sc21 task force 25 june 2015 thales, glasgow · 2019-09-27 · sc21 task force 25 june 2015 thales,...

Advancing UK Aerospace, Defence, Security and Space Industries

SC21 Task Force

25 June 2015

Thales, Glasgow


Agenda 25 June 2015

09:00 Registration & Coffee

09:30 Welcome & Introduction – Phil Curnock, ADS

09:40 Thales – Alan Haigh, LAS UK Purchasing Director

10:00 Regional Update – Nick Shields, Scottish Enterprise

10:20 Procurement Excellence – Andy Brown, Procurement Director, Selex ES

10:40 ADS Update – Ian Watson, ADS

11:00 Coffee Break & Visit to company Stands

11:30 SC21 Programme update – Phil Curnock, ADS

11:45 SC21 Case Study – Paul Houston, WB Alloys

12:10 Award Winner presentations

12:30 Lunch

13:30 Thales tour (or extended networking)

14:30 End of meeting


• 09:30 Welcome & Introduction –

Phil Curnock, ADS


• 09:40 Thales Presentation –

Alan Haigh,

LAS UK Purchasing Director

www.thalesgroup.com

THALES GROUP INTERNAL

SC21 Task Force

25TH JUNE 2015

LAND & AIR SYSTEMS Thales Proprietary Information

Thales Optronics UK

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VP Supply Chain Visit – 21st May 2015

Thales UK Glasgow : 87204467-DOC-GRP-EN-002

Optronics Business Line

A global capability

Design and manufacture of

Day/ Night vision equipment

and systems for:

Land

Sea

Air

Montreal, Canada

Elancourt

St-Héand

Toulouse

Aix-en-Provence

SOFRADIR

Glasgow

Basingstoke

Bristol

Bury St Edmunds

Huizen

Eindhoven

AIO, Egypt

STC, South Korea

Thales site

Joint Venture company

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Optronics Business Line

Principal sites Glasgow, UK

2,900 m² clean rooms

Sight testing tower

Laser laboratories

Naval, Land & Airborne EO

Élancourt, France


Sight testing tower

Laser laboratories

Airborne EO / Thermal imagers

St-Héand, France


40 m length night vision testing chamber

Pierre Angénieux Movie studio

Night vision Goggles / High precision optics

Montreal, Canada


Complete development facilities

Integrated repair & logistics.

Uncooled vehicle thermal imagers

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Airborne Products

Infra-Red Search and Track Systems

- PIRATE

Image Exploitation Systems

- DJRP Reconnaissance Pod

- Avni Environmental Protection System

Countermeasure Systems

- Vicon XF

IR Threat Warning Systems

- Elix-IR

Optronics UK Products

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Naval Products

Submarine Periscopes

- Trafalgar Class (UK)

- Vanguard Class (UK)

- A17 (Sweden)

- Collins Class (Australia)

- Victoria Class (Canada)

Submarine Optronic Masts

- Astute Class (UK)

- Japan Navy


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Sensors

Thermal Imaging Systems

- Catherine MP LW IR Camera

- Catherine MP MW IR Camera

- Catherine EZ MW IR Camera

- Sophie LITE Target Locator


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Sensors

Laser Rangefinders and Laser Designators

- MELT

- microMELT

- CELT/ CELT-HR

- ESLVDE

- VELT-D

- VELT-I


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Land Products

Armoured Vehicle Sighting Systems

- Local Situational Awareness (LSA) Systems

- DNGS Family of Sights

- ORION Panoramic Sight

- Drivers Sights

- ROTOS Surveillance System

- Smoke Dispensers


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Land Products

Vehicle Mission Systems Integration


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Soldier Systems

Future Integrated Soldier Technology (FIST)

- Fully integrated communications and LSA capability

- Enhances battlefield capability and survivability


www.thalesgroup.com THALES GROUP INTERNAL

Thales Involvement in SC21

25 JUNE 2015

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Thales UK Involved at all Levels

SC21

Special Interest groups

• Collaborative Working;

• Performance, Development and Quality

• Design Engineering.

SC21 Steering Group

Prime’s

SME’s

MOD

Training Partners

Prime working Group

BAe, RR, AW,GE

General Dynamics

Selex, Thales

Lockheed, Babcock

Bombardier, MOD

ADS SC21 Project

Team

Supplier’s Engaged in SC21 Programmes

Thales Rep:

Jerry Mabey

Thales Rep:

Jerry Mabey

Thales Rep:

Martin Smith

Thales Rep:

Neil Kennedy

( Mfr/Ops)

Thales Strategic

Partner: Quintec

Olaide Olaoye

Terry Little

Thales Rep:

Vincent Clot

( Eng)

Thales SC21

Supplier Community

Jerry Mabey

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The Thales SC21 Supplier Community

41 Suppliers sponsored by Thales

Community Events

• April 2014

• November 2014

• May 2015

• Next Event Nov 2015

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Community Events : Objectives

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Events: Content

April 2014 November 2014 May 2015

PLENARY SESSION

Thales in SC21 Sub Tier Supplier

Management Capability

Status against objectives

Thales Engineering

Organisation

REACH Energy Saving & Climate

Change

Shared Objective Setting Counterfeit Avoidance SC21 for Rail

Sustainable Procurement RELEX

Cyber Security Cyber Security

Innovation in Thales

SYNDICATE SESSION

Barriers and KSF for SC21

Success

Risks to achieving award

status & Thales support

Thales support for Award

status & RELEX

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Targets Agreed April 2014

Double our Golds, Double our Silvers, 100% Award Status

Gold

4%

Silver

20%

Bronze

76%

Gold

2%

Silver

10%

Bronze

18%

None

70%

April 2014 Objective End 2015

Targets

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Thales SC21 Community Current Performance :OTIF

Transormation Achats – Plans d’actions détaillés – Bilan

revues light 2 – 23 Juillet 2012

Community is Performing at SILVER Level.

11 Suppliers at Gold Level

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Thales SC21community – current performance : RFT

Transormation Achats – Plans d’actions détaillés – Bilan

revues light 2 – 23 Juillet 2012

Community is Performing at SILVER Level.

13 Suppliers at Gold Level


• 10:00 Regional Update –

Nick Shields,

Director SMAS,

Scottish Enterprise

www.scottish-enterprise.com

Scottish Enterprise

Nick Shields

Director

Scottish Manufacturing Advisory Service


SC21 Support

• SC21 is recognised as the “gold standard” of Supply Chain

development programmes

• Operational excellence is a key attribute of businesses that

are profitable and sustainable

• 4 SMAS practitioner trained assessors

• 3 in training

• 47 Scottish Businesses on the SC21 plan

• 8 at Bronze recognition

• 2 at sliver

• 3 working towards silver


Scottish Enterprise Wider Support • National Aerospace Technological Exploitation Programme

• NATEP – innovation programme and Scottish SME businesses are

encouraged to apply to funding in Autumn 2015.

• www.natep.org.uk

• Cyber Resilience

• SE and the Scottish Business Resilience Centre (SBRC) are

partnering to deliver cyber security advice to companies.

www.sbcc.org.uk

• Sector Strategy: The Industry Leadership Group and SE are in the

process of developing a new 5 year strategy for the Aerospace, Defence,

Marine and Security sectors due published Autumn 2015

• key themes: Supply Chain, Business Environment,

Internationalisation, Operational Excellence, Research &

Development and Skills.

http://www.natep.org.uk/

http://www.sbcc.org.uk/


• 10:20 Procurement Excellence –

Andy Brown,

Procurement Director,

Selex ES

Aerospace & Defence Procurement Group (ADPG)

SC21 Task Force meeting at Thales Glasgow

- Procurement Capability

- Co-Procurement

- Procurement Excellence

June 2015

32

SC21 Task Force: June 2015

Background to the requirement

• What it isn’t, and what is aims to be

• Examples of good/bad practices within Procurement

Some key stakeholders with common aims and objectives

• ADPG/CIPS

• ADS/SC21

Outline TORs and objectives:

Status and Plan

Follow-up options from today – don’t wait…

33

Procurement Excellence: Not this approach…

34

This approach…

Improving Procurement Capability within companies throughout the value chain

P P P P

P P P P P P

P P P P P P P P P P P P P P P P P P

P P P P P P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

P

END-USERS

TIER 1

SUPPLY

TIER 3+

SUPPLY

TIER 2

SUPPLY

35

Background (good/bad examples of Procurement impact)

E.g. added value through a robust Procurement approach, often shared between Customer/Supplier

• Customer Procurement at our Supplier Conferences. Our support at first tier-supplier conferences

• Sharing the same cost/price estimating practices to enable back-to-back arrangements

• Sharing of ITAR/export licence management training

• Approach to “open book” pricing, maintaining accountability in the right places, with joint activities on the

cost/risk drivers, including flexibility towards material handling fees

• Joint approach to sub-tier supplier gateway/surveillance activities

• Collaborative approach to Offset planning

• Good forecasting from our perspective has enabled/allowed sub-tier supplier alignment to joint objectives

(eg investment, long term contracting)

E.g. added risk through having poor Procurement skills/practices, often hidden between Customer/Supplier

• Sub-tier supplier selection of non-approved, non-compliant companies

• Quality and safety exposure (lack of traceability, certification, special process controls)

• Poor communication, understanding, control and management of Industrial Governance and Compliance

– End-User information for export licences (2 way), leading to Voluntary Disclosures

– Plethora of standards …. BS/ISA/AS/REACH/Cyber/Conflict minerals/counterfeit components et al

• Cost, schedule and risk exposure due to lack of flow-down of known, important Ts&Cs, resulting in

material deliveries being placed on hold

• Questionable value for money in areas of Sub-Contracts, impact to relationship and future business

• Dependence upon single sources and single point failures without robust Procurement practices

• Poor forecasting from our perspective has not enable/allowed sub-tier supplier alignment to joint

objectives (e.g. investment, long-term contracting)

36

Developing Procurement skills within the ADS supply base

ADPG Sub-Group Action: Proposed Quad’ Of Aims

Purpose Customer / Benefits

The development of Procurement & Supplier Management

skills and knowledge in order to:

Improve the capability of resources in suppliers & sub-

tiers – notably the Procurement skills base.

Improve the (2 way) management of supplier risk,

opportunity and supply chain vulnerability, e.g.

Due diligence, sustainability, cost/price analysis,

counterfeit components, Quality/Process control,

cyber security, export regulations, ethics etc

Encourage an ethos of working in collaboration within the

Professional family of Procurement (in our Sector)

Analyse and understand what’s important to all parties,

where the gaps are, and what we can do about it

The external Customer is the ADS Sector Businesses of “UK

plc”, and their end-users. Internal Customer is the

Procurement profession itself. Benefits:

Joint supply chain approach to procurement risk and

opportunity management, e.g.

More sustainable supply chains with a coherent

approach to procurement

Collective focus on cost, price and value

Enhanced understanding and management of

export compliance requirements/regulation

Enhanced understanding and management of

material traceability & counterfeit components

Enhanced reputation of added value, and increased

confidence in the capability of Procurement in our Industry

End results / Deliverables Success Criteria

Heightened skills, knowledge and awareness of the key

Procurement activities adding value to our industry

Methods (TBA) to promote training and education with

outline cost/benefit case (eg CIPS/ADA, shared L&D)

Embedded working practices between the tiers of the

supply base (e.g. co-procurement agreements)

Joint industry focus upon priority/topical subject matter

Procurement code of best practice for the ADS Sector?

Mobilisation of a project to deliver the results and benefits,

with buy-in from all the key stakeholders (Primes and sub-tier

suppliers – incl SMEs, CIPS, ADS)

Increase in qualified Procurement professionals.

Appropriate priority topics, flowed up/down the supply chain,

contractually if needed, or at least in improved way of

working

ADPG, CIPS, Industry (and SC21) collaboration on

Procurement Capability development

Task: What can ADPG, CIPS and Industry professionals do, in order to improve the skills and knowledge in Procurement & Supplier Management throughout the ADS Sector supply base?

37

The Aerospace & Defence Procurement Group (ADPG)

ADPG Terms of Reference

Mission – ‘Driving excellence and professionalism in procurement and supply capability

Vision – ‘To be the catalyst for skills development and professional standards in the context

of the aerospace and defence sector while sharing topical good practices.

• Commitment to people capability development and standards

• Collaboratively drive the procurement and supply management capability of the sector,

through the primes but also through the multi-tiers in the supply chain, working

collectively through initiatives to bring this about

• As a sector group influence the building of SME capability in procurement and supply,

through increasing knowledge and skills in an accessible way to enhance performance

and competitiveness

• Influence the establishment of sub-groups associated with the ADPG to drive forward

any of the above agenda’s

Members

CIPS, ADS

Chief Procurement Officers (CPOs) from across Industry (see next slide)

38

Stakeholders with common aims

Recognised gap in the SC21

programme, not covered by

BEM/MEX

Objective to implement a

“Procurement Excellence”

pillar into the programme

ADS Register launched, pre-

qualification focus, limited

covered of this area to date

with desire to develop in the

future

Development of Procurement skills is

core to the Mission and Vision and

TORs of the Group

Represents the voice of Procurement

across key Industry players and ADS,

and underpinned by CIPS

Peer review recognises the gap in

company practices to assess, assure

and develop Suppliers’ Procurement

capabilities

Needed for improved management of

risk and opportunities within the overall

supplier chain

Although at different stages of evolution and implementation, both AGP and DGP

have a focus upon the development of key skills in their Industry Sectors, with both

recognising the influence of the Value Chain to their programmes

C.I.P.S. / A.D.P.G. A.D.S.

SC21 &

REGISTER

A.G.P. D.G.P.

SWEET SPOT

DESIRE FOR GROWTH IN

PROCUREMENT CAPABILITIES

• SKILLS, PRACTICES,

PROFESSIONAL STANDING

DEVELOPMENT OF A COMMON

PROCUREMENT CAPABILITY

FRAMEWORK

• FOR THE FUNCTION

• FOR THE RESOURCES

A SOLUTION THAT MAY BE

PROGRESSIVE AND PROPORTIONATE

FOR ALL TIERS AND SIZES OF

SUPPLIERS INCL. SMEs

39

Stakeholders with Common Aims:

(And why ADPG/CIPS best placed to be the vehicle to deliver)

AIRBUS

BOEING

BOMBARDIER

A.W.G.

BAE SYSTEMS

LOCKHEED MARTIN

RAYTHEON

M.B.D.A.

QINETIQ SELEX ES RAYTHEON

THALES

C.I.P.S.

A.D.S. AG.WESTLAND G.K.N.

MARSHALLS

MEGGITT

A.D.S. SC21 A.D.S. REGISTER

A.G.P. D.G.P. PROCUREMENT CAPABILITY FRAMEWORK

(THE FUNCTION – CAPABILITY AND MATURITY MEASURES

OF ORGANISATION, PROCESSES, PRACTICES ETC)

PROCUREMENT COMPETENCY FRAMEWORK (THE RESOURCES - SKILLS & KNOWLEDGE)

R.R.

40

ADPG: Sub-Group for Procurement Capability

#CoreTeam (Procurement Capability)

- Andy Brown (lead)

- Nigel Strutt

- Rob Soen

- Mark Chamberlain

- Jerry Mabey

- Tony Payne

- Alan Davis

- Geoff Hill

- Karen Beamish

- Andrew Coulcher

- Emma Scott

- Sarah Barnard

- Phil Curnock

#Team1 (Organisational: Capability Framework)

- Alan Martin CIPS (lead)

- Mark Chamberlain BAE Systems

- Jerry Mabey Thales

- Alan Davis Airbus

- Andrew Smith, Marshall

- Geoff Hill Astute

- Carl Brown MBDA

- Karen Beamish CIPS

- Sarah Barnard ADS

#Team2 (People: Skills/Competency Framework)

- Karen Beamish CIPS (lead)

- Tony Payne

- Claire Dicks MDBA

- Nichola Clarke AgustaWestland

- Helen Bates (or ANO) AWE

- Jon McKeown Marshal Aerospace

- Steve Lamb Meggitt (TBC)

41

Procurement Capability: TORs

To provide a framework for the development and promotion of ‘procurement excellence’ that will be achieved through growth in capability of a Company’s Procurement Organisation (or) Function and of their Resources, that continuously improves the aerospace and defence value chain for the future. To consider: Engagement through collaboration across all tiers of the supplier chain, company to company engagement with

the potential for procurement to procurement engagement

Tailoring of collaborative approach to the environment of the customer/supplier relationships

o Through the capability and maturity measurement of the following features within an agreed and defined

framework* (Sub-group 1)

o Propose an Industry standard procurement capability framework

Utilising the best professional and industry standards and resources

- CIPS global and certification standards

- SC21 excellence principles as the catalyst for ensuring the alignment with our future challenges

- Other recognised and agreed quality standards

The expected maturity levels (proportionate and progressive) set depending on the characteristics of a supplier

e.g. Tier Technology, commodity and service spend with an intelligent approach to its application.

Procurement people capability *(Sub-group 2)

- Skills and competency framework

- Training

42

Procurement Capability: Desired Output

Heightened skills, knowledge and awareness of key procurement activities adding value to our industry:

Agreed, industry and professional standards, and flexible Frameworks to help grow the capabilities of

Procurement

o Procurement Capability Framework (Organisation and Function)

o Skills & Competencies Framework (Resources)

Methods to promote training and education with outline cost/benefit case (CIPS/ADA, Shared L&D)

Embedded working practices between tiers of the supply base

Joint industry focus upon priority/topical subject matter

Procurement code of best practice for the ADS Sector

43

ADPG Sub-Group: Work-packages

PROCUREMENT CAPABILITY FRAMEWORK (THE FUNCTION – CAPABILITY AND MATURITY MEASURES OF

ORGANISATION, PROCESSES, PRACTICES ETC)

HOW TO APPROACH CONTINUOUS IMPROVEMENT

PLANS

#Team1

PROCUREMENT COMPETENCY FRAMEWORK (THE RESOURCES - SKILLS & KNOWLEDGE)

HOW TO APPROACH DEVELOPMENT AND

TRAINING SOLUTIONS

#Team2

#CoreTeam

TOR, SCOPE,

OBJECTIVES

COMMUNICATIONS, STAKEHOLDER ENGAGEMENT AND MANAGEMENT OF INTER-DEPENDENCIES

CUSTOMER/SUPPLIER ENGAGEMENT PLANNING

1. COMPANY TO COMPANY, 2. PROCUREMENT TO PROCUREMENT

HOW TO APPROACH DELIVERY AND

SUSTAINMENT

IDENTIFICATION AND DEVELOPMENT OF TRAINING SOLUTIONS

Planning Milestones

+ 5 mths, July, early case studies (trailblazers), complete benchmarks, first drafts

+ 8 mths, October, tailoring, move from “what” to “how”, final versions, mobilisation to launch

44

Objective:

To develop/create the Capability Framework to assess a company’s Procurement organisation, that is in-

tune with our industry requirements, and may be proportionate and progressive to the size of the company,

and environment that they work within.

Agreed to develop the Capability Framework based upon the following input:

• Industry practices and standards (e.g. IAQG, CIPS Corporate, other benchmarks?)

• Company practices that are known to exist today

• Key enablers/risks/factors for the Aerospace and Defence sector that need to be prevalent

Tailoring the eventual Framework to A&D sector. Which areas will need greater emphasis/focus, and why?

Examples as follows:

• Industry governance and trade compliance demands, such as import/export/ITAR licencing, counterfeit

control, cyber, REACH, Bribery Act, and many more…

• Quality and safety standards, such as traceability, special process controls, and certification, notably

regarding end products and their application

• Long-term (in-service) conditions, such as obsolescence, last-time buys, latent defect

• Sustainable procurement, BCM/BCP and CSR

• Opportunity management, such as offset, Industrial Participation sharing and forecasting

• Risk management, such as sub-tier supplier selection and management, sole and single source

supply.

Development of the Capability Framework (approach)

45

Development of the Capability Framework (in first draft only)

Pillar 1 - Strategy, policy and leadership Themes Business and procurement strategy Procurement strategy – sourcing strategies (including ethical sourcing) Globalisation Industrial policy:- Technology linkage; geopolitical; offset, industrial

development Innovation and New Product Development Governance, compliance, legal and CSR Customer Focus

Pillar 2 - Process and Practice Themes Relationship management Risk and opportunity Contract management Project/programme management Supplier capability management Special process controls Financial management

Pillar 3 - People and resources Themes Relationship/collaboration Ethics/Honesty and integrity Emotional intelligence Developing teams Conflict management

Pillar 4 - Performance measurement Themes Continuous improvement Supply chain assessment Supply chain development Supply chain Lean Logistics KPI’s & metrics

Work-in-progress

• 4 Pillars identified, as below, likely to create 5th to add focus on Organisation & Leadership

• Next level themes and areas to measure being identified

• SME input to be developed (Geoff Hill - Astute)

• Agreement TBA on the measure of maturity to be built into the framework

• Engagement process (“how to” guide) still to be developed. Potential with Hellios/JOSCAR - TBA

• Training and staff development options running in parallel

• Focus remains on developing a Capability Framework of an organisation. Skills/Competency

Framework will pre-exist in each company and can form baseline for discussions

46

SC21 Task Force: June 2015

Your voice/input?

Learning & Development options already available

Scottish Government/CIPS Procurement People of Tomorrow (incl. Modern Apprentice)

http://www.gov.scot/Topics/Government/Procurement/Capability/procpploftomo2014

CIPS Health-check (20 Qs) and Procurement Apprentice Programme

https://standard.cips.org/healthcheck/default.aspx

http://www.cips.org/en/Careers/Apprenticeships-in-Procurement/

The CIPS Procurement Aerospace & Defence Academy (ADA)

https://www.cips.org/Documents/Products/Case_Studies/CIPS_CS_AandDPG_AW_WEB.pdf

More info on the CIPS/ADPG

https://www.cips.org/en/Community/Groups-listing/Aerospace--Defence-Procurement-Group-ADPG-/

http://www.gov.scot/Topics/Government/Procurement/Capability/procpploftomo2014

https://standard.cips.org/healthcheck/default.aspx






https://www.cips.org/Documents/Products/Case_Studies/CIPS_CS_AandDPG_AW_WEB.pdf














47

Back-up info

Selex ES WIP

Selex ES template

Examples

48

Selex ES work-in-progress

Some areas of Selex ES WIP to share/stimulate discussion

• Similar WIP and areas to share within ADPG

• Selex ES

– Draft Capability & Maturity Matrix (28 Qs)

– Some initial benchmarks

– CIPS, Scot Gov. (> 100 Qs)

– Pilot engagement plan with 10 suppliers

– Positive feedback with Astute

– Shared Skills/Competency F/W with CIPS

– BAE Systems, as Customer, TBA for assessment of Selex

– ADS Register (JOSCAR), supplier adoption underway

SUPPLIER PROCUREMENT AREA

CSC I.C.T. BUSINESS SERVICES

I.S.S. FACILITIES MANAGEMENT

X.P.S. OUTSOURCED CATEGORY MANAGEMENT

ASTEELFLASH SUB-CONTRACT MANUFACTURE

BAE SYSTEMS HILLEND

SUB-CONTRACT MANUFACTURE

S.T.I. SUB-CONTRACT MANUFACTURE

HAAS/FASTEQ OUTSOURCED V.M.I.

ASTUTE SUB-CONTRACT PROCUREMENT

XCEL POWER SUPPLIES

SOFTCAT I.C.T. PROJECT SERVICES

Section 1. Procurement Strategy & Policy

Section 2. Procurement Resources & Skills

Section 3. Supplier Management Practices & Processes

Comments & Improvement Actions

1.1DEMONSTRATE THE AVAILABILITY AND INFLUENCE OF YOUR PROCUREMENT STRATEGY,

WITH ANY ASSOCIATED VISION, MISSION OR STRATEGIC AIMS3

1.2SHOW THE PROCUREMENT OBJECTIVES AND HOW THEY ARE SET, CASCADED, &

MANAGED3

1.3AVAILABILITY AND EFFECTIVENESS OF GOVERNANCE AND COMPLIANCE PLANNING FOR

THE FUNCTION3

E.G. DELEGATED AUTHORITIES, SEGREGATION OF DUTIES, KNOWLEDGE

OF SUPPLIER G&C NEEDS (SEE 3.2)

1.4

WHAT IS THE ORGANISATIONAL APPROACH TO THE FUNCTION TO SHOW INTEGRATION

WITH THE COMPANY OBJECTIVES, THOSE OF THE CUSTOMER'S NEEDS AND FOR THE

BEST APPROACH TO THEIR SUPPLIERS MARKET AND SUBSEQUENT MANAGEMENT

3

E.G. BY CATEGORY MANAGEMENT, PROJECT/SUB-CONTRACT

MANAGEMENT, SHARED SERVICES, CENTRALISED, DE-CENTRALISED ETC

ETC

1.5EFFECTIVE SYSTEMS SOLUTIONS TO ENABLE THE PROCUREMENT FUNCTION AND BE

INTEGRATED WITH THEIR SUPPLIERS 3

E.G. SAP, ERP/MRP, BESPOKE SOLUTIONS

1.6EFFECTIVE PROCUREMENT PLANNING IN PLACE FOR MATERIAL (FORECASTING) AND

RESOURCES (DEMAND/SUPPLY)3

1.7 EFFECTIVES KPIs AND/OR METRICS IN PLACE FOR THE FUNCTION 3

1.8 VISIBILITY OF CONTINUOUS IMPROVEMENT PLANS FOR THE FUNCTION 3

2.1ESTABLISHED PROCUREMENT ORGANISATION WITH CLEAR ROLES AND

RESPONSIBILITIES DEFINED3

2.2SKILLS AND COMPETENCIES FRAMEWORK IN PLACE, WITH APPROPRIATE LEVELS,

QUALIFICATIONS AND NEEDS DEFINED3

E.G CIPS QUALIFIED

2.3GAP ANALYSIS (SKILLS/COMPETENCIES) REGULARLY REVIEWED AND ALIGNED TO

TRAINING PLANS3

2.4 TRAINING PLANS AND BUDGETS IN PLACE 3

2.5TERMS OF REFERENCE AND/OR BIO'S IN PLACE FOR THOSE ROLES THAT ARE ALIGNED

TO THIS COMPANY-TO-COMPANY CONTRACT (INCL. ANY SINGLE POINT FAILURES)3

2.6 SUPPORT RESOURCES TO PROCUREMENT/SUPPLIER MANAGEMENT CLEARLY DEFINED 3E.G. Q.A., TECHNICIAL/ENGINEERING, COMMERCIAL, LEGAL, COMPLIANCE

3.1SUPPLIER ARCHITECTURE AND CATEGORISATION IN PLACE TO BEST UNDERSTAND THE

ASSOCIATED STRATEGIES AND TACTICS3

E.G. KRALJIC, SUPPLY MAPPING ETC


THE SUPPLIERS3

E.G. IMPORT/EXPORT LICENCE MANAGEMENT, ETHICS, GIFTS &

HOSPITALITY, BRIBERY ACT, COUNTERFEIT RISK, CONFLICT MINERALS

3.3SCOPE OF APPROVAL FOR QUALIFIED SUPPLIERS IN PLACE, WITH

REGULAR/APPROPRIATE PLANS TO REVIEW (FROM POINT OF SELECTION)3

3.4APPROPRIATE SUPPLIER AGREEMENTS IN PLACE, WITH CUSTOMER FLOW-DOWN

WHERE APPROPRIATE, AND WITH TRACKING OF ACCEPTANCE/ACKNOWLEDGEMENT3

3.5SUPPLIER PLANNING IN PLACE TO SCHEDULE APPROPRIATE GATEWAY/SURVEILLANCE

MEETINGS TO MANAGE RISK, PROGRESS, COMPLIANCE ETC 3

E.G. QBRs, BUSINESS REVIEWS, IN AREAS OF SPECIAL PROCESS

CONTROL

3.6ROBUST SUPPLIER SELECTION PROCESS IN PLACE WITH ASSOCIATED CAPABILITY

ASSESSMENT (INCL. MAKE/BUY DECISION MAKING AS APPROPRIATE)3

3.7SUPPLIER COST/PRICE ANALYSIS, PARTNERING, COMPETITION AND NEGOTIATION

PRACTICES TO ENSURE BEST VALUE FOR MONEY3

3.8 ROBUST APPROACH TO THE ASSESSMENT AND MANAGEMENT OF SUPPLIER RISK 3E.G. VENDOR VULNERABILITY/SUSTAINMENT RISK AND BCP

3.9 SPECIALIST KNOWLEDGE OF SUPPLIER MARKET AND TRENDS 3

3.10STRUCTURED APPROACH TO SUPPLIER DEVELOPMENT WITH MANAGEMENT OF

IMPROVEMENT PLANS AND RESULTS3

E.G. SC21 PRINCIPALS, KEY SUPPLIER PROGRAMME

3.11 EFFECTIVES KPIs AND/OR METRICS IN PLACE 3E.G. ON-TIME, ON-QUALITY, COST MANAGEMENT/REDCUTION, CASH

MANAGEMENT, SUPPLIER RELATIONSHIPS

3.12 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS INVENTORY 3

3.13 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS CASHFLOW 3

3.14KNOWLEDGE AND CONTROL OF SUB-TIER SUPPLIERS, AND THEIR OWN PROCUREMENT

CAPABILITIES AS APPROPRIATE3

60%

3.0

PR

OC

UR

EM

EN

T S

TR

AT

EG

Y &

PO

LIC

YR

ES

OU

RC

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& S

KIL

LS

SU

PP

LIE

R M

AN

AG

EM

EN

T P

RA

CT

ICE

S &

PR

OC

ES

SE

S

Target

PROCUREMENT CAPABILITY & MATURITY MATRIX

Score

(or

N/A)

Maturity Assessment Verify the effectiveness of the company's approach to Procurement and their supplier management

COMPANY NAME 0 1 2 3 4 5Not

DoingPoor Fair Good Very Good Excellent

49

Example Template

Section 1. Procurement Strategy & Policy

Section 2. Procurement Resources & Skills

Section 3. Supplier Management Practices & Processes

Comments & Improvement Actions

1.1DEMONSTRATE THE AVAILABILITY AND INFLUENCE OF YOUR PROCUREMENT STRATEGY,

WITH ANY ASSOCIATED VISION, MISSION OR STRATEGIC AIMS0

1.2SHOW THE PROCUREMENT OBJECTIVES AND HOW THEY ARE SET, CASCADED, &

MANAGED0


THE FUNCTION3

E.G. DELEGATED AUTHORITIES, SEGREGATION OF DUTIES, KNOWLEDGE

OF SUPPLIER G&C NEEDS (SEE 3.2)

1.4

WHAT IS THE ORGANISATIONAL APPROACH TO THE FUNCTION TO SHOW INTEGRATION

WITH THE COMPANY OBJECTIVES, THOSE OF THE CUSTOMER'S NEEDS AND FOR THE

BEST APPROACH TO THEIR SUPPLIERS MARKET AND SUBSEQUENT MANAGEMENT

N/A

E.G. BY CATEGORY MANAGEMENT, PROJECT/SUB-CONTRACT

MANAGEMENT, SHARED SERVICES, CENTRALISED, DE-CENTRALISED ETC

ETC

1.5EFFECTIVE SYSTEMS SOLUTIONS TO ENABLE THE PROCUREMENT FUNCTION AND BE

INTEGRATED WITH THEIR SUPPLIERS 3

E.G. SAP, ERP/MRP, BESPOKE SOLUTIONS

1.6EFFECTIVE PROCUREMENT PLANNING IN PLACE FOR MATERIAL (FORECASTING) AND

RESOURCES (DEMAND/SUPPLY)3

1.7 EFFECTIVES KPIs AND/OR METRICS IN PLACE FOR THE FUNCTION 3

1.8 VISIBILITY OF CONTINUOUS IMPROVEMENT PLANS FOR THE FUNCTION 3

2.1ESTABLISHED PROCUREMENT ORGANISATION WITH CLEAR ROLES AND

RESPONSIBILITIES DEFINED3

1 PERSON ACTIVITY IN XPS

2.2SKILLS AND COMPETENCIES FRAMEWORK IN PLACE, WITH APPROPRIATE LEVELS,

QUALIFICATIONS AND NEEDS DEFINED0

E.G CIPS QUALIFIED

2.3GAP ANALYSIS (SKILLS/COMPETENCIES) REGULARLY REVIEWED AND ALIGNED TO

TRAINING PLANS3

2.4 TRAINING PLANS AND BUDGETS IN PLACE 3

2.5TERMS OF REFERENCE AND/OR BIO'S IN PLACE FOR THOSE ROLES THAT ARE ALIGNED

TO THIS COMPANY-TO-COMPANY CONTRACT (INCL. ANY SINGLE POINT FAILURES)0

2.6 SUPPORT RESOURCES TO PROCUREMENT/SUPPLIER MANAGEMENT CLEARLY DEFINED 3E.G. Q.A., TECHNICIAL/ENGINEERING, COMMERCIAL, LEGAL, COMPLIANCE

3.1SUPPLIER ARCHITECTURE AND CATEGORISATION IN PLACE TO BEST UNDERSTAND THE

ASSOCIATED STRATEGIES AND TACTICS0

E.G. KRALJIC, SUPPLY MAPPING ETC


THE SUPPLIERS3

E.G. IMPORT/EXPORT LICENCE MANAGEMENT, ETHICS, GIFTS &

HOSPITALITY, BRIBERY ACT, COUNTERFEIT RISK, CONFLICT MINERALS

3.3SCOPE OF APPROVAL FOR QUALIFIED SUPPLIERS IN PLACE, WITH

REGULAR/APPROPRIATE PLANS TO REVIEW (FROM POINT OF SELECTION)3

3.4APPROPRIATE SUPPLIER AGREEMENTS IN PLACE, WITH CUSTOMER FLOW-DOWN

WHERE APPROPRIATE, AND WITH TRACKING OF ACCEPTANCE/ACKNOWLEDGEMENT3

3.5SUPPLIER PLANNING IN PLACE TO SCHEDULE APPROPRIATE GATEWAY/SURVEILLANCE

MEETINGS TO MANAGE RISK, PROGRESS, COMPLIANCE ETC 0

E.G. QBRs, BUSINESS REVIEWS, IN AREAS OF SPECIAL PROCESS

CONTROL

3.6ROBUST SUPPLIER SELECTION PROCESS IN PLACE WITH ASSOCIATED CAPABILITY

ASSESSMENT (INCL. MAKE/BUY DECISION MAKING AS APPROPRIATE)3

3.7SUPPLIER COST/PRICE ANALYSIS, PARTNERING, COMPETITION AND NEGOTIATION

PRACTICES TO ENSURE BEST VALUE FOR MONEY2

3.8 ROBUST APPROACH TO THE ASSESSMENT AND MANAGEMENT OF SUPPLIER RISK 3E.G. VENDOR VULNERABILITY/SUSTAINMENT RISK AND BCP

3.9 SPECIALIST KNOWLEDGE OF SUPPLIER MARKET AND TRENDS 3

3.10STRUCTURED APPROACH TO SUPPLIER DEVELOPMENT WITH MANAGEMENT OF

IMPROVEMENT PLANS AND RESULTS1

E.G. SC21 PRINCIPALS, KEY SUPPLIER PROGRAMME

3.11 EFFECTIVES KPIs AND/OR METRICS IN PLACE 3E.G. ON-TIME, ON-QUALITY, COST MANAGEMENT/REDCUTION, CASH

MANAGEMENT, SUPPLIER RELATIONSHIPS

3.12 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS INVENTORY 0

3.13 MANAGEMENT PLANNING AND CONTROL FOR SUPPLIERS CASHFLOW 0

3.14KNOWLEDGE AND CONTROL OF SUB-TIER SUPPLIERS, AND THEIR OWN PROCUREMENT

CAPABILITIES AS APPROPRIATE0

36%

1.8

4 5

Very Good ExcellentNot

DoingPoor Fair Good

PROCUREMENT CAPABILITY & MATURITY MATRIX

Score

(or

N/A)

Maturity Assessment Verify the effectiveness of the company's approach to Procurement and their supplier management

Example 0 1 2 3

PR

OC

UR

EM

EN

T S

TRA

TEG

Y &

PO

LIC

YR

ES

OU

RC

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& S

KIL

LSS

UP

PLI

ER

MA

NA

GE

ME

NT

PR

AC

TIC

ES

& P

RO

CE

SS

ES

Target

50

PRACTICES SKILLS & KNOWLEDGE

CAPABILITY

ASSESSMENT

& SELECTION

CYBER

ASSURANCE

SUPPLY

RISK MGMT

SUSTAINABI

LITY

EXPORT

LICENCE MGNT

SPECIAL

PROCESS

CONTROL

GATEWAY/

SURVEILLANCE

U.P.C. BURN-

DOWN

OPEN BOOK

COST

ANALYSIS

TRAINING

BUDGET?

CHANGE

CONTROL

CATEGORY

MGMT

CONTRACT

FLOW-DOWN

(COMM/TECH)

RESOURCE

LIMITATIONS

CASH-

FLOW

CAPACITY

PLANNING

INTEGRATED

PLANNING

CYBER

ASSURAN

CE

FORECAST

EXPORT

LICENCE

MGNT

LONG-

TERM

AGMTS

SUPPLIER PERSPECTIVE (OF IMPORTANT PROCUREMENT SKILLS/KNOWLEDGE/PRACTICES)

CAPABILITY

ASSESSMENT

& SELECTION

CUSTOMER PERSPECTIVE (OF IMPORTANT PROCUREMENT SKILLS/KNOWLEDGE/PRACTICES)

OPEN BOOK

COST

ANALYSIS

ACCURATE

FORECAST

RELATIONSHIP

DEVELOPMENT

CIPS

SC21

RE-USE

M.R.P.

ACCURACY

ETHICS B.C.P.

HOT BUTTONS?

POSSIBLE COMMON

AREAS IN-SCOPE


• 10:40 ADS Update – Ian Watson, ADS


• 11:00 Coffee Break & Visit to

company Stands


• 11:30 SC21 Programme update –

Phil Curnock, ADS


Trade Association Support

Government Funding Available in all regions

http://www.enterprise-ireland.com/en/

SC21

Active company map

Primes Updates – Project Office

Bombardier and BE Aerospace activity

Republic of Ireland and Northern Ireland programmes going well and major

benefits seen by bombardier and other primes from suppliers

We now have three Clusters in Northern Ireland (2 Bombardier 1 BE Aerospace)

.

Republic of Ireland SC21 Event held in Dublin in June with a further 20

companies.

Airbus recently visited Northern Ireland to see first hand the excellent work of

companies on the SC21 journey.

Thales

• Launched a 50 company SC21 Thales Community programme in

2014, meetings now place for 2015 to sharing good practice and

support supplier development further.

Airbus

• A structured programme now in place with Airbus.

• Airbus meeting now arranged with RTAs to discuss how they can

support.

• Airbus engaging Key T1s GE Aviation, GKN, Cobham, Safran + others in

this work.

Primes Updates – Project Office

Control and Data Systems (Formerly AEC)

• Continuing with highly successful “Supplier Association” work which

includes SC21 activity as a major part of supplier development

• Grown from 10 suppliers in 2010 to 30 active suppliers in 2014

• 4 SC21 Lead practitioners active in delivering diagnostic activity

BAE Systems

• Maritime Naval Ships & Services SC21 Supply Chain Management

Programme in place

GKN

• Working in partnership with Airbus to develop Supply Chain

Improvement Programmes throughout GKN supply base. GKN now have

there own cluster and are training in house team in delivery the

diagnostics.

• They also highlighted a further 48 companies they are looking to support

on to the programme.

Other Sector work

SC21 R

SC21 for Rail model proposal now developed.

Thales Rail have mapped the existing programme against Rail sector

requirements.

Changes only in the followings areas:

HSE Excellence being added.

Performance metrics for a service sector environment.

The rest of the model is the same

Steering Board Key deliverables

For 2015

• Design and Innovation Excellence special interest group created – Led by Richard

Baker, Rolls-Royce this group has design and engineering SMEs engaged within the

group and working towards developing an improvement framework based on the radar

approach we use in Bus ex. Draft proposal now being reviewed and to be piloted in

early 2015.

• Procurement Excellence framework now being developed led by ADPG and CIPS. Led

By Andy Brown and Rob Soen. This group is looking at a capability and skills

competency framework for the industry to help improve the Whole A and D supply chain

procurement skills.

• Supply chain constraints working group now launched looking at various issues that can

be worked on within SC21 and some that will be taken to AGP to deliver. Led by Ian

Taylor.

• Communication and Branding review

• Communication plan in place.

• SC21 Buyers Guide – now to be cascaded to all Customer buyers.(suggest it would be

good for all the aerospace team to do the online guide)

https://www.adsgroup.org.uk/pages/76429384.asp

• SC21 Enhanced programme now in early stages of discussion. Shape ,size and topics

being discussed and ADS talking to various Government funding bodies who are looking

to offer support for the programme. – How can we help companies with there CSIP

plans in a greater way.

New Special Interest Groups 2015

Procurement Excellence SIG

Design and Engineering SIG

Supply Chain Constraints SIG

• Chair

• Andy Brown

• Chair

• Richard Baker

• Chair

• Ian Bouquet-Taylor


10:30

Design and Engineering Excellence SIG

Richard Baker, Head of Engineering, Rolls-Royce

SC21 Design Excellence

Richard Baker – Head of Supplier Engineering,

Rolls-Royce


Problem Statement There is no complete definition of Design For Excellence methodology*

which allows an organisation to measure and define its own in-house

design capability and that of its sub-tiers to an extent that it

misdirects/misunderstands resource to meet customer requirements

whilst compromising quality at the cost of effectiveness and efficiency.’

*(Design, Engineering, Technology innovation)


The Competitive Challenge Competition no longer takes place between individual businesses, but

between the entire supply chain.

Design helps to deliver a better service to the customer, enabling them

to strengthen their position in the market, ultimately leading to business

growth.

Aim To drive up innovation and design capability within the UK supply chain.


What does success look like? • More robust business

• High design compliance

• Proactive innovation

• Reduced risk

• Improved supply chain

• Reduced cost of supplier management


CAPABILITY DIAGNOSTIC

‘Self assessment’ ‘Innovation workshops’

‘Commodity deep dive’

BEST PRINCIPLES

DESIGN STANDARD

DESIGN EXCELLENCE

Capability Development Programme

Programme Model


Programme Key stages

Task Force Events 2015

18 + 19 Nov 2015

Bristol, Holiday Inn (TBC)

Supported by WEAF Annual Dinner

Supported by Industry


• 11:45 SC21 Case Study –

Paul Houston,

WB Alloys

WB Alloys: A business

improvement journey Paul H. Houston – WB Alloy Welding Products

www.babcockinternational.com

Strictly Private and Confidential

Introduction

• WB Alloys: A business improvement journey .

• Case Study: Innovation and process efficiencies

• Summary: Key messages and questions



WB Alloys: Overview

Who are We? • Formed in the UK in 1974 • Originally a Distribution

Organisation • Now a Global Welding & Cutting

Solutions Provider (UK, EU, USA, UAE & Australia)

• Welding & Cutting Products Designed & Manufactured In-House (UK, UAE & Italy)

• Site Service – Welding Engineering/Gas Equipment Testing

Key Facts: • Welding Group Turnover £16M • Warehouse Facilities 150K ft sq • Group Employees 35 • Average Stockholding £3-4M

Where we want to be? • No 1 Welding & Cutting Solutions

Provider in the UK • Recognised Global Welding &

Cutting Solutions Provider . • Employer of Choice



WB Alloys SC21 Timeline

6 Years Ago

‘We thought Lean and 5S were for the ‘big boys’, that it was another way for driving costs down’

A recognition we could improve our business

Business processes and systems were not linked

Limited ERP System………not linked

There was poor communication throughout the business

A core of good people but all working too hard



WB Alloys SC21 Timeline

4 Years Ago

‘We began to appreciate what Lean meant and we were looking for a vehicle to develop and sustain the progress we were making ’

Found the vehicle to support organisation wide change

Invited by Babcock to SC21 cluster event

Engaged with program in Sept 2010 with the support of SMAS

Subsequently, implemented a change program based on SC21



Employee Communication and Engagement



Employee Engagement and Satisfaction



End

Complete formal Appraisal Program by November annually.

Document completed Appraisals in Employee Appraisal Tracker 20xx-20yy

Review effectiveness of Appraisal Process at annual Quality Management System (QMS) Review– refer to QMS 5.6.2 and at Quarterly Management Reviews – refer to QMS 5.6.1

Document completed informal Appraisals in Employee Appraisal Tracker 20xx-20yy

Complete all ‘informal’ Appraisals by October annually

Start

Formal Appraisal process is directly linked to the end of the annual Strategy development program. This is so that we can link the individual personal objectives to the strategies. This in turn builds awareness, understanding and ownership of contribution throughout the business

Informal Appraisal process runs alongside the formal providing regular (approx monthly) opportunities for feedback.

Best practice Appraisal Process



Skills Matrix



0 10 20 30 40 50 60

Leadership

Strategy

People

Partnership & Resources

Processes

Customer Results

People Results

Society Results

Key Results

Target 2014

April 2012

Bronze Award Business Excellence Score

Criteria

April 2012 Target 2014

Leadership 35 45

Strategy 29 40

People 16 45

Partnership & Resources 45 60

Processes 27 40

Customer Results 11 30

People Results 4 40

Society Results 4 25

Key Results 19 34

Excellence score 206 392



WB Alloys SC21 Program Timeline

3 Years Ago

Revitalising our operational areas through continuous

improvement

Before



3 Years Ago

Revitalising our operational areas through continuous improvement

After

“we have all become more involved in how all the departments work together, we were given a free reign to re-organise the stores and our working environment with the

management support” Andrew Murray Storeman, WB Alloys

WB Alloys SC21 Program Timeline continued



2 Years Ago

“This is a significant achievement for your company and staff”’

Fergus Ewing, MSP for Energy, Enterprise & Tourism

Bronze Award achieved September 2012




Now

“We all are working as a team and look forward to coming to our work” Gary MacRae Internal Sales, WB Alloys

Our business is stronger

Better communicators

Employees are empowered

Increased process efficiency

More productive working relationships with our customers

A platform for continuous improvement

Carried out RMM with key customers




Our Vison / Our Mission

All employees were fully engaged in building our Vision, Mission and company values statements

There is a great sense of pride across the team in being able to say ‘this is us ‘.



The Future

‘If SC21 goes tomorrow – we will still continue our journey towards Lean and best practice’

Paul Houston Managing Director, WB alloys

Continue to implement our improvement plan (CSIP)

Aiming for SC21 Silver recognition by end 2015

Continue to develop our people

Expand our RMM’s with our customer and supplier base

Re-invest our profits to further develop our product range

WB Alloys SC21 Program... the future.



Case Study: The Project

QEC Aircraft Carrier assembly in Rosyth

The largest ship ever built for the Royal Navy

65,000 tonnes displacement

2nd ship build also underway



Case Study: The Problem

Millions of man hours required for the build

Small process improvements can save significant amounts

Need to work with the supply chain to deliver innovation and save the defence industry money

Collaborative working relationships are paramount to project success



Case Study: The Solution

Changed traditional weld

preparation from single “V” to square edge

Innovation

Changed from flux cored wires to

automated sub arc wires +

fluxes

Flux Core

Cored Sub Arc wires gave

highest productivity +

used high efficiency flux

Sub Arc



Case Study: The Benefits

“A relationship built on collaboration and trust has delivered innovative and cost effective solutions that has saved the QEC Project a significant sum on 3.2 kilometres of welding”

Welding productivity up 43%

Preparation time down 22%

Welding man hours down 22%



Key Messages

1. WB Alloys have a better business as a result of implementing SC21 principles

2. Babcock has realised benefits for its customers in the defence industry and other markets

3. Overall there is increased collaboration and trust, leading to a more effective and sustainable working relationship



Thank You

Any Questions?

Mark Gilmour

Babcock (Rosyth)

[email protected]

Paul Houston

WB Alloy Welding Products Ltd

[email protected]

Colin Allan

Scottish Enterprise

[email protected]

Robert Cowan

Scottish Enterprise

[email protected]


• 12:10 Award Winner presentations


Bronze Re-Award

Winners

Plexus corporation (UK) Ltd Re Bronze Righton Aerospace Ltd - Bristol Re Bronze Stadium IGT Ltd Re Bronze


Bronze Award

Winners

Hydrobond Engineering Ltd Bronze


Silver Re-Award

Winners

MEP Ltd Re Silver

Righton Aerospace Ltd - Plymouth Re Silver

Righton Aerospace Ltd - Portsmouth Re Silver


Silver Award

Winners

Axon Cable Ltd Silver HITEK Electronic materials Ltd Silver Thermacore Europe Ltd Silver


12:30 Lunch

13:30 Thales tour / extended networking

14:30 End of meeting

Task Force Event 2015

18 + 19 Nov 2015

Bristol, Holiday Inn (TBC)

Supported by WEAF Annual Dinner

Supported by Industry