Supply Chain Supply Chain IntegrationIntegrationFebruary 24, 2014February 24, 2014

Jason CoxChief Technical OfficerCox Machine, Inc.

Aerospace components and assemblies since 1954

220 employees

~35M sales

Machining in Wichita, KS

Sheet-metal in Harper, KS

Major customers Spirit, Cessna, Vought, Beechcraft, Boeing

Supply Chain Integration ProcessSupply Chain Integration Process

Purpose (from TLD)The purpose …is to support Cox Machine’s business strategy by improving supply chain performance and increasing supply chain integration to ultimately increase customer satisfaction.

Supply Chain IntegrationSupply Chain Integration

Supplier Approval ProcessSupplier Approval Process(TLD 1-2-1)(TLD 1-2-1)

Approval Initiation ProcessSupplier Quality SurveysAS9100 Certification, NADCAP AccreditationFrequency of ApprovalReview, Approval and Documentation Requirements

Supply Chain Management and Supply Chain Management and Integration Process (TLD 1-2-1)Integration Process (TLD 1-2-1)

Cox Machine Supply Chain Management TeamCox Machine has developed a Supply Chain Management Team to control and manage the Supply Chain process. This includes the approval of suppliers as stated above in Section 2, but also to monitor and support the supplier in improving performance through quality, delivery and subjective topicsTeam Meetings are held on a periodic basis to review the Supply Chain Management process, ensure implementation of assigned action items arising from such meetings, and setting new action items to further implement this established process.  A Supply Chain Management Team action item listing shall be maintained

Supply Chain Management and Supply Chain Management and Integration Process (TLD 1-2-1)Integration Process (TLD 1-2-1)

Supplier Ratings and Criteria (Quality, Delivery and Subjective)

Key suppliers comprised of all commodities (Raw Material, Hardware, Outside Machining and Outside Processing) based on spend dollars and usage shall be rated on a monthly basis on the following criteria –

Quality – ObjectiveTotal parts received with defects divided by the total number of parts received within a particular month.

Delivery – ObjectiveBased on an acceptable delivery period of five (5) days early and zero (0) days late.

Cost Competitiveness – SubjectiveTimely Response/ Service – SubjectiveOpen Capacity/ Availability – Subjective

Supplier Meetings – AgendaSupplier Meetings – Agenda(TLD 1-2-1)(TLD 1-2-1)

Representatives derived from Quality Assurance, Purchasing, Production Control or any member of the Supply Chain Management Team shall facilitate the meetings with suppliers.

The supplier meeting agenda shall consist of reviewing the criteria of the Supply Chain Program, and shall also consist of reviewing each of the five (5) objective and subjective ratings as stated in 3.1.2.1 a. through e.

Supplier Meetings – Improvement Supplier Meetings – Improvement Projects (TLD 1-2-1)Projects (TLD 1-2-1)

Suppliers that have ratings that are not up to the established criteria shall be issued improvement targets with a specific timeline for improvement as part of the meeting agenda. Full support and involvement from Cox Machine will be offered as needed. If the supplier fails to meet these improvement targets within the established timeframe, a follow up meeting may be scheduled, and a specific action item plan will be required to be generated by the supplier. Based on the capabilities and resources of the supplier Cox Machine, Inc., may opt to issue it’s own specific assigned action items.  The meetings will also be an opportunity for other issues of concern to be discussed either on the part of the supplier or Cox Machine, Inc. Based on valid Supplier concerns, action items on the part of Cox Machine, Inc. may also be established to ensure improvement on issues where Cox Machine may be lacking.

Meeting Meeting AgendaAgenda

RatingsRatings