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
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
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
Advancing UK AeroSpace, Defence and Security Industries
Venue
Titanic Building
Queen’s Road Titanic Quarter Belfast BT3 9DT
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
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
Advancing UK AeroSpace, Defence and Security Industries
Minister of Enterprise, Trade & Investment
Advancing UK AeroSpace, Defence and Security Industries
Aerospace Growth Partnership Programme Neil McManus VP Spirit AeroSystems AGP Supply Chain Chairman SC21 Chairman
AGP: Aerospace Growth Partnership
The UK Aerospace Sector
employs 105,000 directly
industry outside the US
engines and advanced aircraft systems
What is the AGP?
STRUCTURE
together to address barriers to growth, boost exports and grow the number of high-value jobs in the UK.
by Vince Cable; senior level business/BIS representation. Identifies issues of strategic importance.
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.
What is the AGP?
VISION
and challenging goal given intensifying competition & rapid pace
and diversify global customer base. Critical given entry into market of new manufacturers of large civil aircraft.
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
market share …by end 2012
AGP Structure
Strategy Manufacturing Base Supply-chain Competitiveness External Engagement Technology
AGP
Steering Committee
the sector
case for Gov’t & Industry working together
programmes
industry for future Single-Aisle
plan to meet strategic goals
Demonstrator programmes
infrastructure
Implications for the manufacturing base
for partnerships
weaknesses
adaption and define
enhance access to finance, ECGD, investment, risk sharing and export
Aerospace’s Environmental brand around the future all new a/c concept
engagement plan for sector
Aerospace & Defence Sector Skills Group
retaining the required skills base
AGP Working Group Chairmen
Graham Chisnall, ADS
Gavin Campbell, Bombardier
Jon Dennison, GKN
Mark Stewart Airbus UK
AGP Working Groups
Aerospace Sector
groups
industry secondees plus ADS senior execs
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
?
A Strategic Vision for UK Aerospace
Foreword by Prime Minister
next steps, leading to final report at end of year – to turn vision into a winning strategy
need to be addressed to secure short, medium and longer term growth. This led to development of PEP (Protect, Exploit, Position model)
16
.
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
Develop new manufacturing systems to ensure high- value production remains in the UK 17 Identifying:
how we can make them more effective.
the measures that can be taken to protect them Identifying:
between now and 2025 and ensuring we work together to achieve maximum benefits for UK businesses
help de-risk technologies and manufacturing processes Ensuring:
well placed to secure maximum economic return
which may incorporate radical new technologies
Growth through CAPACITY Growth through NEW PRODUCTS and CAPABILTIES
AGP: Key High Level Findings
globally), if industry and Government work together to address barriers to growth.
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.
aerospace industry needs to broaden its customer base across the global market.
they see the Government is committed to maintaining the UK as an attractive environment for aerospace.
Strategy Working Group
Maintain Position as #1 in Europe
programmes
key systems
Broaden the UK base across the global market:
systems
Technology Working Group
KEY FINDINGS
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.
and technology application, together with targeted investment required to help UK industry protect its lead position in Europe
environmental technology advances, in order to stay ahead of competition and ensure continued economic success
demonstrations of innovative new technologies that will lead towards all new and unconventional aircraft concepts
Manufacturing Capability
KEY FINDINGS
enabling technology can be delivered; and where investment and collaboration needed.
Supply Chain Working Group
KEY FINDINGS
bid for a National Aerospace Technology Programme.
Competitiveness being addressed by AMSCI bids for SC21+ programme, Production Technology support and a National Supply Chain Centre.
identify and target programme opportunities and match with “market ready” suppliers.
Industry Banking Forum.
Skills & External Engagement
post graduate level engineers with appropriate skills.
will retire in next 10 years
technological capabilities; and supply chain needs to improve its skills in management and operations.
SEMTA Board) developing a skills strategy for AGP
choice – e.g. See Inside Manufacturing, Futures Day at FIA12, UK Rocketry Challenge.
AGP – Achievements so far
Vince Cable announced a £200m package of Government and industry investment at the Farnborough Air Show in July, comprising:
£60m Government support towards a UK Aerodynamics Centre; & £40m contribution from industry.
aerospace engineering, to be delivered over the next three years. BIS contributing up to £3m, matched by industry.
emissions engine technology delivered through the TSB and lead by Rolls Royce, known as SILOET 2. Additional £40m coming from industry.
Technology Strategy Board for 11 major business-led aerospace R&D projects.
Why needed?
programmes
investments and business models
Way Forward
virtual centre, with small programme team and focussed package of research
through materials and structures, manufacturing, control systems, etc
for competitiveness and growth
UK Centre for Aerodynamics
AGP – Achievements so far
Supply Chain Measures AGP Supply Chain Working Group has three bids in BIS AMSCI fund
technologies in the supply chain.
in the supply chain.
Chain Centre
Other HMG funding ahead of FIA12
the civil market through the AW169 civil helicopter in Yeovil
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:
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 )
Summary
government; and between aerospace businesses across supply chain
year end
contribution to the growth agenda.
sector
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
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
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
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
Thank You
Advancing UK AeroSpace, Defence and Security Industries
Phil Curnock
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
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
Members
Spirit Aerospace Ltd – MD
GDUK Ltd
Rolls Royce – Global Supply Chain Executive
Bae Systems – Supply Chain Director
ADS AMC Rep and Timet - MD
ADS AMC Rep and Non-exec director / MD
ADS AMC Rep and Naysmith - Group Chairman
Thales – Group Procurement Director
ADS SCC Rep and Aish Technologies - MD
Babcock – Head of Supply Chain
MEP – MD (PDQ SIG Co-Chair)
BAE Systems Plc – Head of Procurement (Saudi Arabia) (PDQ SIG Co-Chair)
MBDA – Supply Chain Director (Collaborative SIG Chair)
Airbus – Head of Supply Chain UK
GKN – Senior VP Supply Chain
Agusta Westland – Procurement Exec / Supply Chain
Selex Galileo – Head of Procurement
TBC Robin Little
– Major prime companies = 23 – SMEs = 590 – 95% are SMEs from large tier 1s to very small companies
– 74 bronze – 27 silver – 3 gold – 98% of award winners are SMEs
– Metal machining, Logistics, Composite, Integrators, Electronics, Test Houses, Tooling. Design houses, MRO facilities, Service support, Treatments, Sub assembly.
Advancing UK AeroSpace, Defence and Security Industries
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.
Advancing UK AeroSpace, Defence and Security Industries
Google Map – SC21 UK
Advancing UK AeroSpace, Defence and Security Industries
SC21 Collaborative Framework Update and Launch Terry Williams MBDA Ian Taylor AEC
Presentation to SC21 Task Force 21st November 2012
What is CWEF?
build and maintain long lasting relationships
for SMEs to handle
Principles of CWEF
is not mandated, assessed or part of award criteria.
It is a measure of the company capability itself. Comparable to ManEx and BusEx
– not just in 1-1 relationships (RMM/RMR)
works for situations where it is appropriate for customer-supplier to work at arms length, as well as for close “partnering” relationships.
assess a supplier’s collaborative capabilities as part of award criteria
part of the evidence for CWEF
Basic Outline
CW Excellence Framework
Step Factors Required
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
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
The Collaborative Working capabilities of the organization are well understood, assessed regularly and developed appropriately.
(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.
Step Factors Required
Proactive joint relationship assessment, review and development is undertaken where it is appropriate and mutually agreed (e.g. for strategically important, relationships)
The concept of value is understood with partner organisations and joint value improvement activities are embedded.
A continuous relationship improvement process is embedded and relationship improvement activities are shown to provide
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
How it fits into the current model
Adding to the current model
A Part of the Diagnostics
engage in relationships in the value stream
perception at an individual or functional level
Scoring, Implementation and Preparation
CWEF Maturity Model
ManEx and BusEx
How would a supplier implement the CWEF?
– Few sheets of A4 (could be 1). Framework should provide a template
– Few sheets of A4 (could be 1). Framework should provide guidance
– RMP template needed
– Approach as per ManEx or BusEx but less effort– 1 day total (assessment plus report)
CWEF Detail with Initial “Look for's”
Step Context
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
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”
Progress, status and next steps -
Latest Status
developed to V3
suppliers
Feedback to date
“now is the right time to address this”
important customers, focussing on their supply chain
strategy, process
customers and suppliers
customers about exiting
Issues/Next steps
strategy…
planning rather than just Exit? Too negative??
The Relationship Toolkit (RMM)
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.
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
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
Status chart
state
parameters and improvement action is required to close the gap
parameters
Progress, status and next steps -
their respective companies was produced and the Matrix was updated.
Background
RMM Refresh
– Felt that there was duplication
descriptors
Changes
Project Office
Feedback to date
Implementation Plan
SIG, Primes, AMC – partly happening today
– Some work to do around section 8 – which is currently headed exit strategy
Advancing UK AeroSpace, Defence and Security Industries
Coffee Break
Advancing UK AeroSpace, Defence and Security Industries
Chartered Institute of Purchasing and Supply (CIPS) Aerospace and Defence Academy – Andrew Coulcher
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
Leading global excellence in procurement and supply
Chartered Body Charitable status Awarding body Membership
Business
Introducing CIPS
Leading global excellence in procurement and supply
Global reach and influence
Leading global excellence in procurement and supply
marketed is no longer enough
building the best possible base for growth
decisions
turning over £1m are no longer effective when they turn to over £10M
What’s the problem with procurement and SME’s?
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?
Leading global excellence in procurement and supply
just recognised but rewarded
So how can CIPS and the Aerospace and Defence Academy help?
The benefits of procurement for SME’s
Leading global excellence in procurement and supply
Introducing the CIPS Aerospace & Defence Academy
Leading global excellence in procurement and supply
Leading global excellence in procurement and supply
Leading global excellence in procurement and supply
Joining the academy – the benefits and approach
Advancing UK AeroSpace, Defence and Security Industries
SC21 award presentations Stephen Cowan General Manager Supply Chain, Bombardier
Advancing UK AeroSpace, Defence and Security Industries
ITT Interconnect Solutions Gold Thales
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
Advancing UK AeroSpace, Defence and Security Industries
Axis Electronics Limited Silver Thales Aeroflex International Ltd Re-Silver Thales
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
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
Advancing UK AeroSpace, Defence and Security Industries
SC21 Northern Ireland Summary Tracy Meharg, Invest Northern Ireland
SC21 - Northern Ireland Summary
Recognition
Bronze Silver
July 2012 - Farnborough
NI Award winners in 2012
Lead sponsor for these companies
SC21 Journey in Northern Ireland
2006 2009 2011 2012 2013/14
group
launched
launched
meeting held in Belfast
Manufacturing suppliers
engagement
Going for Gold
meeting held in Belfast
potential champions
Re-recognition
NI firmly committed to SC21 Journey
Invest NI – Alignment with SC21 Approach
competitiveness of companies through raising the performance
build the capability & competency of local companies to enable them to compete globally
Northern Ireland manufacturing industry
certification
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
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
Invest NI – Supporting SC21 Companies
30%
Delivery Performance
Quality Performance
Financial Growth
National & International customers
Customer Base
customers via structured RMM process
Customer Relationship
Value Add
Employment
Business Support
£5M in financial support
advisory support
Impressive results being demonstrated by the companies
Businesses now competing
Going Forward
initiative and develop the supply chain competiveness of the local businesses
the programme
companies
benefit for the NI Supply Chain capabilities
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
Advancing UK AeroSpace, Defence and Security Industries
Closing Summary Phil Curnock