WEAF presentation 01 · PDF file• Current supply chain performance represents a...

Take Flight

25th February 2015

AIRBUSStephen Gregory

Supplier Development Manager

© AIRBUS Operations LTD. All rights reserved. Confidential and proprietary document.

AgendaMonth 20XX Use Tab 'Insert - Header & Footer' for Presentation Title - Siglum - Reference

ContinuousImprovementAirbus

PastPresentFuture


AIRBUS - Past and present

• Growing since 1974

Month 20XX Use Tab 'Insert - Header & Footer' for Presentation Title - Siglum - Reference

0

200

400

600

800

1000

1200

1400

1600

1800

Airbus orders and deliveries 1989 to 2014

Deliveries


AIRBUS - Past and present

• Growing since 1974


0

200

400

600

800

1000

1200

1400

1600

1800

Airbus orders and deliveries 1989 to 2014

Orders

Deliveries

Current backlog of >6300 A/C

Equivalent to ~10 years of

work


AIRBUS – The futureMonth 20XX Use Tab 'Insert - Header & Footer' for Presentation Title - Siglum - Reference


GMF: Air travel remains a growth market



GMF: World Population growth 1950 - 2050

Today = 7 Billion


GMF: Air travel remains a growth market

GMF: Global Market Forecast


• In the last 10 years Airbus has• Doubled its annual aircraft production rate

• Orders have outstripped production• Airbus has over 6300 A/C in backlog• Equivalent to approximately 10 years of work at current rates.

• Airbus is increasing production rates to decrease the backlog

AIRBUS - Challenge or Opportunity?



Airbus will expand to meet our customers requirements

Is the UK supply chain ready and / or able to meet the challenge?

AIRBUS Paradox



AIRBUS - Supply chain


• Current supply chain performance represents a significant risk to Airbus expansion.

• Airbus has a choice to de-risk it’s supply chain:• Dual sourcing (tier 1 and below)• Optimising current supply base

• Airbus committed to supplier development at all tiers within the supply chain

• Airbus growth represents a key opportunity for UK suppliers to grow and increase market share• It is up to you if you want to be part of the future…


Continuous improvement



Continuous improvement

• ISO 9000 series and EN9100 require approved companies to continuously improve

• Your customers are paying for 100% OTD in full and 0 ppm defects

• If you are not delivering to these levels then you need to implement Continuous improvement.

• There are several schemes to choose from• Airbus also actively supporting

• SC21 (Supply chain 21st Century)• SPACE (European version of SC21)• AGP (Aerospace growth partnership)• SIG (Sharing in growth)

• Government funding is available for qualifying companies



Working capital cycle

• Need to move this cycle as fast as possible

CashCashin

Rawmaterials

Cashout

CashOut

WIP

CashOut

Finished goods Cash

Out

Debtors

CashOut


Working capital cycle

Cash

Rawmaterials

Cashout

WIPFinished goods

Debtors

To improve asset utilisation

We need to decrease the amount invested in each

area

This will allow us to increase the revenue from every £ of expenditure, and hence increase the speed of the cycle


SC21 programme

• Structured proven approach• By industry – for industry

• Business efficiency• Delivery• Quality• Management and business approach• Metrics to drive the right behaviours• Planning

• SC21 does this for you


Visual Control

Businessefficiency

Relation-ship

Manage-ment

Best Practice

LT reduction

Standard-ised

processes

Quality tools

Workplace organis-

ation

Comm-unication

Manage-ment

commit-ment


What is in it for my organisation?

• Leaner production• Decreased cost of quality• Decreased inventory• LT reduction

• Workforce involvement / motivation• Improved skills and knowledge

• Better business information• Visual controls

• Improved customer / supplier relationships• Better quality and delivery performance to customers• Increased competitiveness

• Don’t just believe me, • Ask an SC21 award winning company about the benefits…



• SC21 directly affects working capital and profitability

• SC21 is a journey, not a quick fix…• You must engage with the programme• It will not be done to you.

• SC21 is not ‘Jobs for the Boys’

• SC21 is about your company being competitive in world markets

• If you are not engaged, Google SC21, contact ADS, WEAF or me!

SC21



Summary

Can your business afford to nottake part in continuous improvement?

In this industry ‘death’ can take a long time, it’s up to you if you want to lose out…

Survival is not compulsory!



Ask yourselves some questions?

• Is your organisation the first choice of your customer for the product or service you provide?

• Are you meeting your customers expectations and delivering on time every time?

• Do you consistently provide 100% quality, in full delivery?

• Is your organisation receiving the recognition its performance deserves?

• Is my business growing?

If not, why not?


Any questions on the journey to date, or the future…?


WEAF presentation 01 · PDF file• Current supply chain performance represents a...

Documents

Transcript of WEAF presentation 01 · PDF file• Current supply chain performance represents a...