Supply Chain Progress towards Aeronautical Community Excellence www.space-aero.org
An efficient Supply Chain to meet An efficient Supply Chain to meet new global challenges new global challenges
René Colin René Colin SPACE Operating ManagerSPACE Operating Manager
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AgendaAgenda
SPACE organization
SPACE operation and activities
SPACE projects and results
CONCLUSION
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Organization
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Why?
Supply Chain Progress towards Aeronautical Community Excellence www.space-aero.org
Who?
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CIDAerospace standards
Training
Pool of Resources
Sharing best
practices
SalesCSRMfg
QCShip
Critical Measures and Goals
16 8
14.718511.4481
Capability PlotProcess Tolerance
SpecificationsStDev: 0.54507
III
III
141312
Capability Histogram
Process Capability
Establish Entitlement
GOAL Sales
CSR
Mfg
QC
Ship
As Is
Should Be
CompetitiveAdvantage
($$$$)
Improvement projects
Benchmarkmeasurement
Consultant refering
SPACE services at a glance
coaching
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Operations and activities
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• A service offered by SPACE to the associate member (sub-tier supplier), to develop an action plan, to help this member to improve its efficiency
A diagnostic
• A certification system• A rating system
… which is not
and is developped by
• “Supply Chain Management Handbook”Supplier Selection and Capability Assessment
The Associate members can benefit from support
what
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Four domains assessed:• Process
• People & Organisation
• Tools & Data
• Performances Metrics
Five levels of maturity
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
Areas of potential Supplier Development if
deemed necessary
ConceptConcept
www.iaqg.org - publications9
what
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Usual strengths and Usual strengths and weaknessesweaknesses
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what
1. Lack of strong planning (tier-1 flow down)
2. No flow management
3. Weak supply chain monitoring
4. Non efficient physical organization
5. Limitated preventive actions
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No anticipation
No realistic schedules
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what
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PRIORITY MANAGEMENT CAPACITY MANAGEMENT
Demand Management
Capacity Requirements
Planning
Resources Planning
Sales & Operations Planning
Master Production Schedule
Execution & Control of Operatins
Materials Requirements
Planning
Business Planning
Input/Output Control
Rough cut Capacity Planning
OF OA
No SOP (Sales & Operations Planning) : only short term, no anticipation, no vision
No MPS (Master Production Schedule) : the input for MRP is the customer procurement plan :
nervousness, no realistic plan, so not realised, generates WIP, delays
May contribute up to 30% OTD
- 1 -Planning
APICS standards
12
what
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No WIP control : in consequence the WIP is high The lead time is high
Flow is generally driven by a push system
No level flow on the shop floor
Permits to save 30% of WIP
- 2 -Flow management Input/Output ControlInput/Output Control
WIP
FinishedFinishedproductsproducts
Shop Floor
ReleasedReleasedordersorders
MPS MRP
PlannedPlannedordersorders
= order releasing
= Finishedorders
Pull Sytems
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what
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No formal supplier approval
No strategy for reducing the supplier base
The supplier performance is often measured but not communicated nor used for improvement
Major issue in assembly workcenters
- 3 -Suppliers management
Supplier Performance Management
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what
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Layout is generally triggered by process (job shop and not flow shop)
No visual management Effort to be done on house-keeping
(5S)
Lead time can be reduced by 30%
- 4 -Physical flow
Lean – TPS (Toyota Production System) standards
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what
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No structured and systematic method for problem solving
Problems are identified and highligted (usually measured)
The metrics are not systematically used to manage and to improve the business
Basics of quality improvement
- 5 –Quality – problem solving
Quality tools – Problem solving
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what
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PROJECTS and RESULTS
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Executive Committee
Executive MembersDesignate
representatives
Propose suppliers &Provide experts
Manages projects
ExpertsAssociate
Members
Operating Manager
Push process how it works?
30 rolling projects30 rolling projects
Supported by the Supported by the executives’ experts executives’ experts
networknetwork
For the benefit of For the benefit of customers and supplierscustomers and suppliers
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Results - exemples
Déc 06
Fev 07
Mar 07
May 07
dec 07
Plan d’action
Roadmap
ANALYSIS
DESIGN
Implementation phase
Work package 1 Demand management
Work package 2 – QA & Lean management
Work package 3 –Operational management
KOM
Work package 4 Suppliers & purchasing
COPIL
July 07
sept 07
Follow up
phase
march 08
nov 07
oct 07
2008supplier
ActionPlan
Follow up
ThalesExpert
Messier-BugattiExpert
AirbusExpert
Thales/Airbusexperts
Electronic Units Customer Returns: Month Returns of Units manufactured till 12 months before vs. Month Delivery
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
4,50
5,00
5,50
6,00
gen-08 feb-08 mar-08 apr-08 mag-08 giu-08 lug-08 ago-08 set-08 ott-08 nov-08 dic-08
Month
% 12 Months Rolling
12 Months Rolling 5,24 5,07 4,76 4,60 3,28 5,01 3,76 4,04 4,24 1,90 2,86 2,34
gen-08 feb-08 mar-08 apr-08 mag-08 giu-08 lug-08 ago-08 set-08 ott-08 nov-08 dic-08
Average 2008:3,93 %
Last 3 months average: 2,37%
Efficient Master Production
ScheduleMRPII implementation OTD
Problem solving methodologies
Returns
When methodologies support progress Puntualità delle consegne 2008(Consegne fino a 7 giorni successivi alla data prevista dall'ordine)
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
45,00
50,00
55,00
60,00
65,00
70,00
75,00
80,00
85,00
90,00
Mese
%
[d<0+0<d<7] 59,00 67,02 75,25 74,68 67,97 80,03 66,31 77,59 74,08 84,70 84,80 84,43
Tgt 1 85 85 85 85 85 85 85 85 85 85 85 85
Gennaio Febbraio Marzo Aprile Maggio Giugno Luglio Agosto Settembre Ottobre Novembre Dicembre
OTD
SELHA(France) End 2006
End 2007
Variation
End 2008
Variation
Raw materrial inventory
NC NC -11% NC -20%
Work In Process NC NC -24% NC -18%
Suppliers critical delays 200 9 -96% 10 +11%
Deapth of delay (days) 15 5 -66% 4 -20%
Suspended Works orders (shortage)
250 110 -56% 80 -27%
OTD 64% 84% 31% 90% 7%
Schedule adherence 62% 88% 42% 92% 5%
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Push process: results after 1 year project After 1 year average
84%Starting average
62%
+35%
Starting average31700 ppm
After 1 year average18700ppm
-41%
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Steering Committee
InstitutionsDesignate
representatives
Manages projects
ConsultantsParticipants
Operating Manager
Pull process how it works?
60 rolling projects60 rolling projects
Supported by the Supported by the executives’ experts executives’ experts
networknetwork
For the benefit of For the benefit of customers and supplierscustomers and suppliers
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For each supplier a customized industrial improvement project
Diagnostic Action PlanImplementation supported by 20
days of consulting
For each cluster a customized action on the relationship (customer/suppliers)
Under the steering of SPACE Methodology Referral service Reporting
Collectives activities: Training Forums Benchmark
Funding Région, States, Europe (80%) SME(20%)
Customer’s local suppliers
Porteur de Projet
Fx
F1
F2
F3
F4
Porteur de Projet
Fx
F1
F2
F3
F4
Porteur de Projet
Fx
F1
F2
F3
F4
Aerolean’k: 58 SMEs
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Contact in progressIn Marocco
Aerocaplean ASTech
30 suppliersTwo-year project
Budget 900k€Fundings Region/state
SPACE sponsor
Contact in progress
Rhone-Alpes (40
suppliers)
Aerolean’kAerospace valley
58 suppliersTwo-year project
Budget 1,2M€Fundings Region/state
SPACE leader/consultant
Contact in progressbavAIRia
Pull deployment : up to100 suppliers end 2011
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Development and Conclusion