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“Supply Chain Management Handbook”
SCMH
Overview and Survey
Presenter: Darryl Hue – Boeing
July 30, 2009
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Supply Chain Management Handbook
(SCMH)
Purpose:
– Overview of SCMH
• Objective and Scope
• Project Team and infrastructure
• SCMH Chapter and work in progress
• How to access (Demo)
– Survey
• SCMH Assessment model
2
SCMH Objective and Scope
Objective:
•
Provides “How to” guidance material to help improve the “On-Time and OnQuality” performance of products and services throughout the Aviation, Space
and Defence industry.
Scope: Guidance Material to include:
• Deployment support to implement requirements contained in the IAQG (91xx)
developed series of Quality Management Systems standards.
• Material to support performance improvement of Supply Chain Processes.
The SCMH
• Is structured in line with a Supply Chain process model covering the entire
product lifecycle from development through in-service operations
• Is provided for use by companies at all levels in the value chain. .
• Will be completed progressively and include regularly updated to incorporate
feedback and “lessons learned” from its application.
• The contents have been developed by the member companies of the IAQG.
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Focus on “How” through SCMH
9100
Inputs for future
revision of 9100
Requirements
Supply
Chain
Mgmt.
Handbook
Providing guidance material and best
practices on how to meet requirements
and achieve objectives
New or revised IAQG
published documents
(Standards, guideline)
91xx
9131
9103
9102
SCMH Guidance
material, tools,
trainings
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Active Project
Writing Teams
Project Management
Structure/Resources
Project Management Infrastructure
LT Core Members:
S. Armstrong – UTC (AAQG) C. Buck - Safran (AAQG)
L. Weng- Boeing (AAQG) B. Lauras – Airbus (EAQG)
S. Komori – FHI (APAQG)
SCMH Leadership
Team
D. Hue (Boeing) – Proj Mgr
R. Pardons (IAQG) – Tech mgr
M. Iwadare – APAQG Support
Contractors - Technical Writers
Member Company Volunteers
New Product
Introduction
Special
Requirements
CI for Small
Suppliers
Requirements &
Flowdown
Lean Assess.
Tools
Risk
Management
FOD
Work Transfer
People Capability
(PCAP
001) of
Notification
Change
Master
Schedule
Counterfeit Part
Prevention
CI for Small
Business
9115 Guidance
Material
Other Topics
Other Topics
Assessment
Checklists
SQM Basics
Work Instruction
Preventive Action
Support Resources:
Technical
Project Mgr
Project
Manager
Future Topics
Not assigned
FAI
Configuration
Management
• Central project templates
• Std. plan and processes
• Documented expectations
Available Sections
• Active Work storage
• Standard Processes
• Standard templates
Key Characteristics
Requirements and
flow
RCAdown
& Problem
Solving
Non-Conformance
IAQG Work
Space
Work Transfer
Source Selection
In work
In Revision
Not assigned
Completed
5
Plus Member (and non-member)
Company Participation
IAQG Member Company Participation
Non-Members Participation
Airbus
Gulfstream
JPL-NASA
ATK
Liebherr
NQA-USA
Avio
Lockheed Martin
Progress Casting
Bell
Messier Dowty
SEA
Boeing
MHI
Spirit Aero
Boeing Canada
MTU
Triumph
Bombardier
Parker
UL DQS Inc.
Dassault
Safran
Verify Inc
Dassault Aviation
Spirit AeroSystems
EADS
Sukhoi
Embraer, Brazil
Thales
ESA
UTC
Eurocopter
Volvo Aero
Fuji Heavy industries, LTD
Vought
GE Aviation
Zodiac
Goodrich
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SCMH Chapters and Work in Progress
Supply Chain Management Handbook
1. Sales, Master
Scheduling &
Sequencing
2. Contract
Requirements and
Flow Down
Requirements and flow
down templates
3. Design and
development
4. Suppliers
sourcing selection
& approval
5. Plant, material,
skills, capacity
planning &
scheduling
Supplier Selection and
Capability Assessment
Product Performance
Detailed Assessment
Checklists
Special Requirements
Critical items
New Product
Introduction- Quality
9115Software Guidance
6. Order
Management and
logistic (Internal &
external)
7. Manufacturing
and inspection
9103 education package
(Key characteristics)
9102 Education package
(First Article Inspection)
Foreign Object
Debris (FOD)
Lean Assessment
Tool
8. Supplier
operational
management and
product validation
9. Control of non
conformities,
corrective and
preventive actions
10. Customer
Support (Control
of service
operations)
Root Cause Analysis &
Problem Solving
Supplier Quality Mgt
Basics
Control of non conformities
11. Business Management and Customer Satisfaction Monitoring
Work Transfer
CI for Small Business
Risk Management
Configuration Management
Appendices:
Exists
In Work
New
Priority 1
9100 Rev C
Deployment Support
People Capability
(PCAP 001)
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Available material
Chapter
SCMH Content
Section
Chapter 2 – Contract requirement flow down
2.1
Requirements and flow down templates
Chapter 4 – Suppliers sourcing selection & approval
(Purchasing process)
4.1
Supplier Selection and Capability Assessment
Chapter 7 – Manufacturing and inspection
(Production and service provision)
7.1
9103 education package (Key characteristics)
Chapter 7 – Manufacturing and inspection
(Production and service provision)
7.2
9102 Education package (FAI)
Chapter 9 – Control of non conformities, corrective
and preventive actions (On Time - On Quality)
9.1
Root Cause Analysis & Problem Solving
Chapter 9 – Control of non conformities, corrective
and preventive actions (On Time - On Quality)
9.2
Control of Non-Conformities
Chapter 11 – Business Processes Performance
Management and Customer Satisfaction
Monitoring
11.1
Work Transfer
Appendix
A.1
9100 Rev C Deployment Support
Appendix
A.2
People Capability (PCAP 001)
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Material In Work
Chapter
SCMH Content
Section
Chapter 3 – Design and development
3.1
Special Requirements/Critical items
Chapter 3 – Design and development
3.2
New Product Introduction - Quality
Chapter 6 - Order Management and logistic
(Internal/external)
6.1
Lean Assessment Tool
Chapter 8 - Supplier operational management and
product validation (Purchasing process)
8.1
Supplier Quality Mgt Basics
Chapter 11 – Business Processes Performance
Management and Customer Satisfaction Monitoring
11.3
Risk Management
Chapter 11 – Business Processes Performance
Management and Customer Satisfaction Monitoring
11.4
Configuration Management
Chapter 3 – Design and development
3.3
9115 Guidance Material (Software)
Chapter 4 – Suppliers sourcing selection & approval
(Purchasing process)
4.2
Product Performance Detailed Assessment Checklists
(PPDA)
Chapter 7 – Manufacturing and inspection (Production
and service provision)
7.3
Foreign Object Debris (FOD)
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Some Frequently Asked Questions
•
Are all of the requirements of the standard addressed in the handbook?
•
What is the schedule to complete the handbook or will it be in a continual
state of change/improvement?
•
When will the AS9100 Rev C changes be incorporated into the handbook?
•
The handbook has training material, procedures and a matrix with
guidance. Where did all of this material come from and how is it intended
to be used?
•
What are the restrictions on the use of the material? Is it copyrighted?
•
There are guidance materials identified as “Best Practices” listed in the
handbook. Will the auditors hold companies to this level of performance?
Will companies hold their suppliers to these “Best Practices”?
•
Don’t “Best Practices” vary dependent on the size and complexity of the
company? Has it been determined that the “Best Practices” included in the
handbook will work in any company?
•
Some parts of the SCMH have a matrix that gives examples of what the
different users can expect from a particular type of company. Are there
any instructions on how and when to use the matrix?
•
Will training on the use of the SCMH be available through IAQG?
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SCMH Access - Demo
http://www.iaqg.sae.org/iaqg/
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SCMH Survey
SCMH Survey –
• Information page
– Your Statement of work
– Types suppliers you work with
• 11 survey areas – aligns with SCMH chapters
– Utilize Assessment Maturity Models
– Rate your supply base as a whole
• Provide a range
• Provide a medium
– Identify specific “areas of concern” - Possible future topics for the SCMH
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SCMH Survey – Information Page
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Supplier Assessment Model
(SCMH Section 4.1)
Scope:
– To assess a supplier’s capability to a set of main domains
impacting supply chain performance
Purpose of the Model:
– Use as a guide to assess the maturity of a supplier to achieve and
sustain customer expectations, especially for “On Time” and “On
Quality” delivery
It is suitable for:
– Different product types
– Different company sizes
– Total or partial application
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Supplier Assessment Model
(SCMH Section 4.1)
Five levels of maturity
Four domains :
• Process
• People & Organisation
• Tools & Data
• Performances Metrics
1: Undefined and not capable
2: Defined and applied, but not 100% efficient or not applied
everywhere in the company
3: Defined, applied and effective
4: Predictable
5: Optimised
Items for Improvement
Action Plan between
supplier and customer
Expectation
Supplier
performance
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Assessment matrices in joined Excel file
Title and Definition of the
Business Domain
Content for each level (from 1 to 5) and each
parameter (Process, People and Organisation,
etc…)
11 sheets, one per
business domain
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Rating Example
Provide your expertise as what “Specific Areas of Concern” need to
be addressed as “Possible Topics” to add to the SCMH
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Exemple of results synthesis
(10. Customer support not assessed in this exemple)
Expected capability level
Assessement results
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Exemple of results summary: Processes
with Strengths and weaknesses
11. Business Processes Performance1.
Management and Customer
Satisfaction Monitoring
•
• Strength 1
•
8
–
Supplier
operational
• Strength 2
•
management
• Strength 3 and
product validation
• Weakness 1
•9 Weakness
2 non
– Control of
•confomities,
Weakness 3corrective &
preventive actions
• Strength 1
• Strength 2
• Strength 3
6 – Order management
7 – and
Manufacturing
logistics and
inspection
• Weakness 1
• Strength
1
• Weakness
2
• Strength
2
• Weakness
3
• Strength 3
Sales, Master Scheduling
2 – and
Contract requirement
Sequencing
flow down
Weakness 1
• Strength 1
Weakness 2
• Strength 2
Weakness 3
• Strength 3
4 – Supply sourcing
selection and approval
• Weakness 1
3
Design and
• – Weakness
2
development
• Weakness 3
• Strength 1
• Strength 2
• Strength 3
5 – Planning of
product realisation
• Weakness 1
• Weakness 2
• Weakness 3
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Example of results by area
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Help needed – Your expertise is needed!
• Fill out the survey and return to me by end of Workshop
• Or mail to:
The Boeing Company
P. O. Box 3707 mailstop 08-50
Seattle, WA 98124-2207
Attention: Darryl E. Hue
• Or scan and email to:
“[email protected]”
• Remember – Important to identify those critical Supply Chain
“Areas of Concern”
• Receive input by COB Friday, August 7, 2009
• Names are optional but if you would like to get a copy of the
results, please provide email address via separate email
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Questions?
Questions?
For any further question or comment, please
contact: [email protected]
22
SCMH Back-Up Material
Back Up Material
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Chapter
Titles and contents
•
1 - Sales, Master scheduling and Sequencing: Balancing and forecasting
Medium-Long term customer demand with operational & financial capabilities by
optimizing sequence of operations, schedule and resources.
•
2 - Contract requirements flow down: Managing Review and flow down of
contract requirements from the customers, through all functions internally & to
suppliers.
•
3 - Design and development: New product introduction activities impacting
supply chain performances including product and process essential
characteristics management, changes and obsolescence management.
•
4 - Supplier sourcing selection & approval: Make or buy process and mapping
of the supply chain responsibilities, including partners, suppliers…, Sourcing,
Negotiating, & Contracting in line with Make or Buy strategy and Approving
suppliers.
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Chapter
Titles and contents (continued)
•
5 - Planning of product realisation (Plant, material, skills, capacity planning
and scheduling): Plan & optimize the use of resources and means to meet
operations planning at plant level.
•
6 - Order Management & Logistic (internal & external): Issuing orders,
resolving unplanned events & following up till completion including receipt.
Collaborative Management of material, services & information to & from the
supplier; Optimizing material flow, stock and inventory through the supply chain.,
up to final customer delivery. Customer property included.
•
7 - Manufacturing & inspection (Production & service provision):
Manufacturing and product integration processes, including inspection.
•
8 - Supplier operational management and product validation (Purchasing
process): Operational monitoring and surveillance of suppliers to ensure
purchased products and services meet customer requirements (includes initial
product validation). Working with suppliers to continually raise their performance
levels (Supplier Development activities when required).
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Chapter
Titles and contents (continued)
•
9 - Control of non conformities, corrective & preventive actions : Non
conformance management and root cause analysis process for all business
domains. Raising, notifying, deciding and acting to manage and prevent non
conformities (product, processes, documentation, delays, etc...).
•
10 - Customer Support: Supporting the customer to ensure end user
satisfaction during "in service" phase (Maintenance & Repair, Spares, Training
and Documentation, Operating Data feedback and analysis). This includes when
applicable, supporting the customer during the product integration activities, up to
delivery to the end user (Entry Into Service).
TRANSVERSAL PROCESS:
•
11- Business Processes Performance Management and Customer
Satisfaction Monitoring: Survey, Consolidation and continual improvement of
Supply Chain performance (Internal/External), risk and change management,
overall decision process to meet customer satisfaction and business objectives
throughout Life cycle
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Supplier Selection and Capability
Assessment Model
Definition and content of the 5 levels :
– 1: Undefined and not capable (No Process, Methods, Tools and/or
inappropriate behaviours)
– 2: Defined and applied : but not 100% effective or not applied
everywhere in the company (capable for low risk products and
services)
– 3: Defined, applied and effective: repeated satisfactory
performance capable
– 4: Predictable : performance of proactive improvements towards
planned targets, but not systematically on all processes / areas /
products
– 5: Optimised : best in class, continual improvement fully deployed,
involving all stake holders as part of company culture
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