supplier management establishing supplier management as a strength
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Supplier Management Establishing Supplier Management as a Strength. Thomas W. Thrailkill Boeing Space & Intelligence Systems Supplier Management October 2008. Discussion Agenda. The Integrated Defense Systems (IDS) Supplier Management Path Forward - PowerPoint PPT PresentationTRANSCRIPT
Copyright © 2008 the Boeing Company. All rights reserved
Supplier Management
Establishing Supplier Management as a Strength
Thomas W. Thrailkill
Boeing Space & Intelligence Systems Supplier Management
October 2008
2Copyright © 2008 the Boeing Company. All rights reserved
Discussion Agenda
The Integrated Defense Systems (IDS) Supplier Management Path Forward
Space & Intelligence Systems Supplier Management Initiatives
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IDS Supplier Management Path Forward
ImproveSupplier
Performance
Contractingand
Risk Management
EarlySupplier
Involvement
Systems & Tools
People
Create Opportunities - Capture Value - Ensure Performance
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Supplier Insight and Control using Six Sigma
Top 100 Supplier Performance Improvement
Supply Base Management Supplier Partnership Initiative
Lean Engagements Common Buy Package Supplier Program Manager
Deployment
Market Strategies & Control Points
Strategic Make/Buy Enterprise Capability
Sourcing Strategies Enterprise Supply Chain
Strategies Capture & Proposal
Strategy, Execution & Transition
EAC / BAC Alignment to Prime Affordability expectation Risks aligned and managed Leverage Spend Terms and Conditions Supplier Diversity Strategic Work Placement Strategic Agreements
IDS Supplier Management Focus Areas
ImproveSupplier
Performance
Contractingand
Risk Management
EarlySupplier
Involvement
Create Opportunities - Capture Value - Ensure Performance
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Supplier Management as a Strength vs. Weakness
The Integrated Defense Systems (IDS) Supplier Management Path Forward
Space & Intelligence Systems Supplier Management Initiatives
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- Comprehensive competitive source selection process
- Standard buy packageSOW format, SDRLS, Quality documents, Specs,Data Item Descriptions, Program Reviews
- Standard checklists for formal reviews- Supplier Data Tool (SDT) to manage SDRL process- EPIC system for electronic storage of subcontracts- Standard purchase contract format- Standard change order log and format- Shared subcontract ownership through dedicated
IPT’s- DSAM Supplier Assessment Matrix- Government participation at all formal reviews- Standard performance metrics- Faster sourcing through use of ASAP- Boeing furnished material is the exception- More consistent same “face” representation for
technical leadership- Internal Boeing Risk management requirements
flowed to subcontractors- EScan tool provides Boeing visibility of supplier
corrective actions
- Supplier Quality post award requirements review
- Quality surveillance plan to identify important features for sourcing
- Open SDRL’s tracked in SDT
– Supplier Program Managers assigned to key critical subcontractors
– S&IS Supplier Enterprise Review Board
– IDS Common SSOW / MRD
– Capability Assessments
– Development Supplier Assessment Model (DSAM) & Leading Indicators
Improving S&IS Supplier Management
Improvements through 2007 2008 Forward
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Considerable Evidence Current Supplier Management Approach Needs Improvement
• Cost of Non-Quality (CoNQ) Related to Supplier Performance
• Wide Variation in how Suppliers are Managed Within the Program and Shared IPT Structure
• Insufficient Visibility into Critical Space Processes & Control
• Performance Metrics Production Oriented
EAC Growth Uppers(Example from one IDS Division)
56.00%
33.00%
6.00% 5.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Engineering Supply Chain Other Production
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S&IS Supplier Conferences Identified Management of Suppliers as an Area of Opportunity to Improve Execution
Multiple Interfaces between Boeing and the Supplier
Timely and Complete Product Definition Missing
Conflicting Requirements and Priorities
Lessons Learned are Not Consistently Carried Forward from Program to Program
No central person with the RAA responsibility to focus and direct the effort required from ALL functions needed to fully manage a supplier
Supplier Conferences Confirmed Need for Improved Management Approach
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Supplier Program Manager
Focused interface with the Supplier
Held accountable for execution (2-way interaction: Boeing and Supplier)
SPM RAA:• Responsible for Supplier execution and
product integrity• Integrates and facilitates resolution of
technical and business issues• Establishes and evaluates performance
measures, metrics and leading indicators• Accountable for Supplier Improvement
Plan and actions• Collaborates with Supplier to understand
their capabilities related to program requirements & future growth* Systems, Sub-systems, Units Suppliers
Supplier *
Formalized Through Program/Team Execution Plans
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Supplier Program Manager Attributes for Success
IDS/S&IS experience has shown that successful SPM deployment depends upon:
Appropriate skills & experience level commensurate with the subcontract complexity
Technical, programmatic and business acumen
Balanced cross functional vs. singular subject matter concentration
Mentoring and training from functions
SPM and support team assigned with clearly defined RAAs Must address interfacing organizations (Program IPT, Shared IPT,
Supplier, and Supplier Management)
Documented and approved in Program Execution Plans, etc.
Consistent and disciplined implementation Executive leadership endorsement
Valued skill set and recognized career path
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Supplier Enterprise Review Board Cross-Functional Review of Critical S&IS Suppliers
A. Review current contract area performance parameters
B. Identify areas of greatest need
Problem statements
C. Define improvement actions & determine best indicators to measure progress
D. Document in Supplier Improvement Plan (SIP)
A.Draw from “Best of Boeing”
• Standard Deck/specifics• DSAM (2-way)• AS9100 on-site reviews/audits• Award Fee • Process escapes/non-
conformances• Contract
status/definitization/changes• Capability assessments• Major milestone readiness• Change process cycle time
A – Performance
B – Needs
C – Actions & Progress Indicators
D - Improvement
MA
Q / SQOps
Eng
SMFunctional
Tool Kit(Best of Boeing)
Forum to Address Supplier Performance Issues Affecting Multiple Programs
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IDS Common Supplier Statement of Work
Purpose:
To Deploy Boeing Best Practices to Suppliers:
Finance - Earned Value Management
Mission Assurance
Program Management
Supplier Management
Systems Engineering
Drive common processes between Boeing and our suppliers
Provide for common templates and tools in the execution of program objectives
Align supplier execution strategy with program objectives
Leveraging Proven Best Practices
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Capability AssessmentsFocus Areas During Review
General Factory Controls
Training programs and processes
Quality Controls and Quality Processes
Supplier Management/Control
Configuration/Change Management
Parts Materials and Processes (PMP)
Planning Processes
Assembly & Test Processes
Manufacturing Engineering
Supplier unique processes
CategorySection
LeadFocus
Area LeadGap
Assessment
ESD ControlsLab MaintenanceEquipment Controls (SPC)Calibration Controls & Delinquency RatesEquipment Qualification & Certification ProcessShelf Life Material ControlsLab Environment Controls (Humidity/Temp)Tool Control & CertificationAlarms (humidity, temp, dew point on ovens, chambers, freezers, Gn2)Flight vs. Non Flight controlsTooling/Tool ControlPackaging & HandlingSafe Move ProcessEstimated Years of Experience with space qualified hardwareCulture/RAA (Quality focus, stove-piped thinking, attention to detail
Factory Controls
Inspection Check ListAudit of inspectors by QAE (Monthly)Mfg Engineer/Process Engineer Work InstructionEscape Documentation ProcessMRBPhoto ProcessQuality MetricsCABs/RCCAQuality Data SystemsMove Safe ProcessPackaging & HandlingEstimated Years of Experience with space qualified hardwareCulture/RAA (Quality focus, stove-piped thinking, attention to detail
Quality Control & Quality Process
CategorySection
LeadFocus
Area LeadGap
Assessment
Electronic Assembler CertificationsTest Technician CertificationsInspector TrainingGeneral Electronic Assembler Training SchoolCommand media - Training course code DocumentationChip Capacitor installation TrainingJumper Wire installation TrainingCertifications recorded in centralized tracking systemCertifications to space standard solder specifications (NASA & MIL-STD)Estimated Years of Experience with space qualified hardwareCulture/RAA (Quality focus, stove-piped thinking, attention to detail
Training
Planning ThoroughnessData Recording (temp. start/stop, torque values etc.)REA Work Instruction Review & SignoffPlanner Certification ProcessRed Line ProcessDocument Control (Storage & Retrieval)Drawing ClarityConfiguration ManagementPlanner VerificationEngineering Change Release ProcessPackaging and Handling on drawingsEstimated Years of Experience with space qualified hardwareCulture/RAA (Quality focus, stove-piped thinking, attention to detail
Planning Controls
Ensures ability to execute to Boeing/Customer standards
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Development Supplier Assessment Model
Provides a Means for 2-Way Assessment of Supplier and Boeing Performance on Development Programs
Five key areas: Technical, Quality, Management, Cost, Schedule
Used by Integrated Product Team, SPM & Supplier Mgmt. to Improve Boeing and Supplier’s Performance
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Summary
IDS SM Executing a Path Forward…
S&IS Focus on Key Initiatives Reflects Our Determination to Improve Management of Suppliers
Improving functional discipline and establishing accountability for improved supplier program performance - SPMs
Engaging both programs and functions in improvement activities - SERB
Bringing Boeing Best Practices to S&IS Suppliers – MRD/SSOW Earlier & Periodic Assessments of Supplier Capabilities – DSAM &
Capability Assessments
Supplier Management as a Strength
ImproveSupplier
Performance
ContractingandRisk
Management
EarlySupplier
Involvement