11
““Supply Chain Management Handbook”Supply Chain Management Handbook”
SCMHSCMHOverview and SurveyOverview and Survey
Presenter: Darryl Hue – BoeingPresenter: Darryl Hue – BoeingJuly 30, 2009July 30, 2009
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Purpose:Purpose:– Overview of SCMHOverview of SCMH
• Objective and ScopeObjective and Scope
• Project Team and infrastructureProject Team and infrastructure
• SCMH Chapter and work in progressSCMH Chapter and work in progress
• How to access (Demo)How to access (Demo)
– Survey Survey • SCMH Assessment model SCMH Assessment model
Supply Chain Management HandbookSupply Chain Management Handbook(SCMH)(SCMH)
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Objective:Objective:• Provides “How to” guidance material to help improve the Provides “How to” guidance material to help improve the “On-Time and On-“On-Time and On-
Quality”Quality” performance of products and services throughout the Aviation, Space performance of products and services throughout the Aviation, Space and Defence industry. and Defence industry.
Scope:Scope: Guidance Material to include: Guidance Material to include:• Deployment support to implement requirements contained in the IAQG (91xx) Deployment support to implement requirements contained in the IAQG (91xx)
developed series of Quality Management Systems standards. developed series of Quality Management Systems standards. • Material to support performance improvement of Supply Chain Processes. Material to support performance improvement of Supply Chain Processes.
The SCMH The SCMH • Is structured in line with a Supply Chain process model covering the entire Is structured in line with a Supply Chain process model covering the entire
product lifecycle from development through in-service operationsproduct lifecycle from development through in-service operations• Is provided for use by companies at all levels in the value chain. .Is provided for use by companies at all levels in the value chain. .• Will be completed progressively and include regularly updated to incorporate Will be completed progressively and include regularly updated to incorporate
feedback and “lessons learned” from its application.feedback and “lessons learned” from its application.• The contents have been developed by the member companies of the IAQG. The contents have been developed by the member companies of the IAQG.
SCMH Objective and ScopeSCMH Objective and Scope
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Focus on “How” through SCMHFocus on “How” through SCMH
9100
Requirements
Supply Chain Mgmt.
Handbook
Inputs for future revision of 9100
New or revised IAQG published documents(Standards, guideline)
91xx9131
91039102
Links to
SCMH Guidance material, tools,
trainings
Includes
Providing guidance material and best practices on how to meet requirements
and achieve objectives
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Project Management InfrastructureProject Management Infrastructure
In work In Revision Not assigned Completed
Key Characteristics
Requirements and flow downRCA & Problem
SolvingNon-Conformance
Work Transfer
Source Selection
IAQG Work Space
Available Sections
• Active Work storage• Standard Processes• Standard templates
Future Topics Not assigned
Work InstructionPreventive Action
People Capability (PCAP 001)Notification of
ChangeMaster Schedule
Counterfeit Part PreventionCI for Small
Business
Priorities
SCMH Leadership Team
Technical Project MgrProject Manager
Lean Assess. Tools
CI for Small Suppliers
Risk Management
FAI
New Product Introduction
Pro
jec
t M
an
ag
em
en
t S
tru
ctu
re/R
es
ou
rce
sA
cti
ve
Pro
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riti
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Te
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• Central project templates• Std. plan and processes• Documented expectations
9115 Guidance Material
SQM Basics
Special Requirements
Assessment Checklists
Requirements & Flowdown
Work TransferFODOther Topics
Other Topics
Configuration Management
Support Resources:D. Hue (Boeing) – Proj MgrR. Pardons (IAQG) – Tech mgrM. Iwadare – APAQG SupportContractors - Technical WritersMember Company Volunteers
LT Core Members:S. Armstrong – UTC (AAQG) C. Buck - Safran (AAQG)
L. Weng- Boeing (AAQG) B. Lauras – Airbus (EAQG)S. Komori – FHI (APAQG)
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IAQG Member Company ParticipationAirbus Gulfstream
ATK Liebherr
Avio Lockheed Martin
Bell Messier Dowty
Boeing MHI
Boeing Canada MTU
Bombardier Parker
Dassault Safran
Dassault Aviation Spirit AeroSystems
EADS Sukhoi
Embraer, BrazilEmbraer, Brazil Thales
ESA UTC
Eurocopter Volvo Aero
Fuji Heavy industries, LTD Vought
GE Aviation Zodiac
Goodrich
Non-Members Participation
JPL-NASA
NQA-USA
Progress Casting
SEA
Spirit Aero
Triumph
UL DQS Inc.
Verify Inc
Plus Member (and non-member) Plus Member (and non-member) Company ParticipationCompany Participation
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SCMH Chapters and Work in ProgressSCMH Chapters and Work in Progress
2. Contract Requirements and
Flow Down
4. Suppliers sourcing selection
& approval
5. Plant, material, skills, capacity
planning & scheduling
7. Manufacturing and inspection
10. Customer Support (Control
of service operations)
9. Control of non conformities, corrective and
preventive actions
6. Order Management and logistic (Internal &
external)
1. Sales, Master Scheduling & Sequencing
11. Business Management and Customer Satisfaction Monitoring
3. Design and development
8. Supplier operational
management and product validation
Exists
Work Transfer
9103 education package (Key characteristics)
Root Cause Analysis & Problem Solving
Supplier Selection and Capability Assessment
Requirements and flow down templates
CI for Small Business
New
New Product Introduction - Quality
Lean Assessment Tool
Supplier Quality Mgt Basics
Risk Management
Special Requirements Critical items
Configuration Management
In Work
Product Performance Detailed Assessment Checklists
Control of non conformities9102 Education package (First Article Inspection)Foreign Object Debris (FOD)
9100 Rev C Deployment Support
Supply Chain Management Handbook
2. Contract Requirements and
Flow Down
4. Suppliers sourcing selection
& approval
5. Plant, material, skills, capacity
planning & scheduling
7. Manufacturing and inspection
10. Customer Support (Control
of service operations)
9. Control of non conformities, corrective and
preventive actions
6. Order Management and logistic (Internal &
external)
1. Sales, Master Scheduling & Sequencing
11. Business Management and Customer Satisfaction Monitoring
3. Design and development
8. Supplier operational
management and product validation
Exists
Work Transfer
9103 education package (Key characteristics)
Root Cause Analysis & Problem Solving
Supplier Selection and Capability Assessment
Requirements and flow down templates
Exists
Work Transfer
9103 education package (Key characteristics)
Root Cause Analysis & Problem Solving
Supplier Selection and Capability Assessment
Requirements and flow down templates
CI for Small BusinessCI for Small BusinessCI for Small Business
People Capability (PCAP 001)
New
Lean Assessment Tool
Supplier Quality Mgt Basics
Risk Management
Special Requirements Critical items
Configuration Management
Priority 1
Lean Assessment Tool
Supplier Quality Mgt Basics
Risk Management
Special Requirements Critical items
Configuration Management
In Work
Product Performance Detailed Assessment Checklists
Control of non conformities9102 Education package (First Article Inspection)Foreign Object Debris (FOD)
9100 Rev C Deployment Support
Appendices:
In Work
Product Performance Detailed Assessment Checklists
Control of non conformities9102 Education package (First Article Inspection)Foreign Object Debris (FOD)
9100 Rev C Deployment Support
In Work
Product Performance Detailed Assessment Checklists
Control of non conformities9102 Education package (First Article Inspection)Foreign Object Debris (FOD)
9100 Rev C Deployment Support
Supply Chain Management Handbook
9115Software Guidance
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Available materialAvailable material
Chapter Section SCMH Content
Chapter 2 – Contract requirement flow down 2.1 Requirements and flow down templates
Chapter 4 – Suppliers sourcing selection & approval (Purchasing process)
4.1 Supplier Selection and Capability Assessment
Chapter 7 – Manufacturing and inspection (Production and service provision)
7.1 9103 education package (Key characteristics)
Chapter 7 – Manufacturing and inspection (Production and service provision)
7.2 9102 Education package (FAI)
Chapter 9 – Control of non conformities, corrective and preventive actions (On Time - On Quality)
9.1 Root Cause Analysis & Problem Solving
Chapter 9 – Control of non conformities, corrective and preventive actions (On Time - On Quality)
9.2 Control of Non-Conformities
Chapter 11 – Business Processes Performance Management and Customer Satisfaction Monitoring
11.1 Work Transfer
Appendix A.1 9100 Rev C Deployment Support
Appendix A.2 People Capability (PCAP 001)
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Material In WorkMaterial In Work
Chapter Section SCMH Content
Chapter 3 – Design and development 3.1 Special Requirements/Critical items
Chapter 3 – Design and development 3.2 New Product Introduction - Quality
Chapter 6 - Order Management and logistic (Internal/external)
6.1 Lean Assessment Tool
Chapter 8 - Supplier operational management and product validation (Purchasing process)
8.1 Supplier Quality Mgt Basics
Chapter 11 – Business Processes Performance Management and Customer Satisfaction Monitoring
11.3 Risk Management
Chapter 11 – Business Processes Performance Management and Customer Satisfaction Monitoring
11.4 Configuration Management
Chapter 3 – Design and development 3.3 9115 Guidance Material (Software)
Chapter 4 – Suppliers sourcing selection & approval (Purchasing process)
4.2Product Performance Detailed Assessment Checklists (PPDA)
Chapter 7 – Manufacturing and inspection (Production and service provision)
7.3 Foreign Object Debris (FOD)
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Some Frequently Asked QuestionsSome Frequently Asked Questions
• Are all of the requirements of the standard addressed in the handbook?Are all of the requirements of the standard addressed in the handbook?
• What is the schedule to complete the handbook or will it be in a continual What is the schedule to complete the handbook or will it be in a continual state of change/improvement?state of change/improvement?
• When will the AS9100 Rev C changes be incorporated into the handbook?When will the AS9100 Rev C changes be incorporated into the handbook?
• The handbook has training material, procedures and a matrix with The handbook has training material, procedures and a matrix with guidance. Where did all of this material come from and how is it intended guidance. Where did all of this material come from and how is it intended to be used?to be used?
• What are the restrictions on the use of the material? Is it copyrighted?What are the restrictions on the use of the material? Is it copyrighted?
• There are guidance materials identified as “Best Practices” listed in the There are guidance materials identified as “Best Practices” listed in the handbook. Will the auditors hold companies to this level of performance? handbook. Will the auditors hold companies to this level of performance? Will companies hold their suppliers to these “Best Practices”?Will companies hold their suppliers to these “Best Practices”?
• Don’t “Best Practices” vary dependent on the size and complexity of the Don’t “Best Practices” vary dependent on the size and complexity of the company? Has it been determined that the “Best Practices” included in the company? Has it been determined that the “Best Practices” included in the handbook will work in any company?handbook will work in any company?
• Some parts of the SCMH have a matrix that gives examples of what the Some parts of the SCMH have a matrix that gives examples of what the different users can expect from a particular type of company. Are there different users can expect from a particular type of company. Are there any instructions on how and when to use the matrix?any instructions on how and when to use the matrix?
• Will training on the use of the SCMH be available through IAQG?Will training on the use of the SCMH be available through IAQG?
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http://www.iaqg.sae.org/iaqg/
SCMH Access - DemoSCMH Access - Demo
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SCMH Survey SCMH Survey
SCMH Survey – SCMH Survey – • Information pageInformation page
– Your Statement of workYour Statement of work
– Types suppliers you work with Types suppliers you work with
• 11 survey areas – aligns with SCMH chapters11 survey areas – aligns with SCMH chapters
– Utilize Assessment Maturity ModelsUtilize Assessment Maturity Models
– Rate your supply base as a wholeRate your supply base as a whole
• Provide a rangeProvide a range
• Provide a mediumProvide a medium
– Identify specific “areas of concern”Identify specific “areas of concern” - Possible future topics for the SCMH - Possible future topics for the SCMH
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SCMH Survey – Information PageSCMH Survey – Information Page
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Supplier Assessment ModelSupplier Assessment Model(SCMH Section 4.1)(SCMH Section 4.1)
Scope:Scope:– To assess a supplier’s capability to a set of main domains To assess a supplier’s capability to a set of main domains
impacting supply chain performanceimpacting supply chain performance
Purpose of the Model:Purpose of the Model:– Use as a guide to assess the maturity of a supplier to achieve and Use as a guide to assess the maturity of a supplier to achieve and
sustain customer expectations, especially for “On Time” and “On sustain customer expectations, especially for “On Time” and “On Quality” deliveryQuality” delivery
It is suitable for:It is suitable for:– Different product typesDifferent product types
– Different company sizesDifferent company sizes
– Total or partial applicationTotal or partial application
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Four domains :• Process• People & Organisation• Tools & Data• Performances Metrics
Five levels of maturity
Supplier Assessment ModelSupplier Assessment Model(SCMH Section 4.1)(SCMH Section 4.1)
A separate matrix for A separate matrix for each process with :each process with :
Expectation
Supplier performance
1: Undefined and not capable2: Defined and applied, but not 100% efficient or not applied everywhere in the company3: Defined, applied and effective4: Predictable 5: Optimised
Items for ImprovementAction Plan between
supplier and customer
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Assessment matrices in joined Excel fileAssessment matrices in joined Excel file
11 sheets, one per 11 sheets, one per business domainbusiness domain
Title and Definition of the Title and Definition of the Business DomainBusiness Domain
Content for each level (from 1 to 5) and Content for each level (from 1 to 5) and each parameter (Process, People and each parameter (Process, People and
Organisation, etc…)Organisation, etc…)
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Rating Example Rating Example
Provide your expertise as what “Specific Areas of Concern” need to be addressed as “Possible Topics” to add to the SCMH
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Exemple of results synthesis(10. Customer support not assessed in this exemple)
Expected capability levelExpected capability level Assessement resultsAssessement results
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2 – Contract requirement flow down• Strength 1• Strength 2• Strength 3
Exemple of results summary: Processes with Strengths
3 – Design and development• Strength 1• Strength 2• Strength 3
7 – Manufacturing and inspection• Strength 1• Strength 2• Strength 3
9 – Control of non confomities, corrective & preventive actions• Strength 1• Strength 2• Strength 3
11. Business Processes Performance Management and Customer Satisfaction Monitoring• Strength 1• Strength 2• Strength 38 – Supplier operational management and product validation• Weakness 1• Weakness 2• Weakness 3
1. Sales, Master Scheduling and Sequencing
• Weakness 1• Weakness 2• Weakness 3
4 – Supply sourcing selection and approval• Weakness 1• Weakness 2• Weakness 3
5 – Planning of product realisation• Weakness 1• Weakness 2• Weakness 3
6 – Order management and logistics• Weakness 1• Weakness 2• Weakness 3
Exemple of results summary: Processes with Strengths and weaknesses
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Example of results by area
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Help needed – Your expertise is needed!Help needed – Your expertise is needed!
• Fill out the survey and return to me by end of WorkshopFill out the survey and return to me by end of Workshop
• Or mail to: Or mail to:
The Boeing CompanyThe Boeing Company
P. O. Box 3707 mailstop 08-50P. O. Box 3707 mailstop 08-50
Seattle, WA 98124-2207 Seattle, WA 98124-2207
Attention: Attention: Darryl E. HueDarryl E. Hue
• Or scan and email to: Or scan and email to:
““[email protected]”[email protected]”
• Remember – Important to identify those critical Supply Chain Remember – Important to identify those critical Supply Chain “Areas of Concern”“Areas of Concern”
• Receive input by COB Friday, August 7, 2009Receive input by COB Friday, August 7, 2009
• Names are Names are optionaloptional but if you would like to get a copy of the but if you would like to get a copy of the results, please provide email address via separate emailresults, please provide email address via separate email
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Questions?Questions?
For any further question or comment, please contact: [email protected]
Questions?Questions?
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SCMH Back-Up MaterialSCMH Back-Up Material
Back Up Material
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Chapter Chapter Titles and contentsTitles and contents
• 1 - Sales, Master scheduling and Sequencing: 1 - Sales, Master scheduling and Sequencing: Balancing and forecasting Balancing and forecasting Medium-Long term customer demand with operational & financial capabilities by Medium-Long term customer demand with operational & financial capabilities by optimizing sequence of operations, schedule and resources.optimizing sequence of operations, schedule and resources.
• 2 - Contract requirements flow down: 2 - Contract requirements flow down: Managing Review and flow down of Managing Review and flow down of contract requirements from the customers, through all functions internally & to contract requirements from the customers, through all functions internally & to suppliers.suppliers.
• 3 - Design and development: 3 - Design and development: New product introduction activities impacting New product introduction activities impacting supply chain performances including product and process essential supply chain performances including product and process essential characteristics management, changes and obsolescence management.characteristics management, changes and obsolescence management.
• 4 - Supplier sourcing selection & approval: 4 - Supplier sourcing selection & approval: Make or buy process and mapping Make or buy process and mapping of the supply chain responsibilities, including partners, suppliers…, Sourcing, of the supply chain responsibilities, including partners, suppliers…, Sourcing, Negotiating, & Contracting in line with Make or Buy strategy and Approving Negotiating, & Contracting in line with Make or Buy strategy and Approving suppliers.suppliers.
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ChapterChapterTitles and contents (continued)Titles and contents (continued)
• 5 - Planning of product realisation (Plant, material, skills, capacity planning 5 - Planning of product realisation (Plant, material, skills, capacity planning and scheduling): and scheduling): Plan & optimize the use of resources and means to meet Plan & optimize the use of resources and means to meet operations planning at plant level.operations planning at plant level.
• 6 - Order Management & Logistic (internal & external): 6 - Order Management & Logistic (internal & external): Issuing orders, Issuing orders, resolving unplanned events & following up till completion including receipt. resolving unplanned events & following up till completion including receipt. Collaborative Management of material, services & information to & from the Collaborative Management of material, services & information to & from the supplier; Optimizing material flow, stock and inventory through the supply chain., supplier; Optimizing material flow, stock and inventory through the supply chain., up to final customer delivery. Customer property included.up to final customer delivery. Customer property included.
• 7 - Manufacturing & inspection (Production & service provision): 7 - Manufacturing & inspection (Production & service provision): Manufacturing and product integration processes, including inspection.Manufacturing and product integration processes, including inspection.
• 8 - Supplier operational management and product validation (Purchasing 8 - Supplier operational management and product validation (Purchasing process): process): Operational monitoring and surveillance of suppliers to ensure Operational monitoring and surveillance of suppliers to ensure purchased products and services meet customer requirements (includes initial purchased products and services meet customer requirements (includes initial product validation). Working with suppliers to continually raise their performance product validation). Working with suppliers to continually raise their performance levels (Supplier Development activities when required).levels (Supplier Development activities when required).
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Chapter Chapter Titles and contents (continued)Titles and contents (continued)
• 9 - Control of non conformities, corrective & preventive actions : 9 - Control of non conformities, corrective & preventive actions : Non Non conformance management and root cause analysis process for all business conformance management and root cause analysis process for all business domains. Raising, notifying, deciding and acting to manage and prevent non domains. Raising, notifying, deciding and acting to manage and prevent non conformities (product, processes, documentation, delays, etc...). conformities (product, processes, documentation, delays, etc...).
• 10 - Customer Support: 10 - Customer Support: Supporting the customer to ensure end user Supporting the customer to ensure end user satisfaction during "in service" phase (Maintenance & Repair, Spares, Training satisfaction during "in service" phase (Maintenance & Repair, Spares, Training and Documentation, Operating Data feedback and analysis). This includes when and Documentation, Operating Data feedback and analysis). This includes when applicable, supporting the customer during the product integration activities, up to applicable, supporting the customer during the product integration activities, up to delivery to the end user (Entry Into Service).delivery to the end user (Entry Into Service).
TRANSVERSAL PROCESS:TRANSVERSAL PROCESS:
• 11- Business Processes Performance Management and Customer 11- Business Processes Performance Management and Customer Satisfaction Monitoring: Satisfaction Monitoring: Survey, Consolidation and continual improvement of Survey, Consolidation and continual improvement of Supply Chain performance (Internal/External), risk and change management, Supply Chain performance (Internal/External), risk and change management, overall decision process to meet customer satisfaction and business objectives overall decision process to meet customer satisfaction and business objectives throughout Life cycle throughout Life cycle
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Definition and content of the 5 levels :Definition and content of the 5 levels :– 1: Undefined and not capable (No Process, Methods, Tools and/or 1: Undefined and not capable (No Process, Methods, Tools and/or
inappropriate behaviours)inappropriate behaviours)
– 2: Defined and applied : but not 100% effective or not applied 2: Defined and applied : but not 100% effective or not applied everywhere in the company (capable for low risk products and everywhere in the company (capable for low risk products and services)services)
– 3: Defined, applied and effective: repeated satisfactory 3: Defined, applied and effective: repeated satisfactory performance capableperformance capable
– 4: Predictable : performance of proactive improvements towards 4: Predictable : performance of proactive improvements towards planned targets, but not systematically on all processes / areas / planned targets, but not systematically on all processes / areas / productsproducts
– 5: Optimised : best in class, continual improvement fully deployed, 5: Optimised : best in class, continual improvement fully deployed, involving all stake holders as part of company cultureinvolving all stake holders as part of company culture
Supplier Selection and Capability Supplier Selection and Capability Assessment ModelAssessment Model