SC SC21 Task k Force ce 20th 21st t No November ber 2012 Tit - - PowerPoint PPT Presentation

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SC SC21 Task k Force ce 20th 21st t No November ber 2012 Tit - - PowerPoint PPT Presentation

SC SC21 Task k Force ce 20th 21st t No November ber 2012 Tit itanic ic Belf lfast st Ltd Advancing UK AeroSpace, Defence and Security Industries Venue Titanic Building Queens Road Titanic Quarter Belfast BT3 9DT Advancing UK


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Advancing UK AeroSpace, Defence and Security Industries

SC SC21 Task k Force ce 20th – 21st t No November ber 2012 Tit itanic ic Belf lfast st Ltd

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Advancing UK AeroSpace, Defence and Security Industries

Venue

Titanic Building

Queen’s Road Titanic Quarter Belfast BT3 9DT

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Advancing UK AeroSpace, Defence and Security Industries

Agenda 21st November

Venue: The Andrews Gallery, Titanic Building 08:30 Registration 09:00 Welcome & Introduction – Phil Curnock, ADS 09:05 Opening – Arlene Foster MLA, Minister of Enterprise, Trade & Investment 09:15 Aerospace Growth Partnership - Neil McManus, VP & MD Spirit AeroSystems 09:45 SC21 Programme Update - Phil Curnock , SC21 Project Manager, ADS 10.00 Launch of Updated RMM and Collaborative framework – Terry Williams, MBDA Ian Taylor, AEC 10:15 Coffee Break & Visit to company Stands

Conference

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SLIDE 4

Advancing UK AeroSpace, Defence and Security Industries

Agenda 21st November

Venue: The Andrews Gallery, Titanic Building 10:45 CIPS Aerospace and Defence Academy – Andrew Coulcher, Business Solutions Director 11:00 SC21 Awards Presentations – Stephen Cowan, General Manager of Supply Chain, Bombardier 12.00 SC21 Northern Ireland Summary – Tracy Meharg, InvestNI, Executive Director, Business Solutions 12:15 Lunch & Network 14:00 Tour of Titanic Building & Exhibition

Conference

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SLIDE 5

Advancing UK AeroSpace, Defence and Security Industries

Opening Address Arlene Foster MLA

Minister of Enterprise, Trade & Investment

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SLIDE 6

Advancing UK AeroSpace, Defence and Security Industries

Aerospace Growth Partnership Programme Neil McManus VP Spirit AeroSystems AGP Supply Chain Chairman SC21 Chairman

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SLIDE 7

AGP: Aerospace Growth Partnership

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SLIDE 8

The UK Aerospace Sector

  • Aerospace – advanced engineering, manufacturing and services –

employs 105,000 directly

  • UK aerospace is number one in Europe and the largest aerospace

industry outside the US

  • Well-placed for further growth
  • Turnover in 2011 £24.2 billion & new orders worth £28.3 billion
  • Highly competitive globally. 75% of industry revenues are exported
  • The UK is a world leader in the manufacture of aircraft wings,

engines and advanced aircraft systems

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SLIDE 9

What is the AGP?

STRUCTURE

  • The AGP brings the UK aerospace industry and Government

together to address barriers to growth, boost exports and grow the number of high-value jobs in the UK.

  • Top level group is Aerospace Business Leaders (ABL) group chaired

by Vince Cable; senior level business/BIS representation. Identifies issues of strategic importance.

  • Aerospace Growth Partnership (AGP) then responsible for

addressing these issues. Chaired jointly chaired by Michael Fallon MP, Minister of State for Business and Enterprise, and Marcus Bryson, VP Aerospace at ADS. Involves wider business representation across the supply chain/senior BIS reps.

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SLIDE 10

What is the AGP?

VISION

  • AGP Vision is to:
  • Ensure UK remains Europe’s No1/and No2 globally. Ambitious

and challenging goal given intensifying competition & rapid pace

  • f innovation.
  • Support UK companies at all levels of supply chain – to broaden

and diversify global customer base. Critical given entry into market of new manufacturers of large civil aircraft.

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SLIDE 11

What is the desired outcome?

To jointly establish a Plan for the UK Aerospace sector:

…such that Government and Industry can co-invest and/or develop in specific areas of the sector in order to remove barriers to, and stimulate growth …aimed at prioritised areas where the UK has the

  • pportunity to be a global leader and win substantial

market share …by end 2012

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SLIDE 12

AGP Structure

Strategy Manufacturing Base Supply-chain Competitiveness External Engagement Technology

AGP

Steering Committee

  • Protect & sustain

the sector

  • Build business

case for Gov’t & Industry working together

  • Exploit future

programmes

  • Position the

industry for future Single-Aisle

  • pportunities
  • Establish R&T

plan to meet strategic goals

  • Develop

Demonstrator programmes

  • Protect R&T

infrastructure

  • Review

Implications for the manufacturing base

  • Assess options

for partnerships

  • Review strengths,

weaknesses

  • Assess need for

adaption and define

  • utcomes
  • Define processes to

enhance access to finance, ECGD, investment, risk sharing and export

  • Establish

Aerospace’s Environmental brand around the future all new a/c concept

  • Develop

engagement plan for sector

Aerospace & Defence Sector Skills Group

  • Developing and

retaining the required skills base

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SLIDE 13

AGP Working Group Chairmen

  • Steering Group Marcus Bryson, GKN and VP ADS
  • Strategy

Graham Chisnall, ADS

  • Technology

Gavin Campbell, Bombardier

  • Supply Chain Neil McManus, Spirit
  • Manufacturing Mike Gregory, IfM Cambridge
  • Engagement

Jon Dennison, GKN

  • ADSSG

Mark Stewart Airbus UK

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AGP Working Groups

  • Involving 80+ Senior Executives from the UK

Aerospace Sector

  • Department for Business representation on all

groups

  • Supported by up to 8 full-time high calibre

industry secondees plus ADS senior execs

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SLIDE 15

Opportunity for short, medium and long term growth

Bombardier C-Series Airbus A320neo Boeing 737 MAX Embraer E-X Irkut MS21 COMAC C919 A350 refresh Boeing 777 Refresh

All-new Short Range programmes

Airbus A380 stretch

?

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SLIDE 16

A Strategic Vision for UK Aerospace

  • Launched by Vince Cable at FIA2012.

Foreword by Prime Minister

  • Sets out key findings from AGP so far and

next steps, leading to final report at end of year – to turn vision into a winning strategy

  • Identifies opportunities and challenges that

need to be addressed to secure short, medium and longer term growth. This led to development of PEP (Protect, Exploit, Position model)

16

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SLIDE 17

.

AGP Overall Strategy

Grow skills and factories to absorb share in under-represented markets Increase supply chain competitiveness to win more market share

PROTECT & SUSTAIN 0-5 years EXPLOIT 5-15 years POSITION 15+ years

Improve manufacturing systems to increase capacity, capability and competitiveness Deliver innovative technologies, developed through AGP process, to mid-term aircraft programmes Take the lead with revolutionary new products such as

  • Laminar flow architecture
  • Open rotor engines
  • Advanced systems

Develop new manufacturing systems to ensure high- value production remains in the UK 17 Identifying:

  • Core UK capabilities and

how we can make them more effective.

  • Capabilities at risk and

the measures that can be taken to protect them Identifying:

  • Opportunities for the UK

between now and 2025 and ensuring we work together to achieve maximum benefits for UK businesses

  • Use these opportunities to

help de-risk technologies and manufacturing processes Ensuring:

  • Making sure that the UK is

well placed to secure maximum economic return

  • n future new platforms

which may incorporate radical new technologies

Growth through CAPACITY Growth through NEW PRODUCTS and CAPABILTIES

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AGP: Key High Level Findings

  • UK can retain position #1 manufacturer in Europe (and #2

globally), if industry and Government work together to address barriers to growth.

  • UK can differentiate itself from competing nations by developing

product and process technologies now that, while focused on the high- technology innovation and skills required to deliver competitive, next generation products for future platforms, can also secure market share in the short and medium term.

  • With an expanding range of aircraft and equipment manufacturers, UK

aerospace industry needs to broaden its customer base across the global market.

  • Companies will invest in creating jobs and capabilities in the UK if

they see the Government is committed to maintaining the UK as an attractive environment for aerospace.

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Strategy Working Group

Maintain Position as #1 in Europe

  • Increase UK global market share in engines
  • Return to a 20% market share of wings on future Airbus

programmes

  • Maintain / develop centres of excellence for engines, wings &

key systems

  • as Number #1 in Europe and Number #2

Broaden the UK base across the global market:

  • Worldwide partner of choice for wings, engines and key

systems

  • Secure access to worldwide markets
  • Leverage private investment with HMG & EU investment
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SLIDE 20

Technology Working Group

KEY FINDINGS

  • UK needs to consider levels of future investment (public and private) in R&T

covering both product and manufacturing process technologies. A strategic, long-term partnership with HMG, providing consistency and certainty of R&T funding is crucial to future economic growth.

  • Strategic R&T coordination, a harmonised approach to fundamental aerospace R&T

and technology application, together with targeted investment required to help UK industry protect its lead position in Europe

  • The UK must make bold and strategic decisions, harnessing disruptive design and

environmental technology advances, in order to stay ahead of competition and ensure continued economic success

  • Industry and Government must ramp up investment in “de-risking”

demonstrations of innovative new technologies that will lead towards all new and unconventional aircraft concepts

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Manufacturing Capability

KEY FINDINGS

  • Important to ensure that aerospace companies are aware of
  • pportunities that exist within new Catapult centres
  • UK sector must invest in technical capability to enable it to compete
  • n future programmes: includes –
  • Greater automation and flexibility (e.g. Composite v Metal)
  • Business and information systems focus
  • Need for Production Technology demonstrations
  • AGP to identify where improved manufacturing processes and key

enabling technology can be delivered; and where investment and collaboration needed.

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SLIDE 22

Supply Chain Working Group

KEY FINDINGS

  • The SC must exploit future technologies. Being addressed by an AMSCI

bid for a National Aerospace Technology Programme.

  • The future SC must be competitive and correctly structured.

Competitiveness being addressed by AMSCI bids for SC21+ programme, Production Technology support and a National Supply Chain Centre.

  • The SC must exploit new export opportunities. Working with UKTI to

identify and target programme opportunities and match with “market ready” suppliers.

  • The SC needs access to affordable finance. Being addressed through an

Industry Banking Forum.

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SLIDE 23

Skills & External Engagement

  • Shortage of UK resident senior technicians, graduate and

post graduate level engineers with appropriate skills.

  • Demographics of current workforce mean a significant number

will retire in next 10 years

  • Need for higher skilled apprenticeships leading to higher

technological capabilities; and supply chain needs to improve its skills in management and operations.

  • Aerospace & Defence Sector Skills Group (ADSSG; joint ADS and

SEMTA Board) developing a skills strategy for AGP

  • Need to raise awareness of Talent Retention Solution (TRS)
  • Promote image of sector to make it more attractive careers

choice – e.g. See Inside Manufacturing, Futures Day at FIA12, UK Rocketry Challenge.

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AGP – Achievements so far

Vince Cable announced a £200m package of Government and industry investment at the Farnborough Air Show in July, comprising:

  • £100m of HMG/business investment in Aerodynamics, comprising

£60m Government support towards a UK Aerodynamics Centre; & £40m contribution from industry.

  • Joint HMG/business funding for 500 Masters level degree places in

aerospace engineering, to be delivered over the next three years. BIS contributing up to £3m, matched by industry.

  • £40m Government investment in a series of new projects into low

emissions engine technology delivered through the TSB and lead by Rolls Royce, known as SILOET 2. Additional £40m coming from industry.

  • £15m joint Government and industry investment awarded through the

Technology Strategy Board for 11 major business-led aerospace R&D projects.

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SLIDE 25

Why needed?

  • Aerodynamics assumes much greater importance on the future new

programmes

  • Current UK capability is fragmented and eroding, as are current

investments and business models

  • Need to rebuild UK leadership and competitiveness
  • Representation at the top tables in Europe to maximise FP funding

Way Forward

  • Create world class UK Centre for Aerodynamics
  • Pull together existing testing and modelling capabilities into coherent

virtual centre, with small programme team and focussed package of research

  • Focus on not only the ‘science’, but the exploitation into products

through materials and structures, manufacturing, control systems, etc

  • Encourage increased and focussed investment in key areas needed

for competitiveness and growth

UK Centre for Aerodynamics

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AGP – Achievements so far

Supply Chain Measures AGP Supply Chain Working Group has three bids in BIS AMSCI fund

  • £28m to boost SC21 (SC21+) and develop production

technologies in the supply chain.

  • £23m project to support the exploitation of technology

in the supply chain.

  • £25m project to establish a National Aerospace Supply

Chain Centre

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SLIDE 27

Other HMG funding ahead of FIA12

  • BIS investment of £32m in AgustaWestland to help it diversify into

the civil market through the AW169 civil helicopter in Yeovil

  • BIS investment of £40m in a series of manufacturing process

projects, under the heading of a programme called SAMULET2 to be led by Rolls-Royce; with £40m matched by business

But not all about money:

  • Lots of AGP work is, for example, about how business engages

with government; and how business engages with itself across supply chains – which is having a positive effect. (eg. SC Finance Forum, UK sector seen to be working together )

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Summary

  • Significant level of engagement between business and

government; and between aerospace businesses across supply chain

  • Good progress and achievements to date.
  • Plan of work, set out in Vision document, to lead to full report by

year end

  • Aerospace recognised as a winning sector making an important

contribution to the growth agenda.

  • Broad agreement on strategy.
  • Commitment to work together for the long-term support of the

sector

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SLIDE 29

Some quotes on AGP – from HMG

“We as a government are doing everything possible to get behind UK aerospace…. From this Government you will see nothing less than an unstinting, unrelenting, unflagging commitment to making Britain the best place in the world for aerospace businesses to invest, design, manufacture and export.” Prime Minister, David Cameron “The UK aerospace industry is a big success story. We have the top aerospace industry in Europe and we are lead supplier to the world’s aerospace market. We intend to keep it that way…the Government has embarked on a strategic partnership with business to deliver growth in aerospace & I look forward to us achieving that” Secretary of State for Business, Vince Cable “The UK has an aerospace sector of which we can be justly proud, but … we can’t afford to be complacent. That is why we created the growth partnership...... I certainly pledge to do what I can to support it. Minister for Business & Enterprise, Michael Fallon

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Some quotes on AGP – from Business

“The AGP is a true partnership, with the best talent in industry and government working together to plot the way ahead… Now is the right time for us to be devoting

  • ur collective efforts to what is one of our greatest industrial assets – the aerospace

sector” Marcus Bryson, CEO GKN Aerospace & ADS VP Civil Aerospace “Through AGP, Airbus is fully aligned with the Government in our goal to ensure the UK aerospace sector delivers sustainable growth and remains one of the largest and most competitive in the world” Tom Williams, Executive VP Programmes Airbus “The excellent skills and capabilities of the UK aerospace industry combined with a strong partnership with Government continue to make the UK an attractive investment proposition. Neil McManus, VP and MD Spirit AeroSystems (Europe) Ltd “The AGP is an initiative that we in EADS whole-heartedly support. It has brought the industry together and strengthened its relationship with Government”. Robin Southwell, CEO of EADS UK

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SLIDE 31

Further Information:

Websites: ○ www.adsgroup.org.uk ○ www.aerospace4growth.org.uk For copies of “Reach for the Skies” and further information contact: jeff.taylor@adsgroup.org.uk

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SLIDE 32

Thank You

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SLIDE 33

Advancing UK AeroSpace, Defence and Security Industries

SC21 Programme Update

Phil Curnock

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SLIDE 34

What, Why and Who?

The conceptual idea = Farnborough Airshow in 2006. The AeIGT (Aerospace Innovation and Growth Team) worked with ADS members (i.e. Aerospace Primes) from 2006 until 2008 We formulated a model which would enable the UK supply chain to work together on a consistent and collaborative improvement journey. The ultimate aim? World class supply chains enabling the UK to become the global leader in the Aerospace, Defence and Security industry

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SLIDE 35

Programme Structure

SC21 Project Office Primes Working Group

SC21 Performance, Delivery and Quality SIG SC21 Collaborative Working SIG Regional partners Strategic partners and Training practitioners

SC21 Steering Board

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SLIDE 36

SC21 Steering Board

Members

  • Neil McManus

Spirit Aerospace Ltd – MD

  • Byron Clarke

GDUK Ltd

  • Andy Page

Rolls Royce – Global Supply Chain Executive

  • Malcolm Dare

Bae Systems – Supply Chain Director

  • Stephen Cowan Bombardier – General Manager
  • Ian Hodges

ADS AMC Rep and Timet - MD

  • Dick Martin

ADS AMC Rep and Non-exec director / MD

  • Simon Beech

ADS AMC Rep and Naysmith - Group Chairman

  • Jerry Mabey

Thales – Group Procurement Director

  • Ed Bates

ADS SCC Rep and Aish Technologies - MD

  • Andy Chapel

Babcock – Head of Supply Chain

  • Phil Hart

MEP – MD (PDQ SIG Co-Chair)

  • Mike Webb

BAE Systems Plc – Head of Procurement (Saudi Arabia) (PDQ SIG Co-Chair)

  • Tony Payne

MBDA – Supply Chain Director (Collaborative SIG Chair)

  • Mark Haisman

Airbus – Head of Supply Chain UK

  • Rob Soen

GKN – Senior VP Supply Chain

  • Colin Turner

Agusta Westland – Procurement Exec / Supply Chain

  • Andy Brown

Selex Galileo – Head of Procurement

  • MOD

TBC Robin Little

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SLIDE 37

Current Position

  • Circa 610 companies actively signed up as of November 2012

– Major prime companies = 23 – SMEs = 590 – 95% are SMEs from large tier 1s to very small companies

  • 104 Current award winners

– 74 bronze – 27 silver – 3 gold – 98% of award winners are SMEs

  • Variety of commodities / industries:

– Metal machining, Logistics, Composite, Integrators, Electronics, Test Houses, Tooling. Design houses, MRO facilities, Service support, Treatments, Sub assembly.

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SLIDE 38

Advancing UK AeroSpace, Defence and Security Industries

SC21 2013 Objectives

All active signatories to accelerate to award status Build on the SC21 Performance framework in Aligning and incorporating AGP and DGP Supply Chain outputs into the SC21 framework. Launch the SC21 + model to further develop UK supply chains in 300 companies through the Regional Trade associations. Launch SC21 Collaborative framework model in the programme. Launch EFQM 2013 model within the programme. Increase active signatories through increased primes engagement. Complete development and launch of the Export Maturity model supporting SC21 companies in being Globally competitive.

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SLIDE 39

Advancing UK AeroSpace, Defence and Security Industries

Google Map – SC21 UK

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SLIDE 40

Advancing UK AeroSpace, Defence and Security Industries

SC21 Collaborative Framework Update and Launch Terry Williams MBDA Ian Taylor AEC

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Collaborative Working Excellence Framework (CWEF)

Presentation to SC21 Task Force 21st November 2012

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What is CWEF?

  • CWEF – the Collaborative Working Excellence Framework
  • A way of measuring the effectiveness of a businesses ability to

build and maintain long lasting relationships

  • It is based around BS11000 Pt 1, Collaborative Business
  • Relationships. But effects an approach that we feel is easier

for SMEs to handle

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Principles of CWEF

  • CWEF “plugs the gap” in SC21 where “ability to form effective relationships”

is not mandated, assessed or part of award criteria.

  • CWEF provides a benchmark for a company’s ability to work collaboratively.

It is a measure of the company capability itself. Comparable to ManEx and BusEx

  • This is not “do more RMMs” - embeds CW as an approach in the company

– not just in 1-1 relationships (RMM/RMR)

  • Companies can develop an appropriate approach to relationships – CWEF

works for situations where it is appropriate for customer-supplier to work at arms length, as well as for close “partnering” relationships.

  • BS11000 provides a standard and framework but is too “heavy” for SMEs
  • The CWEF consistent with BS11000 - lightweight enough for SMEs
  • CWEF assessment will be brought into the SC21 Award criteria – formally

assess a supplier’s collaborative capabilities as part of award criteria

  • Don’t throw away the RMM – in fact it’s the results of RMRs that provide

part of the evidence for CWEF

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Collaborative Working Excellence Framework (CWEF)

Basic Outline

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CW Excellence Framework

Step Factors Required

  • 1. Awareness

Collaborative Working is considered as part of company strategy and there is senior executive level sponsorship for developing and embedding a Collaborative Working approach and ethos. Appropriate relationships with customers, partners and suppliers are defined and considered as part of strategic plans

  • 2. Knowledge

The development and embedding of a Collaborative Working approach is planned for as part of the overall business planning process, including the development of the appropriate processes, tools, resources and capabilities

  • 3. Internal Assessment

The Collaborative Working capabilities of the organization are well understood, assessed regularly and developed appropriately.

  • 4. Partner Selection

(Assessment) The Collaborative Working capabilities to collaborate of the partner organizations (customers, partners, suppliers) are well understood and assessed regularly. Appropriate relationships are defined taking into account the willingness of the partner to collaborate.

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Step Factors Required

  • 5. Working Together

Proactive joint relationship assessment, review and development is undertaken where it is appropriate and mutually agreed (e.g. for strategically important, relationships)

  • 6. Value Creation

The concept of value is understood with partner organisations and joint value improvement activities are embedded.

  • 7. Staying Together

A continuous relationship improvement process is embedded and relationship improvement activities are shown to provide

  • n-going benefits.
  • 8. Exit Strategy

The exit strategy for relationships is considered and is jointly planned for at the earliest stages. The joint relationship planning process should address the changing aims & objectives of the relationship or exit strategy.

CW Excellence Framework

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SLIDE 47

Collaborative Working Excellence Framework (CWEF)

How it fits into the current model

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SLIDE 48

Adding to the current model

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SLIDE 49

A Part of the Diagnostics

  • Relationships
  • CWEF
  • Eight evidence based questions
  • Assess the preparedness of the business to

engage in relationships in the value stream

  • Stakeholder Review from Key Customers
  • Quality
  • Cost
  • Delivery and Progress
  • Program Management
  • Customer Focus and Responsiveness
  • Technical Support
  • Relationship Management Matrix (RMM)
  • Face to Face Process
  • Evaluates gap between customer and supplier

perception at an individual or functional level

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SLIDE 50

Collaborative Working Excellence Framework (CWEF)

Scoring, Implementation and Preparation

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CWEF Maturity Model

  • Maturity model provides benchmark score consistent with

ManEx and BusEx

  • Consistent with RADAR approach
  • Maturity Levels A – E. General guidelines:
  • A – Fully deployed and embedded for more than 3 years
  • B – Mostly deployed (more than 75% of business) for 2 years
  • C – Partially deployed (50% of business, key areas) for 1 year
  • D - Ad hoc or reactive deployment
  • E – Not deployed or not considered
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SLIDE 52

How would a supplier implement the CWEF?

  • Develop CW Strategy (as part of company strategy)

– Few sheets of A4 (could be 1). Framework should provide a template

  • Develop CW process

– Few sheets of A4 (could be 1). Framework should provide guidance

  • Senior sponsor (part of existing role)
  • CW Skills training - 2 days trg (TBC) for internal champion(s) if needed
  • RMR, RMMs, RMPs – little more than existing SC21

– RMP template needed

  • Benchmarking and Assessment

– Approach as per ManEx or BusEx but less effort– 1 day total (assessment plus report)

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SLIDE 53

Collaborative Working Excellence Framework (CWEF)

CWEF Detail with Initial “Look for's”

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SLIDE 54

Step Context

  • 2. Knowledge

The development and embedding of a Collaborative Working approach is planned for as part of the overall business planning process, including the development of the appropriate processes, tools, resources and capabilities

Maturity Level E Maturity Level D Maturity Level C Maturity Level B Maturity Level A

Not considered or no approach Collaborative Working approaches are not planned but some activity is undertaken reactively or ad hoc Collaborative Working aspects are considered and built into some aspects of the business e.g. at a project level. Collaborative Working plans are partially deployed across the business for at least 12 months with a plan to become a business-wide process. Collaborative Working is usually considered and planned for in most areas

  • f the business and has

been in place for 2 years with a plan to extend to the rest of the business. Collaborative Working is considered as part of part of business planning, documented and future needs addressed including plans to address capability gaps. Collaborative Working processes and tools are embedded in the business systems. Plans for maintaining and developing the right Collaborative Working resources (people, time and budget) and skills are in place and evidenced. The rationale and benefits of Collaborative Working are defined and continuously reviewed and are widely understood throughout the business. Plans have been in place and developed for more than 3 years. Look for - a procedure/work instruction backed up with a process flow that supports the CW approach, identified staff and plans to support CW within job descriptions and personal targets, a review meeting looking at the effectiveness of activity and output to improve from the current status. With an annual review of the resource/cost/value of the approach, and an active acknowledgement throughout the business. At lower levels projects to support CW are in place, and are giving some benefits, and because of this a more comprehensive roll out plan is being developed, that will include a business wide approach delivered to a project plan over an agreed period of time.

CWEF Detail – inc “Look For's”

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SLIDE 55

Collaborative Working Excellence Framework (CWEF)

Progress, status and next steps -

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SLIDE 56

Latest Status

  • CWEF Maturity Matrix and assessment framework

developed to V3

  • Endorsement received from Steering Board in March 2012
  • Overview presentation developed to support piloting with

suppliers

  • 7 pilots identified, 4 completed
  • Good feedback so far, more work to be done
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SLIDE 57

Feedback to date

  • Positive reception so far from suppliers – “just what we need”,

“now is the right time to address this”

  • Makes them think and is identifying gaps e.g. prioritising on

important customers, focussing on their supply chain

  • Suppliers generally at a fairly low level of maturity, bronze
  • level. Weak areas:
  • Do some things ad hoc but don’t have a framework,

strategy, process

  • Little segmentation, treat everyone the same - both

customers and suppliers

  • Exit strategy not addressed – don’t like to take to

customers about exiting

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SLIDE 58

Issues/Next steps

  • Guidance for practitioners is very important
  • Need guidance for each stage of the matrix
  • “Look for” examples
  • Might be able to use some of BS11000 Part 2 as guidance
  • Having done a diagnostic, suppliers will need “how to” help e.g.
  • How to segment your relationships – customers and suppliers
  • How to develop a CW strategy
  • How to assess and develop your collaborative capabilities
  • How to plan relationships for the long term, including addressing and exit

strategy…

  • Exit Strategy is difficult. Do we need to re-word, re-focus on long term

planning rather than just Exit? Too negative??

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SLIDE 59

RMM Refresh

The Relationship Toolkit (RMM)

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SLIDE 60

The Relationship Toolkit (RMM)

The tool is flexible and outputs can be tailored to the specific requirements of the facilitator and/or the relationship being assessed. It can be used to collate data and extract pertinent comments or to illustrate the results of the assessment using one, or all, of its default charts.

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SLIDE 61

Gap analysis

This chart takes the average across all the stakeholders and illustrates the variance between the parties and the desired state. Significant gaps should be addressed as part of the relationship improvement plan

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SLIDE 62

Areas of concern

Illustrates the number of respondents who reported the relationship as failing or reactive across any of the attributes, indicating areas where priority improvement action may be required

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SLIDE 63

Status chart

  • Provides a RAG rating against the desired state for each of the relationship elements:
  • Red indicates the relationship is failing and recovery action is urgently required to achieve the desired

state

  • Amber indicates the gap between the current and desired relationship state is outside acceptable

parameters and improvement action is required to close the gap

  • Green indicates the gap between the current and the desired relationship state is within acceptable

parameters

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SLIDE 64

RMM Refresh

Progress, status and next steps -

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SLIDE 65
  • A revised draft of the RMM Matrix was circulated to members of the CW SIG
  • A consolidated document following the submission of the comments by SIG members and

their respective companies was produced and the Matrix was updated.

Background

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SLIDE 66
  • This has resulted in the refresh of the Matrix Questionnaire and the Diagnostics tools.

RMM Refresh

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SLIDE 67
  • Subject areas reduced from 20 to 18

– Felt that there was duplication

  • Improved the maturity statements and also the contextual

descriptors

  • Improved the descriptions around collaboration

Changes

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SLIDE 68
  • The Collaborative working SIG has reviewed and approved the changes
  • The RMM Tool has been up-dated and is ready for use
  • Communications and roll-out plan to be established with the SC21

Project Office

Feedback to date

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SLIDE 69

Next Steps

Implementation Plan

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SLIDE 70
  • Steering Board approval has now been given to accept CWEF
  • ADS start to publicise – engage with key stakeholders, SPs, TPs, RPs, PDQ

SIG, Primes, AMC – partly happening today

  • Start - ADS Launch Plan – target Jan 2013
  • Peer review of existing CWEF Maturity Model prior to pilots
  • Review and finalise framework in incorporating lessons pilot activity

– Some work to do around section 8 – which is currently headed exit strategy

  • Draft training material
  • “Lead Practitioner” workshops to agree the roll-out approach and material.

Implementation Plan

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SLIDE 71

Advancing UK AeroSpace, Defence and Security Industries

Coffee Break

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SLIDE 72

Advancing UK AeroSpace, Defence and Security Industries

Chartered Institute of Purchasing and Supply (CIPS) Aerospace and Defence Academy – Andrew Coulcher

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SLIDE 73

Leading global excellence in procurement and supply

Why is procurement and supply management so important to SME’s

Andrew Coulcher – CIPS Business Solutions Director SC21 Taskforce – Belfast Wednesday 21st November 2012

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SLIDE 74

Leading global excellence in procurement and supply

Chartered Body Charitable status Awarding body Membership

  • rganisation

Business

Introducing CIPS

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SLIDE 75

Leading global excellence in procurement and supply

Global reach and influence

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SLIDE 76

Leading global excellence in procurement and supply

  • SME’s need to understand that quality products and services, cleverly

marketed is no longer enough

  • Needing to think more widely than the core business just to survive
  • Failing to make the link between a shrewd procurement strategy and

building the best possible base for growth

  • Resources are always tight both in terms of cost and time
  • Difficultly in persuading directors to delegate responsibility for buying

decisions

  • Embedded buying practices and processes that worked well when they were

turning over £1m are no longer effective when they turn to over £10M

  • The wide held view that savings from procurement are marginal
  • Organisations do not invest in training and up-skilling

What’s the problem with procurement and SME’s?

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SLIDE 77

Leading global excellence in procurement and supply

1. Establish a strong business model for the future, of which procurement is core 2. Seek to achieve a sustainable cash flow 3. Training for a second tier of staff. 4. Take the time to fully audit of costs to establish where the biggest leaks are. 5. Switch to monthly consolidated invoicing where possible 6. Find the time to keep an eye on fast moving supplier markets and keep an eye on changing legislation that directs it 7. Undertake dramatic practical solutions to really get a grip on out-of-control spending, for example appointing a temporary finance director 8. Establish a smarter spending culture, shift from cost-cutting to positive and managed spending!

What do SME’s need to survive in the volatile and changing world?

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SLIDE 78

Leading global excellence in procurement and supply

  • Development of a longer and more sustainable business
  • More competitive and adding more value to customers and to the industry
  • Increased employment
  • Greater ability to attract investment and to invest
  • Ability to ride the economic storm
  • Realisation that procurement supports growth, innovation and enterprise
  • A changed and improved organisational culture where performance is not

just recognised but rewarded

  • Being able to be aspirational about the future……..

So how can CIPS and the Aerospace and Defence Academy help?

The benefits of procurement for SME’s

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SLIDE 79

Leading global excellence in procurement and supply

Introducing the CIPS Aerospace & Defence Academy

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SLIDE 80

Leading global excellence in procurement and supply

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SLIDE 81

Leading global excellence in procurement and supply

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SLIDE 82

Leading global excellence in procurement and supply

Joining the academy – the benefits and approach

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SLIDE 83

Advancing UK AeroSpace, Defence and Security Industries

SC21 award presentations Stephen Cowan General Manager Supply Chain, Bombardier

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SLIDE 84

Advancing UK AeroSpace, Defence and Security Industries

ITT Interconnect Solutions Gold Thales

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SLIDE 85

Advancing UK AeroSpace, Defence and Security Industries

J W Kane Precision Engineering Ltd Silver All Metal Services Ltd - Belfast Bronze Denroy Plastics Limited Bronze DHL Global Forwarding Limited Bronze New Breed Logistics, Inc Bronze Vulcanium Metals International Ltd Bronze Dontaur Engineering Ltd Re-Bronze

Northern Ireland Award Winners Nov 2012

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SLIDE 86

Advancing UK AeroSpace, Defence and Security Industries

Axis Electronics Limited Silver Thales Aeroflex International Ltd Re-Silver Thales

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SLIDE 87

Advancing UK AeroSpace, Defence and Security Industries

Accrofab Limited Bronze Self starter Aero Stanrew Limited Bronze Aero Engine Controls Bovill & Boyd (Engineering) Ltd Bronze Self starter JJ Churchill Ltd Bronze Self starter Rehau Bronze Self starter Systems Engineering & Assessment Bronze BAE Systems Trimite Technologies Ltd Bronze Self starter WB Alloys Products Ltd Bronze Self starter

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SLIDE 88

Advancing UK AeroSpace, Defence and Security Industries

AAR International Ltd Re-Bronze Self starter AB Precision Ltd Re-Bronze Thales Graves Aircraft Components Ltd Re-Bronze Self starter Hone-All Precision Ltd Re-Bronze Self starter Midd Aeromech Ltd Re-Bronze Thales Polamco Ltd Re-Bronze GD UK Keyford Precision Engineering Ltd Bronze AgustaWestland HITEK Electronic Materials Ltd Bronze Self starter Wincanton Ltd - Wattisham Silver Self starter

Awards winners not able to make it today

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SLIDE 89

Advancing UK AeroSpace, Defence and Security Industries

SC21 Northern Ireland Summary Tracy Meharg, Invest Northern Ireland

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SLIDE 90

SC21 - Northern Ireland Summary

  • Tracy Meharg
  • Executive Director, Business Solutions
  • Invest Northern Ireland
  • 21st November 2012
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SLIDE 91

Recognition

  • Congratulations to all the companies recognised today

Bronze Silver

July 2012 - Farnborough

NI Award winners in 2012

Lead sponsor for these companies

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SLIDE 92

SC21 Journey in Northern Ireland

2006 2009 2011 2012 2013/14

  • SC21 launched
  • Bombardier part
  • f cross industry

group

  • SC21 Wave one

launched

  • Bombardier sponsor
  • 6 companies
  • SC21 Wave two

launched

  • Bombardier sponsor
  • 6 + 8 companies
  • SC21 Task force

meeting held in Belfast

  • 3 Bronze Awards
  • 5 Bronze Awards
  • 2 Silver Awards
  • Focus on

Manufacturing suppliers

  • Service supplier

engagement

Going for Gold

  • SC21 Task force

meeting held in Belfast

  • Growing interest from
  • ther suppliers and

potential champions

  • 1 Bronze

Re-recognition

NI firmly committed to SC21 Journey

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SLIDE 93

Invest NI – Alignment with SC21 Approach

  • SC21 is a change programme designed to accelerate the

competitiveness of companies through raising the performance

  • f the Supply Chain. Key focus elements include:
  • Business Excellence
  • Process Excellence
  • Customer/Supplier Relationship Development
  • Continuous Improvement
  • This aligns with the Invest NI Business Solutions framework to

build the capability & competency of local companies to enable them to compete globally

  • Aerospace and Defence sectors are key elements within the

Northern Ireland manufacturing industry

  • Recognise the value of local businesses working towards

certification

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SLIDE 94

Entrepreneurial Innovative International

Invest NI - Our Approach

Investment in:

Research and Development Strategy and Innovation Export and Trade Skills and Training Management and Leadership Process Development Supply Chain Development Technology Uptake Sustainable Development Property Solutions Equity and Loans

Existing wealth creating business Expanded wealth creating business Aligned with Programme for Government

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SLIDE 95

Promote R&D

University Linkages Collaborative Network Access VC Networks Internationalisation of NI Research

Build Trade Links

Building Capability In-market Support Market Research Exhibitions/Events Identify Partnerships

Supply Chain Opportunities

Encourage Investment

Sell Northern Ireland Create Awareness Identify Opportunities Build Relationships Diaspora Increased Exports Increased R&D High Quality Jobs

The International Business Opportunity

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SLIDE 96

Invest NI – Supporting SC21 Companies

  • Out performing non SC21 companies by

30%

Delivery Performance

  • Assured Quality performance

Quality Performance

  • Over 50% increase in sales

Financial Growth

  • Expanded customer base to include

National & International customers

Customer Base

  • Strengthened relationship with key

customers via structured RMM process

Customer Relationship

  • Over 35% improvement

Value Add

  • 25% increase in employment

Employment

Business Support

  • Provided over

£5M in financial support

  • Direct

advisory support

Impressive results being demonstrated by the companies

Businesses now competing

  • n an International level
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SLIDE 97

Going Forward

  • Continued commitment from Invest NI to support

initiative and develop the supply chain competiveness of the local businesses

  • Blend of financial & advisory support available to support

the programme

  • Encourage more companies to commence the journey
  • Keen to engage with other potential sponsoring

companies

  • Interested in talking with other companies who could

benefit for the NI Supply Chain capabilities

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SLIDE 98

SC21 Programme - Key Invest NI Contacts

Organisation Name Contact details Invest NI Clive Stewart Tel: 028 90698367

Email: clive.stewart@investni.com

Invest NI Michael Polson Tel: 028 90698495 Email: michael.polson@investni.com Invest NI General Contact Number Tel: 0800 141 4422

Thank You

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SLIDE 99

Advancing UK AeroSpace, Defence and Security Industries

Closing Summary Phil Curnock