Welcome & Industry Update

Neil McKay

Chairman of NWAA 22nd March 2013

v7 2

09:00 Welcome & Industry Update

Neil Mckay– Chairman of NWAA

09:15 Development and Deployment of Technical Capability Assessments

Neil Mckay– Chairman of NWAA

09:45 Extended Enterprise Update

Chris Holt – NWAA ASCE2 Extended Enterprise Project Lead

10:15 IOMAC Update and DED update

Adrian Moore- IOMAC Chairman and DED Development Manager

10:30 COFFEE BREAK

11:00 DHL Global Logistics

Stuart McCudden & Marja-Liisa Turtiainen

11:45 Dave Currier – Rolls Royce Programme Manager SAMULET Research & Technology

12:15 WASHUP & AOB

12:30 LUNCH & NETWORKING

1.00 JTPE Cohort Workshop (invitees only)

A g e n d a

Welcome & NWAA Update

• Industry Updates

• Aerospace Growth Partnership (AGP)

• Aerospace Technology Institute (ATI)

• Defence Growth Partnership (DGP)

• NWAA International

• Winning Business in India

• Paris Air Show 2013

• NWAA Closer to home

• NWAA New Talent Awards

• Growing Autonomous Mission Management Applications(GAMMA)

• Shared Services

Industry Updates - AGP

Aerospace Growth Partnership

(AGP)

• The document was launched on

the 18th March by the Nick Clegg

(DPM)

• Funding of up to £1 billion to be

committed over several years

• The Government commitment to

the AGP process to be long term

(10 years)

Next Steps

• More insight expected very soon

Visual or Picture(s)

Industry Updates - ATI

Aerospace Technology Institute (ATI)

• Proposed funded programme worth

£2 billion over 7 years

• Some 115,000 jobs will be secured • An institute will be created with the

money to develop aircraft that are quieter

and more energy-efficient.

• Deputy Prime Minister Nick Clegg

announced the strategy during a visit to

Airbus in Filton, Bristol.

Next Steps

• Further definition of requirements

needed

Visual or Picture(s)

Nick Clegg: "ATI will provide a long-

term plan for success"

18 March 2013 Last updated at 11:51

BBC News England

Industry Updates - DGP

Defence Growth Partnership (DGP)

• Aims to build on the successful

Aerospace Growth Partnership

model

• A vision document for the aerospace

sector was launched by Business

Secretary Vince Cable at the

Farnborough Airshow in July

• Senior defence industry leader Steve

Wadey is the co-chair of the Defence

Growth Partnership (DGP)

Next Steps

• Defence industry implications yet to

be made

NWAA International - India

NWAA Winning Business in India • Key stakeholders working in partnership

– NWAA, ADS, UNIDO, UKTI, SIATI

• Pilot Programme to benchmark 6 Indian

suppliers

• Potential 3 year programme following an

ASCE 1/SC21 delivery approach

• Key aspect is developing UK-Indian

partnerships for collaboration and

mutual benefits

Next Steps • Confirm funding for pilot programme

• Secure funding for 3 year programme via

Indian Government

NWAA International – Air Shows

NWAA Paris Air Show 2013

• Paris Air Show celebrates it’s 50th birthday in 2013!

• The last Paris Air Show at Le Bourget in June 2011

broke all previous records in terms of numbers, with

2,113 international exhibitors, 355,000 visitors, 290

professional delegations and 150 aircraft present.

• The NWAA have secured space within the UK

pavilion in hall 2B and are offering the chance for

over 13 companies to exhibit with us.

• Taking part in overseas exhibitions is an effective

way for you to test markets, attract customers,

appoint agents or distributors and make sales.

UKTI’s Tradeshow Access Programme (TAP)

provides grant support for eligible SME firms to

attend trade shows overseas.

• The grant is £1,000, £1,400 or £1,800. The level is

set for each show after discussion with the

Accredited Trade Organisation (ATO) responsible for

recruiting for the event. Generally, higher grant levels

will apply to selected shows outside Europe.

Next Steps

• Pods and Shell Schemes and other options are

available

NWAA – Closer to Home - Awards

Talent Awards

• Region’s best & brightest young aerospace

engineers were honoured 1st March in ceremony at

Imperial War Museum, Manchester

• Guest Speaker - Kelvin Davies, Project Lead of the

UK Sports Technology Partnership at BAE Systems

• Top prize North West’s Best Apprentice, went to

Bradley Hodgson of BAE Systems, sponsored by

Neville Gee.

• The runner-up prize, sponsored by Preston College,

was awarded to Zayanah Mansor of Hycrome.

• Other winners included Xchanging HR Services

who carried off the training provider trophy

sponsored by Rock FM/Boom Radio, and Michael

Williams of Aircelle who scooped the One to Watch

trophy, sponsored by The Manufacturing Institute.

• Sponsors included: MBDA, Training 2000,

Wallwork Heat Treatments, Nelson and Colne

College , Burnley College, Aircelle, Rolls-Royce, BAE

Systems, University of Manchester Aerospace

Research Institute and XChanging HR Services.

NWAA – Closer to Home - GAMMA

Growing Autonomous Mission Management

Applications(GAMMA) • GAMMA Funding Call launched

o Do you have technology applicable to autonomous

systems mission management applications?

o Do you want funding and expert technical support to help

further develop your technologies?

If you answer "Yes" to those 2 questions then the GAMMA

programme can assist.

• GAMMA is a technology and next generation supply chain

development programme led by the North West Aerospace

Alliance in partnership with BAE Systems, National Nuclear

Laboratory Ltd and the Universities of Liverpool (including the

Virtual Engineering Centre), Manchester, Lancaster, Salford and

UCLAN.

• The GAMMA programme is specifically focussed on the

development of Mission Management Applications.

Next Steps • For a full application pack and detailed technology requirements

please go to: www.gammaprogramme.co.uk

Activity Date

1st Technology Call Open 27/02/2013

Final Submissions 05/04/2013

Review Submissions Deadline 19/04/2013

Technical Review Group Down select 23/04/2013

Steering Committee Review of recommended Proposals

25/04/2013

SME Presentations to Technical Review Group 30/04/2013

Feedback to successful / unsuccessful SME's 06/05/2013

Contract with successful SME's 17/05/2013

Kick-off SME GAMMA activity 17/05/2013

NWAA – Closer to Home - Shared Services

Aggregated Procurement

Brokerage -Generic commodities -Scope & service levels defined by Chamber Plus -Benefit of existing volume -No commitment

Services: Office Supplies, Utilities, Telecoms, Water, Courier, Fuel

Cards, Car Leasing, Business Rates Available: Now

Collaborative -Industry specific categories -Scope & service levels to be defined by CGs -Members commit spend & ‘own the deal’

Services: To be identified and developed by industry working

groups e.g. cutting tools, consumables

Available: March '13 Stationary Savings c14%

Courier Savings c12%

Key Presentation Elements

• Deployment (Commodities and Companies)

• Model Process

• Scoring (confidential)

• Solution Providers

• Summary

Deployment

Cohort 1 Cohort 2 Cohort 3

Machining

Machining

Process

Treatments

Process

Treatments

Process

Treatments

Process

Treatments

Machining

Machining

Machining

Machining

L2WC Deployment

Steering Group Review date:

21.11.12

Steering Group Review date:

W/C 13.02.13

Steering Group Review date:

W/C 13.03.13

Machining

Composites

Machining

Machining

Composites

Machining

Hollygate

Cohort 4

Composites

L2WC Deployment

Process Treatments

Process

Treatments

Steering Group Review date:

8.05.13

Composites – Moved from C3

Machining – New addition

Precision

ASCE2 L2WC Models

Improvement Plan aids

development Across the

L2WC model

L2WC Model Structure – “Process Control” Foundation Process

Self Assessment

Guide

Machining CG 9 Foundation Themes

Improvement Plan aids

development Across the

L2WC model

Improvement Plan & Project Control Documents

Project Charter

Templates

Project Plan Templates

Improvement Plan

Benefits of Improvement Plans

• Process Control: Developing the skills and awareness of the impact of inputs as well

as outputs to gauge the variability in existing kit to utilise FMEA analysis. Robust

processes in place (pre-flight checks, gauge R&R, machine probing) to aid and

support a 6 Sigma culture – Quality recognised as a Key Factor.

• NPI: Effective Project & Programme Management (customer data platform interfaces)

drive ERP and S&OP process to manage an integrated customer & supplier

requirements. Pushing the boundaries of RFT product introduction and risk

mitigation. QCD recognised as a Key Factor.

• Quality: Collation of data to migrate in-line to self-Inspection, investing in technology

to automate in-line inspection data & levels of Inspection. Root Cause analysis to

drive CI and reduce cost. Links to Process Control & Technology to drive product

accuracy. 6-Sigma recognised as a Key Factor.

• Asset Management & TPM: The transition from “Repair when broken” to productivity

driven, proactive Asset Management & TPM on delivery & quality cutting edge

performance. Methodology, Technology & Expertise to introduce multi- machining

resources and visual management of assets. Assets recognised as a Key Factor.

Machining Foundation Process

selections

Composites Foundation Process

selections

Treatments Foundation Process

selections

L2WC Solution Provider - Classification

Business Impact – Process Control

We are a national provider of results focused training, competitively delivered

nationally across most industry sectors.

The business works with companies of all sizes ranging from large multinationals to

small local businesses, delivering Apprenticeships (fully funded in many cases),

NVQs and commercial training. Whether you are looking for a 1 day bespoke

workshop or want to recruit and train staff as an Apprentice, Business Impact expert

trainers and support staff can help you with every aspect of this process.

Training Programme: Introduction to Quality and SPC

Duration: 5 days

Course Content: Days 1 & 2 - A foundation approach

Day 1 & 2 Why and What are the principles, drivers behind SPC?

1) Total involvement in quality

1.1 The relationship between specifications,

measurements and process capability

1.2 Communication and feedback of information

1.3 Justification of quality assurance activities

1.4 Supplier evaluation rating

2) Quality costs

2.1 Process cost model (BS 6143)

2.2 Prevention appraisal failure model

2.3 Taguchi loss function

Course Content: Days 3, 4 & 5 - A practitioners approach

Day 3 & 4 How do we apply these principles?

Day 5 What do I do now, effectiveness in the workplace?

3) Statistical process control

3.1 Process capability studies

3.2 Statistical process control charts

3.3 Calculation and use of decision lines

5) Variability

5.1 Continuous and discrete random variables

5.2 Probability distributions

5.3 Binomial and Poisson distributions

5.4 Application of acceptance sampling by attributes

5.5 Construction and interpretation of operating characteristic curves

4) Reliability

4.1 Basic concepts of series and parallel

systems

4.2 Use of redundancy to improve reliability

4.3 Interpretation of time life distribution in terms

of probability density function and reliability

function

Cont...

Summary

Summary

• Customers actively involved and enthused

• Feedback from companies is very positive

• It can be deployed alongside any business

improvement programme

• It is directing and enabling:

• Investment, skills management, workforce planning,

efficiency, cost and technical capability

• Pre-curser to extended enterprise capability and

performance

Questions

Extended Enterprise Supply Chain Solutions

Chris Holt

ASCE2 Extended Enterprise Project Lead

IoM Update

22nd March 2013

Mission

Delivering Bigger & Better

Solutions through Collaboration

Short Resume – Chris Holt

• Joined the North West Aerospace Alliance (NWAA) Preston Office in January 2012 as the Project Lead on

the Extended Enterprise Aerospace Supply Chain Excellence 2 (ASCE 2) Programme (EEP).

• Bring with me a wealth of global aerospace industry market and contracting knowledge and experience

following my 31 years with BAE SYSTEMS latterly as a Procurement & Supply Chain Manager.

• MAJOR ACHIEVEMENTS (within BAE SYSTEMS)

– Led multi-functional team to achieve tangible 25-35% cost reductions on aircraft programmes

– Pioneered bid management processes (for both sales & procurement)

– Won c$500m in bids in three years out of USA

– Optimised procurement supply chains within bids valued in excess of £300m

• The circa £12m ASCE 2 builds on the successful foundations created by the £8m ASCE 1 programme, with

both programmes strongly supported by the UK Primes.

• As Project Lead on the EEP my goal is to develop and achieve the project outputs and objectives agreed

under the contract with the funders through the implementation of the project strategy and project plan.

Extended Enterprise - Project Update Mar 2013

• Project Reminder

• Previously……

• Project Update - What have we done since our last update?

• Questions for Customers & Suppliers

• The Benefits & Risks

• Any Questions?

Vision & Mission

• To be recognised as a Sustainable, World-class

Extended Enterprise

• To Deliver Bigger & Better Solutions through

Collaboration

The Extended Enterprise Vision

The Extended Enterprise Mission

Extended Enterprise – Project Reminder

WHAT is it?

• Extended Enterprise is the culmination of a strategy that harnesses the complimentary skills, resources, capabilities of like-minded

companies, aggregating procurement and integrates the depth of their capacities to offer Customers a more cost effective supply

chain than a traditional supply chain structure.

WHY is it needed?

• Primes and Tier1’s are increasingly looking for suppliers who can support larger, consolidated work packages through assured

delivery and where risks are shared and pricing is competitive.

WHERE is it happening?

• It is certainly available in the North West of England. The NWAA is integrating the breadth of capabilities and depth of capacities

across circa 35 NW regionally based suppliers to pioneer Extended Enterprise supply chain solutions for a range of global

aerospace Customers. NWAA offers the most advanced form of Extended Enterprise.

WHO is involved?

• A range of appropriate suppliers are involved across the aerospace life cycle curve. They offer Design/ Engineering, Tooling,

Machining, Composites, Fabrications, Sub-Assembly and Assembly, Process Treatments, Materials Supply and Logistics.

HOW is it implemented?

• NWAA has developed appropriate documents / models that have been tested; are being used in real bid situations and provide

the framework for forming, operating and delivering Extended Enterprise work packages.

1. Commercial Model

2. Collaboration Agreement

3. Collaboration - Readiness Assessment Tool (C-RAT)

4. Financing the Extended Enterprise

5. Strategic Industry Mapping

WHEN is it happening?

• Right Now!

CUSTOMER

WORK PACKAGES

Vertical & Horizontal

Collaboration

LEAD PARTNER

Vertical Collaboration Role of NWAA:

• Facilitator & Networker

• Marketing & Supporting Bids

• Collector of both ‘hard’ and

‘soft’ performance data

• Maintaining data dashboard

• ‘Honest broker’ between

partners

NWAA Extended Enterprise Lead Partner Model

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• NWAA EXTENDED ENTERPRISE

offers:

• Commodity Integration

• Collaborative Supply Chain

• Reduced supplier interface

• Business Continuity – risk mitigation

• Transparency

• Better Value Solutions

We believe our Extended Enterprise approach offers sound and attractive business propositions

Asy DesEng

Comp-

osites PT Alum

Machining Ti

M/c

Project Reminder - Short Abstract

The principle of Extended Enterprise culture is a rapidly

developing area that views demand and supply chains as

linked, unified, emerging industry systems which require

business processes and structures far beyond those used in

single companies.

Previously…….

•A small Core Group with global footprint has been formed by NWAA

•The Core Group have signed a MoU and NDA

•A “Draft” Collaboration Agreement has been developed in readiness for potential Lead Partner

“cluster” engagement and interface with Customers contractual requirements.

• Core Group is used to working together collaboratively. They have Global supply chain capability

& have a successful track record of collaborations.

•NDAs have been signed with 2 Primes, 2 more are pending

•One significant Work Package is currently consideration by the Core Group & two Supporting

Partners

•EE is attractive to Primes where bigger work packages need a collaborative solution

•We have engaged with six leading Primes since end 2011 & beginning of 2012

•Strong levels of interest has been expressed from Primes that are keen to grow their businesses

without increasing headcount & remove waste from the supply chain

X

26

10 See later

v7 45

• 26 Customers targeted to date

• 18 Prospected

• 10 Signed up NDAs

• 9 Opportunities / Work Packages

• 4 RFQ’s received

• 3 Proposals submitted

• 2 Bids

• 0 Wins to date

Extended Enterprise Progress Update – Mar 2013

EXTENDED ENTERPRISE PIPELINE

16 individual Suppliers

Across 30 multiple opportunities

v7 46

Extended Enterprise Progress Update – Mar 2013

Work Package 1

• Make-to-Print

• Major structure

• Multi-Commodity

• Multi-million $ bid

• Opportunities for alternative

manufacturing approach

Issues/Challenges

• Time taken in establishing NDA

• Stakeholder engagement process

• Identifying appropriate work package(s)

• Extended Enterprise branding

• Bid response timescales were tight

v7 47

Extended Enterprise Progress Update – Mar 2013

SUMMARY LESSONS LEARNT _ Work Package 1

Major areas of learning arising from both CUSTOMER & NWAA Extended Enterprise

representatives coming together to share their experiences, misunderstandings and

reflections of events and processes

Areas for Improvement

•Customer internal communication process

•No prior visibility of the commodity streams & envelope sizes

•Prior discussion could have better managed each party’s expectations

•Readily available bid templates to shorten the proposal response timescales

•The Extended Enterprise branding could have been clearer

•There was just enough information provided for a ROM bid

•Response timescales were longer than normally expected by CUSTOMER

•Evaluation did not consider other value benefits eg Vendor Managed Inventory

v7 48

Extended Enterprise Progress Update – Mar 2013

Work Package 4 • Looked at a single commodity stream

• Extended Enterprise Customer was a

Tier 2

• Process was halted by EE Customer’s

Customer

• Opportunity for Bid Process Learning

v7 49

Extended Enterprise Progress Update – Mar 2013

Work Packages 3 & 6

• Bids submitted and under evaluation

by Customers

• Commercially sensitive

Work Packages 2, 5, 7 & 8

• At varying stages of requirements

definition with Customers

• NWAA in dialogue with Customers

• Extended Enterprise Collaborative

Teams yet to be confirmed

Opportunities

• Early customer discussion phase

WP 6

submitted

• We have a number of Work Packages on the go

• Clearly from a Commercial sensitivity viewpoint we cannot disclose specific details

• Suffice to say they span different Commodity Streams (Machining/Composites/Processing)

• Values ranging from $0.5m to in excess of $500m

• Work Packages requiring anything from 2 to 7 companies working in collaboration

NWAA Extended Enterprise

A Collaborative Supply Chain Approach

Mission

Delivering Bigger & Better

Solutions through Collaboration

Work Packages

Extended Enterprise – BENEFITS to a CUSTOMER

Single point Lead Partner contact per Work Package

• Reduces the number of directly interfacing suppliers and retaining value for money

• Opportunities for consolidation of commodity packages

• Fewer tiers in the supply chain

• Customer has some say in who is a partner

The Lead Partner manages the Supporting Partners

• Same ‘back-to-back’ commercial basis, but enhanced by joint liabilities proportional to the value of work

• Customers have exactly the same contractual protection as before

• Less commercial risk to the Customer

Collaborative structures to limit risks

• Methods for resolving problems are established

• Lead Partner has a greater ability to bear the risk

• Lead and Supporting Partners are “all in it together”

• Potential for absorbing / sharing risk eg NRCs, $ dollarisation (on a case-by-case basis)

• Better Business Continuity Management (BCM)

• Collaborative, flexible & agile supply chains

• Supports big bids – does not compete

Financial strength and stability of suppliers with routes to finance, if needed

• Shared Service optimisation to reduce costs

Innovation

• More likely to occur through collaboration & a partnership approach to continuous improvements

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Extended Enterprise – The RISKS!

It’s new, presents change and nobody wants to be first!

Potential Customers do not fully understand Extended Enterprise

• The steps required leading up to work package sourcing decisions

• Customer and Supplier bidding processes not fully developed to date

The window of opportunity for Extended Enterprise is closing

• Use it or lose it!

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Primes / Tier 1s / Customers – What are you looking for?

• Would you like to reduce the number of directly interfacing suppliers?

If the answer to any of the above is “yes” - contact us today to discuss your needs.

NWAA Extended Enterprise Project Lead – Chris Holt

T: +44(0)1772 648800 or email: chris.holt@aerospace.co.uk

• Are you looking for your Supply Chain delivering bigger and better solutions?

• Do you have a need for flexible and agile supply chain solutions?

• Would you prefer your supply chain to better manage New Product

Introduction (NPI) risks?

• Are you looking to lower your overall total acquisition costs?

• Are you looking for risk sharing and transparent supply chains?

• Would you prefer work being undertaken at the right price & level in the

tiering structure?

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Supply Companies – What are you looking for?

• Would you like to minimise your marketing activity?

If the answer to any of the above is “yes” - contact us today to discuss your needs.

NWAA Extended Enterprise Project Lead – Chris Holt

T: +44(0)1772 648800 or email: chris.holt@aerospace.co.uk

• Are you looking to sustain and grow your business?

• Do you need the support of other companies in order to offer truly agile

supply chain solutions?

• Would you prefer to secure longer term and more strategic work packages?

• Are you looking to lower your overall operating & overhead costs?

• Are you looking for risk sharing and transparent partners?

• Do you lose more bids than you win?

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Thank You

Any further Questions or Discussion Points?