The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 Aerospace Suppliers: how to improve Performance & Win More Business AEROSPACE & DEFENSE FORUM Los Angeles Chapter Friday, October 17, 2014 Pierre Olivier SADOUL Founder & CEO, Spitfire Conseil Toulouse, France Spitfire Conseil – Introduction 1
The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 Spitfire Conseil – Introduction � Consultancy company specialized in Operational Excellence � 3 main activities: � Consultancy (process optimization, Lean roll-out) � Training (coaching, Lean Six Sigma training) � Operational support (support, new product introduction) � Process knowledge and skills Our approach has 2 objectives: developed through years of practical implementation of Lean ҉ Accelerate the performance (and profitability) through the � Exceptional calibre of profiles capable reduction of waste (consultancy of combining Lean methodology with and training) delivery capability ҉ Set-up autonomous teams in the continuous improvement � Hands-on operational expertise& journey (coaching / training / international background change) Spitfire Conseil – Partnership in A&D AIR BUSINESS ACADEMY KEPNER TREGOE Airbus Training Division EMEA Region “Be An Airbus Supplier” 4 days course 2
The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 Global Market Forecast $ 0.5 trillion difference……… Airbus gains record order! 15/10/2014 Airbus Gains Record Order for 250 Jets (A320 Family) from India’s IndiGo – 15/10/2014 Budget Carrier’s Order for A320neo Planes Is Valued at $25.7 Billion at List Prices 3
The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 Order Backlog - Impacts Production rate increase at OEM level Supply chain's ability to ramp up ? Airbus Supply Chain – Some figures 20$B 500 4
The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 Airbus Supply Chain – Key expectations “We want a trusting and long-term relationship with our supply chain partners. With their support we will improve our competitive edge, performance and market share,” Airbus President and Chief Executive Officer - Fabrice Brégier “We are in a long-term marriage with many of our suppliers and we typically work on everything together,” “Our partners are very strong technology companies that comprise the most innovative supplier portfolio in the aerospace industry.” Executive Vice President Airbus Procurement - Klaus Richter Airbus Supply Chain – Key expectations � � Demonstrate Develop maturity of requirements during review � Supplier compliance to continuous � Set-up strong project organisation (OBS, WBS, RBS, requirements assessment / CBS) (quality, supply performance chain, � Identify Critical To Quality items review and manufacturing control change � Reduce risks (FMEA) and variability (Kc, Control engineering…) management. Plan, SPC…) to increase capability – � Confirm � Identify your risks process � Develop a proactive and continuous improvement from the start capability culture 5
The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 How to improve performance Sales, Master Planning and Scheduling, Order Management Value Stream Operational Manufacturing Performance (Manufacturing & Management Plan Management Stock strategy) structure Suppliers Resources & Manufacturing & Tooling selection & Capacity Inspection Development Monitoring Management Process Capability Control of NCs NPI (Kc, SPC, Control Problem Solving Risk (FMEA) Product Change Plan, MSA…) CI Multi-Tier involvement and Management � At the start, are we clear on our requirements with suppliers? (CTQ) � When do we check rate readiness in the supply chain? � Which topics need to be checked for rate readiness? � How do we check rate readiness in the supply chain? 6
The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 Rate Readiness: HOW to check � Structured & standardised approach � Checklists � Target Condition by topic assessed � Rating level for maturity/readiness � Multi skills team � Gap analysis based on facts and evidence only � Capacity assessment results � Joint commitment on improvement action set-up THANK YOU 7
The Aerospace & Defense Forum Los Angeles Chapter October 17, 2014 8
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