sc21 industry working together

TÜV SÜD Product Service Slide 1 27/02/2014

SC21 Industry

Working Together An overview of SC21 and TÜV SÜD Case Study Mike Harrison Director ABSL

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The challenges to our industry – sector growth


• The aerospace industry is over the next 20 years forecasting new aircraft

requirements which are unprecedented in aviation history

Airbus

Bombardier

Embraer

Boeing

The expanding

world market is

real a opportunity

for the UK

aerospace industry

but also a threat

The challenges to our industry – globalisation in context


• The UK aerospace and defence industry is second only to the US in

terms of sales

• The expanding world market is threatening that position

The challenges to our industry – supply chain pressures


demand

regulation and accreditation purchasing power

costs

waste and duplication

offshoring

international economy

people and skills

Challenges

to aerospace

and defence

supply chains

business behaviours

market access

What is SC21?


• SC21 is an industry change programme designed to accelerate the

competitiveness of the Aerospace, Defence and Security (A|D|S)

industries by raising the performance of its supply chains.

• It is a national strategy, executed regionally

• Managed by ADS and Industry through the National Status Report

Why is SC21 necessary?


Where we were

• Disconnected, fragmented supply base

• Non standardised processes, waste &

duplication (i.e. metrics, auditing)

• Business relationships are sometimes poor

• The interests of different parties are not

aligned

• Standardise processes

• Remove duplication and hence reduce

costs

• Modernise business relationships

• Improve communications and

collaboration

• Increase efficiency and simplicity

• Increase innovation

The ultimate aim


• A world class supply chain in the UK to enable UK industry to become

No.1 in the world for Aerospace, Defence, Security and Space.

Who’s involved?


• Aerospace, Defence, Security and Space Primes and their Suppliers

• 700 SC21 signatories on the continuous improvement journey

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Active SC21 companies



SC21

How it’s delivered

SC21 – the scope of application


New business culture

2. Development

and

Performance

need increased

efficiency and

remove waste

3. Relationship

Management

need for better

end-to-end

communication

and collaborative

planning

SC21 is implementing 3 action

streams to drive transformation

and performance improvement

1. Certification &

Quality

Improvement

need to remove

repetition, and

unnecessary

duplication


• AS/EN91XX and NADCAP

Aerospace Quality Management System….AQMS


AS/EN91XX is the quality

management system for the

aerospace industry and

registration is becoming a

global requirement

International Aerospace Quality Group

Linked to AQAP2110

NADCAP Accreditation… † Performance Review Institute


• Nadcap accreditation is fast becoming a global requirement for suppliers using special processes –

Nadcap accreditation is a contractual requirement and not a mandatory AS/EN9100 requirement • Nadcap involves a stringent audit by PRI† personnel

• Nadcap has been up and running for 17 years and now include:

Chemical Processing, Coatings, Composites,

Elastomer Seals, Heat Treating,

Materials Testing Laboratory,

Non-destructive testing, Sealants and Welding,

Printed circuit boards



1. Certification &

Quality

Improvement

need to remove

repetition, and

unnecessary

duplication

3. Relationships

Management

need for better

end-to-end

communication

and collaborative

planning




2. Development

and

Performance

need for

increased

efficiency and

remove waste



• Performance metrics

• Sustainable improvement

• Improvement framework

• Recognition





• Recognition

Measuring performance


• Positive improvements in quality, cost and delivery

(QCD) performance are achieved by consistent

measurement and continual improvement of the

processes.

• As companies improve their processes this will reduce

rework and scrap, the need to hold additional

inventory, reduce overtime and expediting - all of

which increase costs in the supply chain.

• The aerospace and defence industry sector have an

agreed set of measures that may be used by SC21

companies to assess their internal performance.

Measuring performance - quality


• Customer acceptance or reject rate are a good indicator of quality and

customer satisfaction.

• Meeting quality targets not only improves customer satisfaction but also

reduces your costs by eliminating scrap, rework and unnecessary

inspection.

• ‘Rejects' = units out of specification and not accepted on concession.

Measuring performance - delivery


• Delivery schedule achievement is fundamental to a high performing supply chain

• Poor performance in this area has a detrimental effect on both customer satisfaction and

customer performance.

• A product or service may be deemed to be on-time if it arrives to schedule within a

defined ‘window’.

• That time window will be set by the customer and may be in terms of hour or days early

or late.

Measuring performance – SC21 Targets


Delivery and Quality performance is measured against a 12 month rolling

average





• Recognition

Sustainable improvement


• To eliminate duplication SC21 companies

have agreed that each company in the

supply chain has a single improvement

programme that is relevant to all customers.

• Continuous and sustained improvement will

be driven by a clearly defined plan (CSIP)

• Plans will have a clear linkage to

performance metrics such as quality and

delivery.

• The improvement activity must be driven by

senior management.

sustainable

improvement



• The sustainable improvement programme shall be managed through the

application of a robust plan for the WHOLE business.

• The plan shall be subject to regular review by the management team and

the owners of the sub-elements.





• Recognition

Improvement framework


Two improvement frameworks have been defined by SC21 to form

the basis of a standard approach to supply chain performance

improvement, these are:

Business Excellence

(derived from European Foundation for Quality Management

[EFQM] model of excellence)

and

Manufacturing Excellence (based on the Kawasaki

Production System)

Acknowledgement The Excellence Model is EFQM copyright.

The ADS acknowledges the EFQM copyright and is grateful for the permission granted to reproduce it within this document.

Business excellence – the excellence model


• The structure of the model emphasises not only what a business is

achieving (RESULTS) but also how the results are being achieved

(ENABLERS).

..... the maximum points have been allocated to each criterion based on

benchmarks from a range of European blue chip companies

Leadership People

Strategy

Partnerships &

Resources

Processes,

Products &

Services

People

Results

Customer

Results

Society

Results

Business

Results

Enablers Results

Learning, Creativity and Innovation

Manufacturing excellence


• A framework for Lean

….supported by design related improvement methodologies VE/VA or QFD

5 ‘s’ housekeeping

people

job standardisation

7 wastes / SPC / quality tools

visual controls

material

kanban

processes

set-up reduction





• Recognition

Recognition framework


• Organisation that wish to be recognised for their achievements as a

participant on the SC21 programme will be assessed against the criteria

described in the recognition framework.

• ALL 4 criteria must be achieved to be eligible for an Award.

• The Award level will default to the lowest criteria level.



1. Certification &

Quality

Improvement

need to remove

repetition, and

unnecessary

duplication

2. Development

and

Performance

need for

increased

efficiency and

remove waste




3. Relationships

Management

need for better

end-to-end

communication

and collaborative

planning


Code of practice


The code of practice comprises five elements, focusing on:

• Communication

• Through life capability management

• Continuous improvement

• Commercial agreement

• Ethics

Relationship management


• The highest standard of relationship management will be achieved

through a structured engagement process involving all relevant functions

with regular reviews at operational and strategic levels.

• The supply chain Relationship Code of Practice is supported by the

Relationship Measurement Matrix [RMM], which is used via a facilitated

process, to assess and develop the relationship between organisations

throughout the supply chain.

RMM application process


SC21

Step by Step

SC21 – the 4 step model at a glance


Contact your most important

ADS customers, ask them if

they want to support you.

Ask them to provide regular

information on your

performance.

Agree your quality and

delivery and support

performance and review

regularly

Agree the quality certifications

needed

Undertake a set of diagnostics

based on world class

performance, covering the

management, operations,

relationships and business as

a whole

Use the diagnostics to build

an overall improvement plan

for the business, with clear

actions that lead to world

class performance and make

a difference strategically and

day to day. Review this

regularly and keep fresh.

When you have met the

targets for an award,

(diagnostics and quality and

delivery), submit a

presentation to the community

for approval.

Awards are given at Bronze,

Silver and Gold levels of

performance.

The order of application of the Diagnostics will be determined during Step 1 Programme Engagement

The model (and what it really means)


Sc21

Benefits and attributes of award winning

companies

Attributes seen in award winning companies


• A strong relationship with their customer. (All have done an RMM Workshop)

• Clear grasp of their own capacity and capability constraints. (They turn work away if they don't have the capacity or capability)

• They have customers who know their supplier and manage them well

• Continuous improvement is done to win more business not because they are told to.

• Performance is about a mindset, if customer sees the value in a performance based relationship and is prepared to support, so will the supplier

• A Culture of continuous sustainable improvement through the employees in both supplier and customer.

• A senior management commitment

SC21 award companies


• SILVER • Active Electronics Ltd

• Aeroflex International Ltd

• AWS Electronics Ltd

• Axiom Manufacturing Services (Newport Wales)

• Axis Electronics Limited

• Dontaur Engineering Limited

• Ferranti Technologies

• Glenair Ltd

• Groveley Precision

• Hermitage Sheet Metal Ltd

• High Tech Engineering

• J W Kane Precision Engineering Ltd

• MEP Ltd

• Moyola Precision Engineering Ltd

• Propak Sheet Metal Ltd

• Rebound Electronics Ltd

• Reliance Precision Ltd

• Righton Aerospace Ltd (Plymouth)

• TÜV SÜD Product Service • Unipart Aerospace and Defence Ltd

• Wincanton AW

• Wincanton Ltd (Wattisham)

• Wincanton MRO (Yeovil)

• Wincanton Plc (Blackburn)

• Wincanton (Telford)

25 89

2

GOLD ITT Inter Connect Solutions (ICS) (Basingstoke)

Wincanton Plc (Houndstone)

BRONZE AAR International

AB Precision

Able Engineering Ltd

Accrofab Limited

Aero Stanrew Limited

Agusta Westland – EMC

All Metal Services Ltd – Belfast

Altran UK Ltd – PLM Division

Analox LtdBronze

Krempell Ltd

Antares Ltd

Arrowsmith Engineering

Artemis Optical Ltd

Astute Electronics Ltd

Axon Cable

Baker Bellfield Ltd

Bovill & Boyd (Engineering) Ltd

Castle Precision Ltd

Cinch Connectors

CT Production Electronic

Manufacturing Services

D & S Engineering Ltd

Denroy Plastics Limited

Derek Lane and Co Ltd

DHL Global Forwarding (UK)

Limited – Belfast

e2v

Ed Fagan Europe Ltd

Electroservices (Midlands) Ltd

Fasteq Ltd

Fourmasters Ltd

FSL Aerospace Ltd

Gooch & Housego

Graves Aircraft Components

Helander

HITEK Electronic Materials Ltd

Hone-All Precision Ltd

Invotec Ltd (Tamworth)

JJ Churchill Ltd

Keyford Precision Engineering

Ltd

Kingfield Electronics Ltd

Matt Black Systems Ltd

Merlin Flexible Circuits

Micro Spring and Presswork

Midd Aeromech Ltd

Morris Engineering Ltd

Murata Power Solutions

Nemco

New Breed Logistics

Newburgh Engineering Ltd

NFF Engineering Ltd

Old Engineering Ltd

Parafix Tapes and Conversions

Paramount Precision

Engineering

Photofabrication

Plexus

Polamco Ltd

Pre-Met Engineering Solutions

RD Taylor Ltd

Rediweld Rubber and Plastics

Rehau Ltd

Righton Aerospace Ltd

Righton Aerospace Ltd Bristol

Rockford Components Limited

Rodford Engineering Ltd

Rosenberger Micro Coax

Rotamic Precision Engineering

SL Engineering Ltd

South West Metal Finishers

Stadium IGT Limited

STS Defence

Systems Engineering &

Assessment Ltd

Trimite Technologies Ltd

Triumph Actuation and Motion

Control

TT Electronics Ltd (Rogerstone)

TTI Group Ltd (Letchworth)

TTI Inc

Universal Engineering Ltd

Vulcanium Metals International

Ltd

Wartsila Seals and Bearings Ltd

WB Alloys Products Ltd

Westminster Engineering Ltd

WG Jones Ltd

Wheelabrator Ltd

Wincanton PLC – (Middleton)

Wincanton Plc (Kingswinford)

Xcel Power Systems

ZOT Engineering Ltd

SC21 award companies



SC21

Putting the TÜV SÜD Silver Award into

perspective

TÜV SÜD


• TÜV SÜD are not your typical SC21 Company so why did they sign up to

the Programme

Consumer Goods

Medical Devices Telecommunications

Aerospace, Defence

and Machinery

BENCHMARKING

TÜV SÜD’s Vision


Story board


• Signed up to SC21 – August 2007

• Continuous Sustainable Improvement Plan Started – March 2009

• Bronze Manufacturing Excellence Assessment – Oct 2009

• Bronze Determining Excellence Assessment – Mar 2009

• Bronze Award Achieved – March 2010

• Increased RMM activity – Q3 & Q4 2012

• Silver Operational Excellence Re-Assessment – June 2011

• Silver Determining Excellence Re-Assessment – March 2011

• Silver Award – June 2013

• Regional Partners – FAC

• Strategic Partner – Sigma/ABSL

• SC21 Key Customers – BAE Systems, Cobham, Thales, WASP,

Meggitt Avionics, Aero Engine Controls

Planned improvements


• Regular internal auditing using the Diagnostic Assessment Toolset

• Increased training conducted to expand the knowledge of SC21 and LEAN across the company

• A Kaizan project in the Samples Stores department to bring it in line with the expected levels of efficiency required by SC21

• Increased 5S housekeeping activities around the whole site

• Increased development and use of the Improvement Framework

Before

5S Examples in

Stores

After

Improvement framework


The LEAN Vision

“To attain perfection, not when there is no

longer anything to add, but when there is

no longer anything to take away.”

Continuous sustainable improvement plan


• The Strategic Plan is integral to CSIP with all

key customer performance data incorporated

• As at February 2013 290 activities had been

initiated by the CSIP with 58% of these

activities completed

What about now?


Customer Delivery Quality

Cobham 96.4% 100%

WASP 100.0% 100%

Meggitt Avionics 100.0% 100%

Thales 97.1% 100%

BAe Systems 98.7% 100%

What next?


• Implement the LEAN Improvement Framework to

improve our overall performance

• Attract other aerospace customers to participate in our

SC21 programme

• Implement supplier rating and feedback

• Extend the performance measure metrics across other

market sectors

• Target of achieving SC21 Gold recognition by May

2015

How to get involved?


•If you would like to know more about SC21 or want to sign up to the programme or just want to talk to an organisation already engaged on SC21, go to the ADS Website: http://www.adsgroup.org.uk

•Also engage with Manufacturing Advisory Service (in England) who have funding that will support SC21 activities.

•If you would like help in getting started or progressing your current SC21 activities, talk to me after the session. My details:

•Email: [email protected]

http://www.adsgroup.org.uk/

mailto:[email protected]


Thank you

Any Questions?

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