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Basic Concepts Procurement Cycle and Processes Make or Buy? External Supply Chain Lean Supply Chain Procurement profile. INTRODUCTION TO THE AEROSPACE PROCUREMENT Author: ALBERTO BADAYA GARCIA AIRBUS MILITARY / VICEPRESIDENT PROCUREMENT & SUPPLY CHAIN. TABLE OF CONTENTS.

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Basic Concepts

Procurement Cycle and Processes

Make or Buy?

External Supply Chain

Lean Supply Chain

Procurement profile

INTRODUCTION TO THE AEROSPACE PROCUREMENT

Author: ALBERTO BADAYA GARCIA

AIRBUS MILITARY / VICEPRESIDENT PROCUREMENT & SUPPLY CHAIN

TABLE OF CONTENTS

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONAUTICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


1. Basic concepts

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Aerospace sector mainfeatures

  • Qualityrequirements in accordancewiththedemandingoperation of theproduct (itflies).

  • Technologicaldiversity, complexity and specificity.

  • Veryhighvalueaddedproducts.

  • Relativelysmallproductionbatches and rates.

  • Veryhighinvestments and longpay back periods.

  • Extreme sensibilityto global factors.

  • Attractiveindustry, basedonitstechnologicallevel.

  • Highdegree of dependancy of thegovernmentalbudgets.

  • Limitedsupplychain (strongentrybarriers)

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Demand

Purchasing

Logistics

Procurement & SupplyChain

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Theactors

  • Theinternalcustomer

  • Thesupplier

  • Thelogisticchain (LLP & LTP)

  • The external customer (offsets)

  • Thegovernmentalauthorities (licences)

  • Quality (suppliercertification, productacceptance)

  • Finance (procurementcost control)

  • Legal (contracts)

Key fortheoperation and liaisingwiththe complete company

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Thetools

  • Thespecification

  • Thebudget

  • Therequestforinterest / proposal / quotation

  • Theselectionreport

  • Thecontract

  • Thepurchaseorder

  • Theshipping & deliverydocumentation

Key forcompliance extreme formalitywhilebeing flexible

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


2. Procurementcycle and processes

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Back-Up Distribution of EADS AerostructureSuppliers

85 suppliers

3,5 bn€

340 suppliers

1,5 bn€

500 suppliers

194 M€

1200 suppliers

27 M€

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Procurementcycle

SOURCING & TENDERING

INDUSTRIALISATION

MAKE OR BUY & INDUSTRIAL COLLABORATIONS

SUPPLY PLANNING

ORDERING & PURCHASING

SUPPLIER DEVELOPMENT

PHYSICAL LOGISTICS & INVENTORY MANAGEMENT

TheCompanymustselectthemodel (level of integration)

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Procurementcycle

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

PLANNING & PROCUREMENT

ORDERING & PURCHASING

PHYSICAL LOGISTICS & INVENTORY MANAGEMENT

SUPPLIER SELECTION AND TENDERING

PRODUCT DEFINITION & INDUSTRIALIZATION

MAKE OR BUY & OFFSETS

SOURCING & SUPPLIER EVALUATION

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

SOURCING & SUPPLIER EVALUATION

  • Identification of supplier base by technology

  • To explore systematically sources in new areas from a global standpoint and with priority in targeted markets.

  • To develop procedures for pre assessment of supplier capacities

  • To maintain a suppliers data record

  • To ensure good communication to and from suppliers (I.e. Suppliers meetings)

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

MAKE OR BUY & OFFSETS

  • To participate and facilitate, if required, in the make-or-buy process of the company, by providing the necessary information about suppliers capacity and development.

  • To identify potential sources for long term work allocation in accordance with the MoB plan.

  • To participate in offset campaigns by offering information about industrial or service suppliers in the involved market in coordination with commercial directorate.

  • To manage the work allocation and the contract negotiation for selected suppliers

  • To collaborate with Commercial Directorate in the offset accounting

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

SUPPLIER SELECTION AND TENDERING

  • To select the best source for a given workpackage in terms of quality and price

  • To define formal evaluation procedures to ensure a systematic selection process

  • To use the most efficient ways for the tendering process (I.e. use of Portal,…)

  • To ensure that the internal customer formalize its requirement (DTS)

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

PRODUCT DEFINITION & INDUSTRIALIZATION

  • To participate in product development, assessing Design Office and Programmes decisions in terms of materials and standard hardware selection.

  • To ensure that the allocated workpackage is properly industrialized by the supplier, by the identification of potential weaknesses and providing the necessary support.

  • To establish formal procedures for the evaluation of supplier industrial and technical capacities, as part of the tendering process, and for its follow up

  • To perform continuous value analysis to identify cost reduction opportunities (I.e. lean supply chain).

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

PLANNING & PROCUREMENT

  • To ensure that the procurement plan is in line with the programme requirements through SAP system.

  • To identify internal customer requirements for independent demand (non product, services,…) and to create the corresponding procurement plan.

  • To optimize the planning parameters (ordering leadtime, batch size, etc)

  • To establish the means to allow identification and response to unexpected or urgent requirements (flexibility)

  • To survey suppliers planning systems and procedures to make them compatible with the company procurement plan.

  • To select the best planning option for the different type of products or services (call-up, kit header, …)

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

ORDERING & PURCHASING

  • To ensure that the issue of P.O. matches with planning

  • To establish procedures that ensure a proper goods reception and its registration on SAP system (I.e. direct picking-up of parts)

  • Regular and systematic follow-up of supplier production and deliveries

  • Introduction of simple administrative processes for goods reception and payment (I.e. “autofacturación”)

  • Minimization and systematic follow-up of suppliers overdue payments

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


View by processes

PHYSICAL LOGISTICS & INVENTORY MANAGEMENT

  • To ensure an adequate storage and protection of goods and an acceptable warehouses reliability

  • To introduce stock-taking procedures to ensure the accomplishment of the related targets (100% recount as per part type)

  • To look for the most optimized physical flow of goods, per product type

  • To properly control inverse logistic

  • To manage the transport system

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Procurement strategy

  • Procurement mission:

  • To secure a high performing , competitive and differentiating Supply Chain from the global Aerospace industry to enable Airbus to deliver the world’s best aircraft

Enhanced business contribution recognised throughout Airbus

World class Supplier management & development

An optimised global Supply Chain

An efficient , engaged and highly-skilled workforce

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


3. ¿Makeorbuy?

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Core or Non-Core ?

a)       Ventajacompetitivatecnológica: la tecnología no puede ser copiadafácilmente por los competidores (productosbasados en conocimientosespecíficos son claves para el acceso a los mercados).

b)       Capacidades con un aportesignificativo a la creación de valor y a la ventaja en costesfrente a la competencia.

c)       Elevadainfluencia en la satisfacción del cliente.

Las competencias del núcleo tecnológico suponenperseguir el liderazgo en las mismas, con prioridad a la inversión en sudesarrollo

a)       La aprobación de la propuesta de actividades y tecnologías “core-non-core” corresponde al Comité de Dirección de la empresa.

b)       El establecimiento de dichapropuestadebeinvolucrar a las direcciones de Fabricación, Proyectos, Programas, Comercial e Ingeniería de Desarrollo, debiendo ser liderada por las D. de Operaciones y Programas.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Core or Non-Core: Benchmarking

a)        El coste interno es competitivo: mantener la posición competitiva y la clasificación como “make”.

b)       El coste interno no es competitivo, pero es posible reducir el “gap”: identificar las acciones de mejora.

c)       El coste interno no es competitivo y no es posible recuperar una situación aceptable: revisar la clasificación “core-non-core” y la asignación de trabajo actual.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Industrial Strategy and Sourcing Strategy

“Make or Buy” rationale”

Limited to specific cases

Objective

OUT

Sourcing

OUT

Sourcing

Sourcing strategy full scope

Non core

Make on purpose

IN

Sourcing

Buy on purpose

Industrial strategy full scope

Core

Objective

Limites to specific cases

Make

Buy

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Analysis

Decision

Non-core

No capital investment

Suppliers/Partners

HR for Specifying and control

Share

Competitive reference follow up

Best suppliers

HR adaptation (transnational)

Core

Updated Capital Investment

R&T Investment

HR Competencies protection

Outsource

Control

Protect

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Make or Buy ?

a)El incremento de la necesidad de subcontratar; ya sea parageneraraumentos de capacidad que evitencrecimientosarriesgados de plantillapropia, o buscandocompartirriesgosfinancieros y tecnológicos, o identificandomejoras de coste, o detrás de acceder a tecnologíascomplementarias de las de la propiaempresa.

b)       La complejidad y coste de las inversiones, que exigenlimitar el abanico de tecnologías en las que crecer y apostar por el liderazgo.

c)       La complejidadasociada al incremento de proveedores y a sudispersióngeográfica.

d)       El decisivoprotagonismo de los acuerdos de compensación industrial (offset) en las campañas de venta y suimpacto en los planes industriales de los programas/contratos.

e)       Los compromisos de inversión y asignación de carga de trabajoligados al soportefinanciero de entidadesestatales o locales.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Make or Buy ?

(Cont.)

f)  La necesidad de identificarproveedores que aportenunamejorrespuesta a un menorcoste (=”best practice”).

g)  Dificultadesparaalcanzar los requerimientos de calidad del producto / programa.

h)  Especialmente en la industriaaeronáutica por la necesidad de incorporarsocios a riesgo a los nuevosdesarrollos.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Políticas de Make or Buy

A)   Definición de aquellas actividades que NO se debensubcontratar en ningúncaso, independientemente del programa, en línea con el plan estratégico de la empresa.

b)    Definición de un esquema de subcontratación que soporte el plan de negocio de un determinadoproyecto, de acuerdo al Plan de Gestión del Programa.

c)    Decisión de subcontratación de actividades o productos en relación con un plan de mejora, de reducción de coste, por sobrecarga en un área de producción, etc.

Las organizaciones clave en la decisión de MoB son las siguientes:

·     Planificación Estratégica

·     Programas

·     Proyectos

·     Comercial

·     Producción

·     Ingeniería de Desarrollo

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Make or buy during production phase

a)      Reducción de coste.

b)       Cambio en la definición de actividades del núcleotecnológicoqueafecten a la capacidadinternadisponible.

c)       Nuevoscompromisos de offset debidos a la firma de un nuevocontrato

d) Limitaciones de capacidadinternaestructural o por un pico de cargamásallá de las posibilidadesaportadaspor las herramientas de flexibilidad.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


4. ExternalSupplyChain

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


¿SupplyChain?

A supplychainiscomposedbyallthepartiesinvolved in thedesign, development, production and delivery of a productorservicetothecustomer

The set of companies which participation in the supply chain of a given product or service is managed through a commercial contract

External Supply Chain

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Thebusinessmodel of vertical integrationthatcameout of the industrial economy has givenwayto“virtual integration” of companies in a supplychain. Eachcompanynowfocusesonitscorecompetenciesand partnerswithothercompaniesthathavecomplementarycapabilitiesforthedesign and delivery of productstomarket. Companiesmustfocusonimprovementsin theircorecompetencies in ordertokeep up withthefast pace of market and technologicalchange in today’seconomy.

No company can develop high skill levels in all areas of supply chain management so companies are focusing on developing and building their particular strenghts, their core competencies. Companies are defining the roles they want to play in the markets they serve and linking up eith other companies that have complementary skill sets. This is the dynamic that is driving the formation of modern supply chains.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Themajor SC drivers

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


¿SupplyChain Management?

Supply chain management is the coordination of production, inventory, logistics and related information among the participants in a supply chain to achieve the best mix of responsiveness and efficiency.

The goal of supply chain management is to support the growing of the company while at the same time reducing both inventory and operating expenses.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Responsiveness

Efficiency

  • Excess capacity

  • Flexible manufacturing

  • Smaller factories

  • High inventory levels

  • Wide range of items

  • Many locations close to customer

  • Frequent shipments

  • Fast and flexible mode

  • Collect & share timely, accurate data

  • Little excess capacity

  • Narrow focus

  • Few central plants

  • Low inventory levels

  • Fewer items

  • Few central locations serve wide areas

  • Shipments few, large

  • Slow, cheaper modes

  • Cost of information dro`ps while other costs rise

1. Production

2. Inventory

3. Location

4. Transportation

5. Information

Supply chain capabilities of responsiveness and efficiency come from decisions made about the five supply chain drivers

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Aligningsupplychainwithbusinessstrategy

To succeed in the competitive markets of today’s economy, companies must align their supply chain with the demands of the markets they serve. Supply chain performance is now a distinct competitive advantage for succesful companies.

  • Understand the requirements of your customers

  • Define core competencies and the roles your company will play to serve your customers

  • Develop supply chain capabilities to support the roles your company has chosen

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Average number of work-packages on successive aircraft program development

  • Increase of Work Package size

  • Reduced number of suppliers

  • Transfer of responsibility from Airbus to Tier 1

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


¿ program developmentHowtoapproach ESC managementtoday?

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


¿ program developmentHowtoapproach ESC managementtoday?

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


  • Supply program developmentChain Management recommendations

  • for External Supply Chain

    • process focus rather than functional focus as business processes

    • create value.

    • moving from an adversarial relationship to one of mutual support

    • and cooperation  incorporation and engagement of suppliers

    • information is a key issue: communication and planning

    • consistent flow of products that implies reduction of costs

    • inventory)  centralized logistic system

    • make-or-buy process is a key factor

    • continuous value analysis

    • lean supply chain & extended enterprise concepts

    • consider specific ethics issues

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


5. program developmentLeanSupplyChain

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


¿What’s “Lean”? program development

  • “A business philosophy based on concepts & tools focused on WASTE ELIMINATIONalong the extended Supply Chain (= the internal & external whole process steps to generate a product) so that we tend to deliver only VALUEto the Final Customerin the most efficient and profitable wayfor the Prime Company and its SC Partners”.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


GENERAL LEAN SC CONCEPT program development

The Focus of Lean Manufacturing is delivering value to the customer by removing wastes from the manufacturing processes with the customer´s needs in mind. The Lean Supply Chain concept is built on the broader goal of providing value to the customer by optimizing the performance of the global supply chain as a WHOLE

  • INTRODUCTION OF LEAN PRINCIPLES ACROSS THE SUPPLY CHAIN BASED ON THREE MAIN LINES

  • Information Flow

  • Materials Flow

  • Commercial

  • Management

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


THE 7 WASTE….PRESENT ALL ALONG THE GLOBAL SC program development

WAITING:

Planned resource utilization not performed (ex.: due to missing component, etc.)

UNNECESSARY TRANSPORTATION:

Unnecessary products movement between facilities (manufacturing & warehousing)

OVER - PRODUCCIÓN: Making items upstream before anyone wants or needs them downstream

UNNECESSARY PROCESSING:

Activities no adding value that could be reduced or eliminated (ex.:repackaging, etc.)

NO QUALITY:

Errors in products or delivery performance, rework & scrap

UNNECESSARY INVENTORY:

Products in excess of the amount needed to insure meeting consumer needs

UNNECESSARY MOTION:

Human resources unneccessary movement out of its workplace (ex.: due to material finding, etc.)

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


Lean 5 principles focus on creating value by… program development

Specifying value from the perspective of the end customer

  • Determining a value system by:

  • Identifying/mapping all the steps required to generate product (= Value Stream)

  • Challenging every step identifying “waste” (= NA value activities)

Creating flow, creating capable process steps so they occur in the most rapid and uninterrupted sequence possible

Pulling materials, parts, products, and information from customers all along the Global Supply Chain

Continuously improving to reduce and eliminate waste to create value.

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


TOPIC. Authors. NAME. Editors, Year. program development

REFERENCES

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


PROCUREMENT PROFILE program development

Negotiation

Globalization

Customerorientation

Teamwork

Communication

Master GSC & AIO 2011-2012

GLOBAL SUPPLY CHAIN & AERONATICAL INDUSTRIAL OPERATIONS

Module 10: GLOBAL SUPPLY CHAIN MANAGEMENT


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