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“Supply Chain Management Handbook” SCMH Overview and Survey Presenter: Darryl Hue – Boeing July 30, 2009. 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

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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 overview and survey presenter darryl hue boeing july 30 2009 l.jpg

“Supply Chain Management Handbook”SCMHOverview and SurveyPresenter: Darryl Hue – BoeingJuly 30, 2009


Supply chain management handbook scmh l.jpg

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


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SCMH Objective and Scope

  • Objective:

  • Provides “How to” guidance material to help improve the “On-Time and On-Quality” 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

91xx

9131

9103

9102

Includes

SCMH Guidance material, tools, trainings

New or revised IAQG published documents

(Standards, guideline)

9100

Requirements

Inputs for future revision of 9100

Supply

Chain

Mgmt.

Handbook

Links to

Providing guidance material and best practices on how to meet requirements and achieve objectives


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LT Core Members:

S. Armstrong – UTC (AAQG)C. Buck - Safran (AAQG)

L. Weng- Boeing (AAQG) B. Lauras – Airbus (EAQG)

S. Komori – FHI (APAQG)

Future Topics Not assigned

Project Management Structure/Resources

Work Instruction

SCMH Leadership Team

Support Resources:

D. Hue (Boeing) – Proj Mgr

R. Pardons (IAQG) – Tech mgr

M. Iwadare – APAQG Support

Contractors - Technical Writers

Member Company Volunteers

Preventive Action

People Capability (PCAP 001)

Notification of Change

Technical Project Mgr

Project Manager

Priorities

Master Schedule

Counterfeit Part Prevention

CI for Small Business

New Product Introduction

Special Requirements

CI for Small Suppliers

Requirements & Flowdown

9115 Guidance Material

Other Topics

Lean Assess. Tools

Risk Management

FOD

Work Transfer

Active Project Writing Teams

Other Topics

Assessment Checklists

Configuration Management

SQM Basics

  • Central project templates

  • Std. plan and processes

  • Documented expectations

FAI

Project Management Infrastructure

Available Sections

Key Characteristics

Requirements and flow down

  • Active Work storage

  • Standard Processes

  • Standard templates

IAQG Work Space

RCA & Problem Solving

Non-Conformance

Work Transfer

Source Selection

In Revision

In work

Not assigned

Completed


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Plus Member (and non-member) Company Participation


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SCMH Chapters and Work in Progress

Requirements and flow

Supplier Selection and

Special Requirements

down templates

Capability Assessment

Critical items

New Product

Introduction

-

Quality

Root Cause Analysis &

9103 education package

Supplier Quality Mgt

Lean Assessment

Problem Solving

(Key characteristics)

Basics

Tool

Work Transfer

Risk Management

Configuration Management

New

Exists

Supply Chain Management Handbook

Supply Chain Management Handbook

1. Sales, Master

1. Sales, Master

2. Contract

2. Contract

3. Design and

3. Design and

4. Suppliers

4. Suppliers

5. Plant, material,

5. Plant, material,

Scheduling &

Scheduling &

Requirements and

Requirements and

development

development

sourcing selection

sourcing selection

skills, capacity

skills, capacity

Sequencing

Sequencing

Flow Down

Flow Down

& approval

& approval

planning &

planning &

scheduling

scheduling

Requirements and flow

Requirements and flow

Supplier Selection and

Supplier Selection and

Special Requirements

Special Requirements

down templates

down templates

Capability Assessment

Capability Assessment

Critical items

Critical items

Product Performance

Product Performance

Product Performance

Product Performance

Detailed Assessment

Detailed Assessment

Detailed Assessment

Detailed Assessment

Checklists

Checklists

Checklists

Checklists

9115Software Guidance

6. Order

6. Order

7. Manufacturing

7. Manufacturing

8. Supplier

8. Supplier

9. Control of non

9. Control of non

10. Customer

10. Customer

Management and

Management and

and inspection

and inspection

operational

operational

conformities,

conformities,

Support (Control

Support (Control

logistic (Internal &

logistic (Internal &

management and

management and

corrective and

corrective and

of service

of service

external)

external)

product validation

product validation

preventive actions

preventive actions

operations)

operations)

Root Cause Analysis &

Root Cause Analysis &

9103 education package

9103 education package

Supplier Quality Mgt

Supplier Quality Mgt

Lean Assessment

Lean Assessment

Problem Solving

Problem Solving

(Key characteristics)

(Key characteristics)

Basics

Basics

Tool

Tool

9102 Education package

9102 Education package

9102 Education package

9102 Education package

Control of non conformities

Control of non conformities

Control of non conformities

Control of non conformities

(First Article Inspection)

(First Article Inspection)

(First Article Inspection)

(First Article Inspection)

Foreign Object

Foreign Object

Foreign Object

Foreign Object

Debris (FOD)

Debris (FOD)

Debris (FOD)

Debris (FOD)

11. Business Management and Customer Satisfaction Monitoring

11. Business Management and Customer Satisfaction Monitoring

Work Transfer

Work Transfer

CI for Small Business

CI for Small Business

CI for Small Business

CI for Small Business

Risk Management

Risk Management

Configuration Management

Configuration Management

Appendices:

New

Priority 1

Exists

Exists

In Work

In Work

In Work

In Work

9100 Rev C

9100 Rev C

9100 Rev C

9100 Rev C

People Capability

(PCAP 001)

Deployment Support

Deployment Support

Deployment Support

Deployment Support


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Available material

Being updated to AS9100 Rev C

Being updated to AS9100 Rev C

Being updated to incorpate additional input


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Material In Work

Priority 1


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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?

Some Frequently Asked Questions


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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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Items for Improvement

Action Plan between supplier and customer

Expectation

Supplier

performance

Supplier Assessment Model

(SCMH Section 4.1)

Five levels of maturity

A separate matrix for each process with :

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

  • Four domains :

  • Process

  • People & Organisation

  • Tools & Data

  • Performances Metrics


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Assessment matrices in joined Excel file

11 sheets, one per business domain

Title and Definition of the Business Domain

Content for each level (from 1 to 5) and each parameter (Process, People and Organisation, etc…)


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Rating Example


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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

Exemple of results summary: Processes with Strengths and weaknesses

  • 11. Business Processes Performance Management and Customer Satisfaction Monitoring

  • Strength 1

  • Strength 2

  • Strength 3

  • Sales, Master Scheduling and Sequencing

  • Weakness 1

  • Weakness 2

  • Weakness 3

  • 2 – Contract requirement flow down

  • Strength 1

  • Strength 2

  • Strength 3

  • 8 – Supplier operational management and product validation

  • Weakness 1

  • Weakness 2

  • Weakness 3

  • 4 – Supply sourcing selection and approval

  • Weakness 1

  • Weakness 2

  • Weakness 3

  • 9 – Control of non confomities, corrective & preventive actions

  • Strength 1

  • Strength 2

  • Strength 3

  • 3 – Design and development

  • Strength 1

  • Strength 2

  • Strength 3

  • 6 – Order management and logistics

  • Weakness 1

  • Weakness 2

  • Weakness 3

  • 5 – Planning of product realisation

  • Weakness 1

  • Weakness 2

  • Weakness 3

  • 7 – Manufacturing and inspection

  • Strength 1

  • Strength 2

  • Strength 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]


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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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ChapterTitles 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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