Collaboration in the Aerospace Supply Chain -
Towards the Extended Enterprise
Bangor University
Wednesday 28th March 2012
John Whalley
Aerospace Wales Forum Ltd.
www.aerospacewalesforum.com
Aerospace technology is expensive
Pound for Pound by weight an
aero-engine has the same
value as silver
Pound for Pound by weight
a motorcar has the same value as
hamburger
Map of Wales and key sites
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
www.aerospacewalesforum.com
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
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
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)
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
21st century supply chains
led by
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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
who committed to
• Fundamental business
transformation
• Accelerated Change
and Continuous
Improvement.
• Through life
management
• Demonstrating SC21
commitments
• Leadership role
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
What is SC21? - SC21 scope
1. accreditation:
need to remove
repetition, and
unnecessary
duplication
4. innovation
3. relationships:
initially SC21 will
implement 3 action streams
to drive early transformation
and improvement
2. development and
performance:
need increased
efficiency and
remove waste
5.
need for better
end-to-end
communication
and collaborative
planning
through life
capability
management
Collaboration in Defence – Alliancing – BS11000
MARS – Military Afloat Reach & Sustainability
North West Aerospace Alliance ASCE Programme
Extended
Enterprise
Shared
Services
Work Share
Commodity
Groups
Shared benefits
Supplier
Common strategy
Associations
ASCE
Shared objectives
Common language
Common processes
Common culture
Composites
CG
Complex
Machining
CG
Process
Treatments
CG
Commodity Groups
Robotics,
Automatio
n & Tooling
CG
Design &
Engineerin
g
CG
Autonomous Systems Commodity Group
launched in July 2011 and runs parallel with GAMMA
SME
Machining
CG
NWAA Extended Enterprise – Current State
Required Capabilities
Clients
Risk sharing
Design to deliver
25 -30 year Contract
Turnkey Solution
Providers
No
current
North
West
Candidat
e
Contract
Supply Chain
Financially robust
Multi-materials
Single point
responsibility
Evolve with project life
North West Supply Chain
disadvantaged
Manage the supply chain
With no current NW RSP the
Supply Chain could be starved of
17
future work – if we don’t respond!
NWAAExtended Enterprise- Future State
NWAA Extended
Enterprise Model
1
2
Process
Treatment
Autonomous
Systems
SME Complex
Machining
Composites
(Commodity
Groups)
Extended
Enterprise
1
Design &
Engineering
Robotics,
Automation
Tooling
2
Commodity Groups and
Commodity Group companies
interact, collaborate and bid
collectively
4
3
2
Comp[ex
Machining
1
3
1
2
2
Work Package Bids
1
Extended Enterprise future state - suppliers from a
cross sector of Commodity Groups bid collaboratively
to provide through life (design and build) capability
Initial Lead Partner Alliance
- Structure looks something like this … …
End
Client
Contractual Link
A Lead
Horizontal & Vertical
Collaboration
Vertical
Collaboration
.
Horizontal
Collaboration
.
Sub Partner
1
NWAA as
‘honest broker’
Partner
Sub Partner
2
•
•
Sub Partner
3
?
•
•
selection
open book
build up (&
auditing on
expenditure)
dispute
resolution
development
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
Aero 2075 – Flying into a bright future?
Thank you for listening
Any questions?
www.aerospacewalesforum.com