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Supply Chain Oversight in Unprecedented Times. Wayne Brown Director, Boeing Commercial Airplanes Supplier Quality The Boeing Company March 14, 2011. Presentation Content. Unprecedented Times Upside Downside Areas of Focus Strategies For Success. Presentation Content.

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Presentation Transcript
slide1

Supply Chain Oversight in Unprecedented Times

Wayne Brown

Director, Boeing Commercial Airplanes Supplier Quality

The Boeing Company

March 14, 2011

presentation content
Presentation Content
  • Unprecedented Times
    • Upside
    • Downside
  • Areas of Focus
  • Strategies For Success
presentation content1
Presentation Content
  • Unprecedented Times
    • Upside
    • Downside
  • Areas of Focus
  • Strategies For Success
unprecedented times upside today s aerospace environment
Unprecedented Times – Upside Today’s Aerospace Environment

News Headlines

Dreamliner lands at Farnborough

BBC News    07/18/2010

US airline shares up on better economic outlook

Reuters News    07/26/2010

FedEX looks to 777s to deliver an edge

Wall Street Journal    07/14/2010

Boeing, Airbus score $29 billion at air show

Everett Herald    07/25/2010

Boeing 747-8s endure hot weather, top 500 flight hours

Seattle Post-Intelligencer    06/29/2010

Boeing predicts a greater need for new passenger jets

Everett Herald    07/21/2010

Boeing to make even more 737s

Wichita Eagle    06/16/2010

American Airlines orders 35 Boeing jets to upgrade its fleet and phase out gas-guzzling planes

Associated Press Newswires    07/21/2010

slide9

Unprecedented Times – Downside

Pressures Affecting the Supply Chain

Production delays have impacted suppliers financially and earnings landscape is mixed

Dollar depreciation is increasing pressure on revenues for foreign suppliers

Production rate increases on existing programs and the development of new airplanes have challenged the supply chain

Quality and performance issues from Partners and major suppliers have been on the rise

slide10

Unprecedented Times – Downside

Pressures Affecting the Supply Chain

Production delays have impacted suppliers financially and earnings landscape is mixed

Dollar depreciation is increasing pressure on revenues for foreign suppliers

Production rate increases on existing programs and the development of new airplanes have challenged the supply chain

Quality and performance issues from Partners and major suppliers have been on the rise

slide11

Unprecedented Times – Downside

Pressures Affecting the Supply Chain

Production delays have impacted suppliers financially and earnings landscape is mixed

Dollar depreciation is increasing pressure on revenues for foreign suppliers

Production rate increases on existing programs and the development of new airplanes have challenged the supply chain

Quality and performance issues from Partners and major suppliers have been on the rise

slide12

Unprecedented Times – Downside

Pressures Affecting the Supply Chain

Production delays have impacted suppliers financially and earnings landscape is mixed

Dollar depreciation is increasing pressure on revenues for foreign suppliers

Production rate increases on existing programs and the development of new airplanes have challenged the supply chain

Quality and performance issues from Partners and major suppliers have been on the rise

presentation content2
Presentation Content
  • Unprecedented Times
    • Upside
    • Downside
  • Areas of Focus
  • Strategies For Success
areas of focus
Areas of Focus
  • First Article Inspections (FAI)
  • Ensure partial (i.e. delta) FAIs are performed for any process changes affecting fit, form or function.
  • Conduct thorough on-site checks of the FAI process at critical sub-tier suppliers.
  • Specification Changes
  • Ensure a strong process of frequent checks for specification changes.
  • Foreign Object Debris
  • Incorporate both “FOD prevention” and a “clean as you go “ approach to FOD.
areas of focus1
Areas of Focus
  • Planning
  • Ensure any products with customer controlled planning (such as Process Control Documents) are clearly identified in the manufacturing planning so that changes are not made without customer approval
  • Mistake Proofing
  • Look for opportunities to mistake-proof operations. For nearly symmetrical parts, pursue a “mistake proofing” approach to product design/marking to ensure correct application and installation.
  • Quality Controls
  • Ensure strong Quality controls over any operator verification programs (i.e., manufacturing self-inspection).
areas of focus2
Areas of Focus
  • Special Processors
  • Verify processes are in place to ensure work coming in from special processors is to the correct specification and that the processor is in good standing.
  • Contracting
  • Check that thorough contract reviews with sub-tier suppliers to ensure that they understand requirements. Consider contract language requiring sub-tier suppliers to notify you when any of their sources are changed. Check that there is complete understanding of contract language, both internally and externally.
  • Training
  • Ensure new employees, or employees doing new work, receive all the training needed to perform their work flawlessly – the first time
presentation content3
Presentation Content
  • Unprecedented Times
    • Upside
    • Downside
  • Areas of Focus
  • Strategies For Success
strategies for success
Strategies For Success
  • Back to basics
  • Evaluate new techniques
  • Work with industry
  • Company focus on quality
back to basics

R/I

Delegated

Supplier

Boeing

Inspection

S/I

Back to Basics
  • Enhanced communication
    • Take ownership for our contributions to supply chain quality failures
  • Focus on training and skills
    • Root cause analysis
    • Inspection techniques: the fundamentals and beyond
  • Increased attention on sub-tier supply chain
  • Strengthen oversight
    • Delegation vs In House Inspection
new techniques

SOTA

New Techniques
  • Component reliability
  • Systemic improvement
    • Root cause -vs- reactive
  • Predictive Indicators
  • Risk-based oversight assessments
  • Supplier Oversight Technical Assessments
renewed company focus on quality
Renewed Company Focus on Quality

Mission:Ensure supply chain compliance

and conformance of purchased

products and services

throughout the product life cycle

renewed company focus on quality1
Renewed Company Focus on Quality

Mission:Ensure supply chain compliance

and conformance of purchased

products and services

throughout the product life cycle