Introduction to the
IAQG SCMH
“Supply Chain Management Handbook”
IAQG General Assembly
Melbourne, Australia
18 April 2007
Cherif Khelil
Safran
Susan Armtrong
UTC
Dale Gordon
MPC
Bernard Lauras
Airbus
1
Agenda
• General presentation of “Supply Chain
Management Handbook” objectives and
concept
• Presentation of SCMH projects that are
well advanced
2
IAQG Strategy
Foundations - Definitions
• IAQG Strategy is to develop and promote
implementation of Common Standards,
Shared Auditing and Continual Improvement
methods and tools:
– Assuring Customer Satisfaction through OnTime, On-Quality Delivery of products and
services, through the lifecycle
– Delivering exactly what the customer ordered,
exactly when we agreed to deliver it
3
Existing IAQG Standards today
• Requirements to harmonise the Quality
Management System
– 9100 – Aerospace Quality Management System
(Design and Manufacturing)
– 9110 – Maintenance and Repair Stations
– 9120 – Stockists & Distributors
• Requirements to raise Product Integrity
–
–
–
–
–
9102 - First Article Inspection
9103 - Variation Management of Key Characteristics
9131 - Non-conformance Management
9134 - Global Supplier Risk Management
Etc…
4
IAQG Objectives have
recently evolved
• Up to now, IAQG produced standards
describing requirements
• We need now 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
Up to Now:
And Now:
Focusing on the
WHAT
Focusing on the
HOW
5
New focus on “How” in
particular through “SCMH”
• What does SCMH mean ?
– Supply Chain Management Handbook
• What is the SCMH ?
– A collection of guidelines, trainings, etc…
• What are the Objectives of the the SCMH ?
– Complementing existing standards
– In some cases, need for new standards or standard
improvement could be identified
• How is the SCMH organised ?
– Several Projects, addressing a specific process or activity
– Provides links to 9100 series standards
6
New focus on “How” in
particular through “SCMH”
• The Supply Chain Management Handbook
further explains the requirements in 9100:
– Example
 9100 states “The organization shall select suppliers
which meet organization requirements”, but does not
say how to assure or demonstrate that they meet
these requirements”
“Supplier Selection and Capability Assessment”
is a guideline on how to assess supplier
capability and select them
7
Supply Chain Management
Handbook Creation Concept
Is Clarification of the standard needed to
improve performance?
AS/EN/JISQ 9100
Requirements
In which phase of a programme is it
applicable: Supplier Selection, Product
development & industrialisation, On
Going (series) Production, or Change
Control activity ?
Are there relevant existing industry
standards or activities?
• Published
Mat'ls
• Work in Progress
• Best Practices
• None
Impact on Quality
and Delivery
performances?
+
Industry
Enthusiasm?
Regulatory &
Stakeholders
Expectations?
Easy
Implementation?
SCMH
Development
Priority Setting
8
SCMH : A framework for organizing
and integrating our work
9100
Requirements
9100
clarification
(in next
revision)
Supply
Chain
Mgmnt
Handbook
Projects
Preference is to develop guidance
material, not new requirements
New or revised
IAQG standards
91xx
9131
9103
9102
IAQG guidelines on how
to meet requirements
9
SCMH: A Facilitation Tool
Customer
Prime
Supplier
Subtier
Subtier1
Subtier
Subtier11
Supplier
Supplier
Subtier
Subtier2
Subtier
Subtier12
SCMH facilitates the flow of expectations and
solutions to all levels of the Supply Chain
10
10 Projects identified, 4 with significant
progress, 1 on hold, 2 with volunteers
Supply Chain
Management Handbook
Supplier Selection
and Capability
Assessment
Product
Verification and
acceptance
Requirements
and Flow Down
On going
approval and
maintenance
Controlling Non
Conforming
Product
Significant progress
Volunteers identified
On hold
No writing leader
Process
Control
Work
Transfer
Supply Chain
Management &
performance
Measures
New Product
Introduction
Programme
Management
11
“Supply Chain Management Handbook”
Supplier Selection and Capability
Assessment
IAQG Leader: Cherif Khelil – Safran
12
Supplier Selection & Capability
Assessment
Objective
• To build a common model to assess
the Maturity of a Supply Chain to
achieve sustainable On Time & On
Quality delivery objectives
13
10 processes + 1 transversal one
Titles consistent with 9100 when possible *
* Red titles coming from 9100, black titles when clarification needed or no requirements
1. Sales & Operation Planning
2. Contract requirement flow down (Customer related Process)
3. Design and development
4. Suppliers sourcing selection & qualification (Purchasing process)
5. Plant, material, skills & capacity planning & scheduling
(Planning of product realisation)
6. Order Management (Internal & external logistic management)
7. Manufacturing (Production and service provision)
8. Supplier operational management (Purchasing process)
9. Control of non conforming product and corrective action
(Product Quality and Delays)
10. Customer Support (Control of service operations)
11. Business Management and Customer Satisfaction Monitoring
14
Supplier Maturity Assessment
per Supply Chain Process
Four levels of maturity (Maturity model CMMI like)
1.
Undefined : No Process, Method, Tools/ No Process,
Method, Tools/ and Appropriate Behaviours
• Processes
2.
3.
Defined
Applied
• Tools & Data
4.
Optimising: Implemented and optimised, continuous
improvement
Four domains assessed:
• People & Organisation
• Performances Metrics
Non Conformity
Management
People & Organization
Process
Expectation Tools & Data
Supplier
performance
Performance
Metrics
1
Undefined
No clear Accountability
2
Defined
3
Applied
Expert firefighters
No Problem solving
skills
Reactive needs
Customer Stimulus
Manual : Fax e-mail
Clear accountability
Multifunctional team
Cross functions
Highly Skilled
Highly skilled
Ad hoc firefighting
actions
Root cause process in
Mature process for root
Integrated database, clear
workflows, internal
collaboration
Internal & external
collaboration.
Performance drives action
plans
3+ regular review of
metrics effectiveness
place of potential
cause & preventive
Areas
actions
Process playbooks
Supplier Development if
Limited preventive actions
deemed necessary
Multiple Data base
Spreadsheet
No measurement of
Performance
4
Optimizing
Measuring performance
Real time intelligent
workflows
15
Risk based analysis and supplier
selection decision
New product Introduction
Life Cycle Management
1
Undefined
People
& Organization
Contract
Requirement
1
Flow down
Undefined
Sales Volume
& Option
People
& Organization 1
Forecasting
Undefined
2
Defined
2
Defined
2
Defined
3
Applied
3
Applied
3
Applied
4
Optimizing
Process
People & Organization
Process
Supplier
Assessment
Results
Tools & Data
Process
Tools & Data
Performance
Metrics
Tools & Data
4
Optimizing
4
Optimizing
Matrices
exist for
all
processes
Performance
Metrics
Performance
Metrics
Each Company may
apply weighting to each
process as appropriate
to their Product,
Customer, Risks, etc…
Decision to select or not
based on risk analysis like
9134 “Supply Chain Risk
Management guideline”
(Special action plan if not
capable but need to select)
16
“Supply Chain Management Handbook”
Requirements and Flowdown
IAQG Leader Larry Weng - Boeing
Report by Dale Gordon - MPC
17
Requirements and Flowdown
Objective
To publish best practices and
guidelines on how to ensure
requirements are well identified,
flowed down to suppliers and
agreed upon between customer
and suppliers.
18
Requirements and Flowdown
SUPPLIER (Seller)
ORGANIZATION (Buyer)
Decision to Buy
Purchasing Information
7.4.2...all
Purchasing Process
7.4.1...a, b, c, d, e
Source Selection
7.4.1 (Chapter 1)
ISO requirement
Communicate purchase
requirements to supplier
7.4.2.. all
Determination of
requirements related to the
product 7.2.1...all
Customer
Communication
7.2.3 a, b
Review of requirements
related to the product
7.2.2...all
Production & Service
Provisions 7.5
Chapter 2 - In-scope
Chapter 2 - Out-of-scope
Covered in another SCMH
Chapter
Chapter 2 - Out-of-scope
Not covered in another
SCMH Chapter
Verification of purchased
product 7.4.3
(Chapter 5)
Delivered product
7.5.5
Customer Feedback
7.2.3c
19
Requirements and Flowdown - Table of
Contents
Sec
9100
Table of Contents
Sec
9100
Table of Contents
2.1
7.4.2
Purchasing Information
2.18
7.2.1
Requirements Related to the Product
2.2
7.4.2a
Requirements for Approval
2.19
7.2.1a
Requirements for delivery and post-delivery activities
2.3
7.4.2b
Requirements for personnel
2.20
7.2.1b
Requirements not stated by the customer
2.4
7.4.2c
Requirements for a quality management system
2.21
7.2.1c
Regulatory or statutory requirements
2.5
7.4.2d
Requirements for technical data
2.22
7.2.1d
Requirements determined by the Organization
2.6
7.4.2e
Requirements for acceptance
2.23
7.2.2
Review of Requirements Related to the Product
2.7
7.4.2f
Requirements for test specimens
2.24
7.2.2a
Requirements for Product
2.8
7.4.2g
Requirements for nonconforming product
2.25
7.2.2b
Contract or order requirements
2.9
7.4.2h
Requirements for changes
2.26
7.2.2c
Ability to meet defined requirements
2.10
7.4.2i
Requirements for right of access
2.27
7.2.2d
Evaluation of risk
2.11
7.4.2j
Requirements for flow down to sub-tiers
2.28
7.2.2
Records of review
2.12
7.4.1
Purchasing Process
2.29
7.2.2
Undocumented requirements
2.13
7.4.1a
Register of approved suppliers
2.30
7.2.2
Requirement changes
2.14
7.4.1b
Supplier performance review
2.31
7.2.3
Customer Communication
2.15
7.4.1c
Supplier corrective action
2.32
7.2.3a
Communication of product information
2.16
7.4.1d
Use of customer-approved special process sources
2.33
7.2.3b
Handling of customer order enquiries
2.17
7.4.1e
Authority for disapproval of sources
2.34
7.2.3c
Customer Feedback
20
Requirements and Flowdown
Content Structure
Section:
9100 Clause
Generic
Expectation
Product Type
2.2
Section Title: Requirements for Approval
7.4.2 Purchasing Information: Purchasing information shall describe the product to be purchased, including where appropriate, a)
requirements for approval of product, procedures, processes and equipment,
Generic
Expectation
Note: Modified COTS are
Build-to-Print commodities
Specific
Expectation
9100
Requirement
We expect purchasing organizations to flow down any applicable customer requirements for approval of product, procedures,
processes and equipment and the method to obtain the approvals using purchasing process which takes into consideration all the
item listed below which are applicable to product being purchased.
COTS/Standards
Raw Material
Build-to-Print
Supplier Design
a) COTS- no specific
a) Identify Approved
All Raw Material
All Raw Material
expectations
Sources
expectations and
expectations and
b) Standards - Define QPL b) Specify Material
a) Define which processes a) Design capability
requirements
specifications
and processors need to be assessment
approved and by what
method and by whom
Organization
(Buyer)
Specific
Expectations
c) Testing requirements
b) Define which processors
are approved
d) Certification requirements c) Method of acceptance
inspection (i.e. Source
acceptance)
Note: Does not include
d) Tooling accountability and
forgings or castings. They
inspection methods
are Build to Print
Supplier
(Seller)
Not applicable. See 7.2.2
Not applicable. See 7.2.2
d) Requirements for change
notification and methods of
achieving approval.
How to
demonstrate
compliance
e) First article inspection
requirements and methods
f) Define production planning
approval
Best Practices
b) Technical product
definition (e.g. SCD,
statement
of work) approval
c) Design process
requirements
e) Initial qualification
requirements
f) Define the control of digital
data and the methods of use
g) Process control
g) Control and use of digital
requirements including
data requirements
variation management
h) MRB approval processes
i) Control and use of digital
data requirements
Not applicable. See 7.2.2
Not applicable. See 7.2.2
21
Requirements and Flowdown
Content Structure
Section:
9100 Clause
Generic
Expectation
Product Type
2.2
Section Title: Requirements for Approval
7.4.2 Purchasing Information: Purchasing information shall describe the product to be purchased, including where appropriate, a)
requirements for approval of product, procedures, processes and equipment,
We expect purchasing organizations to flow down any applicable customer requirements for approval of product, procedures,
processes and equipment and the method to obtain the approvals using purchasing process which takes into consideration all the
item listed below which are applicable to product being purchased.
COTS/Standards
Raw Material
Build-to-Print
Supplier Design
a) COTS- no specific
a) Identify Approved
All Raw Material
All Raw Material
expectations
Sources
expectations and
expectations and
b) Standards - Define QPL b) Specify Material
a) Define which processes a) Design capability
requirements
specifications
and processors need to be assessment
approved and by what
method and by whom
34 Templates
have been
populated
Note: Modified COTS are
Build-to-Print commodities
Specific
Expectation
Specific to the
product type
Organization
(Buyer)
c) Testing requirements
b) Define which processors
are approved
d) Certification requirements c) Method of acceptance
inspection (i.e. Source
acceptance)
Note: Does not include
d) Tooling accountability and
forgings or castings. They
inspection methods
are Build to Print
e) First article inspection
requirements and methods
f) Define production planning
approval
b) Technical product
definition (e.g. SCD,
statement
of work) approval
c)
Design process
requirements
d) Requirements for change
notification and methods of
achieving approval.
e) Initial qualification
requirements
f) Define the control of digital
data and the methods of use
Specific to the
Buyer and
Seller
g) Process control
g) Control and use of digital
requirements including
data requirements
variation management
h) MRB approval processes
Supplier
(Seller)
Not applicable. See 7.2.2
Not applicable. See 7.2.2
i) Control and use of digital
data requirements
Not applicable. See 7.2.2
Not applicable. See 7.2.2
22
“Supply Chain Management Handbook”
Process Control
Education Package about 9103 (Variation
Management of Key Characteristics)
IAQG Leader: Bernard Lauras - Airbus
23
9103 - Variation Management of Key
Characteristics - Education package
Objective
• Promote benefits of IAQG Standard 9103
(Variation Management of Key Characteristics)
and gain broader acceptance
• Increase skills for all people involved in 9103
deployment
Reason
• The application of 9103 will help resolve the
main contributors to quality non-conformance in
aerospace, but is not sufficiently and adequately
deployed (lack of buy in, lack of skills)
24
9103 - Variation Management of Key
Characteristics - Education package
9103 education
package
technical content
completed
Key Characteristics are the main ones guaranteeing
full Customer satisfaction, that means ensuring all his
needs are effectively & permanently met
25
“Supply Chain Management Handbook”
Process Control
Root Cause Analysis and Problem Solving
IAQG Leader: Bernard Lauras - Airbus
26
Root Cause Analysis
and Problem Solving
Objective
• Propose methodology to improve the
way escapes and problems are managed
(including communication between all
actors - engineering, MRB, supplier,
customer, etc...) to reduce their impacts,
contain them as far upstream as possible
and prevent recurrence.
27
Root Cause Analysis
and Problem Solving
Reason
• Our suppliers (and even sometimes our
organisation) do not deliver correct Root Cause
Analysis and Problem Solving results
• This is because:
– We have not set criteria about what makes an acceptable
corrective action plan
– We continue to accept bad answers (even if say we will
not, reality of life makes us accepting )
– People (internal and external) do not have the Root
Cause Analysis culture, do not know any process or do
not have the proper skill-sets
• Cultural change required to overcome the situation
28
Communication is a key aspect
Proposed “9 Steps”
harmonised Process
S0
Start Immediate
containment actions
S1
Build the team
S2
Define problem
S3
Complete and optimise
containment actions
S4
Identify Root Cause(s)
S5
Define and prioritise
root cause
corrective actions
S6
Implement root
cause corrective
actions and check
effectiveness
S7
Standardise and transfer
the knowledge across
business
S8
Recognise and
close the team
Objectives
of the 9 steps
defined
no
Is the RC corrective
action effective ?
yes
29
“Supply Chain Management Handbook”
Work Transfer Management (AAQG)
IAQG Leader Susan Armstrong - UTC
30
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 company or its
external supply chain.
31
Work Transfer Management
Supplier A
Supplier B
Reasons:
Unsuccessful work transfer is a major problem for the industry We have
not standardised process to do it
32
Work transfer Management
• Document issued describing
– 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
33
Work Transfer Management
Phases & Gates:
Gate 1
Phase 1
Proposal &
Feasibility
Proposal &
Feasibility
Gate Review
Gate 2
Phase 2
Develop
Business
Case
Gate 3
Phase 3
Detail
Planning
Team Launch and
develop charter
Source Selection
Risk Assessment
Business Case
Gate Review
Detail Planning
Knowledge
Transfer pre-move
Gate Review
Project Charter
Project Plan
Risk Assessment
Business Case
Transfer checklist
Gate 4
Phase 4
Execution
of Plan
Project
Management
Technical Review
Requirements
Production
Readiness Review
FAI / LAI
Knowledge transfer
Gate Review
Templates
WT Project
Proposal Form
Gate Check List
Gate Check List
Gate Check List
Production
Readiness Review
Check List
Phase 5
Project
Closure
Identify
Continuous
Improvement
opportunity
Capture Lessons
Learned
Recognize team
performance
Post
implementation
review
Closure Form
AS9102 FAI/LAI
Gate Check List
34
Conclusions
All SCMH produced material is available
through any IAQG member
Please review data and give feedback to
SCMH focals:
cherif.khelil@safran.fr
lawrence.a.weng@boeing.com
gordon.d.barnes@boeing.com
susan.armstrong@utc.com
bernard.lauras@airbus.com
35
Contacts
• Product Realisation Processes
– AAQG: Susan Armstrong - UTC
– APAQG: Kouichi Watanabe - IHI
– EAQG: Bernard Lauras - Airbus
• Supply Chain Process Capability
– AAQG: Larry Weng - Boeing
– APAQG: Kouichi Watanabe - IHI
– EAQG: Cherif Khelil - Safran
36
37