate and support projects to ensure that appropriate standards

are available to industry in a timely manner, together with suitable guidance material if required

• Seek ‘Team Defence’ endorsement of the resulting standards and solutions

• Develop guidelines for deployment of such components to meet specific business scenarios

E-BUSINESS: OPPORTUNITIES

• “The great thing about standards is that there are plenty of them to choose from”

• Globally there is a proliferation of official bodies, communities of interest, conferences, Trade Associations and individual industries addressing standardisation

• Standards are being developed to address:– Different business processes– Different levels; information, process, IT, deployment– Tailoring for contract needs

European Countries and Companies approach

E-BUSINESS: CHALLENGES

• Efficient inter-enterprise digital collaboration is required to address: – Improved competitiveness among the major members of

industry– The increasing use of the digital product models, from the

preliminary design to customer support– Proliferation of proprietary formats for each of the companies' e-

business projects – New contract models require more and different information to

flow across the supply chain; end-to-end and through life

European Countries and Companies approach

E-BUSINESS: ASD response

• Key ASD objective: to promote European contribution to international standards and to develop international cooperation

• ASD standardization structure for e-business created supported by the national trade associations and industry to: – Ensure the availability and maintenance of the necessary e-

Business standards for the industry• Ensure availability from external organizations through

co-ordination with international bodies and, if required, participation in external development activities or by industry development tasks

– Develop a European interoperability framework aimed at ensuring the overall consistency of the adopted standards

– Support the recognition and adoption of the standards

The business case for Electronic Integration

• AIA members are committed to a vision for eBusiness across the industry, where:– all participants in the aerospace value chain will be able to exchange

information across an information backbone relative to:• product design, • business relationships, • transactions, • and product support

– This vision is to be achieved through industry-level adoption of:• policies and standards,

– benefits to prime contractors, suppliers and customers through simplification of electronic trading,

• fewer interfaces and simpler processes, • reduced support costs • more agile• responsive teaming.

– generate innovative process changes to further improve performance

US approach

The global perspective

• The aerospace value chain is becoming increasingly global in nature, with suppliers in many countries supporting manufacturers in the US and Europe, across many home markets. – This implies the use of global standards, which is already AIA and ASD

policy, – the value of exploiting such standards is now being promoted by

consultancies such as Gartner.• Our customers are also recognising the value of standards-based links to the

supply network for all classes of information exchange. – In the defence sector, consideration is being given to possible DFARS

clauses mandating the use of DoD architecture components, and in the UK, the MoD has already developed a joint logistics architecture with industry, based on global standards. In Europe, OCCAR is seeking to efficiently manage and support trans-national projects.

• Defence ministries are also working on collaboration on logistics information for collaborative in-theatre operations, and consistency between projects on information planning.

– The ATA is setting up global eBusiness standards for the airline industry.• These trends reinforce the opportunity for global collaboration on setting

industry standards.

US approach

Operational & Maintenance Data Feedback – Functional Coverage by S5000F

Acquisition Logistics Main Business Processes(acc. to NATO Acquisition Logistics Workshop of 1993)

„S-Series Specifications“ for Through Life Support“

S2000M

S1000D

Des

ign

of

Sys

tem

s an

d

Su

pp

ort

Eq

uip

men

t

LogisticSupportAnalysis

Provi-sioning

OrderAdmini-stration

TechnicalDocu-

mentation

IN

SERVICE

USE

OPS Data

Provisioning Data

IP DataSubsets

Logs Mat

and Data

IETM, other media

S3000LS4000M

LSA data

Equipment IdentificationDesign Data

Design Data

LSA tasks / data

MoU between ASD and AIA on S-series specifications

“Following a meeting at the Farnborough Airshow between Patrick de Prevaux and myself for ASD,  the AIA National Security Director Fred Downey, and AIA PSC chair Patresha Williams, I am pleased to be able to report that the AIA/ASD MoU on the S-series specifications was duly signed by Marion Blakey and Francois Gayet on 21 July.

 This will form a good basis for the further MoU that we have discussed for the other SSG areas.  Both Fred and Patrick emphasised the high level of importance that is now being attached to interoperability at senior levels, and the exposure of this topic at the AIA Executive Committee and the ASD Convention was highlighted.”

   Howard MasonCorporate IT OfficeBAE Systems plc

 

• Supplier• UID

UK Defence Standards Radar Screen

2009-09-17With acknowledgement to the Aerospace Industries Association

STEP APs

ebXML

Def Stan00-600

UKDefence

DEXs

Def Stan00-60

PLCS+

DEXs

OAGIS 9

S2000M

S1000D

LOTAR

ISO 8000

S4000M

S3000L

S5000F

ISO 22745

Non UKDEXs

RFIDAppStds

SCORM

BoostAero

Click for ‘Parked’ Standards

Monitor externaldevelopment

Participatein external

development

Adoptexisting standard

UKdevelopment

Joint Information Standards Co-Ordination Team (JISCOT)

Candidate

Track

Adopted

Standards working together

Informationstandards

Process

Tailoringfor UK

defence

IT

Deployment

Informationclasses

Product definitionthrough life

Technicalpublications

Projectmanagement

Finance HR

STEP

PLCS

ebXML

OAGIS 9.0 HRXML

Def-Stan-00-600

PLCS DEXBusiness

rulesMessages/BODs

Text/database/XML XMLCommon source

database

EXOSTAR

ISO 22745

ISO 8000

BoostAeroSpace(2011)

S2000M

S30

00L

S50

00F

S2000M/EDIFACT/

XML

S40

00M

BoostAero

LOT

AR

S1000D

Supply chain transactions

SCORM

Summary

• The development and adoption of a coherent set of global standards will drive down costs through life and end-to-end

• Global organisations are working together to achieve this

• The UK MOD and Defence Industry are jointly in the forefront of this work

• ISO 22745 and ISO 8000 are important pieces of the jigsaw

Information and IT standards are critical but only standardise process where it adds value to all

parties to do so.  

The DNA of Modern Logistics - NATO CodificationThe DNA of Modern Logistics - NATO Codification

Ian Smith

DE&S SCM United Kingdom National Codification Bureau

ISO 22745 - Electronic Open Technical Dictionaries

ISO 8000 – Master Data Management

Landauer’s principle (1961)

Information is Physical.

An Erasure in information leads to an entropy increase in non information degrees of freedom of the information processing apparatus or its environment.

Yes I cut and pasted this from wikipedia

In English

If the information is complete it should be easy to identify an item from that information.

If information is incomplete, the difference between the level of information existing and the actual item it describes, proportionately reduces the probability of identifying the item which reduces the value of having that information.

Ian Smiths Idiots guide 2010

What is information and what does it do?

What does an Information System cost?

Data50%

SystemsIntegration

10%

Software10%

Hardware10%

Training20%

Hardware: The cost of additional infrastructure required for the project.Software: The cost of licenses for the software used, or the cost of software developed.Systems Integration: Cost of interfaces between applications in a system.Data: The business cost of creating the data to configure and use a system. Training: Cost of training and the 'cost' of getting accustomed to a new system.

Survey by Daratech, Inc

Data Exchanges in the Support Chain

NATO PolicyAC/135

National Codification

Systems

LANDSEA

AIR

Demand

Demand

Demand

DATAExchange

DATAExchange

NMBS TrafficSupplier (Source)

Data

BAES RR

MOD

LM THALES

GD AW

Data Exchanges in the Support Chain

NATO PolicyAC/135

National Codification

Systems

LANDSEA

AIR

Demand

Demand

Demand

DATAExchange

DATAExchange

NMBS Traffic

Which helps to avoid sittuations…….

Supplier (Source) Data

Which helps to avoid things like this!

• "$16 Billion in waste due to a lack of interoperability between CAD, engineering, and software systems"– National Institute of Science & Technology

(NIST)• August 2004

What happens when the shelf doesn’t match the PC?

Military View

“There is and always has been a philosophical gulf between the application of cataloging for military purposes and … for commercial. …commercial practices are not precise enough to support cost-effective military inventory management and military cataloging is far too detailed and costly for commercial purposes …a bridge to the gulf is required”

Mr. Alan Williams, Asst Dept Minister, Canadian Dept of National Defence.

Military Commercial

Supplier and Manufacturers recognize that:• data integration is one of the keys to a long term

relationship• the ability to provide their customers with quality

data is a significant differentiating factor.

Suppliers and Manufacturers are:• publishing the specifications of their products,

capabilities and services on their web sites.• looking to increase their visibility and understand

that the best way to do this is to improve the quality of their data.

Supplier View

Suppliers and manufacturers are looking for a Standard that they can use to identify the quality of their data.

Landauer’s principle (1961)

In English

If the information is complete it should be easy to identify an item from that information.

If information is incomplete, the difference between the level of information existing and the actual item it describes, proportionately reduces the probability of identifying the item which reduces the value of having that information……………………………..

……………………………………………and that can lead to all sorts of problems!!!!!!!!!

Which brings us back to………….

ISO 8000 is an international standard which measures the quality of an entities data management. The standard requires that a specific request for the exact requirement be made. This informs the data owner what they need to provide which allows the requestor to measure how well that requirement was met.

ISO 22745 is an international standard which facilitates the mapping of terminology dictionaries to a single source.

This in turn facilitates translation of terminology from one entity to another based on an XML schema.

The New Standards in DATA Management

Are these standards suitable for MoD Data Management?

Are we playing the same game?

NCS/eOTD Architecture – ISO 22745

H6+MRDDictionary

eOTD-xmlISO 22745-10

NSNMaster Data

eOTD-r-xmlISO 22745-40

FIIGIdentification

GuideeOTD-i-xml

ISO 22745-30

is coded using concepts in

constrainsthe use of

conformsto the

constraints in

IdentificationScheme

ISO 22745-13

The similarities in processes

Process NCS Current ISO 22745

Item Identification US FIIG System* eOTD i-XML

Request Source Data Email/ETasking/Written eOTD q-XML request

Receipt of Source Data Drawing, Catalogue etc eOTD r-XML

*Federal Item Identification Guide

http://www.dlis.dla.mil/fiigdata/A003B/akbg.htm

Achieving Data QualityISO 22745/8000

Prescribes that for data to be of quality, it must have a meta data property (which has an accurate definition) and a value which is measurable.

These property value pairs form the cornerstone of high quality data:

10.50

Overall length : 10.50mm

ISO 22745-30 EOTD I-XML = A list of required properties

ISO 22745-35 EOTD q-XML = The transaction of those properties between two entities.

ISO 22745-40 EOTD r-XML = The returned transaction with values completed by the master data manager

eOTD Concept ID ="0161-1#02-007067#1">

Which equates to:

OVERALL LENGTH - THE DIMENSION MEASURED ALONG THE LONGITUDINAL AXIS WITH TERMINATED POINTS AT THE EXTREME ENDS

OF THE ITEM.

Any other property identifiers which meet this description such as:

End to End length…..Total length……Longitudinal Length……etc….etc

Are mapped to each other within the Open Technical Dictionary

Common Concept ID

Terminology mapping

Terminology

Terminology

Terminology

GSA-IAETerminology

Industry Associations

SDO

SDOTerminolo

gy

• Public domain concept identifiers

• Free identifier resolution to underlying terminology (web services)

• Hyperlink to source standards

• Multilingual

• Multiple terms, definitions and images linked to single concept identifier

Terminology

ASD 2000M

?

Property ID Value Measure ID0161-1#02-046898#1 0161-1#07-014684#10161-1#02-027375#1 32250200370161-1#02-023822#1 1.0 0161-1#05-000798#10161-1#02-010200#1 1.450 0161-1#05-000798#10161-1#02-010196#1 1.653 0161-1#05-000798#10161-1#02-004968#1 0.591 0161-1#05-000798#10161-1#02-027376#1 100161-1#02-027378#1 0.80 0161-1#08-000168#1

Property term Value Measure term eOTD CLASS NAME BOLT:MECHANICAL PRODUCT NUMBER 3225020037NOMINAL THREAD DIAMETER 1.0 INCHES WIDTH ACROSS FLATS 1.450 INCHES WIDTH ACROSS CORNERS 1.653 INCHES HEAD HEIGHT 0.591 INCHES COUNT PER PACK 10PACK PRICE 0.80 US DOLLAR

Machine Bolt; Product Number: 3225020037; Nominal thread diameter: 1.0 inches; Width across flats: 1.450 inches; Width across corners: 1.653 inches; Head height: 0.591 inches; Count per pack: 10; Pack price: $0.80 (M-Bolt;NTD1.0”;WAF1.45”;CPP10)

eOTDIdentifier

Coded

eOTDIdentifiersResolved

Rendered

Common Concept Encoding

P/N 1234EF: 400KW 6 POLE 525VOLT FRAME HGF355E: FT MOUNTED RPM 988 SF1,0 CODE G:IP65:INS F:IL/IN 6.6:DUTY SI: NR.88695 11 00:AMB 40DEGREE C:DELTA T 80DEG: COS 0,86:COOLING IC 411:ALT1000M

Original Supplier Catalog Description

Standardized ERP PO Description

MOTOR, ELECTRIC: POWER RATING 400 KW, ELECTRICAL RATING 525 V, FRAME HGF355E, FOOT MOUNTING, SPEED 988 RPM, INSULATION CLASS F, 6 POLES, SERVICE FACTOR 1.0 CODE G, ENCLOSURE IP65, MNFR P/N: 1234EF MNFR: WEG, FFT: IL/IN 6.6: DUTY SI: NR.88695 11 00:AMB 40 DEGREE C:DELTA T 80DEG: COS 0,86:COOLING IC 411:ALT 1000M

Standardized ERP Short Description

MOTOR, ELEC: 400 KW, 525 V, 988 RPM

Original ERP Short Description

ELECTRIC MOTOR

Automating the data supply chain - Codification at Source

NCB

Supplier

Sub

eOTD-i-xml(data requirements statement)

ISO 22745-30

eOTD-q-xml(query)

ISO 22745-35

Sub-TiereOTD-q-xml

Sub-TiereOTD-r-xml

eOTD-r-xml(data exchange)ISO 22745-40

The DNA of Modern Logistics - NATO CodificationThe DNA of Modern Logistics - NATO Codification

Ian Smith - United Kingdom National Codification Bureau

Smart Step Codification Project

Phase I

Prove the concept

Phase II

Prove the Benefits

Phase III

Prove the technology exists

Smart STEP Codification Project

Smart Step Codification Phase 1

Proved the concept that data could be harvested from the sources such as the CAD Engineering file in STEP (ISO 10030) format and be used to create information for cataloguing and logistics purposes.

Smart Step Phase II

Used ISO 22745 and ISO 8000 for the first time in creating a method of identifying and exchanging required data between two entities.

NCB Poland using the ROSOMAK Vehicle

SSC Phase III

The Task

To take a medium sized platform with mature enough data to be codified which is stored in an electronic Product Data Management System (PDMS).

Using ISO Standards 22745 & 8000, create a fully codified platform direct from the PDMS.

Return a copy of that data to the supplier in ISO 22745 format including the NSN as a completed field.

The successful completion of the project will result in demonstrable improvements in quality and time in the completion of a codification task and provide information on potential whole life cost savings

TERRIER new generation Combat Engineering Vehicle (CEV)

• Used for Early entry

• Used for Combat support

• Used for Post conflict roles

Potential Limitations on the project

Automating the data supply chain - Codification at Source

NCB

Supplier

Sub

eOTD-i-xml(data requirements statement)

ISO 22745-30

eOTD-q-xml(query)

ISO 22745-35

Sub-TiereOTD-q-xml

Sub-TiereOTD-r-xml

eOTD-r-xml(data exchange)ISO 22745-40

PHASE II

SSC Phase III Objective – TRULY Automated Codification

eOTD-r-xml(data exchange)ISO 22745-40

NCB

Supplier

Sub

eOTD-i-xml(data requirements statement)

ISO 22745-30

eOTD-q-xml(query)

ISO 22745-35

Sub-TiereOTD-q-xml

Sub-TiereOTD-r-xml

PHASE III

This was the first task of its kind using automated ISO 22745 processes in the UK.

The supplier did not have a classification system or have a clear Descriptive Data Management process.

The IT although working was developing alongside the project

The XML Schema was so new it had not yet reached version “1.0” status.

Participants at the supplier end were logisticians rather than experienced codifiers.

Potential Limitations on the project

Task Delivery

Project Manager – Ian Smith UK NCB

Codification Agents – UK NCB & UK MoD Platform Project Team

SSC Team – ESG (DEU) AURA (CZE) Logica CMG (UK) LSC Group (UK).

Supplier – BAES Global Combat Systems

IT Help Systems – ECCMA (USA) CTC (USA)

Review Committee – The NCS Modernisation Working Group

NAMSA – Contracts creation and payments.

X This service was not required at any point.

Codif. Request(ETasking)

Identify IGCreate query

(ISIS)

Export queryeOTD-q-XML

(ISIS)

NCB UK – Data requestor BAE Systems – Data provider

Import queryeOTD-q-XML(AURA / ESG)

Export Identif.Guide(s)

(eOTD-i-XML)(ISIS) .

Import Identif.Guides

(eOTD-i-XML)

Create replyeOTD-r-XML

(ESG / AURA)

Automatic transferof data from BAE IS

(AURA / ESG)

Manual entryof data

(ESG / AURA)

Import replayeOTD-r-XML

(ISIS)

Create itemAssign NSN

(ISIS)

Import itemeOTD-r-XML

(AURA / ESG)

Migrate iteminto BAE IS(IS plug-in)

Export itemeOTD-r-XML

(ISIS)

Phase I: manual entry in eOTD modules

Phase II: automatic interface to BAE IS (Unigraphics, Teamcenter, SAP)-------------------------Future: sending sub queries to suppliers of BAE and processing of sub replies

Synchronization of Identification Guides for Terrier between ISIS and MCC/NCORE

Email

Email

IncludesIG Id, RN, Organization Id,

Complete missing data (MOE, RNCC,...)

Email

Email

Smart Step Codification Phase III – Process scheme revision 1.2

Comparing the different styles

The measuring stick

Type 1: All the mandatory eliments of the Federal Item Identification Guide for the item in question have been met. The item is considered to be FULLY DESCRIBED.

Type 4: At least ONE of the mandatory eliments of the Federal Item Identification Guide for the item in question have not been completed. The item is considered to be PARTIALLY DESCRIBED.

Type 2: NO mandatory or optional eliments of the Federal Item Identification Guide for the item in question have been answered. Only the manufacturers part number exists. The item has NO technical description.

Traditional Versus Supplier Sourced Codification

The first SSC III task was sent to one of our contractors with a special instruction to use ISO 22745 transactions to codify a 30 item task.

The contractor missed the special instruction, which normally we would have been really unhappy with!

Every cloud has a silver lining though and this let us put together some comparison stats: The traditional codification was achieved using the technical drawing which was only provided to allow item naming for the 22745 task.

Type 1 Type 4 Type 2 Avg MRC

Traditional Codification 0 27 3 8

Supplier Sourced Codification 20 10 0 12

Property value Pairs from traditional and SSC iii codification methods

0

5

10

15

20

25

30

35

3040

-99-

510-

5964

2590

-99-

790-

2686

2510

-99-

667-

4559

2590

-99-

391-

2474

2510

-99-

601-

9229

4720

-99-

790-

2690

4720

-99-

213-

3614

4720

-99-

813-

0639

4720

-99-

284-

3307

2510

-99-

213-

3619

5330

-99-

213-

3620

5330

-99-

676-

5769

2590

-99-

836-

5918

3830

-99-

837-

7552

2590

-99-

931-

0184

5340

-99-

371-

1855

2590

-99-

846-

8282

2590

-99-

912-

0302

2590

-99-

366-

5892

2590

-99-

867-

8833

2590

-99-

275-

5313

5340

-99-

339-

5068

3020

-99-

958-

3820

2530

-99-

177-

7449

2530

-99-

790-

2707

2510

-99-

744-

6660

5999

-99-

613-

4512

2540

-99-

233-

1328

5340

-99-

574-

0512

2510

-99-

216-

0188

Item references

pro

per

ty v

alu

e p

airs

(n

um

ber

)

PVP traditional

PVP SSC iii

ISO 8000 Pt 110 WORKS!

DATA Collected From Total Items Type 1 Type 4 Type 2

ISIS Total Live Items 2,618,151 459,178 (17%)1,699,549

(65%) 459,424 (18%)

*Sentry 351 35 (10%) 270 (77%) 46 (13%)

*Protected Mobility Group 4669 675 (14%) 3032 (65%) 962 (21%)

*Typhoon 199 32 (16%) 142 (72%) 25 (12%)

*Jackal 377 161 (42%) 210 (57%) 7 (1%)

Terrier SSC III 398 191 (49%) 207 (51%) 0 (0%)

*Terrier SSC III excluding screen outs 260 151 (58%) 109 (42%) 0 (0%)

Co

dif

icat

ion

typ

es

ach

iev

ed (

%)

100

Typ

e o

ne

Typ

e fo

ur

Typ

e tw

o

Terrier SSC iii

0%

54%

46%

Terrier SSC iii excluding screen-outs

0%

42%

58%

1%

57%

42%

Jackal Typhoon

12%

72%

16%

Protected Mobility Team

21%

65%

14%

ISIS total live items

18%

65%

17%

T1 T4 T2

The Cost of not codifying!

James Beer is the project manager at BAES GCS responsible for the introduction of a classification system, why?

He provided the following figures:

Cost to introduce an item into their Product Data Management Tool: £3000.

In one instance 10 duplicates were found in their PDM Tool

That item has an un-necessary support cost of: £27,000

BAES GCS Newcastle has approximately 19,000 items registered against its NCAGE currently.

So what does that mean in financial terms to the supplier?

389 Items for codification so far

129 Items screened out which is 33%

BAES will put forward approximately 2000 items for Terrier by project end.

That is a cost of approximately £44,000 in hard charging for codification

33% of £44,000 is £14,520 which would be the estimated savings on codification costs.

BAES Don’t have a classification system

So what does that mean in financial terms to the supplier?

TERRIER had 129 Items Screened out as already existing in ISIS which UK NCB produced R-XML files which BAES GCS imported into the ISO 22745 Module they had access to.

It costs BAES GCS £3000 to introduce an item in to their catalogue

In accordance with the Shell UK commissioned survey 50% of those costs are for data.

129 x £1500 = £193,500.00

IF a supplier was to place codification at the design stage and be able to accept the automated import of an R-XML File:

So what does that mean in financial terms to the supplier?

The potential to BAES GCS is far greater than that as UK NCB can provide data in r-XML format for 19,000 items that can be automatically loaded into any classification system they choose with XML capabilities. This data will be in ISO 22745 format and in accordance with ISO 8000 Pt 110.

If, we can get codification introduced at the design of a platform, before the engineers start to create properties and values:

The potential is there to save hundreds of thousands of pounds for each entity:

If you as a design authority ask an NCB to screen for an item BEFORE you key data into your PDM system, with 17 million items already codified, there’s a high possibility an NCB will be able to provide an r-xml file for import

The way forward

What’s in a name?

This work has been carried out under the banner of ‘SMART STEP Codification’ since the mid 90’s. STEP files can still be used in the harvest of data in an automated fashion in accordance with ISO 22745, but that is only one potential source.

OEMs are very reluctant to give direct access to data files that can allow reverse engineering of their IPR protected data. This project has shown that an OEM is happy to give access to up to 3 times more than has traditionally been transacted from sources other than drawings and STEP files.

The project team therefore suggest a rebranding of this work as we take it forward to:

Proposal

1 This work has proven that measuring the quality of data and asking specifically for the property value pairs required is of great value.

Action: (MG97 Agenda 13b 96:65) Include ISO 8000 Pt 110 in suitable standards and NCB contracts where appropriate as a standard AC/135 Codification Clause.

2 That the NCS MWG be tasked by directors to create a definitive statement of requirement to address the issues identified in this project and use this as non-negotiable clause with any target ISO 22745 electronic Open Technical Dictionary that AC/135 elects as the target system.

Action: Mr Chairman, NCS MWG

3 This project resulted in a real learning of what is required to deliver Supplier Sourced Codification. We will learn far more by implementing these methods where suitable to move forward from the theory.

Standard statement for inclusion as both an NCB Contract Clause and Codification Requirement statement in any standards which have NATO Codification as

part of their delivery.

For NCB use, this statement should be included in full. For use in a standard, only the bold face type should be included.

Supply of Source Data in support of NATO CodificationThe contractor, sub-contractor or supplier shall supply identification and characteristic data in accordance with ISO 8000-110:2009 on any of the selected items covered in this

contract.

Following a codification request, the Home NCB shall present a list of the required properties in accordance with the US Federal Item identification Guides.

This exchange can be in a format agreed between the vendor and home NCB. One potential format of exchange is:

(a) The contractor, sub-contractor or supplier shall agree a contact method to which requests for identification and characteristic data in an ISO 22745-35 compliant format can be facilitated.

(b) The contractor, sub-contractor or supplier shall respond in a timely manner to requests for characteristic data that it receives in an ISO 22745-35 compliant format and the replies shall be in

an ISO 22745-40 compliant format. (c) All metadata shall be from an ISO 22745 compliant Open Technical Dictionary.

ISO 8000 Pt 110 Contract Statement

Paper: The US FIIGs are currently available in PDF format. The lowest form of ISO 8000 would be using these PDF files to base data gathering by the NCB.

Methods of delivery

Web-service:. UK NCB via Logica CMG will provide a service that allows the online completion of a data file in accordance with ISO 8000 Pt 110.

There are at least 3 vendors (2 of whom are here today and can provide further demo’s in the supplimentry session) who can supply an ISO 22745 compliant classification module:

AURA (CZE) ESG (DEU) & PiLog (SA/US)

The XML Schema that can be implemented into existing IT Classification systems is available as a free download from the ECCMA Web Site along with user guides for installation. (www.eccma.org)

Potential Implementation Plan

IT Experts predict approximately a 10 year time span in order to get all codification carried out in accordance with ISO 22745 ie fully automated data exchanges.

The first step in the UK towards this, is the inclusion of the ISO 8000 Pt 110 statement into ALL contract documents. This is currently being written into the latest versions of DefCon 117, JSP 886 and being proposed to ASD 2000M.

DE&S SCM UK NCB is ready now to carry out its business using these standards in any of the formats outlined in the previous slide. We hope to be able to include the ISO 22745 clause for large transactions and to help benefit both UK MoD and our industry partners.

Certification

Mr Simon Rose

BAES Global Combat Systems

ISO 8000 Pt 110 Data Supplier

DE&S SCM UK NCB – ISO 8000 Pt 110 Master Data Quality Manager

Alan Webb Ltd – ISO 8000 Pt 110 Master Data Quality manager

CMCA UK Ltd - ISO 8000 Pt 110 Master Data Quality manager

Dytechna - ISO 8000 Pt 110 Master Data Quality manager

Lionbridge - ISO 8000 Pt 110 Master Data Quality manager

www.eccma.org

Questions?