“Supply Chain Management Handbook”

SCMH
Overview and Survey

Presenter: Darryl Hue – Boeing

July 30, 2009

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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

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SCMH Objective and Scope

Objective:
• 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.

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Focus on “How” through SCMH

New or revised IAQG

Inputs for future published documents
9100 revision of 9100 (Standards, guideline)
91xx
Requirements 9131
9103
9102
o
i nks t
L
Supply
Chain
Mgmt. Inclu
des
Handbook SCMH Guidance
material, tools,
trainings
Providing guidance material and best
practices on how to meet requirements
and achieve objectives

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Project Management Infrastructure
Structure/Resources
Project Management

LT Core Members:
S. Armstrong – UTC (AAQG) C. Buck - Safran (AAQG)
L. Weng- Boeing (AAQG) B. Lauras – Airbus (EAQG) Future Topics
S. Komori – FHI (APAQG) Not assigned
SCMH Leadership Work Instruction
Support Resources:
Team Preventive Action
D. Hue (Boeing) – Proj Mgr
People Capability

Priorities
R. Pardons (IAQG) – Tech mgr
Technical Project Mgr M. Iwadare – APAQG Support (PCAP 001) of
Notification
Project Manager
Contractors - Technical Writers Change
Member Company Volunteers Master Schedule
Counterfeit Part
Prevention
CI for Small
New Product Requirements &
Special Requirements CI for Small Suppliers Business
9115 Guidance
Writing Teams

Introduction Flowdown
Active Project

Material
Other Topics
Lean Assess. Tools Risk Management FOD Work Transfer
Other Topics
Assessment
SQM Basics Configuration
Checklists
• Central project templates Management
• Std. plan and processes
FAI • Documented expectations

Available Sections

Key Characteristics
Requirements and flow
• Active Work storage down
RCA & Problem Solving
• Standard Processes IAQG Work
Non-Conformance
• Standard templates Space
Work Transfer

Source Selection

In work In Revision Not assigned Completed

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Plus Member (and non-member)
Company Participation

IAQG Member Company Participation Non-Members Participation

Airbus Gulfstream JPL-NASA
ATK Liebherr NQA-USA
Avio Lockheed Martin Progress Casting
Bell Messier Dowty SEA
Boeing MHI Spirit Aero
Boeing Canada MTU Triumph
Bombardier Parker UL DQS Inc.
Dassault Safran Verify Inc
Dassault Aviation Spirit AeroSystems
EADS Sukhoi
Embraer, Brazil Thales
ESA UTC
Eurocopter Volvo Aero
Fuji Heavy industries, LTD Vought
GE Aviation Zodiac
Goodrich  
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SCMH Chapters and Work in Progress

Supply Chain Management Handbook

1. Sales, Master 2. Contract 3. Design and 4. Suppliers 5. Plant, material,
Scheduling & Requirements and development sourcing selection skills, capacity
Sequencing Flow Down & approval planning &
scheduling
Requirements and flow Special Requirements Supplier Selection and
down templates Critical items Capability Assessment
New Product Product Performance
Introduction- Quality Detailed Assessment
Checklists
9115Software Guidance

6. Order 7. Manufacturing 8. Supplier 9. Control of non 10. Customer

Management and and inspection operational conformities, Support (Control
logistic (Internal & management and corrective and of service
external) product validation preventive actions operations)
9103 education package Supplier Quality Mgt Root Cause Analysis &
Lean Assessment (Key characteristics) Problem Solving
Basics
Tool
9102 Education package
Control of non conformities
(First Article Inspection)
Foreign Object
Debris (FOD)

11. Business Management and Customer Satisfaction Monitoring

Work Transfer CI for Small Business Risk Management Configuration Management
Appendices:

Exists In Work New

Priority 1 9100 Rev C People Capability
Deployment Support (PCAP 001) 7
Available material

Chapter Section SCMH Content

Chapter 2 – Contract requirement flow down 2.1 Requirements and flow down templates

Chapter 4 – Suppliers sourcing selection & approval

4.1 Supplier Selection and Capability Assessment
(Purchasing process)

Chapter 7 – Manufacturing and inspection

7.1 9103 education package (Key characteristics)
(Production and service provision)

Chapter 7 – Manufacturing and inspection

7.2 9102 Education package (FAI)
(Production and service provision)

Chapter 9 – Control of non conformities, corrective

9.1 Root Cause Analysis & Problem Solving
and preventive actions (On Time - On Quality)

Chapter 9 – Control of non conformities, corrective

9.2 Control of Non-Conformities
and preventive actions (On Time - On Quality)

Chapter 11 – Business Processes Performance

Management and Customer Satisfaction 11.1 Work Transfer
Monitoring

Appendix A.1 9100 Rev C Deployment Support

Appendix A.2 People Capability (PCAP 001)

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Material In Work

Chapter Section SCMH Content

Chapter 3 – Design and development 3.1 Special Requirements/Critical items

Chapter 3 – Design and development 3.2 New Product Introduction - Quality

Chapter 6 - Order Management and logistic

6.1 Lean Assessment Tool
(Internal/external)
Chapter 8 - Supplier operational management and
8.1 Supplier Quality Mgt Basics
product validation (Purchasing process)
Chapter 11 – Business Processes Performance
11.3 Risk Management
Management and Customer Satisfaction Monitoring

Chapter 11 – Business Processes Performance

11.4 Configuration Management
Management and Customer Satisfaction Monitoring

Chapter 3 – Design and development 3.3 9115 Guidance Material (Software)

Chapter 4 – Suppliers sourcing selection & approval Product Performance Detailed Assessment Checklists
4.2
(Purchasing process) (PPDA)

Chapter 7 – Manufacturing and inspection (Production

7.3 Foreign Object Debris (FOD)
and service provision)

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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?
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SCMH Access - Demo

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

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 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

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SCMH Survey – Information Page

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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

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Supplier Assessment Model
(SCMH Section 4.1)

Five levels of maturity

A separate matrix for 1: Undefined and not capable
each process with : 2: Defined and applied, but not 100% efficient or not applied
everywhere in the company
3: Defined, applied and effective
Four domains : 4: Predictable
• Process 5: Optimised
• People & Organisation
• Tools & Data
• Performances Metrics

Items for Improvement

Action Plan between
supplier and customer

Expectation

Supplier
performance
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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

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Rating Example

Provide your expertise as what “Specific Areas of Concern” need to

be addressed as “Possible Topics” to add to the SCMH 17
Exemple of results synthesis
(10. Customer support not assessed in this exemple)

Expected capability level Assessement results

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Exemple of results summary: Processes
with Strengths and weaknesses

11. Business Processes Performance1. Sales, Master Scheduling

2 – and
Contract requirement
Management and Customer SatisfactionSequencing flow down
Monitoring • Weakness 1 • Strength 1
• Strength 1 • Weakness 2 • Strength 2
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• –Strength
Supplier2 operational • Weakness 3 • Strength 3
management
• Strength 3 and
product validation
• Weakness 1 4 – Supply sourcing
• 9 Weakness 2
– Control of non selection and approval
• confomities,
Weakness 3corrective & • Weakness 1
preventive actions 3
• – Weakness
Design and
2
• Strength 1 development
• Weakness 3
• Strength 2 • Strength 1
• Strength 3 • Strength 2
• Strength 3
6 – Order management 5 – Planning of
7 – and
Manufacturing
logistics and product realisation
inspection
• Weakness 1 • Weakness 1
• Strength 1
• Weakness 2 • Weakness 2
• Strength 2
• Weakness 3 • Weakness 3
• Strength 3
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Example of results by area

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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 3707 mailstop 08-50
Seattle, WA 98124-2207
Attention: Darryl E. Hue
• Or scan and email to:
“darryl.e.hue@boeing.com”
• 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 email address via separate email

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Questions?

Questions?

For any further question or comment, please

contact: darryl.e.hue@boeing.com
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SCMH Back-Up Material

Back Up Material

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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.

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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).

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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

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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

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