1. Collaboration in the Aerospace Supply Chain -
Towards the Extended Enterprise
Bangor University
Wednesday 28th March 2012
John Whalley
Aerospace Wales Forum Ltd.

4. Aerospace technology is expensive
Pound for Pound by weight
a motorcar has the same value as hamburger
Pound for Pound by weight an aero-engine has the same value as silver

5. Map of Wales and key sites

6. Aerospace Wales Forum Established 2002 150 member companies
Representative body for aerospace & defence
National partner in Wales of the UK’s trade association ADS (Aeronautics, Space, Defence & Security)
Closely linked with other UK regional bodies
Close partnership with Welsh Government
Facilitates marketing, international partnering and company development

7. The Industry – Size & Scope
£5 billion pa sales ($8US billion)
Over 160 companies
25,000 directly employed
Presence of leading companies:
EADS Cassidian, BAE Systems, General Electric, General Dynamics, Raytheon, Hawker Beechcraft & Airbus

8. SC21 – a UK aerospace supply chain initiative
SC21 – launched at the Farnborough International 2006
Brought together a number of streams of development:
Aerospace innovation and growth team (AeIGT)
SCRIA
Lean Aerospace Initiative (LAI)
DTI initiatives
SBAC Quality Committee
Company (industry) supplier development programmes
Regional Associations and Groups

9. Why SC21? Customers demanding more affordable and innovative solutions
UK supply chains need to be more competitive
Primes/OEMs want fewer direct suppliers
UK industry recognition that transformation/rationalisation is required
Defence Industrial Strategy (DIS)

10. Why SC21?
Improvement and competitiveness is dependant upon companies working together to:
Increase efficiency
Remove repetition and duplication
Plan and communicate better
Earlier in the life-cycle
Longer term – through life

11. 21st century supply chains
led by
who committed to
Airbus
Agusta Westland
BAE Systems
Bombardier Aerospace
Cobham
Darchem
Freeman & Proctor
GKN
Goodrich
Lockheed Martin
Marshall Aerospace
Naysmith Group
Rolled Alloys
Rolls-Royce
Selex
Smiths
Thales
Ultra Electronics
Fundamental business transformation
Accelerated Change and Continuous Improvement.
Through life management
Demonstrating SC21 commitments
Leadership role
21st Century Supply Chains recognises that it is no longer sufficient for the aerospace industry to be competitive and innovative at the individual company level.
An industry task force has agreed an action plan with the aim of driving competitiveness to the core of the supply chain.
SC21 seeks to embed the most efficient techniques in the supply chain through the spread of lean manufacturing, common industry wide metrics and through better business to business relationships.
SC21 is an industry agreement developed by 14 international aerospace companies and supported by 4 supply chain members (those highlighted in orange).
An action plan for SC21 will be published on Wednesday 19th July

12. The commitment
Three key action streams to drive transformation and improvement
Better supply chain relationships
Share selection rules based upon through lifecycle costs / affordability
Supply chain collaboration, sharing best practice and driving innovation
Use SCRIA code of practice and toolsets to companies and suppliers
Better supply chain development and performance
Remove duplication of supply development programmes – achieve 80% commonality
Develop common metrics (KPIs) – target 80% common
Reduce auditing through recognition of supply chain accreditation
Recognise and accept accreditation to AS/EN9100
Support special processes approval to Nadcap

13. What is SC21? - SC21 scope
3. relationships:
need for better end-to-end communication and collaborative planning
1. accreditation:
need to remove repetition, and unnecessary duplication
2. development and performance:
need increased efficiency and remove waste
initially SC21 will implement 3 action streams to drive early transformation and improvement
4. innovation
5. through life capability management
To reduce auditing through recognition of supply chain Accreditation
Recognise and accept accreditation to AS/EN9100 management system audit
Support special processes approval to Nadcap
To take a consistent approach to supply chain Development and Performance measurement
Remove duplication of supply development programmes – achieve 80% commonality
Develop common metrics (KPIs) – target 80% common
To improve supply chain Relationships
Share selection rules based upon through lifecycle costs / affordability / capability
Supply chain collaboration, sharing best practice and driving innovation
Use SCRIA code of practice and toolsets with companies and suppliers

14. Collaboration in Defence – Alliancing – BS11000
MARS – Military Afloat Reach & Sustainability

15. North West Aerospace Alliance ASCE Programme
Extended
Enterprise
ASCE 2
Shared
Services
Work Share
Commodity
Groups
Shared benefits
ASCE 1
Supplier
Associations
Common strategy
ASCE
Shared objectives
Common language
Common processes
Common culture 15

16. Robotics, Automation & Tooling
Complex Machining CG
Process Treatments CG
Composites CG
Commodity Groups
Robotics, Automation & Tooling CG
Design & Engineering CG
SME Machining CG
Autonomous Systems Commodity Group
launched in July 2011 and runs parallel with GAMMA

17. NWAA Extended Enterprise – Current State
Risk sharing
Design to deliver
Financially robust
Multi-materials
Single point responsibility
Manage the supply chain
Required Capabilities
Clients
Turnkey Solution Providers
Supply Chain
year Contract
No current North West
Candidate
Contract
Evolve with project life
North West Supply Chain
disadvantaged
With no current NW RSP the Supply Chain could be starved of future work – if we don’t respond! 17 17

18. (Commodity Groups) Extended Enterprise
NWAAExtended Enterprise- Future State
NWAA Extended Enterprise Model
Commodity Groups and Commodity Group companies interact, collaborate and bid collectively 1 2
Process Treatment
Composites
Comp[ex Machining
Robotics, Automation
Tooling
Design & Engineering
SME Complex Machining
Autonomous Systems 4 3 2 1
(Commodity Groups) Extended Enterprise 3 2 1 1 1 2 2
Work Package Bids
Extended Enterprise future state - suppliers from a cross sector of Commodity Groups bid collaboratively to provide through life (design and build) capability

19. Initial Lead Partner Alliance - Structure looks something like this … …
End
Client
A Lead
Partner
Contractual Link
NWAA as
‘honest broker’
selection
open book build up (& auditing on expenditure)
dispute resolution
development
Horizontal & Vertical
Collaboration
Sub Partner
Sub -
Partner 2
Sub - Partner 3
Vertical
Collaboration
Horizontal
Collaboration ?

20. The Future? Aerospace Growth Partnership
Continued growth in population and trade
Growing environmental and resource pressures
“Limits to Growth”
Growing opportunities and competition
New solutions
A global business built on global teams

21. Aero 2075 – Flying into a bright future?

22. Thank you for listening Any questions? www.aerospacewalesforum.com