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

2. 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

3. SCMH Objective and Scope
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.

4. Focus on “How” through SCMH
New or revised IAQG published documents
(Standards, guideline)
9100
Requirements
Inputs for future revision of 9100
91xx
9131
9103
9102
Supply
Chain
Mgmt.
Handbook
Links to
Includes
SCMH Guidance material, tools, trainings
Up to now, IAQG produced standards describing requirements
Now we need to help suppliers to develop:
By helping them understanding our requirements
By providing guidance and best practices on how to fulfil requirements and achieve objectives and expectations
Providing guidance material and best practices on how to meet requirements and achieve objectives

5. Project Management Infrastructure
Future Topics Not assigned
Work Instruction
Preventive Action
People Capability (PCAP 001)
Notification of Change
Master Schedule
Counterfeit Part Prevention
CI for Small Business
Priorities
SCMH Leadership Team
Technical Project Mgr
Project Manager
Lean Assess. Tools
CI for Small Suppliers
Risk Management
FAI
New Product Introduction
Project Management Structure/Resources
Active Project Writing Teams
Central project templates
Std. plan and processes
Documented expectations
9115 Guidance Material
SQM Basics
Special Requirements
Assessment Checklists
Requirements & Flowdown
Work Transfer
FOD
Other Topics
Configuration Management
Support Resources:
D. Hue (Boeing) – Proj Mgr
R. Pardons (IAQG) – Tech mgr
M. Iwadare – APAQG Support
Contractors - Technical Writers
Member Company Volunteers
LT Core Members:
S. Armstrong – UTC (AAQG) C. Buck - Safran (AAQG)
L. Weng- Boeing (AAQG) B. Lauras – Airbus (EAQG)
S. Komori – FHI (APAQG)
Available Sections
Key Characteristics
Active Work storage
Standard Processes
Standard templates
Requirements and flow down
IAQG Work Space
RCA & Problem Solving
Non-Conformance
Work Transfer
Source Selection
In work
In Revision
Not assigned
Completed

6. IAQG Member Company Participation Non-Members Participation
Plus Member (and non-member) Company Participation
IAQG Member Company Participation
Airbus
Gulfstream
ATK
Liebherr
Avio
Lockheed Martin
Bell
Messier Dowty
Boeing
MHI
Boeing Canada
MTU
Bombardier
Parker
Dassault
Safran
Dassault Aviation
Spirit AeroSystems
EADS
Sukhoi
Embraer, Brazil
Thales
ESA
UTC
Eurocopter
Volvo Aero
Fuji Heavy industries, LTD
Vought
GE Aviation
Zodiac
Goodrich
Non-Members Participation
JPL-NASA
NQA-USA
Progress Casting
SEA
Spirit Aero
Triumph
UL DQS Inc.
Verify Inc

7. SCMH Chapters and Work in Progress
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
New
New Product
Introduction -
Quality
Lean Assessment
Tool
Supplier Quality Mgt
Basics
Risk Management
Special Requirements
Critical items
Configuration Management
Exists
Work Transfer
9103 education package
(Key characteristics)
Root Cause Analysis &
Problem Solving
Supplier Selection and
Capability Assessment
Requirements and flow
down templates
Requirements and flow
Requirements and flow
Special Requirements
Special Requirements
Supplier Selection and
Supplier Selection and
down templates
down templates
Critical items
Critical items
Capability Assessment
Capability Assessment
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)
9103 education package
9103 education package
Supplier Quality Mgt
Supplier Quality Mgt
Root Cause Analysis &
Root Cause Analysis &
Lean Assessment
Lean Assessment
(Key characteristics)
(Key characteristics)
Basics
Basics
Problem Solving
Problem Solving
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:
Exists
Exists
In Work
In Work
In Work
In Work
New
Priority 1
9100 Rev C
9100 Rev C
9100 Rev C
9100 Rev C
People Capability
Deployment Support
Deployment Support
Deployment Support
Deployment Support
(PCAP 001)

8. Available material Being updated to AS9100 Rev C
Chapter
Section
SCMH Content
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)
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
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
A.2
People Capability (PCAP 001)
Being updated to AS9100 Rev C
Being updated to AS9100 Rev C
Being updated to incorpate additional input

9. Material In Work Priority 1 Chapter SCMH Content Section
Chapter 3 – Design and development
3.1
Special Requirements/Critical items
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
11.4
Configuration Management
Priority 1
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)

10. 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?

11. SCMH Access - Demo

12. 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

13. SCMH Survey – Information Page

14. 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

15. Action Plan between supplier and customer
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
Items for Improvement
Action Plan between supplier and customer
Expectation
Supplier
performance

16. 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

17. Rating Example
First - identify what you think the range that your suppliers would rate in
Second – Identify medium where the highest number of your suppliers will rate
Third – Tell us what specific areas of concern/topic that if guidance material was available in the SCMH, it would help your suppliers perform better!
Provide your expertise as what “Specific Areas of Concern” need to be addressed as “Possible Topics” to add to the SCMH

18. Expected capability level
Exemple of results synthesis
(10. Customer support not assessed in this exemple)
Expected capability level
Assessement results 18

19. 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 19

20. Example of results by area20

21. 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 mailstop 08-50
Seattle, WA
Attention: Darryl E. Hue
Or scan and to:
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 address via separate

22. Questions?
Questions?
For any further question or comment, please contact:

23. SCMH Back-Up Material
Back Up Material

24. 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.

25. 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).

26. 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

27. 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