sc21 industry working together
TRANSCRIPT
TÜV SÜD Product Service Slide 1 27/02/2014
SC21 Industry
Working Together An overview of SC21 and TÜV SÜD Case Study Mike Harrison Director ABSL
The challenges to our industry – sector growth
TÜV SÜD Product Service Slide 2 27/02/2014
• The aerospace industry is over the next 20 years forecasting new aircraft
requirements which are unprecedented in aviation history
Airbus
Bombardier
Embraer
Boeing
The expanding
world market is
real a opportunity
for the UK
aerospace industry
but also a threat
The challenges to our industry – globalisation in context
TÜV SÜD Product Service Slide 3 27/02/2014
• The UK aerospace and defence industry is second only to the US in
terms of sales
• The expanding world market is threatening that position
The challenges to our industry – supply chain pressures
TÜV SÜD Product Service Slide 4 27/02/2014
demand
regulation and accreditation purchasing power
costs
waste and duplication
offshoring
international economy
people and skills
Challenges
to aerospace
and defence
supply chains
business behaviours
market access
What is SC21?
TÜV SÜD Product Service Slide 5 27/02/2014
• SC21 is an industry change programme designed to accelerate the
competitiveness of the Aerospace, Defence and Security (A|D|S)
industries by raising the performance of its supply chains.
• It is a national strategy, executed regionally
• Managed by ADS and Industry through the National Status Report
Why is SC21 necessary?
TÜV SÜD Product Service Slide 6 27/02/2014
Where we were
• Disconnected, fragmented supply base
• Non standardised processes, waste &
duplication (i.e. metrics, auditing)
• Business relationships are sometimes poor
• The interests of different parties are not
aligned
• Standardise processes
• Remove duplication and hence reduce
costs
• Modernise business relationships
• Improve communications and
collaboration
• Increase efficiency and simplicity
• Increase innovation
The ultimate aim
TÜV SÜD Product Service Slide 7 27/02/2014
• A world class supply chain in the UK to enable UK industry to become
No.1 in the world for Aerospace, Defence, Security and Space.
Who’s involved?
TÜV SÜD Product Service Slide 8 27/02/2014
• Aerospace, Defence, Security and Space Primes and their Suppliers
• 700 SC21 signatories on the continuous improvement journey
Active SC21 companies
TÜV SÜD Product Service Slide 9 27/02/2014
TÜV SÜD Product Service Slide 10 27/02/2014
SC21
How it’s delivered
SC21 – the scope of application
TÜV SÜD Product Service Slide 11 27/02/2014
New business culture
2. Development
and
Performance
need increased
efficiency and
remove waste
3. Relationship
Management
need for better
end-to-end
communication
and collaborative
planning
SC21 is implementing 3 action
streams to drive transformation
and performance improvement
1. Certification &
Quality
Improvement
need to remove
repetition, and
unnecessary
duplication
TÜV SÜD Product Service Slide 12 27/02/2014
• AS/EN91XX and NADCAP
Aerospace Quality Management System….AQMS
TÜV SÜD Product Service Slide 13 27/02/2014
AS/EN91XX is the quality
management system for the
aerospace industry and
registration is becoming a
global requirement
International Aerospace Quality Group
Linked to AQAP2110
NADCAP Accreditation… † Performance Review Institute
TÜV SÜD Product Service Slide 14 27/02/2014
• Nadcap accreditation is fast becoming a global requirement for suppliers using special processes –
Nadcap accreditation is a contractual requirement and not a mandatory AS/EN9100 requirement • Nadcap involves a stringent audit by PRI† personnel
• Nadcap has been up and running for 17 years and now include:
Chemical Processing, Coatings, Composites,
Elastomer Seals, Heat Treating,
Materials Testing Laboratory,
Non-destructive testing, Sealants and Welding,
Printed circuit boards
SC21 – the scope of application
TÜV SÜD Product Service Slide 15 27/02/2014
1. Certification &
Quality
Improvement
need to remove
repetition, and
unnecessary
duplication
3. Relationships
Management
need for better
end-to-end
communication
and collaborative
planning
SC21 is implementing 3 action
streams to drive transformation
and performance improvement
2. Development
and
Performance
need for
increased
efficiency and
remove waste
New business culture
TÜV SÜD Product Service Slide 16 27/02/2014
• Performance metrics
• Sustainable improvement
• Improvement framework
• Recognition
TÜV SÜD Product Service Slide 17 27/02/2014
• Performance metrics
• Sustainable improvement
• Improvement framework
• Recognition
Measuring performance
TÜV SÜD Product Service Slide 18 27/02/2014
• Positive improvements in quality, cost and delivery
(QCD) performance are achieved by consistent
measurement and continual improvement of the
processes.
• As companies improve their processes this will reduce
rework and scrap, the need to hold additional
inventory, reduce overtime and expediting - all of
which increase costs in the supply chain.
• The aerospace and defence industry sector have an
agreed set of measures that may be used by SC21
companies to assess their internal performance.
Measuring performance - quality
TÜV SÜD Product Service Slide 19 27/02/2014
• Customer acceptance or reject rate are a good indicator of quality and
customer satisfaction.
• Meeting quality targets not only improves customer satisfaction but also
reduces your costs by eliminating scrap, rework and unnecessary
inspection.
• ‘Rejects' = units out of specification and not accepted on concession.
Measuring performance - delivery
TÜV SÜD Product Service Slide 20 27/02/2014
• Delivery schedule achievement is fundamental to a high performing supply chain
• Poor performance in this area has a detrimental effect on both customer satisfaction and
customer performance.
• A product or service may be deemed to be on-time if it arrives to schedule within a
defined ‘window’.
• That time window will be set by the customer and may be in terms of hour or days early
or late.
Measuring performance – SC21 Targets
TÜV SÜD Product Service Slide 21 27/02/2014
Delivery and Quality performance is measured against a 12 month rolling
average
TÜV SÜD Product Service Slide 22 27/02/2014
• Performance metrics
• Sustainable improvement
• Improvement framework
• Recognition
Sustainable improvement
TÜV SÜD Product Service Slide 23 27/02/2014
• To eliminate duplication SC21 companies
have agreed that each company in the
supply chain has a single improvement
programme that is relevant to all customers.
• Continuous and sustained improvement will
be driven by a clearly defined plan (CSIP)
• Plans will have a clear linkage to
performance metrics such as quality and
delivery.
• The improvement activity must be driven by
senior management.
sustainable
improvement
Sustainable improvement
TÜV SÜD Product Service Slide 24 27/02/2014
Sustainable improvement
TÜV SÜD Product Service Slide 25 27/02/2014
• The sustainable improvement programme shall be managed through the
application of a robust plan for the WHOLE business.
• The plan shall be subject to regular review by the management team and
the owners of the sub-elements.
TÜV SÜD Product Service Slide 26 27/02/2014
• Performance metrics
• Sustainable improvement
• Improvement framework
• Recognition
Improvement framework
TÜV SÜD Product Service Slide 27 27/02/2014
Two improvement frameworks have been defined by SC21 to form
the basis of a standard approach to supply chain performance
improvement, these are:
Business Excellence
(derived from European Foundation for Quality Management
[EFQM] model of excellence)
and
Manufacturing Excellence (based on the Kawasaki
Production System)
Acknowledgement The Excellence Model is EFQM copyright.
The ADS acknowledges the EFQM copyright and is grateful for the permission granted to reproduce it within this document.
Business excellence – the excellence model
TÜV SÜD Product Service Slide 28 27/02/2014
• The structure of the model emphasises not only what a business is
achieving (RESULTS) but also how the results are being achieved
(ENABLERS).
..... the maximum points have been allocated to each criterion based on
benchmarks from a range of European blue chip companies
Leadership People
Strategy
Partnerships &
Resources
Processes,
Products &
Services
People
Results
Customer
Results
Society
Results
Business
Results
Enablers Results
Learning, Creativity and Innovation
Manufacturing excellence
TÜV SÜD Product Service Slide 29 27/02/2014
• A framework for Lean
….supported by design related improvement methodologies VE/VA or QFD
5 ‘s’ housekeeping
people
job standardisation
7 wastes / SPC / quality tools
visual controls
material
kanban
processes
set-up reduction
TÜV SÜD Product Service Slide 30 27/02/2014
• Performance metrics
• Sustainable improvement
• Improvement framework
• Recognition
Recognition framework
TÜV SÜD Product Service Slide 31 27/02/2014
• Organisation that wish to be recognised for their achievements as a
participant on the SC21 programme will be assessed against the criteria
described in the recognition framework.
• ALL 4 criteria must be achieved to be eligible for an Award.
• The Award level will default to the lowest criteria level.
SC21 – the scope of application
TÜV SÜD Product Service Slide 32 27/02/2014
1. Certification &
Quality
Improvement
need to remove
repetition, and
unnecessary
duplication
2. Development
and
Performance
need for
increased
efficiency and
remove waste
SC21 is implementing 3 action
streams to drive transformation
and performance improvement
3. Relationships
Management
need for better
end-to-end
communication
and collaborative
planning
New business culture
Code of practice
TÜV SÜD Product Service Slide 33 27/02/2014
The code of practice comprises five elements, focusing on:
• Communication
• Through life capability management
• Continuous improvement
• Commercial agreement
• Ethics
Relationship management
TÜV SÜD Product Service Slide 34 27/02/2014
• The highest standard of relationship management will be achieved
through a structured engagement process involving all relevant functions
with regular reviews at operational and strategic levels.
• The supply chain Relationship Code of Practice is supported by the
Relationship Measurement Matrix [RMM], which is used via a facilitated
process, to assess and develop the relationship between organisations
throughout the supply chain.
RMM application process
TÜV SÜD Product Service Slide 35 27/02/2014
SC21
Step by Step
SC21 – the 4 step model at a glance
TÜV SÜD Product Service Slide 36 27/02/2014
Contact your most important
ADS customers, ask them if
they want to support you.
Ask them to provide regular
information on your
performance.
Agree your quality and
delivery and support
performance and review
regularly
Agree the quality certifications
needed
Undertake a set of diagnostics
based on world class
performance, covering the
management, operations,
relationships and business as
a whole
Use the diagnostics to build
an overall improvement plan
for the business, with clear
actions that lead to world
class performance and make
a difference strategically and
day to day. Review this
regularly and keep fresh.
When you have met the
targets for an award,
(diagnostics and quality and
delivery), submit a
presentation to the community
for approval.
Awards are given at Bronze,
Silver and Gold levels of
performance.
The order of application of the Diagnostics will be determined during Step 1 Programme Engagement
The model (and what it really means)
TÜV SÜD Product Service Slide 37 27/02/2014
Sc21
Benefits and attributes of award winning
companies
Attributes seen in award winning companies
TÜV SÜD Product Service Slide 38 27/02/2014
• A strong relationship with their customer. (All have done an RMM Workshop)
• Clear grasp of their own capacity and capability constraints. (They turn work away if they don't have the capacity or capability)
• They have customers who know their supplier and manage them well
• Continuous improvement is done to win more business not because they are told to.
• Performance is about a mindset, if customer sees the value in a performance based relationship and is prepared to support, so will the supplier
• A Culture of continuous sustainable improvement through the employees in both supplier and customer.
• A senior management commitment
SC21 award companies
TÜV SÜD Product Service Slide 39 27/02/2014
• SILVER • Active Electronics Ltd
• Aeroflex International Ltd
• AWS Electronics Ltd
• Axiom Manufacturing Services (Newport Wales)
• Axis Electronics Limited
• Dontaur Engineering Limited
• Ferranti Technologies
• Glenair Ltd
• Groveley Precision
• Hermitage Sheet Metal Ltd
• High Tech Engineering
• J W Kane Precision Engineering Ltd
• MEP Ltd
• Moyola Precision Engineering Ltd
• Propak Sheet Metal Ltd
• Rebound Electronics Ltd
• Reliance Precision Ltd
• Righton Aerospace Ltd (Plymouth)
• TÜV SÜD Product Service • Unipart Aerospace and Defence Ltd
• Wincanton AW
• Wincanton Ltd (Wattisham)
• Wincanton MRO (Yeovil)
• Wincanton Plc (Blackburn)
• Wincanton (Telford)
25 89
2
GOLD ITT Inter Connect Solutions (ICS) (Basingstoke)
Wincanton Plc (Houndstone)
BRONZE AAR International
AB Precision
Able Engineering Ltd
Accrofab Limited
Aero Stanrew Limited
Agusta Westland – EMC
All Metal Services Ltd – Belfast
Altran UK Ltd – PLM Division
Analox LtdBronze
Krempell Ltd
Antares Ltd
Arrowsmith Engineering
Artemis Optical Ltd
Astute Electronics Ltd
Axon Cable
Baker Bellfield Ltd
Bovill & Boyd (Engineering) Ltd
Castle Precision Ltd
Cinch Connectors
CT Production Electronic
Manufacturing Services
D & S Engineering Ltd
Denroy Plastics Limited
Derek Lane and Co Ltd
DHL Global Forwarding (UK)
Limited – Belfast
e2v
Ed Fagan Europe Ltd
Electroservices (Midlands) Ltd
Fasteq Ltd
Fourmasters Ltd
FSL Aerospace Ltd
Gooch & Housego
Graves Aircraft Components
Helander
HITEK Electronic Materials Ltd
Hone-All Precision Ltd
Invotec Ltd (Tamworth)
JJ Churchill Ltd
Keyford Precision Engineering
Ltd
Kingfield Electronics Ltd
Matt Black Systems Ltd
Merlin Flexible Circuits
Micro Spring and Presswork
Midd Aeromech Ltd
Morris Engineering Ltd
Murata Power Solutions
Nemco
New Breed Logistics
Newburgh Engineering Ltd
NFF Engineering Ltd
Old Engineering Ltd
Parafix Tapes and Conversions
Paramount Precision
Engineering
Photofabrication
Plexus
Polamco Ltd
Pre-Met Engineering Solutions
RD Taylor Ltd
Rediweld Rubber and Plastics
Rehau Ltd
Righton Aerospace Ltd
Righton Aerospace Ltd Bristol
Rockford Components Limited
Rodford Engineering Ltd
Rosenberger Micro Coax
Rotamic Precision Engineering
SL Engineering Ltd
South West Metal Finishers
Stadium IGT Limited
STS Defence
Systems Engineering &
Assessment Ltd
Trimite Technologies Ltd
Triumph Actuation and Motion
Control
TT Electronics Ltd (Rogerstone)
TTI Group Ltd (Letchworth)
TTI Inc
Universal Engineering Ltd
Vulcanium Metals International
Ltd
Wartsila Seals and Bearings Ltd
WB Alloys Products Ltd
Westminster Engineering Ltd
WG Jones Ltd
Wheelabrator Ltd
Wincanton PLC – (Middleton)
Wincanton Plc (Kingswinford)
Xcel Power Systems
ZOT Engineering Ltd
SC21 award companies
TÜV SÜD Product Service Slide 40 27/02/2014
TÜV SÜD Product Service Slide 41 27/02/2014
SC21
Putting the TÜV SÜD Silver Award into
perspective
TÜV SÜD
TÜV SÜD Product Service Slide 42 27/02/2014
• TÜV SÜD are not your typical SC21 Company so why did they sign up to
the Programme
Consumer Goods
Medical Devices Telecommunications
Aerospace, Defence
and Machinery
BENCHMARKING
TÜV SÜD’s Vision
TÜV SÜD Product Service Slide 43 27/02/2014
Story board
TÜV SÜD Product Service Slide 44 27/02/2014
• Signed up to SC21 – August 2007
• Continuous Sustainable Improvement Plan Started – March 2009
• Bronze Manufacturing Excellence Assessment – Oct 2009
• Bronze Determining Excellence Assessment – Mar 2009
• Bronze Award Achieved – March 2010
• Increased RMM activity – Q3 & Q4 2012
• Silver Operational Excellence Re-Assessment – June 2011
• Silver Determining Excellence Re-Assessment – March 2011
• Silver Award – June 2013
• Regional Partners – FAC
• Strategic Partner – Sigma/ABSL
• SC21 Key Customers – BAE Systems, Cobham, Thales, WASP,
Meggitt Avionics, Aero Engine Controls
Planned improvements
TÜV SÜD Product Service Slide 45 27/02/2014
• Regular internal auditing using the Diagnostic Assessment Toolset
• Increased training conducted to expand the knowledge of SC21 and LEAN across the company
• A Kaizan project in the Samples Stores department to bring it in line with the expected levels of efficiency required by SC21
• Increased 5S housekeeping activities around the whole site
• Increased development and use of the Improvement Framework
Before
5S Examples in
Stores
After
Improvement framework
TÜV SÜD Product Service Slide 46 27/02/2014
The LEAN Vision
“To attain perfection, not when there is no
longer anything to add, but when there is
no longer anything to take away.”
Continuous sustainable improvement plan
TÜV SÜD Product Service Slide 47 27/02/2014
• The Strategic Plan is integral to CSIP with all
key customer performance data incorporated
• As at February 2013 290 activities had been
initiated by the CSIP with 58% of these
activities completed
What about now?
TÜV SÜD Product Service Slide 48 27/02/2014
Customer Delivery Quality
Cobham 96.4% 100%
WASP 100.0% 100%
Meggitt Avionics 100.0% 100%
Thales 97.1% 100%
BAe Systems 98.7% 100%
What next?
TÜV SÜD Product Service Slide 49 27/02/2014
• Implement the LEAN Improvement Framework to
improve our overall performance
• Attract other aerospace customers to participate in our
SC21 programme
• Implement supplier rating and feedback
• Extend the performance measure metrics across other
market sectors
• Target of achieving SC21 Gold recognition by May
2015
How to get involved?
TÜV SÜD Product Service Slide 50 27/02/2014
•If you would like to know more about SC21 or want to sign up to the programme or just want to talk to an organisation already engaged on SC21, go to the ADS Website: http://www.adsgroup.org.uk
•Also engage with Manufacturing Advisory Service (in England) who have funding that will support SC21 activities.
•If you would like help in getting started or progressing your current SC21 activities, talk to me after the session. My details:
•Email: [email protected]
TÜV SÜD Product Service Slide 51 27/02/2014
Thank you
Any Questions?