Supply Chain Management HandbookIAQG General Assembly – MunichIAQG General Assembly MunichFriday, October 15, 2009

William SchmiegeWilliam Schmiege Christian BuckChristian BuckParker HannifinParker Hannifin SafranSafranParker HannifinParker Hannifin SafranSafran

Shuji Komori Shuji Komori Bernard LaurasBernard LaurasFHIFHI Airbus Airbus

Larry WengLarry WengBoeingBoeing

Company Confidential 1

Content

• Introduction to Supply Chain Management pp y gHandbook (SCMH)

• SCMH content today and tomorrow• SCMH content today and tomorrow

• 2 examples of SCMH content

• Accessing e-SCMH

D • Demo

2

Supply Chain Management Handbook(SCMH): Focus on the How, not the What

Background:Up to recently, IAQG produced several aerospace standards defining requirements but little or no written guidance was available for clarification and applicationavailable for clarification and application.

S l tiSolution:Develop a Supply Chain Management Handbook that

id l ifi ti li ti d h i f b tprovide clarification, application, and sharing of best practices to enhance supply chain quality management system understanding and improvementsystem understanding and improvement

Supply Chain Management Handbook(SCMH): Focus on the How, not the What

• What is the SCMH ?A collection of guidance materials trainings best – A collection of guidance materials, trainings, best practices for suppliers.

• What are the Objectives of the SCMH ?• What are the Objectives of the SCMH ?– Provide guidance material to help improve the “On Time

and On Quality” performance through out the supply chain

– Focus on how to implement requirements.

Note - The e-SCMH is a web based toolbox with FREEaccess to suppliersaccess to suppliers

Focus on “How” through SCMH

91XX 91xx9131

Inputs for new revision of 91XX

Requirements9131

91039102

SCMH Guidance material, tools, training, , g

Providing guidance material and best practices on how to meet p

requirements and achieve objectives

Supply Chain Management Handbook

SCMH contents have been developed by memberSCMH contents have been developed by member companies of the IAQG and the document is structured to cover the entire product life cycle process:

– Intended for use by companies at all levels of supply chain– Aligned with Product Life Cycle

Currently 10 sections published– Currently 10 sections published – Other sections “in work” or to be developed in the future

Supply Chain Management Handbook Content -Based on the Product Life Cycle

1. Sales, Master Scheduling & Sequencing

4. Suppliers sourcing selection & approval

2. Contract Requirements & Flow

Down

3. Design & Development

• Special Requirements • Supplier Selection and • Requirements & Flow

Down Templates

Special Requirements & Critical Items

• New Product Intro.• Software Guidance

(9115)

ppCapability Assessment

• Product Performance Detailed Assessment Checklists

5. Plant, material, skills, capacity planning &

scheduling

6. Order Management and logistic (Internal &

external)

7. Manufacturing and Inspection

8. Supplier operational management and product

validation

• Lean Assessment Tool• 9103 Material for Key

Characteristics • Notification of Change • Lean Assessment Tool

• Foreign Object Debris (FOD)

Characteristics• 9102 Material for First

Article Inspection • Supplier Quality Mgt

Basics

• Notification of Change Tool

9. Control of non conformities, corrective and preventive actions

Appendices 10. Customer Support (Control of service

operations)

11. Business Management & Customer

Sat. Monitoring • 9100 Rev C Deployment

( )

• Root Cause Analysis & Problem Solving

• Control of non conformities

• Counterfeit Part Prevention

p ySupport

• People Capability PCAP 001

• Work Transfer

• Risk Management• Configuration Mgmt.

Future TopicsWork In ProgressAvailable

SCMH available section Example 1:Supplier Selection & Capability Model

Five levels of maturity:1: Undefined and not capable2: Defined and applied, but not 100% efficient or not applied

h i th

Objective: Assessing Supplier Maturity for 11 everywhere in the company

3: Defined, applied and effective4: Predictable 5: Optimised

Supplier Maturity for 11 Business Processes covering the entire product life cycle processproduct life cycle process

Four domains assessed:• Process• People & Organisation

Areas of potentialSupplier Development if

deemed necessaryPeople & Organisation• Tools & Data• Performances Metrics

Expectation

Supplier performanceperformance

SCMH available section Example 1:Supplier Selection & Capability Model

Apply weightingto each process as

Supplier assessment for Supplier assessment for 11 processes11 processes

to each process as appropriate to

Product, Customer, Risks, etc…11 processes11 processes ,

Decision to Select or Not and/orNot and/or

Improvement Action Plan set-up

Other guidelines within Supply Chain Management Handbook may be used to support investigations to

complete Improvement Action Plan

SCMH available section Example 1:Supplier Selection & Capability ModelResults synthesis: show strengths and weaknesses (10. Customer support not assessed in this exemple)

Expected capability levelExpected capability level Assessment resultsAssessment results

This model has been successfully tested

SCMH available section Example 2:Work Transfer Management

Objective:

To provide guidelines for the exercising of effective risk and management control when changing the source of supply of a component a component package or an assembly across a component, a component package or an assembly across a company or its external supply chain.

Content: Document describingMain phases required in the decision making process to – Main phases required in the decision making process to ensure all risks are identified and mitigated

– Main activities to be conducted and action owners

– Decision gates, including project closure and lessons learned

SCMH available section Example 2:Work Transfer Management

Gate 1 Gate 2 Gate 4Gate 3

Phase 1 Proposal & Feasibility

Phase 2 Develop

Business C

Phase 3 Detail

Planning

Phase 4 Execution

of Plan

Phase 5 Project Closure

Case

Team Launch and develop charter

Source Selection

Detail Planning Knowledge

Transfer pre-move

Project Management

Technical Review

Identify Continuous Improvement

Proposal & Feasibility

Gate Review Source SelectionRisk Assessment Business CaseGate Review

Transfer pre moveGate Review

Technical Review Requirements

Production Readiness Review

FAI / LAIKnowledge transfer

Improvement opportunity

Capture Lessons Learned

Recognize team performance

Gate Review

Knowledge transferGate Review

performancePost

implementation reviewTemplates

WT Project Proposal Form

Gate Check List

Project Charter

Risk Assessment Business Case

G t Ch k Li t

Project Plan

Transfer checklist

Gate Check List

Production Readiness Review Check List

AS9102 FAI/LAI

Closure Form

Gate Check ListGate Check List

Easy access to SCMH

http://www.iaqg.sae.org/iaqg/

Immediate and FREE access

Future SCMH Topics

• Many good suggestions for f t SCMH ti

Next Focusfuture SCMH sections

• As in-work sections are completed, new projects will be started

• Chap 1: Master Scheduling

started

• Suppliers are welcome to participate on writing teams

• Chap 5: Planning of Product Realization

• Your input for future topics is encouraged

• Please use “Feedback” link in

• Chap 6: Order Management and logistic

Ch 10 MRO G id • Please use Feedback link in eSCMH to contact us • Chap 10: MRO Guidance

Material

Please use SCMH and provide feedback!Please use SCMH and provide feedback!pp

Questions?