SC21 Task Force 25 June 2015 Thales, Glasgow · 2019-09-27 · SC21 Task Force 25 June 2015 Thales,...
Transcript of SC21 Task Force 25 June 2015 Thales, Glasgow · 2019-09-27 · SC21 Task Force 25 June 2015 Thales,...
Advancing UK Aerospace, Defence, Security and Space Industries
SC21 Task Force
25 June 2015
Thales, Glasgow
Advancing UK Aerospace, Defence, Security and Space Industries
Agenda 25 June 2015
09:00 Registration & Coffee
09:30 Welcome & Introduction – Phil Curnock, ADS
09:40 Thales – Alan Haigh, LAS UK Purchasing Director
10:00 Regional Update – Nick Shields, Scottish Enterprise
10:20 Procurement Excellence – Andy Brown, Procurement Director, Selex ES
10:40 ADS Update – Ian Watson, ADS
11:00 Coffee Break & Visit to company Stands
11:30 SC21 Programme update – Phil Curnock, ADS
11:45 SC21 Case Study – Paul Houston, WB Alloys
12:10 Award Winner presentations
12:30 Lunch
13:30 Thales tour (or extended networking)
14:30 End of meeting
Advancing UK Aerospace, Defence, Security and Space Industries
• 09:30 Welcome & Introduction –
Phil Curnock, ADS
Advancing UK Aerospace, Defence, Security and Space Industries
• 09:40 Thales Presentation –
Alan Haigh,
LAS UK Purchasing Director
www.thalesgroup.com
THALES GROUP INTERNAL
SC21 Task Force
25TH JUNE 2015
LAND & AIR SYSTEMS Thales Proprietary Information
Thales Optronics UK
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Optronics Business Line
A global capability
Design and manufacture of
Day/ Night vision equipment
and systems for:
Land
Sea
Air
Montreal, Canada
Elancourt
St-Héand
Toulouse
Aix-en-Provence
SOFRADIR
Glasgow
Basingstoke
Bristol
Bury St Edmunds
Huizen
Eindhoven
AIO, Egypt
STC, South Korea
Thales site
Joint Venture company
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Optronics Business Line
Principal sites Glasgow, UK
2,900 m² clean rooms
Sight testing tower
Laser laboratories
Naval, Land & Airborne EO
Élancourt, France
6,000 m² clean rooms
Sight testing tower
Laser laboratories
Airborne EO / Thermal imagers
St-Héand, France
8,000 m² clean rooms
40 m length night vision testing chamber
Pierre Angénieux Movie studio
Night vision Goggles / High precision optics
Montreal, Canada
2,100 m² clean rooms
Complete development facilities
Integrated repair & logistics.
Uncooled vehicle thermal imagers
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Airborne Products
Infra-Red Search and Track Systems
- PIRATE
Image Exploitation Systems
- DJRP Reconnaissance Pod
- Avni Environmental Protection System
Countermeasure Systems
- Vicon XF
IR Threat Warning Systems
- Elix-IR
Optronics UK Products
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Naval Products
Submarine Periscopes
- Trafalgar Class (UK)
- Vanguard Class (UK)
- A17 (Sweden)
- Collins Class (Australia)
- Victoria Class (Canada)
Submarine Optronic Masts
- Astute Class (UK)
- Japan Navy
Optronics UK Products
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Sensors
Thermal Imaging Systems
- Catherine MP LW IR Camera
- Catherine MP MW IR Camera
- Catherine EZ MW IR Camera
- Sophie LITE Target Locator
Optronics UK Products
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Sensors
Laser Rangefinders and Laser Designators
- MELT
- microMELT
- CELT/ CELT-HR
- ESLVDE
- VELT-D
- VELT-I
Optronics UK Products
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Land Products
Armoured Vehicle Sighting Systems
- Local Situational Awareness (LSA) Systems
- DNGS Family of Sights
- ORION Panoramic Sight
- Drivers Sights
- ROTOS Surveillance System
- Smoke Dispensers
Optronics UK Products
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Land Products
Vehicle Mission Systems Integration
Optronics UK Products
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Soldier Systems
Future Integrated Soldier Technology (FIST)
- Fully integrated communications and LSA capability
- Enhances battlefield capability and survivability
Optronics UK Products
www.thalesgroup.com THALES GROUP INTERNAL
Thales Involvement in SC21
25 JUNE 2015
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Thales UK Involved at all Levels
SC21
Special Interest groups
• Collaborative Working;
• Performance, Development and Quality
• Design Engineering.
SC21 Steering Group
Prime’s
SME’s
MOD
Training Partners
Prime working Group
BAe, RR, AW,GE
General Dynamics
Selex, Thales
Lockheed, Babcock
Bombardier, MOD
ADS SC21 Project
Team
Supplier’s Engaged in SC21 Programmes
Thales Rep:
Jerry Mabey
Thales Rep:
Jerry Mabey
Thales Rep:
Martin Smith
Thales Rep:
Neil Kennedy
( Mfr/Ops)
Thales Strategic
Partner: Quintec
Olaide Olaoye
Terry Little
Thales Rep:
Vincent Clot
( Eng)
Thales SC21
Supplier Community
Jerry Mabey
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
The Thales SC21 Supplier Community
41 Suppliers sponsored by Thales
Community Events
• April 2014
• November 2014
• May 2015
• Next Event Nov 2015
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Community Events : Objectives
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Events: Content
April 2014 November 2014 May 2015
PLENARY SESSION
Thales in SC21 Sub Tier Supplier
Management Capability
Status against objectives
Thales Engineering
Organisation
REACH Energy Saving & Climate
Change
Shared Objective Setting Counterfeit Avoidance SC21 for Rail
Sustainable Procurement RELEX
Cyber Security Cyber Security
Innovation in Thales
SYNDICATE SESSION
Barriers and KSF for SC21
Success
Risks to achieving award
status & Thales support
Thales support for Award
status & RELEX
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Targets Agreed April 2014
Double our Golds, Double our Silvers, 100% Award Status
Gold
4%
Silver
20%
Bronze
76%
Gold
2%
Silver
10%
Bronze
18%
None
70%
April 2014 Objective End 2015
Targets
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Thales SC21 Community Current Performance :OTIF
Transormation Achats – Plans d’actions détaillés – Bilan
revues light 2 – 23 Juillet 2012
Community is Performing at SILVER Level.
11 Suppliers at Gold Level
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VP Supply Chain Visit – 21st May 2015
Thales UK Glasgow : 87204467-DOC-GRP-EN-002
Thales SC21community – current performance : RFT
Transormation Achats – Plans d’actions détaillés – Bilan
revues light 2 – 23 Juillet 2012
Community is Performing at SILVER Level.
13 Suppliers at Gold Level
Advancing UK Aerospace, Defence, Security and Space Industries
• 10:00 Regional Update –
Nick Shields,
Director SMAS,
Scottish Enterprise
www.scottish-enterprise.com
Scottish Enterprise
Nick Shields
Director
Scottish Manufacturing Advisory Service
www.scottish-enterprise.com
SC21 Support
• SC21 is recognised as the “gold standard” of Supply Chain
development programmes
• Operational excellence is a key attribute of businesses that
are profitable and sustainable
• 4 SMAS practitioner trained assessors
• 3 in training
• 47 Scottish Businesses on the SC21 plan
• 8 at Bronze recognition
• 2 at sliver
• 3 working towards silver
www.scottish-enterprise.com
Scottish Enterprise Wider Support • National Aerospace Technological Exploitation Programme
• NATEP – innovation programme and Scottish SME businesses are
encouraged to apply to funding in Autumn 2015.
• www.natep.org.uk
• Cyber Resilience
• SE and the Scottish Business Resilience Centre (SBRC) are
partnering to deliver cyber security advice to companies.
www.sbcc.org.uk
• Sector Strategy: The Industry Leadership Group and SE are in the
process of developing a new 5 year strategy for the Aerospace, Defence,
Marine and Security sectors due published Autumn 2015
• key themes: Supply Chain, Business Environment,
Internationalisation, Operational Excellence, Research &
Development and Skills.
Advancing UK Aerospace, Defence, Security and Space Industries
• 10:20 Procurement Excellence –
Andy Brown,
Procurement Director,
Selex ES
Aerospace & Defence Procurement Group (ADPG)
SC21 Task Force meeting at Thales Glasgow
- Procurement Capability
- Co-Procurement
- Procurement Excellence
June 2015
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SC21 Task Force: June 2015
Background to the requirement
• What it isn’t, and what is aims to be
• Examples of good/bad practices within Procurement
Some key stakeholders with common aims and objectives
• ADPG/CIPS
• ADS/SC21
Outline TORs and objectives:
Status and Plan
Follow-up options from today – don’t wait…
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Procurement Excellence: Not this approach…
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This approach…
Improving Procurement Capability within companies throughout the value chain
P P P P
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END-USERS
TIER 1
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TIER 3+
SUPPLY
TIER 2
SUPPLY
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Background (good/bad examples of Procurement impact)
E.g. added value through a robust Procurement approach, often shared between Customer/Supplier
• Customer Procurement at our Supplier Conferences. Our support at first tier-supplier conferences
• Sharing the same cost/price estimating practices to enable back-to-back arrangements
• Sharing of ITAR/export licence management training
• Approach to “open book” pricing, maintaining accountability in the right places, with joint activities on the
cost/risk drivers, including flexibility towards material handling fees
• Joint approach to sub-tier supplier gateway/surveillance activities
• Collaborative approach to Offset planning
• Good forecasting from our perspective has enabled/allowed sub-tier supplier alignment to joint objectives
(eg investment, long term contracting)
E.g. added risk through having poor Procurement skills/practices, often hidden between Customer/Supplier
• Sub-tier supplier selection of non-approved, non-compliant companies
• Quality and safety exposure (lack of traceability, certification, special process controls)
• Poor communication, understanding, control and management of Industrial Governance and Compliance
– End-User information for export licences (2 way), leading to Voluntary Disclosures
– Plethora of standards …. BS/ISA/AS/REACH/Cyber/Conflict minerals/counterfeit components et al
• Cost, schedule and risk exposure due to lack of flow-down of known, important Ts&Cs, resulting in
material deliveries being placed on hold
• Questionable value for money in areas of Sub-Contracts, impact to relationship and future business
• Dependence upon single sources and single point failures without robust Procurement practices
• Poor forecasting from our perspective has not enable/allowed sub-tier supplier alignment to joint
objectives (e.g. investment, long-term contracting)
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Developing Procurement skills within the ADS supply base
ADPG Sub-Group Action: Proposed Quad’ Of Aims
Purpose Customer / Benefits
The development of Procurement & Supplier Management
skills and knowledge in order to:
Improve the capability of resources in suppliers & sub-
tiers – notably the Procurement skills base.
Improve the (2 way) management of supplier risk,
opportunity and supply chain vulnerability, e.g.
Due diligence, sustainability, cost/price analysis,
counterfeit components, Quality/Process control,
cyber security, export regulations, ethics etc
Encourage an ethos of working in collaboration within the
Professional family of Procurement (in our Sector)
Analyse and understand what’s important to all parties,
where the gaps are, and what we can do about it
The external Customer is the ADS Sector Businesses of “UK
plc”, and their end-users. Internal Customer is the
Procurement profession itself. Benefits:
Joint supply chain approach to procurement risk and
opportunity management, e.g.
More sustainable supply chains with a coherent
approach to procurement
Collective focus on cost, price and value
Enhanced understanding and management of
export compliance requirements/regulation
Enhanced understanding and management of
material traceability & counterfeit components
Enhanced reputation of added value, and increased
confidence in the capability of Procurement in our Industry
End results / Deliverables Success Criteria
Heightened skills, knowledge and awareness of the key
Procurement activities adding value to our industry
Methods (TBA) to promote training and education with
outline cost/benefit case (eg CIPS/ADA, shared L&D)
Embedded working practices between the tiers of the
supply base (e.g. co-procurement agreements)
Joint industry focus upon priority/topical subject matter
Procurement code of best practice for the ADS Sector?
Mobilisation of a project to deliver the results and benefits,
with buy-in from all the key stakeholders (Primes and sub-tier
suppliers – incl SMEs, CIPS, ADS)
Increase in qualified Procurement professionals.
Appropriate priority topics, flowed up/down the supply chain,
contractually if needed, or at least in improved way of
working
ADPG, CIPS, Industry (and SC21) collaboration on
Procurement Capability development
Task: What can ADPG, CIPS and Industry professionals do, in order to improve the skills and knowledge in Procurement & Supplier Management throughout the ADS Sector supply base?
37
The Aerospace & Defence Procurement Group (ADPG)
ADPG Terms of Reference
Mission – ‘Driving excellence and professionalism in procurement and supply capability
Vision – ‘To be the catalyst for skills development and professional standards in the context
of the aerospace and defence sector while sharing topical good practices.
• Commitment to people capability development and standards
• Collaboratively drive the procurement and supply management capability of the sector,
through the primes but also through the multi-tiers in the supply chain, working
collectively through initiatives to bring this about
• As a sector group influence the building of SME capability in procurement and supply,
through increasing knowledge and skills in an accessible way to enhance performance
and competitiveness
• Influence the establishment of sub-groups associated with the ADPG to drive forward
any of the above agenda’s
Members
CIPS, ADS
Chief Procurement Officers (CPOs) from across Industry (see next slide)
38
Stakeholders with common aims
Recognised gap in the SC21
programme, not covered by
BEM/MEX
Objective to implement a
“Procurement Excellence”
pillar into the programme
ADS Register launched, pre-
qualification focus, limited
covered of this area to date
with desire to develop in the
future
Development of Procurement skills is
core to the Mission and Vision and
TORs of the Group
Represents the voice of Procurement
across key Industry players and ADS,
and underpinned by CIPS
Peer review recognises the gap in
company practices to assess, assure
and develop Suppliers’ Procurement
capabilities
Needed for improved management of
risk and opportunities within the overall
supplier chain
Although at different stages of evolution and implementation, both AGP and DGP
have a focus upon the development of key skills in their Industry Sectors, with both
recognising the influence of the Value Chain to their programmes
C.I.P.S. / A.D.P.G. A.D.S.
SC21 &
REGISTER
A.G.P. D.G.P.
SWEET SPOT
DESIRE FOR GROWTH IN
PROCUREMENT CAPABILITIES
• SKILLS, PRACTICES,
PROFESSIONAL STANDING
DEVELOPMENT OF A COMMON
PROCUREMENT CAPABILITY
FRAMEWORK
• FOR THE FUNCTION
• FOR THE RESOURCES
A SOLUTION THAT MAY BE
PROGRESSIVE AND PROPORTIONATE
FOR ALL TIERS AND SIZES OF
SUPPLIERS INCL. SMEs
39
Stakeholders with Common Aims:
(And why ADPG/CIPS best placed to be the vehicle to deliver)
AIRBUS
BOEING
BOMBARDIER
A.W.G.
BAE SYSTEMS
LOCKHEED MARTIN
RAYTHEON
M.B.D.A.
QINETIQ SELEX ES RAYTHEON
THALES
C.I.P.S.
A.D.S. AG.WESTLAND G.K.N.
MARSHALLS
MEGGITT
A.D.S. SC21 A.D.S. REGISTER
A.G.P. D.G.P. PROCUREMENT CAPABILITY FRAMEWORK
(THE FUNCTION – CAPABILITY AND MATURITY MEASURES
OF ORGANISATION, PROCESSES, PRACTICES ETC)
PROCUREMENT COMPETENCY FRAMEWORK (THE RESOURCES - SKILLS & KNOWLEDGE)
R.R.
40
ADPG: Sub-Group for Procurement Capability
#CoreTeam (Procurement Capability)
- Andy Brown (lead)
- Nigel Strutt
- Rob Soen
- Mark Chamberlain
- Jerry Mabey
- Tony Payne
- Alan Davis
- Geoff Hill
- Karen Beamish
- Andrew Coulcher
- Emma Scott
- Sarah Barnard
- Phil Curnock
#Team1 (Organisational: Capability Framework)
- Alan Martin CIPS (lead)
- Mark Chamberlain BAE Systems
- Jerry Mabey Thales
- Alan Davis Airbus
- Andrew Smith, Marshall
- Geoff Hill Astute
- Carl Brown MBDA
- Karen Beamish CIPS
- Sarah Barnard ADS
#Team2 (People: Skills/Competency Framework)
- Karen Beamish CIPS (lead)
- Tony Payne
- Claire Dicks MDBA
- Nichola Clarke AgustaWestland
- Helen Bates (or ANO) AWE
- Jon McKeown Marshal Aerospace
- Steve Lamb Meggitt (TBC)
41
Procurement Capability: TORs
To provide a framework for the development and promotion of ‘procurement excellence’ that will be achieved through growth in capability of a Company’s Procurement Organisation (or) Function and of their Resources, that continuously improves the aerospace and defence value chain for the future. To consider: Engagement through collaboration across all tiers of the supplier chain, company to company engagement with
the potential for procurement to procurement engagement
Tailoring of collaborative approach to the environment of the customer/supplier relationships
o Through the capability and maturity measurement of the following features within an agreed and defined
framework* (Sub-group 1)
o Propose an Industry standard procurement capability framework
Utilising the best professional and industry standards and resources
- CIPS global and certification standards
- SC21 excellence principles as the catalyst for ensuring the alignment with our future challenges
- Other recognised and agreed quality standards
The expected maturity levels (proportionate and progressive) set depending on the characteristics of a supplier
e.g. Tier Technology, commodity and service spend with an intelligent approach to its application.
Procurement people capability *(Sub-group 2)
- Skills and competency framework
- Training
42
Procurement Capability: Desired Output
Heightened skills, knowledge and awareness of key procurement activities adding value to our industry:
Agreed, industry and professional standards, and flexible Frameworks to help grow the capabilities of
Procurement
o Procurement Capability Framework (Organisation and Function)
o Skills & Competencies Framework (Resources)
Methods to promote training and education with outline cost/benefit case (CIPS/ADA, Shared L&D)
Embedded working practices between tiers of the supply base
Joint industry focus upon priority/topical subject matter
Procurement code of best practice for the ADS Sector
43
ADPG Sub-Group: Work-packages
PROCUREMENT CAPABILITY FRAMEWORK (THE FUNCTION – CAPABILITY AND MATURITY MEASURES OF
ORGANISATION, PROCESSES, PRACTICES ETC)
HOW TO APPROACH CONTINUOUS IMPROVEMENT
PLANS
#Team1
PROCUREMENT COMPETENCY FRAMEWORK (THE RESOURCES - SKILLS & KNOWLEDGE)
HOW TO APPROACH DEVELOPMENT AND
TRAINING SOLUTIONS
#Team2
#CoreTeam
TOR, SCOPE,
OBJECTIVES
COMMUNICATIONS, STAKEHOLDER ENGAGEMENT AND MANAGEMENT OF INTER-DEPENDENCIES
CUSTOMER/SUPPLIER ENGAGEMENT PLANNING
1. COMPANY TO COMPANY, 2. PROCUREMENT TO PROCUREMENT
HOW TO APPROACH DELIVERY AND
SUSTAINMENT
IDENTIFICATION AND DEVELOPMENT OF TRAINING SOLUTIONS
Planning Milestones
+ 5 mths, July, early case studies (trailblazers), complete benchmarks, first drafts
+ 8 mths, October, tailoring, move from “what” to “how”, final versions, mobilisation to launch
44
Objective:
To develop/create the Capability Framework to assess a company’s Procurement organisation, that is in-
tune with our industry requirements, and may be proportionate and progressive to the size of the company,
and environment that they work within.
Agreed to develop the Capability Framework based upon the following input:
• Industry practices and standards (e.g. IAQG, CIPS Corporate, other benchmarks?)
• Company practices that are known to exist today
• Key enablers/risks/factors for the Aerospace and Defence sector that need to be prevalent
Tailoring the eventual Framework to A&D sector. Which areas will need greater emphasis/focus, and why?
Examples as follows:
• Industry governance and trade compliance demands, such as import/export/ITAR licencing, counterfeit
control, cyber, REACH, Bribery Act, and many more…
• Quality and safety standards, such as traceability, special process controls, and certification, notably
regarding end products and their application
• Long-term (in-service) conditions, such as obsolescence, last-time buys, latent defect
• Sustainable procurement, BCM/BCP and CSR
• Opportunity management, such as offset, Industrial Participation sharing and forecasting
• Risk management, such as sub-tier supplier selection and management, sole and single source
supply.
Development of the Capability Framework (approach)
45
Development of the Capability Framework (in first draft only)
Pillar 1 - Strategy, policy and leadership Themes Business and procurement strategy Procurement strategy – sourcing strategies (including ethical sourcing) Globalisation Industrial policy:- Technology linkage; geopolitical; offset, industrial
development Innovation and New Product Development Governance, compliance, legal and CSR Customer Focus
Pillar 2 - Process and Practice Themes Relationship management Risk and opportunity Contract management Project/programme management Supplier capability management Special process controls Financial management
Pillar 3 - People and resources Themes Relationship/collaboration Ethics/Honesty and integrity Emotional intelligence Developing teams Conflict management
Pillar 4 - Performance measurement Themes Continuous improvement Supply chain assessment Supply chain development Supply chain Lean Logistics KPI’s & metrics
Work-in-progress
• 4 Pillars identified, as below, likely to create 5th to add focus on Organisation & Leadership
• Next level themes and areas to measure being identified
• SME input to be developed (Geoff Hill - Astute)
• Agreement TBA on the measure of maturity to be built into the framework
• Engagement process (“how to” guide) still to be developed. Potential with Hellios/JOSCAR - TBA
• Training and staff development options running in parallel
• Focus remains on developing a Capability Framework of an organisation. Skills/Competency
Framework will pre-exist in each company and can form baseline for discussions
46
SC21 Task Force: June 2015
Your voice/input?
Learning & Development options already available
Scottish Government/CIPS Procurement People of Tomorrow (incl. Modern Apprentice)
http://www.gov.scot/Topics/Government/Procurement/Capability/procpploftomo2014
CIPS Health-check (20 Qs) and Procurement Apprentice Programme
https://standard.cips.org/healthcheck/default.aspx
http://www.cips.org/en/Careers/Apprenticeships-in-Procurement/
The CIPS Procurement Aerospace & Defence Academy (ADA)
https://www.cips.org/Documents/Products/Case_Studies/CIPS_CS_AandDPG_AW_WEB.pdf
More info on the CIPS/ADPG
https://www.cips.org/en/Community/Groups-listing/Aerospace--Defence-Procurement-Group-ADPG-/
47
Back-up info
Selex ES WIP
Selex ES template
Examples
48
Selex ES work-in-progress
Some areas of Selex ES WIP to share/stimulate discussion
• Similar WIP and areas to share within ADPG
• Selex ES
– Draft Capability & Maturity Matrix (28 Qs)
– Some initial benchmarks
– CIPS, Scot Gov. (> 100 Qs)
– Pilot engagement plan with 10 suppliers
– Positive feedback with Astute
– Shared Skills/Competency F/W with CIPS
– BAE Systems, as Customer, TBA for assessment of Selex
– ADS Register (JOSCAR), supplier adoption underway
SUPPLIER PROCUREMENT AREA
CSC I.C.T. BUSINESS SERVICES
I.S.S. FACILITIES MANAGEMENT
X.P.S. OUTSOURCED CATEGORY MANAGEMENT
ASTEELFLASH SUB-CONTRACT MANUFACTURE
BAE SYSTEMS HILLEND
SUB-CONTRACT MANUFACTURE
S.T.I. SUB-CONTRACT MANUFACTURE
HAAS/FASTEQ OUTSOURCED V.M.I.
ASTUTE SUB-CONTRACT PROCUREMENT
XCEL POWER SUPPLIES
SOFTCAT I.C.T. PROJECT SERVICES
Section 1. Procurement Strategy & Policy
Section 2. Procurement Resources & Skills
Section 3. Supplier Management Practices & Processes
Comments & Improvement Actions
1.1DEMONSTRATE THE AVAILABILITY AND INFLUENCE OF YOUR PROCUREMENT STRATEGY,
WITH ANY ASSOCIATED VISION, MISSION OR STRATEGIC AIMS3
1.2SHOW THE PROCUREMENT OBJECTIVES AND HOW THEY ARE SET, CASCADED, &
MANAGED3
1.3AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR
THE FUNCTION3
E.G. DELEGATED AUTHORITIES, SEGREGATION OF DUTIES, KNOWLEDGE
OF SUPPLIER G&C NEEDS (SEE 3.2)
1.4
WHAT IS THE ORGANISATIONAL APPROACH TO THE FUNCTION TO SHOW INTEGRATION
WITH THE COMPANY OBJECTIVES, THOSE OF THE CUSTOMER'S NEEDS AND FOR THE
BEST APPROACH TO THEIR SUPPLIERS MARKET AND SUBSEQUENT MANAGEMENT
3
E.G. BY CATEGORY MANAGEMENT, PROJECT/SUB-CONTRACT
MANAGEMENT, SHARED SERVICES, CENTRALISED, DE-CENTRALISED ETC
ETC
1.5EFFECTIVE SYSTEMS SOLUTIONS TO ENABLE THE PROCUREMENT FUNCTION AND BE
INTEGRATED WITH THEIR SUPPLIERS 3
E.G. SAP, ERP/MRP, BESPOKE SOLUTIONS
1.6EFFECTIVE PROCUREMENT PLANNING IN PLACE FOR MATERIAL (FORECASTING) AND
RESOURCES (DEMAND/SUPPLY)3
1.7 EFFECTIVES KPIs AND/OR METRICS IN PLACE FOR THE FUNCTION 3
1.8 VISIBILITY OF CONTINUOUS IMPROVEMENT PLANS FOR THE FUNCTION 3
2.1ESTABLISHED PROCUREMENT ORGANISATION WITH CLEAR ROLES AND
RESPONSIBILITIES DEFINED3
2.2SKILLS AND COMPETENCIES FRAMEWORK IN PLACE, WITH APPROPRIATE LEVELS,
QUALIFICATIONS AND NEEDS DEFINED3
E.G CIPS QUALIFIED
2.3GAP ANALYSIS (SKILLS/COMPETENCIES) REGULARLY REVIEWED AND ALIGNED TO
TRAINING PLANS3
2.4 TRAINING PLANS AND BUDGETS IN PLACE 3
2.5TERMS OF REFERENCE AND/OR BIO'S IN PLACE FOR THOSE ROLES THAT ARE ALIGNED
TO THIS COMPANY-TO-COMPANY CONTRACT (INCL. ANY SINGLE POINT FAILURES)3
2.6 SUPPORT RESOURCES TO PROCUREMENT/SUPPLIER MANAGEMENT CLEARLY DEFINED 3E.G. Q.A., TECHNICIAL/ENGINEERING, COMMERCIAL, LEGAL, COMPLIANCE
3.1SUPPLIER ARCHITECTURE AND CATEGORISATION IN PLACE TO BEST UNDERSTAND THE
ASSOCIATED STRATEGIES AND TACTICS3
E.G. KRALJIC, SUPPLY MAPPING ETC
3.2AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR
THE SUPPLIERS3
E.G. IMPORT/EXPORT LICENCE MANAGEMENT, ETHICS, GIFTS &
HOSPITALITY, BRIBERY ACT, COUNTERFEIT RISK, CONFLICT MINERALS
3.3SCOPE OF APPROVAL FOR QUALIFIED SUPPLIERS IN PLACE, WITH
REGULAR/APPROPRIATE PLANS TO REVIEW (FROM POINT OF SELECTION)3
3.4APPROPRIATE SUPPLIER AGREEMENTS IN PLACE, WITH CUSTOMER FLOW-DOWN
WHERE APPROPRIATE, AND WITH TRACKING OF ACCEPTANCE/ACKNOWLEDGEMENT3
3.5SUPPLIER PLANNING IN PLACE TO SCHEDULE APPROPRIATE GATEWAY/SURVEILLANCE
MEETINGS TO MANAGE RISK, PROGRESS, COMPLIANCE ETC 3
E.G. QBRs, BUSINESS REVIEWS, IN AREAS OF SPECIAL PROCESS
CONTROL
3.6ROBUST SUPPLIER SELECTION PROCESS IN PLACE WITH ASSOCIATED CAPABILITY
ASSESSMENT (INCL. MAKE/BUY DECISION MAKING AS APPROPRIATE)3
3.7SUPPLIER COST/PRICE ANALYSIS, PARTNERING, COMPETITION AND NEGOTIATION
PRACTICES TO ENSURE BEST VALUE FOR MONEY3
3.8 ROBUST APPROACH TO THE ASSESSMENT AND MANAGEMENT OF SUPPLIER RISK 3E.G. VENDOR VULNERABILITY/SUSTAINMENT RISK AND BCP
3.9 SPECIALIST KNOWLEDGE OF SUPPLIER MARKET AND TRENDS 3
3.10STRUCTURED APPROACH TO SUPPLIER DEVELOPMENT WITH MANAGEMENT OF
IMPROVEMENT PLANS AND RESULTS3
E.G. SC21 PRINCIPALS, KEY SUPPLIER PROGRAMME
3.11 EFFECTIVES KPIs AND/OR METRICS IN PLACE 3E.G. ON-TIME, ON-QUALITY, COST MANAGEMENT/REDCUTION, CASH
MANAGEMENT, SUPPLIER RELATIONSHIPS
3.12 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS INVENTORY 3
3.13 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS CASHFLOW 3
3.14KNOWLEDGE AND CONTROL OF SUB-TIER SUPPLIERS, AND THEIR OWN PROCUREMENT
CAPABILITIES AS APPROPRIATE3
60%
3.0
PR
OC
UR
EM
EN
T S
TR
AT
EG
Y &
PO
LIC
YR
ES
OU
RC
ES
& S
KIL
LS
SU
PP
LIE
R M
AN
AG
EM
EN
T P
RA
CT
ICE
S &
PR
OC
ES
SE
S
Target
PROCUREMENT CAPABILITY & MATURITY MATRIX
Score
(or
N/A)
Maturity Assessment Verify the effectiveness of the company's approach to Procurement and their supplier management
COMPANY NAME 0 1 2 3 4 5Not
DoingPoor Fair Good Very Good Excellent
49
Example Template
Section 1. Procurement Strategy & Policy
Section 2. Procurement Resources & Skills
Section 3. Supplier Management Practices & Processes
Comments & Improvement Actions
1.1DEMONSTRATE THE AVAILABILITY AND INFLUENCE OF YOUR PROCUREMENT STRATEGY,
WITH ANY ASSOCIATED VISION, MISSION OR STRATEGIC AIMS0
1.2SHOW THE PROCUREMENT OBJECTIVES AND HOW THEY ARE SET, CASCADED, &
MANAGED0
1.3AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR
THE FUNCTION3
E.G. DELEGATED AUTHORITIES, SEGREGATION OF DUTIES, KNOWLEDGE
OF SUPPLIER G&C NEEDS (SEE 3.2)
1.4
WHAT IS THE ORGANISATIONAL APPROACH TO THE FUNCTION TO SHOW INTEGRATION
WITH THE COMPANY OBJECTIVES, THOSE OF THE CUSTOMER'S NEEDS AND FOR THE
BEST APPROACH TO THEIR SUPPLIERS MARKET AND SUBSEQUENT MANAGEMENT
N/A
E.G. BY CATEGORY MANAGEMENT, PROJECT/SUB-CONTRACT
MANAGEMENT, SHARED SERVICES, CENTRALISED, DE-CENTRALISED ETC
ETC
1.5EFFECTIVE SYSTEMS SOLUTIONS TO ENABLE THE PROCUREMENT FUNCTION AND BE
INTEGRATED WITH THEIR SUPPLIERS 3
E.G. SAP, ERP/MRP, BESPOKE SOLUTIONS
1.6EFFECTIVE PROCUREMENT PLANNING IN PLACE FOR MATERIAL (FORECASTING) AND
RESOURCES (DEMAND/SUPPLY)3
1.7 EFFECTIVES KPIs AND/OR METRICS IN PLACE FOR THE FUNCTION 3
1.8 VISIBILITY OF CONTINUOUS IMPROVEMENT PLANS FOR THE FUNCTION 3
2.1ESTABLISHED PROCUREMENT ORGANISATION WITH CLEAR ROLES AND
RESPONSIBILITIES DEFINED3
1 PERSON ACTIVITY IN XPS
2.2SKILLS AND COMPETENCIES FRAMEWORK IN PLACE, WITH APPROPRIATE LEVELS,
QUALIFICATIONS AND NEEDS DEFINED0
E.G CIPS QUALIFIED
2.3GAP ANALYSIS (SKILLS/COMPETENCIES) REGULARLY REVIEWED AND ALIGNED TO
TRAINING PLANS3
2.4 TRAINING PLANS AND BUDGETS IN PLACE 3
2.5TERMS OF REFERENCE AND/OR BIO'S IN PLACE FOR THOSE ROLES THAT ARE ALIGNED
TO THIS COMPANY-TO-COMPANY CONTRACT (INCL. ANY SINGLE POINT FAILURES)0
2.6 SUPPORT RESOURCES TO PROCUREMENT/SUPPLIER MANAGEMENT CLEARLY DEFINED 3E.G. Q.A., TECHNICIAL/ENGINEERING, COMMERCIAL, LEGAL, COMPLIANCE
3.1SUPPLIER ARCHITECTURE AND CATEGORISATION IN PLACE TO BEST UNDERSTAND THE
ASSOCIATED STRATEGIES AND TACTICS0
E.G. KRALJIC, SUPPLY MAPPING ETC
3.2AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR
THE SUPPLIERS3
E.G. IMPORT/EXPORT LICENCE MANAGEMENT, ETHICS, GIFTS &
HOSPITALITY, BRIBERY ACT, COUNTERFEIT RISK, CONFLICT MINERALS
3.3SCOPE OF APPROVAL FOR QUALIFIED SUPPLIERS IN PLACE, WITH
REGULAR/APPROPRIATE PLANS TO REVIEW (FROM POINT OF SELECTION)3
3.4APPROPRIATE SUPPLIER AGREEMENTS IN PLACE, WITH CUSTOMER FLOW-DOWN
WHERE APPROPRIATE, AND WITH TRACKING OF ACCEPTANCE/ACKNOWLEDGEMENT3
3.5SUPPLIER PLANNING IN PLACE TO SCHEDULE APPROPRIATE GATEWAY/SURVEILLANCE
MEETINGS TO MANAGE RISK, PROGRESS, COMPLIANCE ETC 0
E.G. QBRs, BUSINESS REVIEWS, IN AREAS OF SPECIAL PROCESS
CONTROL
3.6ROBUST SUPPLIER SELECTION PROCESS IN PLACE WITH ASSOCIATED CAPABILITY
ASSESSMENT (INCL. MAKE/BUY DECISION MAKING AS APPROPRIATE)3
3.7SUPPLIER COST/PRICE ANALYSIS, PARTNERING, COMPETITION AND NEGOTIATION
PRACTICES TO ENSURE BEST VALUE FOR MONEY2
3.8 ROBUST APPROACH TO THE ASSESSMENT AND MANAGEMENT OF SUPPLIER RISK 3E.G. VENDOR VULNERABILITY/SUSTAINMENT RISK AND BCP
3.9 SPECIALIST KNOWLEDGE OF SUPPLIER MARKET AND TRENDS 3
3.10STRUCTURED APPROACH TO SUPPLIER DEVELOPMENT WITH MANAGEMENT OF
IMPROVEMENT PLANS AND RESULTS1
E.G. SC21 PRINCIPALS, KEY SUPPLIER PROGRAMME
3.11 EFFECTIVES KPIs AND/OR METRICS IN PLACE 3E.G. ON-TIME, ON-QUALITY, COST MANAGEMENT/REDCUTION, CASH
MANAGEMENT, SUPPLIER RELATIONSHIPS
3.12 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS INVENTORY 0
3.13 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS CASHFLOW 0
3.14KNOWLEDGE AND CONTROL OF SUB-TIER SUPPLIERS, AND THEIR OWN PROCUREMENT
CAPABILITIES AS APPROPRIATE0
36%
1.8
4 5
Very Good ExcellentNot
DoingPoor Fair Good
PROCUREMENT CAPABILITY & MATURITY MATRIX
Score
(or
N/A)
Maturity Assessment Verify the effectiveness of the company's approach to Procurement and their supplier management
Example 0 1 2 3
PR
OC
UR
EM
EN
T S
TRA
TEG
Y &
PO
LIC
YR
ES
OU
RC
ES
& S
KIL
LSS
UP
PLI
ER
MA
NA
GE
ME
NT
PR
AC
TIC
ES
& P
RO
CE
SS
ES
Target
50
PRACTICES SKILLS & KNOWLEDGE
CAPABILITY
ASSESSMENT
& SELECTION
CYBER
ASSURANCE
SUPPLY
RISK MGMT
SUSTAINABI
LITY
EXPORT
LICENCE MGNT
SPECIAL
PROCESS
CONTROL
GATEWAY/
SURVEILLANCE
U.P.C. BURN-
DOWN
OPEN BOOK
COST
ANALYSIS
TRAINING
BUDGET?
CHANGE
CONTROL
CATEGORY
MGMT
CONTRACT
FLOW-DOWN
(COMM/TECH)
RESOURCE
LIMITATIONS
CASH-
FLOW
CAPACITY
PLANNING
INTEGRATED
PLANNING
CYBER
ASSURAN
CE
FORECAST
EXPORT
LICENCE
MGNT
LONG-
TERM
AGMTS
SUPPLIER PERSPECTIVE (OF IMPORTANT PROCUREMENT SKILLS/KNOWLEDGE/PRACTICES)
CAPABILITY
ASSESSMENT
& SELECTION
CUSTOMER PERSPECTIVE (OF IMPORTANT PROCUREMENT SKILLS/KNOWLEDGE/PRACTICES)
OPEN BOOK
COST
ANALYSIS
ACCURATE
FORECAST
RELATIONSHIP
DEVELOPMENT
CIPS
SC21
RE-USE
M.R.P.
ACCURACY
ETHICS B.C.P.
HOT BUTTONS?
POSSIBLE COMMON
AREAS IN-SCOPE
Advancing UK Aerospace, Defence, Security and Space Industries
• 10:40 ADS Update – Ian Watson, ADS
Advancing UK Aerospace, Defence, Security and Space Industries
• 11:00 Coffee Break & Visit to
company Stands
Advancing UK Aerospace, Defence, Security and Space Industries
• 11:30 SC21 Programme update –
Phil Curnock, ADS
Advancing UK Aerospace, Defence, Security and Space Industries
Trade Association Support
Government Funding Available in all regions
SC21
Active company map
Primes Updates – Project Office
Bombardier and BE Aerospace activity
Republic of Ireland and Northern Ireland programmes going well and major
benefits seen by bombardier and other primes from suppliers
We now have three Clusters in Northern Ireland (2 Bombardier 1 BE Aerospace)
.
Republic of Ireland SC21 Event held in Dublin in June with a further 20
companies.
Airbus recently visited Northern Ireland to see first hand the excellent work of
companies on the SC21 journey.
Thales
• Launched a 50 company SC21 Thales Community programme in
2014, meetings now place for 2015 to sharing good practice and
support supplier development further.
Airbus
• A structured programme now in place with Airbus.
• Airbus meeting now arranged with RTAs to discuss how they can
support.
• Airbus engaging Key T1s GE Aviation, GKN, Cobham, Safran + others in
this work.
Primes Updates – Project Office
Control and Data Systems (Formerly AEC)
• Continuing with highly successful “Supplier Association” work which
includes SC21 activity as a major part of supplier development
• Grown from 10 suppliers in 2010 to 30 active suppliers in 2014
• 4 SC21 Lead practitioners active in delivering diagnostic activity
BAE Systems
• Maritime Naval Ships & Services SC21 Supply Chain Management
Programme in place
GKN
• Working in partnership with Airbus to develop Supply Chain
Improvement Programmes throughout GKN supply base. GKN now have
there own cluster and are training in house team in delivery the
diagnostics.
• They also highlighted a further 48 companies they are looking to support
on to the programme.
Other Sector work
SC21 R
SC21 for Rail model proposal now developed.
Thales Rail have mapped the existing programme against Rail sector
requirements.
Changes only in the followings areas:
HSE Excellence being added.
Performance metrics for a service sector environment.
The rest of the model is the same
Steering Board Key deliverables
For 2015
• Design and Innovation Excellence special interest group created – Led by Richard
Baker, Rolls-Royce this group has design and engineering SMEs engaged within the
group and working towards developing an improvement framework based on the radar
approach we use in Bus ex. Draft proposal now being reviewed and to be piloted in
early 2015.
• Procurement Excellence framework now being developed led by ADPG and CIPS. Led
By Andy Brown and Rob Soen. This group is looking at a capability and skills
competency framework for the industry to help improve the Whole A and D supply chain
procurement skills.
• Supply chain constraints working group now launched looking at various issues that can
be worked on within SC21 and some that will be taken to AGP to deliver. Led by Ian
Taylor.
• Communication and Branding review
• Communication plan in place.
• SC21 Buyers Guide – now to be cascaded to all Customer buyers.(suggest it would be
good for all the aerospace team to do the online guide)
https://www.adsgroup.org.uk/pages/76429384.asp
• SC21 Enhanced programme now in early stages of discussion. Shape ,size and topics
being discussed and ADS talking to various Government funding bodies who are looking
to offer support for the programme. – How can we help companies with there CSIP
plans in a greater way.
New Special Interest Groups 2015
Procurement Excellence SIG
Design and Engineering SIG
Supply Chain Constraints SIG
• Chair
• Andy Brown
• Chair
• Richard Baker
• Chair
• Ian Bouquet-Taylor
Advancing UK Aerospace, Defence, Security and Space Industries
10:30
Design and Engineering Excellence SIG
Richard Baker, Head of Engineering, Rolls-Royce
SC21 Design Excellence
Richard Baker – Head of Supplier Engineering,
Rolls-Royce
Advancing UK Aerospace, Defence, Security and Space Industries
Problem Statement There is no complete definition of Design For Excellence methodology*
which allows an organisation to measure and define its own in-house
design capability and that of its sub-tiers to an extent that it
misdirects/misunderstands resource to meet customer requirements
whilst compromising quality at the cost of effectiveness and efficiency.’
*(Design, Engineering, Technology innovation)
Advancing UK Aerospace, Defence, Security and Space Industries
The Competitive Challenge Competition no longer takes place between individual businesses, but
between the entire supply chain.
Design helps to deliver a better service to the customer, enabling them
to strengthen their position in the market, ultimately leading to business
growth.
Aim To drive up innovation and design capability within the UK supply chain.
Advancing UK Aerospace, Defence, Security and Space Industries
What does success look like? • More robust business
• High design compliance
• Proactive innovation
• Reduced risk
• Improved supply chain
• Reduced cost of supplier management
Advancing UK Aerospace, Defence, Security and Space Industries
CAPABILITY DIAGNOSTIC
‘Self assessment’ ‘Innovation workshops’
‘Commodity deep dive’
BEST PRINCIPLES
DESIGN STANDARD
DESIGN EXCELLENCE
Capability Development Programme
Programme Model
Advancing UK Aerospace, Defence, Security and Space Industries
Programme Key stages
Task Force Events 2015
18 + 19 Nov 2015
Bristol, Holiday Inn (TBC)
Supported by WEAF Annual Dinner
Supported by Industry
Advancing UK Aerospace, Defence, Security and Space Industries
• 11:45 SC21 Case Study –
Paul Houston,
WB Alloys
WB Alloys: A business
improvement journey Paul H. Houston – WB Alloy Welding Products
www.babcockinternational.com
Strictly Private and Confidential
Introduction
• WB Alloys: A business improvement journey .
• Case Study: Innovation and process efficiencies
• Summary: Key messages and questions
www.babcockinternational.com
Strictly Private and Confidential
WB Alloys: Overview
Who are We? • Formed in the UK in 1974 • Originally a Distribution
Organisation • Now a Global Welding & Cutting
Solutions Provider (UK, EU, USA, UAE & Australia)
• Welding & Cutting Products Designed & Manufactured In-House (UK, UAE & Italy)
• Site Service – Welding Engineering/Gas Equipment Testing
Key Facts: • Welding Group Turnover £16M • Warehouse Facilities 150K ft sq • Group Employees 35 • Average Stockholding £3-4M
Where we want to be? • No 1 Welding & Cutting Solutions
Provider in the UK • Recognised Global Welding &
Cutting Solutions Provider . • Employer of Choice
www.babcockinternational.com
Strictly Private and Confidential
WB Alloys SC21 Timeline
6 Years Ago
‘We thought Lean and 5S were for the ‘big boys’, that it was another way for driving costs down’
A recognition we could improve our business
Business processes and systems were not linked
Limited ERP System………not linked
There was poor communication throughout the business
A core of good people but all working too hard
www.babcockinternational.com
Strictly Private and Confidential
WB Alloys SC21 Timeline
4 Years Ago
‘We began to appreciate what Lean meant and we were looking for a vehicle to develop and sustain the progress we were making ’
Found the vehicle to support organisation wide change
Invited by Babcock to SC21 cluster event
Engaged with program in Sept 2010 with the support of SMAS
Subsequently, implemented a change program based on SC21
www.babcockinternational.com
Strictly Private and Confidential
Employee Communication and Engagement
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Strictly Private and Confidential
Employee Engagement and Satisfaction
www.babcockinternational.com
Strictly Private and Confidential
End
Complete formal Appraisal Program by November annually.
Document completed Appraisals in Employee Appraisal Tracker 20xx-20yy
Review effectiveness of Appraisal Process at annual Quality Management System (QMS) Review– refer to QMS 5.6.2 and at Quarterly Management Reviews – refer to QMS 5.6.1
Document completed informal Appraisals in Employee Appraisal Tracker 20xx-20yy
Complete all ‘informal’ Appraisals by October annually
Start
Formal Appraisal process is directly linked to the end of the annual Strategy development program. This is so that we can link the individual personal objectives to the strategies. This in turn builds awareness, understanding and ownership of contribution throughout the business
Informal Appraisal process runs alongside the formal providing regular (approx monthly) opportunities for feedback.
Best practice Appraisal Process
www.babcockinternational.com
Strictly Private and Confidential
Skills Matrix
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0 10 20 30 40 50 60
Leadership
Strategy
People
Partnership & Resources
Processes
Customer Results
People Results
Society Results
Key Results
Target 2014
April 2012
Bronze Award Business Excellence Score
Criteria
April 2012 Target 2014
Leadership 35 45
Strategy 29 40
People 16 45
Partnership & Resources 45 60
Processes 27 40
Customer Results 11 30
People Results 4 40
Society Results 4 25
Key Results 19 34
Excellence score 206 392
www.babcockinternational.com
Strictly Private and Confidential
WB Alloys SC21 Program Timeline
3 Years Ago
Revitalising our operational areas through continuous
improvement
Before
www.babcockinternational.com
Strictly Private and Confidential
3 Years Ago
Revitalising our operational areas through continuous improvement
After
“we have all become more involved in how all the departments work together, we were given a free reign to re-organise the stores and our working environment with the
management support” Andrew Murray Storeman, WB Alloys
WB Alloys SC21 Program Timeline continued
www.babcockinternational.com
Strictly Private and Confidential
2 Years Ago
“This is a significant achievement for your company and staff”’
Fergus Ewing, MSP for Energy, Enterprise & Tourism
Bronze Award achieved September 2012
WB Alloys SC21 Program Timeline continued
www.babcockinternational.com
Strictly Private and Confidential
Now
“We all are working as a team and look forward to coming to our work” Gary MacRae Internal Sales, WB Alloys
Our business is stronger
Better communicators
Employees are empowered
Increased process efficiency
More productive working relationships with our customers
A platform for continuous improvement
Carried out RMM with key customers
WB Alloys SC21 Program Timeline continued
www.babcockinternational.com
Strictly Private and Confidential
Our Vison / Our Mission
All employees were fully engaged in building our Vision, Mission and company values statements
There is a great sense of pride across the team in being able to say ‘this is us ‘.
www.babcockinternational.com
Strictly Private and Confidential
The Future
‘If SC21 goes tomorrow – we will still continue our journey towards Lean and best practice’
Paul Houston Managing Director, WB alloys
Continue to implement our improvement plan (CSIP)
Aiming for SC21 Silver recognition by end 2015
Continue to develop our people
Expand our RMM’s with our customer and supplier base
Re-invest our profits to further develop our product range
WB Alloys SC21 Program... the future.
www.babcockinternational.com
Strictly Private and Confidential
Case Study: The Project
QEC Aircraft Carrier assembly in Rosyth
The largest ship ever built for the Royal Navy
65,000 tonnes displacement
2nd ship build also underway
www.babcockinternational.com
Strictly Private and Confidential
Case Study: The Problem
Millions of man hours required for the build
Small process improvements can save significant amounts
Need to work with the supply chain to deliver innovation and save the defence industry money
Collaborative working relationships are paramount to project success
www.babcockinternational.com
Strictly Private and Confidential
Case Study: The Solution
Changed traditional weld
preparation from single “V” to square edge
Innovation
Changed from flux cored wires to
automated sub arc wires +
fluxes
Flux Core
Cored Sub Arc wires gave
highest productivity +
used high efficiency flux
Sub Arc
www.babcockinternational.com
Strictly Private and Confidential
Case Study: The Benefits
“A relationship built on collaboration and trust has delivered innovative and cost effective solutions that has saved the QEC Project a significant sum on 3.2 kilometres of welding”
Welding productivity up 43%
Preparation time down 22%
Welding man hours down 22%
www.babcockinternational.com
Strictly Private and Confidential
Key Messages
1. WB Alloys have a better business as a result of implementing SC21 principles
2. Babcock has realised benefits for its customers in the defence industry and other markets
3. Overall there is increased collaboration and trust, leading to a more effective and sustainable working relationship
www.babcockinternational.com
Strictly Private and Confidential
Thank You
Any Questions?
Mark Gilmour
Babcock (Rosyth)
Paul Houston
WB Alloy Welding Products Ltd
Colin Allan
Scottish Enterprise
Robert Cowan
Scottish Enterprise
Advancing UK Aerospace, Defence, Security and Space Industries
• 12:10 Award Winner presentations
Advancing UK Aerospace, Defence, Security and Space Industries
Bronze Re-Award
Winners
Plexus corporation (UK) Ltd Re Bronze Righton Aerospace Ltd - Bristol Re Bronze Stadium IGT Ltd Re Bronze
Advancing UK Aerospace, Defence, Security and Space Industries
Bronze Award
Winners
Hydrobond Engineering Ltd Bronze
Advancing UK Aerospace, Defence, Security and Space Industries
Silver Re-Award
Winners
MEP Ltd Re Silver
Righton Aerospace Ltd - Plymouth Re Silver
Righton Aerospace Ltd - Portsmouth Re Silver
Advancing UK Aerospace, Defence, Security and Space Industries
Silver Award
Winners
Axon Cable Ltd Silver HITEK Electronic materials Ltd Silver Thermacore Europe Ltd Silver
Advancing UK Aerospace, Defence, Security and Space Industries
12:30 Lunch
13:30 Thales tour / extended networking
14:30 End of meeting
Task Force Event 2015
18 + 19 Nov 2015
Bristol, Holiday Inn (TBC)
Supported by WEAF Annual Dinner
Supported by Industry