Transcript

1

Get Ahead in the

Aerospace Race 2016, Lisboa

Romain SOHIER

01 Aerospace History 02 Market and Challenges 03 What it takes to Be An Aerospace Supplier Rules and Regulations Quality Standards Supply Chain Standards Supplier Management Supply Chain Improvement 04 Conclusion and way forward

Get Ahead in the Aerospace Race

Contents

2

2

Aerospace History

01

3

Flying: A reality born of a shared vision

Lindbergh - 1927

1900 1950 2000

Wright Brothers - 1903

1969 - Concorde

1952

De Haviland Comet

9 Million passengers

2.6 billion passengers

2005

A380

2013

A350

3

Airbus a Project

1967-1970

A300 was launched in 1969

British Government and Rolls-Royce pulled out of Airbus.

Hawker Siddeley stayed in as a private venture.

GE CF6-50 from DC-10-30 chosen for A300B.

Jetliner order share evolution 1952-1976

1952 1956 1960 1964 1968 1972 1976

USA 97%

Europe 3%

Number of units (%)

0

20

40

60

80

100

Europe

de Havilland Comet entered service

2 May 1952

Boeing

Boeing 707

EIS 26 Oct 58

Douglas

Douglas DC-8 EIS 18 Sept 59

4

1970 Airbus Industrie (joint venture)

Economic Interest Group

(joint venture)

20%

37.9%

4.2%

37.9%

St Nazaire

Hamburg

Toulouse

Broughton

Nantes

Bremen

Munich

Madrid

Airbus Industrie

Production sharing

A300-600R shown

France

Germany

U.K.

Spain

VFW-Fokker

GE, PW

5

French, German and

British governments

agreement on the

development of an

European aircraft

1967

Creation of

Airbus Industrie GIE

(Grouping of Economic Interest)

1970

A300 first flight

World‘s first twin-aisle

twin-engine widebody

aircraft

1972

A310 first flight

Two men cockpit

1982

A300-600 first flight

A modern version

of A300

1983

A320 first flight

A new family, the widest

single aisle cabin

First fly-by-wire flight

controls & side stick

controllers

1987

A340 first flight

Four engines,

long-haul aircraft

1991

A330 first flight

Two engines,

long-haul aircraft

1992

1,000th aircraft

Delivery

A321 first flight

Expanding the

A320 family

1993

A300-600ST

first flight Beluga

1994

A319 first flight

Expanding the

A320 family

1995

Putting Europe back on the civil aviation scene

History

80% 20%

2001 Airbus Integrated Company within

European Aeronautic Defence and Space (EADS)

Economic Interest Group

(joint venture)

20%

37.9%

4.2%

37.9%

6

Airbus integrated

company

A340-600 first flight

2001

3,000th aircraft

delivery

A318 first flight

Expanding the A320 family

A340-500 first flight

2002

5,000th aircraft

order

2004

A380 first flight

2005

A350XWB

Industrial launch

(Extra wide-body)

2006

5,000th aircraft

delivery

First Chinese production

facility in Tianjin

2007

A400M first flight

2009

6,000th aircraft

delivery

A320neo

Industrial launch

new engines option

2010

10,000th aircraft

order

7,000th aircraft

delivery

2011

Final assembly of

the first A350XWB

First-ever commercial

“Perfect flight” with an A319 –

cutting CO2 emissions by

more than 40%

Decision for the First U.S.

production facility in Mobile,

Alabama

2012

The world leading aircraft manufacturer

History

First flight A350,

certification and

first delivery

2014

A330neo

Industrial launch

new engines option

2014 Airbus Group

7

Airbus Group’s Mission?

Page 14

Airbus Group

3 divisions

Employees: ~ 73,500

Revenues: ~ € 40 bn

Fabrice Brégier

Employees: ~ 22,400

Revenues: ~ € 6 bn

Guillaume Faury

Employees: ~ 40,000

Revenues: ~ € 14 bn

Bernhard Gerwert

Employees*: ~ 136,000

Revenues*: ~ € 59 bn €

Tom Enders

8

Airbus Group Revenue & Order Book

2015

* Commercial Order Intake and Order Book based on list prices

Market and Challenges

02

16

9

Single Aisle Jet Production climbs relentlessly to support this

demand

Air travel remains a growth market

10

Global Market Forecast – 2014-2033

Airbus versus Boeing

Only US$ 0.6

trillion gap!

Air travel will grow – Forecast by region

Revenue Passenger Kilometres (RPK)

11

Today: Aviation Mega Cities are cities where more than 10,000

daily long-haul passengers are handled

Tomorrow: Aviation Mega Cities are cities where more than 10,000

daily long-haul passengers are handled

12

These airports are already largely congested

What will the market demand be?

“…a decisive factor in the airline’s choice was that Airbus was able to offer early delivery slots, but Boeing

couldn’t… we really need deliveries around 2017, 2018…A350 are expected to give a 20% improvement in

operating cost per seats over Delta's existing aircraft” Richard H. Anderson, Delta’s chief executive

Delta swaps Boeings for Airbus planes in $14 billion order

13

Environment in Europe

Environnement en Europe

2014 2020 2008

Clean Sky is the most ambitious aeronautical research programme ever launched in Europe.

Its mission is to develop breakthrough technologies to significantly increase the environmental

performance of airplanes and air transport, resulting in less noisy and more fuel efficient aircraft, hence

bringing a key contribution in achieving the Single European Sky environmental objectives

http://www.cleansky.eu/

Environnement au Quebec

Environment in Quebec

The Coalition for Greener Aircraft is an association of specialists in the field of aeronautics who have come

together with the common goal of designing environmentally-friendly parts and systems for the aviation industry

while mobilizing Quebec's industry.

The Coalition for Greener Aircraft, through research and development activities, strives to maintain Quebec's

competitive position as a world leader in the rapidly changing aeronautics market, as we face the challenges of

climate change and resulting environmental regulations

The Quebec government is committed to continue supporting

innovative initiatives, such as the Major Developmental Project of

the Greener Aircraft

http://www.sa2ge.org

14

Environment in USA

The ERA Project is comprised of three subprojects: Airframe Technology, Propulsion

Technology and Vehicle Systems Integration. Work within the project is coordinated with

research performed by other programs within NASA's Aeronautics Research Mission

Directorate as well as other federal government agencies

Current-generation aircraft already benefit from the NASA investments in aeronautical research that have improved

fuel efficiencies, lowered noise levels and reduced harmful emissions. Although substantial progress has been

made, much more needs to be done.

Forecasts call for the nation's air transportation system to expand significantly within the next two decades.

Such an expansion could bring adverse environmental impacts.

To neutralize or reduce these impacts is the goal of the ERA Project and its focused research.

ENVIRONMENTALLY RESPONSIBLE AVIATION (ERA) PROJECT

http://www.aeronautics.nasa.gov

Environment in USA

Continuous Lower Energy, Emissions, and Noise (CLEEN) Program

The Continuous Lower Energy, Emissions and Noise (CLEEN) program is a NextGen

effort to accelerate development and commercial deployment of environmentally

promising aircraft technologies and sustainable alternative fuels. The aircraft

technologies focus on reduction in aircraft noise, emissions, and fuel burn.

CLEEN 2 on the way…

• Certifiable aircraft technology that reduces noise levels by 32 dB cumulative, relative to the Stage 4

standard

• Certifiable engine technology that reduces landing and takeoff cycle (LTO) nitrogen oxide emissions by

60 percent below the International Civil Aviation Organization (ICAO) standard adopted in 2004

• Certifiable aircraft technology that reduces aircraft fuel burn by 33 percent relative to current subsonic

aircraft technology, and which reduces energy consumption and greenhouse gas emissions

• Use of "drop in" sustainable alternative jet fuels in aircraft systems and quantifying benefits

• Suitability of new technology for engine and aircraft retrofit to accelerate penetration into the

commercial fleet

https://www.faa.gov

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Environmental Management System required by leading OEMs

as well as governmental agencies’ requirements (ECHA, EPA)

http://www.epa.gov

http://echa.europa.eu/regulations/reach

REACH is a regulation of the European

Union, adopted to improve the protection of

human health and the environment from the

risks that can be posed by chemicals, while

enhancing the competitiveness of the EU

chemicals industry

Dulio CLAUDIO

Get Ahead in the

Aerospace Race 2016, Lisboa

16

Airbus Group Procurement

2015

Page 31

44

64

External Sourcing Turnover Revenues

Sourcing Turnover is more than 2/3 of sales

Bn€

Sourcing Turnover 2/3 by Airbus

Page 32

Airbus Group Global Sourcing

2014 - 2020

42Bn€

62+Bn€

17

External SourcingOverview - Portugal

Used for depicting precise values

Bar chart

Used for structural comparison

Scale

All charts (Main products and Main sourcing regions) with same scale

AIRHOLDING, SGPS Systems+Equipment

Grupo S. Caetano Indirect Material

Novabase Indirect Material

Critical Services SA Systems+Equipment

Clube Ogma Product Related Serv.

GMVIS SKYSOFT Indirect Material

OutSystems Indirect Material

NANIUM Systems+Equipment

Complenitude Indirect Material

HPS Product Related Serv.

Indirect Material

Systems+Equipment

Structure+Airframe

<1

<1

39%

29%

13%

<1

<1

<1

Main products

4

2

1

<1

<1

Top Suppliers 2015 (M€)

Country Details

26

38

21

Yes

<1%

81%

Airbus Group total no. of active DUNS supplier (cons.w ithin country)

Rank as sourcing country for Airbus Group w orldw ide

Rank as sourcing country for Airbus Group w ithin Europe

Pending open Offset Obligations

TOP 10 external supplier's coverage of Sourcing Turnover

Relation Sourcing Turnover Country / Total Sourcing Turnover

Per Division (M€)

Per Currency

100%

19

22 23

19

9

<1

5

4<1

2011 2012 2013 2014 2015

Headquarters

Airbus Helicopters

Airbus Defence & Space

Airbus

EUR

Airbus Group Procurement Organisation

Worldwide coverage

Sourcing Office

North America

Sourcing Office

India and

Middle East

Sourcing Office

China and

East Asia

Central &

Operational

Teams

More than 4,000 Procurement employees representing

37 nationalities located worldwide, looking after more than 10,000 Suppliers

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Airbus Procurement Organisation

Procurement

Aerostructure Materials

& Parts

Equipment

& Systems

Propulsion

Systems

Airbus

General

Procurement

Cabin

Challenges

Business Growth

• Overall production rates

• Ramp-up A350

• Transition A320 ceo/neo

• Globalization

Industrialization

• Robustness

• Competitiveness

• Globalisation

• Innovation

19

from… to…

Requirements for 1st tier suppliers

“Defence legacy” “Commercial/industrial

orientation”

Small size - companies

- contracts/volumes

Critical mass - Companies

- contracts

Extended workbench Work package approach

Global Regional

Corporate Objectives on Supply Chain

20

Airbus Group Supplier

Code of Conduct May 2nd 2016

May 2016

Procurement Compliance Nathalie O’NIONS - PGA

New Airbus Group Supplier Code of Conduct

• Airbus Group has adopted the IFBEC Model Supplier

Code of Conduct in its entirety with an objective to:

• Share and cascade values to Supply Chain

• Prevent risks

• By committing to the Airbus Group Supplier Code of

Conduct, Airbus Group suppliers adhere to the 10

principles covered including key topics such as:

• Human Rights, Employment Practices

• Anti-Corruption, Conflict of Interest

• Environment, Health and Safety

• Global Trade Compliance

• The new Airbus Group Supplier Code of Conduct is

available on the Airbus Group and Divisions public

websites

21

Airbus/Supplier joint efforts to meet Customer demand

Make it right the first time

Ensure sufficient capacity

Reach and sustain excellent performance

Be creative and propose solutions for cost optimisation

RAMP-UP

ON-TIME DELIVERY

QUALITY

COST

What it takes to Be An Aerospace Supplier

03

42

22

03

Rules & Regulations

43

International Civil Aviation Organization (ICAO)

The International Civil Aviation Organization (ICAO) is a UN specialized

agency, established by States in 1944 to manage the administration and

governance of the Convention on International Civil Aviation (Chicago Convention).

ICAO works with the Convention’s 191 Member States and industry groups to

reach consensus on international civil aviation Standards and Recommended

Practices (SARPs) and policies in support of a safe, efficient, secure,

economically sustainable and environmentally responsible civil aviation

sector.

These SARPs and policies are used by ICAO Member States to ensure that their

local civil aviation operations and regulations conform to global norms, which in

turn permits more than 100,000 daily flights in the global aviation network to

operate safely and reliably in every region of the world.

Source: www.icao.int

23

Mission of the aviation authorities & Approvals

Main objective is to ensure the highest level of safety and

Environmental protection in civil aviation based on core values:

Safety is a civil right

Civil Aviation is global

National and International

bodies regulate the industry

Regulations IRs (Implementation Rules)

FARs (FAA Regulations)

CARs (CAA Regulations)

International bodies & aviation authorities

National Aviation

Authorities

DGAC-F LBA

State - Gouvernment Legal power level

EASA (Europe)

FAA (USA)

TCCA (Canada)

CAAC (China)

ANAC (Brazil)

INTERNATIONAL CIVIL AVIATION ORGANIZATION

A United nathions Specialized Agency

CAA UK DGAC-S

24

EASA

The European Aviation Authority

EUROPEAN

AVIATION

SAFETY

AGENCY

Maintenance

Aircraft Operator Aircraft Manufacturer

Design Production Design Production Maintenance In EASA member and associated member

countries, the following rules are applicable Part M

Part 145

European Aviation Safety Agency

Rules

Part 21 POA

Part 21 DOA

Part M Certificate

Part 145 MOA

When satisfied, the

competent

authority grants its

approval

Part 21 Part 21

25

European Aviation Safety Agency

Purpose of approvals

Design Organisation Approval - DOA

Ensure Aircraft design data conform to EASA specifications and support operator to

ensure individual aircraft continued airworthiness

Production Organisation Approval - POA

Ensure new individual aircraft and/or spare parts conform to the approved design data

and are in condition for safe operation

Maintenance Organisation Approval - MOA

Ensure that maintenance of aircraft (or components) used for commercial air transport

has been carried out in accordance with maintenance data, and that there are no known

non-compliances* that are a serious hazard for flight safety

EASA - PART 21 J

Approval for the Design phase (DOA)

Design

Demonstration & Verification of

compliance (e.g. system Safety

assessments, ground and flight tests)

Declaration of compliance

Covers Type Certification and Continued Airworthiness

A/C Manuals &

Instruction for

continued

Airworthiness Continued Airworthiness

Type certification is related to a series of aircraft

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Conformity to Type Certificate

and approved modifications

Manuals and

associated

documents Declaration of

compliance

EASA - PART 21 G

Approval for the Production phase (POA)

Covers the production and release of aircraft and/or

spare parts for Individual Certification

CoA

Individual certification is related to each aircraft (Manufacturing Serial Number)

Certificate Of Airworthiness - EASA Form 27

Determine conformity (aircraft, parts, appliances)

Manual is always up-to-date

Record all details of work

Report potential safety occurrences

Establish archiving system

Maintain system effectiveness by making measurements,

especially through an internal audit programme

Main obligations for Approval holders

As an Airbus supplier these obligations

will also apply to you

Demonstration of capability

to conform to Requirements

Robust

Quality Management System

Services/Products:

On Quality

On Time

On Cost

This is why Airbus requires a systematic and standardized approach

27

Aerospace Quality Management System

Aerospace Quality Management System

Essence of AS/EN/JISQ 9100

You should

Say What You Do

Do What You Say

Be Able to Prove It

BUT….this is not sufficient …

You Must Meet Aerospace industry

standards

Be Effective

28

Aerospace Quality Management System

AS/EN/JISQ 9100

1994 Europe: EN9000-1

1996 USA: AS9000

1999 Asia/Pacific: JISQ 9100

2003 Norm AS/EN/JISQ 9100 - revised in 2009

Next revision 2016

Aerospace Quality Management System

What is AS/EN/JISQ 9100?

AS/EN/JISQ 9100 are the Aerospace requirements for establishing and

maintaining a quality management system (QMS).

9100 includes the requirements of ISO 9001:2008 plus additional requirements

for the aviation, space, and defense industries.

29

Aerospace Quality Management System

What is AS/EN/JISQ 9100?

To assure high levels of customer satisfaction, these types

of organizations need to produce, and continually

improve, safe and reliable products that meet or exceed

the requirements of customers and applicable statutory

and regulatory requirements.

A quality management system is set up by an organization

to achieve high levels of customer satisfaction and continual

improvement, focusing on common requirements and the

reduction of variation and waste in the supply chain.

Aerospace Quality Management System

What is AS/EN/JISQ 9100?

Rather than – what you produce – 9100 focuses further

“upstream” on the processes – or how you produce.

9100 requires documented systems for controlling the

processes you use to develop and produce your products.

...there are certain elements every quality management

system must have in place in order to ensure that safe,

quality products are consistently provided to the customer

on time.

30

9100 requires that companies have

a quality manual, quality

procedures, work instructions, and

records.

The pyramid gives you an idea of

how much documentation there is

at each level.

Your company will probably have

one quality manual, about 10 to 40

quality procedures, and many

more work instructions, forms and

records

Aerospace Quality Management System

How is the Documentation System Structured?

LEVEL 1

QUALITY MANUAL

LEVEL 2

QUALITY PROCEDURES

LEVEL 3

WORK INSTRUCTIONS

LEVEL 4

RECORDS &

FORMS

Aerospace Quality Management System

Whose role is it to improve and maintain quality?

It is every employee’s responsibility to ensure that the processes in his

or her area are complete, correct, and effective

Remember that processes are not set in stone; they will need to be

updated over time

It is your process …If it has mistakes, or not enough information, or

even too much detail, it only makes your job harder to do!

Don’t miss a chance to make your

business better!

31

Aerospace Quality Management System

OASIS – Online Aerospace Supplier Information System

Source: IAQG

Aerospace Quality Management System

International Aerospace Quality Group

A worldwide Association (Belgian law) of

Aerospace and Defense industries organized in 3

regions

Mission: to implement quality initiatives that make improvements

throughout the value streams of products and services

American Aerospace

Quality Group

European Aerospace

Quality Group Asia Pacific Aerospace

Quality Group

Source: IAQG

32

Your organisation should be certified

Be An Aerospace Supplier

Only qualified Manufacturing sites/parts can be used

33

Airbus Approved & Qualified sources

http://www.airbus.com/tools/airbusfor/suppliers/

https://w3.airbus.com/

T1 T2/3…

Information is available for the

entire supply chain but

remember…

03

Quality standards

66

34

Quality Puzzle to be a Key Aerospace Player

To be an Aerospace supplier, you must be 9100 accredited and

have in place the main IAQG Quality requirements….

1

2

3

4

5

6

7

8

9

10

11

12

DFMEA

Manufacturing Flow Chart

PFMEA

Key

Characteristics

Measurement System Analysis

Statistical Process Control

Cp, Cpk

Control Plan

FAI, PPAP, APQP

Root Cause

Process Reproducibility

Continuous Improvement

…and demonstrate their effectiveness and more …

35

03

Supply Chain standards

69

Definition

36

Introduction to Supply Chain Management

Definition

Su

pp

lier

pro

cesses

Product Design

Cu

sto

mer p

rocesses

Supply Chain

Sales & Support

Product Management

The design, planning, execution, control, and monitoring of supply chain

activities with the objective of creating net value, building a competitive

infrastructure, leveraging worldwide logistics, synchronizing supply with

demand, and measuring performance globally Source: Apics

Supply Chain Management can reduce costs by

being sure that the right materials are in the right

place at the right time and the resources of the

company are properly used. Therefore you need to

Synchronize Supply & Demand

Introduction to Supply Chain Management

Definition & primary processes

37

Introduction to Supply Chain Management

The Supply Chain - Definition

The Supply Chain is not a business function

It is a network of companies

Supply Chain Management is the implementation

of cross-functional relationships with key

customers and suppliers in that network

It is necessary for an organization's success

and every function needs to be involved

Introduction to Supply Chain Management

Conclusion

By understanding the supply chain management

processes and how they should be implemented,

management will better understand the value of

more integrated supply chains and how this

integration will lead to increased shareholder value

and a sustainable competitive advantage

Page 74

38

Introduction to Supply Chain Management

KPI

Introduction to Supply Chain Management

Supply Chain Metrics

Define the goal and Objectives

Define the fundamental measurements

Define the necessary conditions

Set performance Standards

Educate user

Make sure this is consistently applied

39

Introduction to Supply Chain Management

Production Planning System

Production Planning System

A good planning system must answer four questions

WHAT ARE WE GOING TO MAKE

WHAT DOES IT TAKE TO MAKE IT

WHAT DO WE HAVE

WHAT DO WE NEED

40

OPERATIONAL

TACTICAL

STRATEGIC

Production Planning System

IMP

LE

ME

NT

AN

D

CO

NT

RO

L

PL

AN

Production Planning System

Sales & Operations

Plannings (Family of Products)

Master Production

Schedule (Products)

Material Requirement

Planning (Component)

Production Activity

Control

Strategic Plan

IMP

LE

ME

NT

AN

D

CO

NT

RO

L

PL

AN

41

Production Planning System

Capacity Management at all levels

Sales & Operations

Plannings (Family of Products)

Master Production

Schedule (Products)

Material Requirement

Planning (Component)

Production Activity

Control

Strategic Plan

Resource

Requirement

Planning

Rough Cut

Capacity Planning

Capacity

Requirement

Planning

Capacity

Control

CAPACITY

MANAGEMENT

IMP

LE

ME

NT

AN

D

CO

NT

RO

L

PL

AN

Introduction to Supply Chain Management

OEE

42

Production Planning System

Capacity Management

What is OEE?

Overall Equipment Effectiveness

OEE = AVAILABILITY X PERFORMANCE X QUALITY

Capacity calculation

OEE - “How it works”

Total time

Loading time

Operating time

Net operating

time

Valuable

operating

time

OEE = AVAILABILITY X PERFORMANCE X QUALITY

Availability (%)

Loading time – Downtime losses

Loading time

Performance (%)

No of Parts x standard time

Operating time

Quality (%)

Parts Produced – (Scrap or Rework)

Parts Produced

X100

X100

X100

Pla

nn

ed

do

wn

tim

e

Do

wn

tim

e

Loss

es

Sp

eed

Lo

sses

Qu

ality

Lo

sses

Breakdowns

Set-up & Adjustment

No Material

Breaks

Planned Maintenance

No Work

Minor stoppages

Reduced speed / Idling

Quality defects

Reduced yield

43

Introduction to Supply Chain Management

Bottleneck

Production Planning System

Capacity Management

Bottleneck

APICS defines bottleneck as 'a facility, function,

department, or resource whose capacity is

equal to or less than the demand put upon it'.

44

03

Supplier Management

87

Supplier Management

The Extended Value Chain

45

Over the last 20 years OEMs have developed new opportunities with

their Tier 1 suppliers

Make

Buy

Platform

Assembly

Platform

Assembly

Large Scale Integration Large Scale

Integration

Value Added Parts

Assemblies

Make to Print Parts

Assemblies

Make to Print Parts

Assemblies

Raw materials Raw materials

T1

Yesterday Today

Value Added Parts

Assemblies T1

Value Added Parts

Assemblies

Over the last 20 years OEMs have developed new opportunities with

their Tier 1 suppliers…like automotive years ago

Platform

Assembly

Platform

Assembly

Large Scale Integration Large Scale

Integration

Value Added Parts

Assemblies

T1

T1

• To Share and Improve

Technologies

• To massively increase the volumes

• To stay competitive

Yesterday Today

Make

Buy

46

Win-Win approach

Earlier, Wider and Together

Source: Roland Burger – Speedneews 2015

Supplier Management

Aerospace Supply Chain

6 000 000

PARTS FOR AN A380 SUPPLIERS

7700 +20 COUNTRIES

47

Supplier Management

Potential issues if you don’t manage your supply chain efficiently

Supply chain risk is a strategic issue

There are now more risks to the supply chain and risk events are becoming more

costly.

Supply chain risk is important in strategic decision making to what and whom with.

As supply chains have become more interconnected and global,

they have also become more vulnerable,

with more potential points of failure

and less margin of error for absorbing delays and disruptions.

Supplier Management

Supplier Selection and assessment

48

IAQG

Supplier Selection and Capabilities Assessment

AS/EN/JISQ9100 (Rev. C) sections

7.4.1 Evaluate and select suppliers

7.4.1.f Determine and manage the risk

7.4.1 a-f Maintain a Register of Suppliers, review

performance, establish levels of controls, define

approval status requirements and determine and

manage the risk when selecting and using suppliers

IAQG 9134

Supplier Selection and Capabilities Assessment

You must assess your suppliers on the 11 business

processes according to the IAQG

Source: IAQG

49

SWOT ANALYSIS

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

SWOT ANALYSIS

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

characteristics of the business or project that give it an

advantage over others

elements that the project could exploit to its advantage

characteristics that place the business or project at a disadvantage relative to others

elements in the environment that could cause trouble for the business or project

50

IAQG

Product Performance Detailed Assessment (PPDA)

You must assess your supplier’s processes

Identify weaknesses and risks regarding product

performance

Assess gaps and overlaps between the different processes

throughout the product life-cycle

IAQG

Product Performance Detailed Assessment

51

IAQG

Product Performance Detailed Assessment

About 800 assessed items (questions) have been

developed and sorted into 50 topics and the 11 standard

processes. They serve as support for the detailed

evaluation of some of the SSCAM 11 process areas.

Raising all the 800 assessed items leads to long

assessment efforts and/or durations (up to 10 staff*days)

which might exceed allowed time. Be selective.

Supplier Management

Supplier Collaboration

52

Supplier Management

Supply Chain Collaboration – What Is It?

Many different definitions depending on perspective

The means by which companies within the supply chain work

together towards mutual goals by sharing

• Ideas

• Information

• Processes

• Knowledge

• Information

• Risks

• Rewards

Why collaborate?

• Accelerate entry into new markets

• Changes the relationship between cost/value/profit equation

Supplier Management

AirSupply: a great European ambition for Aerospace

BEFORE: Individual Supply Chain market places

TARGET: A Unique Aerospace and Defence Supply Chain Hub

http://www.boostaerospace.com/airsupply/

53

Joint usage of one single industry hub

with standardized processes increases

transparency and visibility of crucial

processes throughout the Supply

Chain

A&D OEMs

Tier-1

Suppliers

Tier-2

Suppliers

AirSupply

This transparency and visibility helps to

identify “bottleneck” situations early,

stabilizes the whole Supply Chain

and reduces risk

The number of suppliers that use

AirSupply is high and continuously

rising

Supplier Management

Building the supply network …

Airbus Joint Improvement Plan (JIP)

Supplier Quality & Improvement Program (SQIP)

54

Supplier Management

Supplier Quality Management Basics (SQMB)

Control your supplier

Supplier Quality Management Basics (SQMB)

Some of the basic elements for a SQMS should include but not be limited to

processes to address:

Flowdown of quality requirements

Supplier Pre-production Planning

Production Readiness

Purchased Product Verification

Supplier Performance Monitoring

Supplier Surveillance

55

1991 – JR Tony Arnold & Stephen N Chapman

Introduction to Materials Management

16 chapters which

detail the processes

and techniques to

implement a robust

system

Conclusion and way forward

04

110

56

Let’s see if we have covered the main requirements from the

IAQG SCMH - Supply Chain Management Handbook

Supply

Chain

Management

Handbook

International Aerospace Quality Group

Supply Chain Standard based on the SCOR model

57

Market

&

Sell

Design

&

Develop

Make Buy

Deliver Customer

Support

Plan

&

Manage

Stakeholder

Relationship

IAQG Supply Chain Management Handbook

8 Modules

1 2 3 4

5 6 7 8

Module 1

Sales, Master Scheduling and Sequencing

• Strategic Plan

• Sales & Operation Planning

• Master Production Schedule

• Material Requirement Planning

• Production Activity Control

• Demand Management

58

Market

&

Sell

Design

&

Develop

Make Buy

Deliver Customer

Support

Plan

&

Manage

Stakeholder

Relationship

IAQG Supply Chain Management Handbook

8 Modules

1 2 3 4

5 6 7 8

Module 3

Make

• Managing Product and Process Variation

• First Article Inspection (FAI)

• Non Conforming Product

• Foreign Object Debris/Damage (FOD)

• Counterfeit Parts Prevention

• Human Factors in New Manufacturing

• Statistical Product Acceptance

• Manufacturing Work Instruction

59

Non Conforming Product

AS/EN/JISQ 9100B Requirement - Section 8.3, Paragraph 1

…The organization shall ensure that product which does not conform

to product requirements is identified and controlled to prevent its

unintended use or delivery…

…Any Supplier in the aviation, space and defense supply chain

needs to have defined methods and documented procedures to

contain a nonconformance internally or externally…document and

address the nonconformance within the authority formally granted by

contract.

IAQG 9146 – FOD source: IAQG

Foreign Object Debris (FOD) A substance, debris, or article

alien to the component, assembly, system or vehicle that

could cause damage.

Foreign Object Damage (FOD) Any damage or incident

attributed to a foreign object that can be expressed in

physical or economic terms that may or may not degrade

the product’s required safety and/or performance

characteristics.

60

IAQG 9146 – FOD source: IAQG

IAQG 9146 – FOD source: IAQG

61

IAQG 9146 – FOD

Do you have 6 S in Place?

Sort – Discard everything that you don’t use

Shine – Clean!

Straighten – Label & organize in a way to promote work flow

Standardize – Assign roles and responsibilities, standardize processes

Sustain – Audit to make sure the 6S program is being maintained

Safety – Keep the work area safe and walkways clean

Counterfeit Parts Prevention

AS/EN/JISQ9100 (Rev. C) sections 7.4.1

Establish an Approved Supplier List (ASL), Approved

vendor List (AVL) or Preferred Supplier List with supplier

rating.

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Airbus Approved Suppliers, Special process, Test method List

Boeing Approved Process Sources

http://www.airbus.com/tools/airbusfor/suppliers/

http://active.boeing.com/doingbiz/d14426/index.cfm

Human Factors in New Manufacturing

6 main categories – 12 Dirty Dozen

1

2

3 4

5

6

Feeling

Equipment

Ergonomics

Culture Competence

Environmental

MACHINE DESIGN, TOOL DESIGN, MATERIAL

FLOW, COMPLEXITY OF OPERATION…

1

SUITABLE TOOLS, APPROPRIATE CLOTHING,

RAW MATERIAL…

2

MANAGEMENT ATTITUDE, LOCAL CULTURE,

REWARD AND RECOGNITION…

3

KNOWLEDGE, SKILLS, PROCEDURE,

INSTRUCTION, TRAINING…

4

TIME OF THE DAY, TEMPERATURE, NOISE

LEVEL, DISTRACTION…

5

MENTAL STATE, PHYSICAL HEALTH,

AMBITION, CONFIDENCE…

6

63

The Dirty Dozen

Fatigue This is considered the number one contributor to human error. It is insidious, and

the person fails to realize just how much his/her judgment is impaired until it’s too

late. Until it becomes extreme, a person may be unaware that he or she is

fatigued. It is more easily recognized by another person or in the results of tasks

being performed

Lack of communication This is the failure to, or the lack of, information exchange between two or more

people.

To prevent it, attention should be focused not only on how this happens but also

what safety net will prevent it.

The Dirty Dozen

Complacency This is where we become so self-satisfied in our activity or so familiar with a project

that we lose awareness of dangers. Some activities can become too familiar (i.e.

repetitive tasks) and “rote memory” based so that every little change in the pattern

can cause error.

It is sometimes called overconfidence and creeps in as we become more proficient

at what we do.

Lack of knowledge With constantly changing technology, this contributor to an error is more common

than we think. Add to that the fact that the average human only retains about 20

percent of what they learn, unless they use it often.

64

The Dirty Dozen

Distraction Our mind works much quicker than our hands, and thus we are always thinking

ahead.

Any distraction can cause us to think we are further ahead than we actually are.

This contributing factor is known to be responsible for at least 15 percent of all

aviation accidents.

Lack of teamwork The larger an organization becomes, the more common this contributing factor is.

It is hard to gain and very easy to lose.

Causes can be: roles and responsibilities not clear, decisions for the team made by

one single person without the team's knowledge, problems and issues not

addressed by the team members, lack of trust and respect and personal problems

among the team members.

The Dirty Dozen

Lack of resources A lack of resources can interfere with one’s ability to complete a task. Furthermore

the low quality of resources (i.e. tools, work instruction/job card, standard parts,

etc.) can compromise the successful job completion and increase the employee's

workload, stress, and fatigue. For example if the employee does not have the

correct tool near the job area, he/she has to go away to find it and, when he/she

comes back to restart working, there is an increased risk of forgetting something to

do for the task being worked on.

Pressure Pressure to be on time is ever-present in the aviation industry.

We are very time-sensitive and many decisions are centerd around that fact. Over

64 percent of pressure-caused errors are caused by self-pressure.

65

The Dirty Dozen

Lack of assertiveness Assertiveness is the ability to express your feelings, opinions, beliefs and needs in a

positive manner. Lack of assertiveness is failing to speak up when you think that

something doesn’t seem right, this has resulted in many fatal accidents. However,

assertiveness also calls for listening to the views of others before making a decision.

Assertiveness is that middle ground between being passive and aggressive.

Stress Stress is the subconscious response to the demands placed upon a person. We all

have some stress in our lives, and it is not all bad until it becomes excessive. The

causes of stress are referred as "Stressors" and are classified as physical

(Temperature, Noise, Lighting, Confined spaces), Psychological (Work-related,

Financial problems, domestic problems, interpersonal problems) and Physiological

(Poor physical condition, Proper meals, Lack of sleep, Conflicting shift schedules).

The Dirty Dozen

Lack of awareness Lack of awareness occurs when there is a lack of alertness and vigilance in

observing that result in a failure to recognize all the consequences of an action.

This usually occurs with very experienced persons who fail to reason out possible

consequences to what may normally be a good practice.

Also information overload (without a priority) and many distractions factors can

cause lack of awareness.

Negative Norms Norms is short for “normal,” or the way things actually are done around an

organization. Norms are unwritten rules followed or tolerated by the majority of a

group. Negative norms are those that detract from an established safety/quality

standard.

66

Market

&

Sell

Design

&

Develop

Make Buy

Deliver Customer

Support

Plan

&

Manage

Stakeholder

Relationship

IAQG Supply Chain Management Handbook

8 Modules

1 2 3 4

5 6 7 8

Module 4

Buy

• Supplier Selection and Capabilities Assessment

• Product Performance Detailed Assessment

Checklist

• Supplier Quality Management Basics

• Sub-tier Supplier Control

67

Market

&

Sell

Design

&

Develop

Make Buy

Deliver Customer

Support

Plan

&

Manage

Stakeholder

Relationship

IAQG Supply Chain Management Handbook

8 Modules

1 2 3 4

5 6 7 8

Module 5

Deliver

• Metrics Definition

• Certificate of Conformance

68

Market

&

Sell

Design

&

Develop

Make Buy

Deliver Customer

Support

Plan

&

Manage

Stakeholder

Relationship

IAQG Supply Chain Management Handbook

8 Modules

1 2 3 4

5 6 7 8

Module 7

Plan and Manage

• Work Transfer Management

• APQP

• Risk Management

• Root Cause Analysis

• Configuration Management

• Process Mapping (VSM)

• Capacity Management Ordering & Logistics

• Compliance education

69

RED ALERT - RED ALERT - RED ALERT - RED ALERT

1 2 3 4

5 6 7 8

9 10 11 12

IF ANY CHANGE

WHAT COULD BE

THE IMPACT?

Control of Transfers of Work source 9100

The organization shall establish, implement

and maintain a process to plan and

control the temporary or permanent

transfer of work (from one organization

facility to another, from the organization to a

supplier, from one supplier to another

supplier) and to verify the conformity of

the work to requirements.

70

Risk to lose your accreditation

Remember

Only qualified

Manufacturing sites/parts

can be used on an aircraft

Compliance education

Training

+33 562 121 114

71

Market

&

Sell

Design

&

Develop

Make Buy

Deliver Customer

Support

Plan

&

Manage

Stakeholder

Relationship

IAQG Supply Chain Management Handbook

8 Modules

1 2 3 4

5 6 7 8

Module 8

Stakeholder Management

• Requirements and Flowdown

• Contractual Requirement Review and

Management

72

Airbus General Requirements for Suppliers (GRAMS/GRESS)

Airbus Supplier Requirements (ASR)

GRAMS & GRESS currently merge into

Airbus Supplier Requirements (ASR)

You must be 9100 acredited.

Be 100% sure that what we have reviewed is in place

and efficient as you are committing by contract.

Airbus will assess whether you are fulfilling your

commitment or not.

General Requirements

for Aerostructure and

Material Suppliers

General Requirements

for Equipment &

System Suppliers

ASR Baseline

structure