a new standard in data exchange the smart step codification project phase iii delivered in...
TRANSCRIPT
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
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
Industry Membership Scope
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
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
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?
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
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
• "$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
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
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
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
IncludesIG Id, RN, Organization Id,
Complete missing data (MOE, RNCC,...)
Smart Step Codification Phase III – Process scheme revision 1.2
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
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.
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