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Get Ahead in the
Aerospace Race 2016, Lisboa
Romain SOHIER
01 Aerospace History 02 Market and Challenges 03 What it takes to Be An Aerospace Supplier Rules and Regulations Quality Standards Supply Chain Standards Supplier Management Supply Chain Improvement 04 Conclusion and way forward
Get Ahead in the Aerospace Race
Contents
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2
Aerospace History
01
3
Flying: A reality born of a shared vision
Lindbergh - 1927
1900 1950 2000
Wright Brothers - 1903
1969 - Concorde
1952
De Haviland Comet
9 Million passengers
2.6 billion passengers
2005
A380
2013
A350
3
Airbus a Project
1967-1970
A300 was launched in 1969
British Government and Rolls-Royce pulled out of Airbus.
Hawker Siddeley stayed in as a private venture.
GE CF6-50 from DC-10-30 chosen for A300B.
Jetliner order share evolution 1952-1976
1952 1956 1960 1964 1968 1972 1976
USA 97%
Europe 3%
Number of units (%)
0
20
40
60
80
100
Europe
de Havilland Comet entered service
2 May 1952
Boeing
Boeing 707
EIS 26 Oct 58
Douglas
Douglas DC-8 EIS 18 Sept 59
4
1970 Airbus Industrie (joint venture)
Economic Interest Group
(joint venture)
20%
37.9%
4.2%
37.9%
St Nazaire
Hamburg
Toulouse
Broughton
Nantes
Bremen
Munich
Madrid
Airbus Industrie
Production sharing
A300-600R shown
France
Germany
U.K.
Spain
VFW-Fokker
GE, PW
5
French, German and
British governments
agreement on the
development of an
European aircraft
1967
Creation of
Airbus Industrie GIE
(Grouping of Economic Interest)
1970
A300 first flight
World‘s first twin-aisle
twin-engine widebody
aircraft
1972
A310 first flight
Two men cockpit
1982
A300-600 first flight
A modern version
of A300
1983
A320 first flight
A new family, the widest
single aisle cabin
First fly-by-wire flight
controls & side stick
controllers
1987
A340 first flight
Four engines,
long-haul aircraft
1991
A330 first flight
Two engines,
long-haul aircraft
1992
1,000th aircraft
Delivery
A321 first flight
Expanding the
A320 family
1993
A300-600ST
first flight Beluga
1994
A319 first flight
Expanding the
A320 family
1995
Putting Europe back on the civil aviation scene
History
80% 20%
2001 Airbus Integrated Company within
European Aeronautic Defence and Space (EADS)
Economic Interest Group
(joint venture)
20%
37.9%
4.2%
37.9%
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Airbus integrated
company
A340-600 first flight
2001
3,000th aircraft
delivery
A318 first flight
Expanding the A320 family
A340-500 first flight
2002
5,000th aircraft
order
2004
A380 first flight
2005
A350XWB
Industrial launch
(Extra wide-body)
2006
5,000th aircraft
delivery
First Chinese production
facility in Tianjin
2007
A400M first flight
2009
6,000th aircraft
delivery
A320neo
Industrial launch
new engines option
2010
10,000th aircraft
order
7,000th aircraft
delivery
2011
Final assembly of
the first A350XWB
First-ever commercial
“Perfect flight” with an A319 –
cutting CO2 emissions by
more than 40%
Decision for the First U.S.
production facility in Mobile,
Alabama
2012
The world leading aircraft manufacturer
History
First flight A350,
certification and
first delivery
2014
A330neo
Industrial launch
new engines option
2014 Airbus Group
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Airbus Group’s Mission?
Page 14
Airbus Group
3 divisions
Employees: ~ 73,500
Revenues: ~ € 40 bn
Fabrice Brégier
Employees: ~ 22,400
Revenues: ~ € 6 bn
Guillaume Faury
Employees: ~ 40,000
Revenues: ~ € 14 bn
Bernhard Gerwert
Employees*: ~ 136,000
Revenues*: ~ € 59 bn €
Tom Enders
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Airbus Group Revenue & Order Book
2015
* Commercial Order Intake and Order Book based on list prices
Market and Challenges
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16
9
Single Aisle Jet Production climbs relentlessly to support this
demand
Air travel remains a growth market
10
Global Market Forecast – 2014-2033
Airbus versus Boeing
Only US$ 0.6
trillion gap!
Air travel will grow – Forecast by region
Revenue Passenger Kilometres (RPK)
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Today: Aviation Mega Cities are cities where more than 10,000
daily long-haul passengers are handled
Tomorrow: Aviation Mega Cities are cities where more than 10,000
daily long-haul passengers are handled
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These airports are already largely congested
What will the market demand be?
“…a decisive factor in the airline’s choice was that Airbus was able to offer early delivery slots, but Boeing
couldn’t… we really need deliveries around 2017, 2018…A350 are expected to give a 20% improvement in
operating cost per seats over Delta's existing aircraft” Richard H. Anderson, Delta’s chief executive
Delta swaps Boeings for Airbus planes in $14 billion order
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Environment in Europe
Environnement en Europe
2014 2020 2008
Clean Sky is the most ambitious aeronautical research programme ever launched in Europe.
Its mission is to develop breakthrough technologies to significantly increase the environmental
performance of airplanes and air transport, resulting in less noisy and more fuel efficient aircraft, hence
bringing a key contribution in achieving the Single European Sky environmental objectives
http://www.cleansky.eu/
Environnement au Quebec
Environment in Quebec
The Coalition for Greener Aircraft is an association of specialists in the field of aeronautics who have come
together with the common goal of designing environmentally-friendly parts and systems for the aviation industry
while mobilizing Quebec's industry.
The Coalition for Greener Aircraft, through research and development activities, strives to maintain Quebec's
competitive position as a world leader in the rapidly changing aeronautics market, as we face the challenges of
climate change and resulting environmental regulations
The Quebec government is committed to continue supporting
innovative initiatives, such as the Major Developmental Project of
the Greener Aircraft
http://www.sa2ge.org
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Environment in USA
The ERA Project is comprised of three subprojects: Airframe Technology, Propulsion
Technology and Vehicle Systems Integration. Work within the project is coordinated with
research performed by other programs within NASA's Aeronautics Research Mission
Directorate as well as other federal government agencies
Current-generation aircraft already benefit from the NASA investments in aeronautical research that have improved
fuel efficiencies, lowered noise levels and reduced harmful emissions. Although substantial progress has been
made, much more needs to be done.
Forecasts call for the nation's air transportation system to expand significantly within the next two decades.
Such an expansion could bring adverse environmental impacts.
To neutralize or reduce these impacts is the goal of the ERA Project and its focused research.
ENVIRONMENTALLY RESPONSIBLE AVIATION (ERA) PROJECT
http://www.aeronautics.nasa.gov
Environment in USA
Continuous Lower Energy, Emissions, and Noise (CLEEN) Program
The Continuous Lower Energy, Emissions and Noise (CLEEN) program is a NextGen
effort to accelerate development and commercial deployment of environmentally
promising aircraft technologies and sustainable alternative fuels. The aircraft
technologies focus on reduction in aircraft noise, emissions, and fuel burn.
CLEEN 2 on the way…
• Certifiable aircraft technology that reduces noise levels by 32 dB cumulative, relative to the Stage 4
standard
• Certifiable engine technology that reduces landing and takeoff cycle (LTO) nitrogen oxide emissions by
60 percent below the International Civil Aviation Organization (ICAO) standard adopted in 2004
• Certifiable aircraft technology that reduces aircraft fuel burn by 33 percent relative to current subsonic
aircraft technology, and which reduces energy consumption and greenhouse gas emissions
• Use of "drop in" sustainable alternative jet fuels in aircraft systems and quantifying benefits
• Suitability of new technology for engine and aircraft retrofit to accelerate penetration into the
commercial fleet
https://www.faa.gov
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Environmental Management System required by leading OEMs
as well as governmental agencies’ requirements (ECHA, EPA)
http://www.epa.gov
http://echa.europa.eu/regulations/reach
REACH is a regulation of the European
Union, adopted to improve the protection of
human health and the environment from the
risks that can be posed by chemicals, while
enhancing the competitiveness of the EU
chemicals industry
Dulio CLAUDIO
Get Ahead in the
Aerospace Race 2016, Lisboa
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Airbus Group Procurement
2015
Page 31
44
64
External Sourcing Turnover Revenues
Sourcing Turnover is more than 2/3 of sales
Bn€
Sourcing Turnover 2/3 by Airbus
Page 32
Airbus Group Global Sourcing
2014 - 2020
42Bn€
62+Bn€
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External SourcingOverview - Portugal
Used for depicting precise values
Bar chart
Used for structural comparison
Scale
All charts (Main products and Main sourcing regions) with same scale
AIRHOLDING, SGPS Systems+Equipment
Grupo S. Caetano Indirect Material
Novabase Indirect Material
Critical Services SA Systems+Equipment
Clube Ogma Product Related Serv.
GMVIS SKYSOFT Indirect Material
OutSystems Indirect Material
NANIUM Systems+Equipment
Complenitude Indirect Material
HPS Product Related Serv.
Indirect Material
Systems+Equipment
Structure+Airframe
<1
<1
39%
29%
13%
<1
<1
<1
Main products
4
2
1
<1
<1
Top Suppliers 2015 (M€)
Country Details
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38
21
Yes
<1%
81%
Airbus Group total no. of active DUNS supplier (cons.w ithin country)
Rank as sourcing country for Airbus Group w orldw ide
Rank as sourcing country for Airbus Group w ithin Europe
Pending open Offset Obligations
TOP 10 external supplier's coverage of Sourcing Turnover
Relation Sourcing Turnover Country / Total Sourcing Turnover
Per Division (M€)
Per Currency
100%
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22 23
19
9
<1
5
4<1
2011 2012 2013 2014 2015
Headquarters
Airbus Helicopters
Airbus Defence & Space
Airbus
EUR
Airbus Group Procurement Organisation
Worldwide coverage
Sourcing Office
North America
Sourcing Office
India and
Middle East
Sourcing Office
China and
East Asia
Central &
Operational
Teams
More than 4,000 Procurement employees representing
37 nationalities located worldwide, looking after more than 10,000 Suppliers
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Airbus Procurement Organisation
Procurement
Aerostructure Materials
& Parts
Equipment
& Systems
Propulsion
Systems
Airbus
General
Procurement
Cabin
Challenges
Business Growth
• Overall production rates
• Ramp-up A350
• Transition A320 ceo/neo
• Globalization
Industrialization
• Robustness
• Competitiveness
• Globalisation
• Innovation
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from… to…
Requirements for 1st tier suppliers
“Defence legacy” “Commercial/industrial
orientation”
Small size - companies
- contracts/volumes
Critical mass - Companies
- contracts
Extended workbench Work package approach
Global Regional
Corporate Objectives on Supply Chain
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Airbus Group Supplier
Code of Conduct May 2nd 2016
May 2016
Procurement Compliance Nathalie O’NIONS - PGA
New Airbus Group Supplier Code of Conduct
• Airbus Group has adopted the IFBEC Model Supplier
Code of Conduct in its entirety with an objective to:
• Share and cascade values to Supply Chain
• Prevent risks
• By committing to the Airbus Group Supplier Code of
Conduct, Airbus Group suppliers adhere to the 10
principles covered including key topics such as:
• Human Rights, Employment Practices
• Anti-Corruption, Conflict of Interest
• Environment, Health and Safety
• Global Trade Compliance
• The new Airbus Group Supplier Code of Conduct is
available on the Airbus Group and Divisions public
websites
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Airbus/Supplier joint efforts to meet Customer demand
Make it right the first time
Ensure sufficient capacity
Reach and sustain excellent performance
Be creative and propose solutions for cost optimisation
RAMP-UP
ON-TIME DELIVERY
QUALITY
COST
What it takes to Be An Aerospace Supplier
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03
Rules & Regulations
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International Civil Aviation Organization (ICAO)
The International Civil Aviation Organization (ICAO) is a UN specialized
agency, established by States in 1944 to manage the administration and
governance of the Convention on International Civil Aviation (Chicago Convention).
ICAO works with the Convention’s 191 Member States and industry groups to
reach consensus on international civil aviation Standards and Recommended
Practices (SARPs) and policies in support of a safe, efficient, secure,
economically sustainable and environmentally responsible civil aviation
sector.
These SARPs and policies are used by ICAO Member States to ensure that their
local civil aviation operations and regulations conform to global norms, which in
turn permits more than 100,000 daily flights in the global aviation network to
operate safely and reliably in every region of the world.
Source: www.icao.int
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Mission of the aviation authorities & Approvals
Main objective is to ensure the highest level of safety and
Environmental protection in civil aviation based on core values:
Safety is a civil right
Civil Aviation is global
National and International
bodies regulate the industry
Regulations IRs (Implementation Rules)
FARs (FAA Regulations)
CARs (CAA Regulations)
International bodies & aviation authorities
National Aviation
Authorities
DGAC-F LBA
State - Gouvernment Legal power level
EASA (Europe)
FAA (USA)
TCCA (Canada)
CAAC (China)
ANAC (Brazil)
INTERNATIONAL CIVIL AVIATION ORGANIZATION
A United nathions Specialized Agency
CAA UK DGAC-S
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EASA
The European Aviation Authority
EUROPEAN
AVIATION
SAFETY
AGENCY
Maintenance
Aircraft Operator Aircraft Manufacturer
Design Production Design Production Maintenance In EASA member and associated member
countries, the following rules are applicable Part M
Part 145
European Aviation Safety Agency
Rules
Part 21 POA
Part 21 DOA
Part M Certificate
Part 145 MOA
When satisfied, the
competent
authority grants its
approval
Part 21 Part 21
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European Aviation Safety Agency
Purpose of approvals
Design Organisation Approval - DOA
Ensure Aircraft design data conform to EASA specifications and support operator to
ensure individual aircraft continued airworthiness
Production Organisation Approval - POA
Ensure new individual aircraft and/or spare parts conform to the approved design data
and are in condition for safe operation
Maintenance Organisation Approval - MOA
Ensure that maintenance of aircraft (or components) used for commercial air transport
has been carried out in accordance with maintenance data, and that there are no known
non-compliances* that are a serious hazard for flight safety
EASA - PART 21 J
Approval for the Design phase (DOA)
Design
Demonstration & Verification of
compliance (e.g. system Safety
assessments, ground and flight tests)
Declaration of compliance
Covers Type Certification and Continued Airworthiness
A/C Manuals &
Instruction for
continued
Airworthiness Continued Airworthiness
Type certification is related to a series of aircraft
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Conformity to Type Certificate
and approved modifications
Manuals and
associated
documents Declaration of
compliance
EASA - PART 21 G
Approval for the Production phase (POA)
Covers the production and release of aircraft and/or
spare parts for Individual Certification
CoA
Individual certification is related to each aircraft (Manufacturing Serial Number)
Certificate Of Airworthiness - EASA Form 27
Determine conformity (aircraft, parts, appliances)
Manual is always up-to-date
Record all details of work
Report potential safety occurrences
Establish archiving system
Maintain system effectiveness by making measurements,
especially through an internal audit programme
Main obligations for Approval holders
As an Airbus supplier these obligations
will also apply to you
Demonstration of capability
to conform to Requirements
Robust
Quality Management System
Services/Products:
On Quality
On Time
On Cost
This is why Airbus requires a systematic and standardized approach
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Aerospace Quality Management System
Aerospace Quality Management System
Essence of AS/EN/JISQ 9100
You should
Say What You Do
Do What You Say
Be Able to Prove It
BUT….this is not sufficient …
You Must Meet Aerospace industry
standards
Be Effective
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Aerospace Quality Management System
AS/EN/JISQ 9100
1994 Europe: EN9000-1
1996 USA: AS9000
1999 Asia/Pacific: JISQ 9100
2003 Norm AS/EN/JISQ 9100 - revised in 2009
Next revision 2016
Aerospace Quality Management System
What is AS/EN/JISQ 9100?
AS/EN/JISQ 9100 are the Aerospace requirements for establishing and
maintaining a quality management system (QMS).
9100 includes the requirements of ISO 9001:2008 plus additional requirements
for the aviation, space, and defense industries.
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Aerospace Quality Management System
What is AS/EN/JISQ 9100?
To assure high levels of customer satisfaction, these types
of organizations need to produce, and continually
improve, safe and reliable products that meet or exceed
the requirements of customers and applicable statutory
and regulatory requirements.
A quality management system is set up by an organization
to achieve high levels of customer satisfaction and continual
improvement, focusing on common requirements and the
reduction of variation and waste in the supply chain.
Aerospace Quality Management System
What is AS/EN/JISQ 9100?
Rather than – what you produce – 9100 focuses further
“upstream” on the processes – or how you produce.
9100 requires documented systems for controlling the
processes you use to develop and produce your products.
...there are certain elements every quality management
system must have in place in order to ensure that safe,
quality products are consistently provided to the customer
on time.
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9100 requires that companies have
a quality manual, quality
procedures, work instructions, and
records.
The pyramid gives you an idea of
how much documentation there is
at each level.
Your company will probably have
one quality manual, about 10 to 40
quality procedures, and many
more work instructions, forms and
records
Aerospace Quality Management System
How is the Documentation System Structured?
LEVEL 1
QUALITY MANUAL
LEVEL 2
QUALITY PROCEDURES
LEVEL 3
WORK INSTRUCTIONS
LEVEL 4
RECORDS &
FORMS
Aerospace Quality Management System
Whose role is it to improve and maintain quality?
It is every employee’s responsibility to ensure that the processes in his
or her area are complete, correct, and effective
Remember that processes are not set in stone; they will need to be
updated over time
It is your process …If it has mistakes, or not enough information, or
even too much detail, it only makes your job harder to do!
Don’t miss a chance to make your
business better!
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Aerospace Quality Management System
OASIS – Online Aerospace Supplier Information System
Source: IAQG
Aerospace Quality Management System
International Aerospace Quality Group
A worldwide Association (Belgian law) of
Aerospace and Defense industries organized in 3
regions
Mission: to implement quality initiatives that make improvements
throughout the value streams of products and services
American Aerospace
Quality Group
European Aerospace
Quality Group Asia Pacific Aerospace
Quality Group
Source: IAQG
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Your organisation should be certified
Be An Aerospace Supplier
Only qualified Manufacturing sites/parts can be used
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Airbus Approved & Qualified sources
http://www.airbus.com/tools/airbusfor/suppliers/
https://w3.airbus.com/
T1 T2/3…
Information is available for the
entire supply chain but
remember…
03
Quality standards
66
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Quality Puzzle to be a Key Aerospace Player
To be an Aerospace supplier, you must be 9100 accredited and
have in place the main IAQG Quality requirements….
1
2
3
4
5
6
7
8
9
10
11
12
DFMEA
Manufacturing Flow Chart
PFMEA
Key
Characteristics
Measurement System Analysis
Statistical Process Control
Cp, Cpk
Control Plan
FAI, PPAP, APQP
Root Cause
Process Reproducibility
Continuous Improvement
…and demonstrate their effectiveness and more …
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Introduction to Supply Chain Management
Definition
Su
pp
lier
pro
cesses
Product Design
Cu
sto
mer p
rocesses
Supply Chain
Sales & Support
Product Management
The design, planning, execution, control, and monitoring of supply chain
activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with
demand, and measuring performance globally Source: Apics
Supply Chain Management can reduce costs by
being sure that the right materials are in the right
place at the right time and the resources of the
company are properly used. Therefore you need to
Synchronize Supply & Demand
Introduction to Supply Chain Management
Definition & primary processes
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Introduction to Supply Chain Management
The Supply Chain - Definition
The Supply Chain is not a business function
It is a network of companies
Supply Chain Management is the implementation
of cross-functional relationships with key
customers and suppliers in that network
It is necessary for an organization's success
and every function needs to be involved
Introduction to Supply Chain Management
Conclusion
By understanding the supply chain management
processes and how they should be implemented,
management will better understand the value of
more integrated supply chains and how this
integration will lead to increased shareholder value
and a sustainable competitive advantage
Page 74
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Introduction to Supply Chain Management
KPI
Introduction to Supply Chain Management
Supply Chain Metrics
Define the goal and Objectives
Define the fundamental measurements
Define the necessary conditions
Set performance Standards
Educate user
Make sure this is consistently applied
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Introduction to Supply Chain Management
Production Planning System
Production Planning System
A good planning system must answer four questions
WHAT ARE WE GOING TO MAKE
WHAT DOES IT TAKE TO MAKE IT
WHAT DO WE HAVE
WHAT DO WE NEED
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OPERATIONAL
TACTICAL
STRATEGIC
Production Planning System
IMP
LE
ME
NT
AN
D
CO
NT
RO
L
PL
AN
Production Planning System
Sales & Operations
Plannings (Family of Products)
Master Production
Schedule (Products)
Material Requirement
Planning (Component)
Production Activity
Control
Strategic Plan
IMP
LE
ME
NT
AN
D
CO
NT
RO
L
PL
AN
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Production Planning System
Capacity Management at all levels
Sales & Operations
Plannings (Family of Products)
Master Production
Schedule (Products)
Material Requirement
Planning (Component)
Production Activity
Control
Strategic Plan
Resource
Requirement
Planning
Rough Cut
Capacity Planning
Capacity
Requirement
Planning
Capacity
Control
CAPACITY
MANAGEMENT
IMP
LE
ME
NT
AN
D
CO
NT
RO
L
PL
AN
Introduction to Supply Chain Management
OEE
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Production Planning System
Capacity Management
What is OEE?
Overall Equipment Effectiveness
OEE = AVAILABILITY X PERFORMANCE X QUALITY
Capacity calculation
OEE - “How it works”
Total time
Loading time
Operating time
Net operating
time
Valuable
operating
time
OEE = AVAILABILITY X PERFORMANCE X QUALITY
Availability (%)
Loading time – Downtime losses
Loading time
Performance (%)
No of Parts x standard time
Operating time
Quality (%)
Parts Produced – (Scrap or Rework)
Parts Produced
X100
X100
X100
Pla
nn
ed
do
wn
tim
e
Do
wn
tim
e
Loss
es
Sp
eed
Lo
sses
Qu
ality
Lo
sses
Breakdowns
Set-up & Adjustment
No Material
Breaks
Planned Maintenance
No Work
Minor stoppages
Reduced speed / Idling
Quality defects
Reduced yield
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Introduction to Supply Chain Management
Bottleneck
Production Planning System
Capacity Management
Bottleneck
APICS defines bottleneck as 'a facility, function,
department, or resource whose capacity is
equal to or less than the demand put upon it'.
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03
Supplier Management
87
Supplier Management
The Extended Value Chain
45
Over the last 20 years OEMs have developed new opportunities with
their Tier 1 suppliers
Make
Buy
Platform
Assembly
Platform
Assembly
Large Scale Integration Large Scale
Integration
Value Added Parts
Assemblies
Make to Print Parts
Assemblies
Make to Print Parts
Assemblies
Raw materials Raw materials
T1
Yesterday Today
Value Added Parts
Assemblies T1
Value Added Parts
Assemblies
Over the last 20 years OEMs have developed new opportunities with
their Tier 1 suppliers…like automotive years ago
Platform
Assembly
Platform
Assembly
Large Scale Integration Large Scale
Integration
Value Added Parts
Assemblies
T1
T1
• To Share and Improve
Technologies
• To massively increase the volumes
• To stay competitive
Yesterday Today
Make
Buy
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Win-Win approach
Earlier, Wider and Together
Source: Roland Burger – Speedneews 2015
Supplier Management
Aerospace Supply Chain
6 000 000
PARTS FOR AN A380 SUPPLIERS
7700 +20 COUNTRIES
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Supplier Management
Potential issues if you don’t manage your supply chain efficiently
Supply chain risk is a strategic issue
There are now more risks to the supply chain and risk events are becoming more
costly.
Supply chain risk is important in strategic decision making to what and whom with.
As supply chains have become more interconnected and global,
they have also become more vulnerable,
with more potential points of failure
and less margin of error for absorbing delays and disruptions.
Supplier Management
Supplier Selection and assessment
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IAQG
Supplier Selection and Capabilities Assessment
AS/EN/JISQ9100 (Rev. C) sections
7.4.1 Evaluate and select suppliers
7.4.1.f Determine and manage the risk
7.4.1 a-f Maintain a Register of Suppliers, review
performance, establish levels of controls, define
approval status requirements and determine and
manage the risk when selecting and using suppliers
IAQG 9134
Supplier Selection and Capabilities Assessment
You must assess your suppliers on the 11 business
processes according to the IAQG
Source: IAQG
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SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
SWOT ANALYSIS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
characteristics of the business or project that give it an
advantage over others
elements that the project could exploit to its advantage
characteristics that place the business or project at a disadvantage relative to others
elements in the environment that could cause trouble for the business or project
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IAQG
Product Performance Detailed Assessment (PPDA)
You must assess your supplier’s processes
Identify weaknesses and risks regarding product
performance
Assess gaps and overlaps between the different processes
throughout the product life-cycle
IAQG
Product Performance Detailed Assessment
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IAQG
Product Performance Detailed Assessment
About 800 assessed items (questions) have been
developed and sorted into 50 topics and the 11 standard
processes. They serve as support for the detailed
evaluation of some of the SSCAM 11 process areas.
Raising all the 800 assessed items leads to long
assessment efforts and/or durations (up to 10 staff*days)
which might exceed allowed time. Be selective.
Supplier Management
Supplier Collaboration
52
Supplier Management
Supply Chain Collaboration – What Is It?
Many different definitions depending on perspective
The means by which companies within the supply chain work
together towards mutual goals by sharing
• Ideas
• Information
• Processes
• Knowledge
• Information
• Risks
• Rewards
Why collaborate?
• Accelerate entry into new markets
• Changes the relationship between cost/value/profit equation
Supplier Management
AirSupply: a great European ambition for Aerospace
BEFORE: Individual Supply Chain market places
TARGET: A Unique Aerospace and Defence Supply Chain Hub
http://www.boostaerospace.com/airsupply/
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Joint usage of one single industry hub
with standardized processes increases
transparency and visibility of crucial
processes throughout the Supply
Chain
A&D OEMs
Tier-1
Suppliers
Tier-2
Suppliers
AirSupply
This transparency and visibility helps to
identify “bottleneck” situations early,
stabilizes the whole Supply Chain
and reduces risk
The number of suppliers that use
AirSupply is high and continuously
rising
Supplier Management
Building the supply network …
Airbus Joint Improvement Plan (JIP)
Supplier Quality & Improvement Program (SQIP)
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Supplier Management
Supplier Quality Management Basics (SQMB)
Control your supplier
Supplier Quality Management Basics (SQMB)
Some of the basic elements for a SQMS should include but not be limited to
processes to address:
Flowdown of quality requirements
Supplier Pre-production Planning
Production Readiness
Purchased Product Verification
Supplier Performance Monitoring
Supplier Surveillance
55
1991 – JR Tony Arnold & Stephen N Chapman
Introduction to Materials Management
16 chapters which
detail the processes
and techniques to
implement a robust
system
Conclusion and way forward
04
110
56
Let’s see if we have covered the main requirements from the
IAQG SCMH - Supply Chain Management Handbook
Supply
Chain
Management
Handbook
International Aerospace Quality Group
Supply Chain Standard based on the SCOR model
57
Market
&
Sell
Design
&
Develop
Make Buy
Deliver Customer
Support
Plan
&
Manage
Stakeholder
Relationship
IAQG Supply Chain Management Handbook
8 Modules
1 2 3 4
5 6 7 8
Module 1
Sales, Master Scheduling and Sequencing
• Strategic Plan
• Sales & Operation Planning
• Master Production Schedule
• Material Requirement Planning
• Production Activity Control
• Demand Management
58
Market
&
Sell
Design
&
Develop
Make Buy
Deliver Customer
Support
Plan
&
Manage
Stakeholder
Relationship
IAQG Supply Chain Management Handbook
8 Modules
1 2 3 4
5 6 7 8
Module 3
Make
• Managing Product and Process Variation
• First Article Inspection (FAI)
• Non Conforming Product
• Foreign Object Debris/Damage (FOD)
• Counterfeit Parts Prevention
• Human Factors in New Manufacturing
• Statistical Product Acceptance
• Manufacturing Work Instruction
59
Non Conforming Product
AS/EN/JISQ 9100B Requirement - Section 8.3, Paragraph 1
…The organization shall ensure that product which does not conform
to product requirements is identified and controlled to prevent its
unintended use or delivery…
…Any Supplier in the aviation, space and defense supply chain
needs to have defined methods and documented procedures to
contain a nonconformance internally or externally…document and
address the nonconformance within the authority formally granted by
contract.
IAQG 9146 – FOD source: IAQG
Foreign Object Debris (FOD) A substance, debris, or article
alien to the component, assembly, system or vehicle that
could cause damage.
Foreign Object Damage (FOD) Any damage or incident
attributed to a foreign object that can be expressed in
physical or economic terms that may or may not degrade
the product’s required safety and/or performance
characteristics.
60
IAQG 9146 – FOD source: IAQG
IAQG 9146 – FOD source: IAQG
61
IAQG 9146 – FOD
Do you have 6 S in Place?
Sort – Discard everything that you don’t use
Shine – Clean!
Straighten – Label & organize in a way to promote work flow
Standardize – Assign roles and responsibilities, standardize processes
Sustain – Audit to make sure the 6S program is being maintained
Safety – Keep the work area safe and walkways clean
Counterfeit Parts Prevention
AS/EN/JISQ9100 (Rev. C) sections 7.4.1
Establish an Approved Supplier List (ASL), Approved
vendor List (AVL) or Preferred Supplier List with supplier
rating.
62
Airbus Approved Suppliers, Special process, Test method List
Boeing Approved Process Sources
http://www.airbus.com/tools/airbusfor/suppliers/
http://active.boeing.com/doingbiz/d14426/index.cfm
Human Factors in New Manufacturing
6 main categories – 12 Dirty Dozen
1
2
3 4
5
6
Feeling
Equipment
Ergonomics
Culture Competence
Environmental
MACHINE DESIGN, TOOL DESIGN, MATERIAL
FLOW, COMPLEXITY OF OPERATION…
1
SUITABLE TOOLS, APPROPRIATE CLOTHING,
RAW MATERIAL…
2
MANAGEMENT ATTITUDE, LOCAL CULTURE,
REWARD AND RECOGNITION…
3
KNOWLEDGE, SKILLS, PROCEDURE,
INSTRUCTION, TRAINING…
4
TIME OF THE DAY, TEMPERATURE, NOISE
LEVEL, DISTRACTION…
5
MENTAL STATE, PHYSICAL HEALTH,
AMBITION, CONFIDENCE…
6
63
The Dirty Dozen
Fatigue This is considered the number one contributor to human error. It is insidious, and
the person fails to realize just how much his/her judgment is impaired until it’s too
late. Until it becomes extreme, a person may be unaware that he or she is
fatigued. It is more easily recognized by another person or in the results of tasks
being performed
Lack of communication This is the failure to, or the lack of, information exchange between two or more
people.
To prevent it, attention should be focused not only on how this happens but also
what safety net will prevent it.
The Dirty Dozen
Complacency This is where we become so self-satisfied in our activity or so familiar with a project
that we lose awareness of dangers. Some activities can become too familiar (i.e.
repetitive tasks) and “rote memory” based so that every little change in the pattern
can cause error.
It is sometimes called overconfidence and creeps in as we become more proficient
at what we do.
Lack of knowledge With constantly changing technology, this contributor to an error is more common
than we think. Add to that the fact that the average human only retains about 20
percent of what they learn, unless they use it often.
64
The Dirty Dozen
Distraction Our mind works much quicker than our hands, and thus we are always thinking
ahead.
Any distraction can cause us to think we are further ahead than we actually are.
This contributing factor is known to be responsible for at least 15 percent of all
aviation accidents.
Lack of teamwork The larger an organization becomes, the more common this contributing factor is.
It is hard to gain and very easy to lose.
Causes can be: roles and responsibilities not clear, decisions for the team made by
one single person without the team's knowledge, problems and issues not
addressed by the team members, lack of trust and respect and personal problems
among the team members.
The Dirty Dozen
Lack of resources A lack of resources can interfere with one’s ability to complete a task. Furthermore
the low quality of resources (i.e. tools, work instruction/job card, standard parts,
etc.) can compromise the successful job completion and increase the employee's
workload, stress, and fatigue. For example if the employee does not have the
correct tool near the job area, he/she has to go away to find it and, when he/she
comes back to restart working, there is an increased risk of forgetting something to
do for the task being worked on.
Pressure Pressure to be on time is ever-present in the aviation industry.
We are very time-sensitive and many decisions are centerd around that fact. Over
64 percent of pressure-caused errors are caused by self-pressure.
65
The Dirty Dozen
Lack of assertiveness Assertiveness is the ability to express your feelings, opinions, beliefs and needs in a
positive manner. Lack of assertiveness is failing to speak up when you think that
something doesn’t seem right, this has resulted in many fatal accidents. However,
assertiveness also calls for listening to the views of others before making a decision.
Assertiveness is that middle ground between being passive and aggressive.
Stress Stress is the subconscious response to the demands placed upon a person. We all
have some stress in our lives, and it is not all bad until it becomes excessive. The
causes of stress are referred as "Stressors" and are classified as physical
(Temperature, Noise, Lighting, Confined spaces), Psychological (Work-related,
Financial problems, domestic problems, interpersonal problems) and Physiological
(Poor physical condition, Proper meals, Lack of sleep, Conflicting shift schedules).
The Dirty Dozen
Lack of awareness Lack of awareness occurs when there is a lack of alertness and vigilance in
observing that result in a failure to recognize all the consequences of an action.
This usually occurs with very experienced persons who fail to reason out possible
consequences to what may normally be a good practice.
Also information overload (without a priority) and many distractions factors can
cause lack of awareness.
Negative Norms Norms is short for “normal,” or the way things actually are done around an
organization. Norms are unwritten rules followed or tolerated by the majority of a
group. Negative norms are those that detract from an established safety/quality
standard.
66
Market
&
Sell
Design
&
Develop
Make Buy
Deliver Customer
Support
Plan
&
Manage
Stakeholder
Relationship
IAQG Supply Chain Management Handbook
8 Modules
1 2 3 4
5 6 7 8
Module 4
Buy
• Supplier Selection and Capabilities Assessment
• Product Performance Detailed Assessment
Checklist
• Supplier Quality Management Basics
• Sub-tier Supplier Control
67
Market
&
Sell
Design
&
Develop
Make Buy
Deliver Customer
Support
Plan
&
Manage
Stakeholder
Relationship
IAQG Supply Chain Management Handbook
8 Modules
1 2 3 4
5 6 7 8
Module 5
Deliver
• Metrics Definition
• Certificate of Conformance
68
Market
&
Sell
Design
&
Develop
Make Buy
Deliver Customer
Support
Plan
&
Manage
Stakeholder
Relationship
IAQG Supply Chain Management Handbook
8 Modules
1 2 3 4
5 6 7 8
Module 7
Plan and Manage
• Work Transfer Management
• APQP
• Risk Management
• Root Cause Analysis
• Configuration Management
• Process Mapping (VSM)
• Capacity Management Ordering & Logistics
• Compliance education
69
RED ALERT - RED ALERT - RED ALERT - RED ALERT
1 2 3 4
5 6 7 8
9 10 11 12
IF ANY CHANGE
WHAT COULD BE
THE IMPACT?
Control of Transfers of Work source 9100
The organization shall establish, implement
and maintain a process to plan and
control the temporary or permanent
transfer of work (from one organization
facility to another, from the organization to a
supplier, from one supplier to another
supplier) and to verify the conformity of
the work to requirements.
70
Risk to lose your accreditation
Remember
Only qualified
Manufacturing sites/parts
can be used on an aircraft
Compliance education
Training
+33 562 121 114
71
Market
&
Sell
Design
&
Develop
Make Buy
Deliver Customer
Support
Plan
&
Manage
Stakeholder
Relationship
IAQG Supply Chain Management Handbook
8 Modules
1 2 3 4
5 6 7 8
Module 8
Stakeholder Management
• Requirements and Flowdown
• Contractual Requirement Review and
Management
72
Airbus General Requirements for Suppliers (GRAMS/GRESS)
Airbus Supplier Requirements (ASR)
GRAMS & GRESS currently merge into
Airbus Supplier Requirements (ASR)
You must be 9100 acredited.
Be 100% sure that what we have reviewed is in place
and efficient as you are committing by contract.
Airbus will assess whether you are fulfilling your
commitment or not.
General Requirements
for Aerostructure and
Material Suppliers
General Requirements
for Equipment &
System Suppliers
ASR Baseline
structure