May 16, 2014 Case Studies, Supply Chain Development A case study in Supply Chain Improvements in the Aerospace Sector. This supply chain development activity focussed on delivery improvement and was underpinned by the NVQ level 3 in Business Improvement Techniques. It was achieved using techniques including effective teamwork, flexible production systems, 5C /5S, standard operations and visual management. “In September 2005 the Goodrich Electric Power Systems business launched a TI sponsored “Whole Supply Chain Group” programme, this was branded as “10 Suppliers, 4 Tiers, 1 Aim: Customer satisfaction throughout a world class supply chain”. Not only did this programme engage 9 suppliers & the manufacturing module at Pitstone, thus embracing 4 tiers of Supply Chain, it also engaged our customer Airbus. Our whole supply chain improvement in OTIF from 75% to 100% and delivered quality from 1500 dppm to 750 dpm, has resulted in a further DTI sponsored extension to the programme and an award recognising the professional project management applied by Goodrich Electrical Power Systems. The Goodrich Electric Power Systems business is now in year 5 of a 5 year business turnround, we are on plan to do this and Industry Forum has been a significant contributor to our success, we look forward to continuing to work with them in the future.” Emmett C.I. Team The Customer The Host Goodrich Power Systems, Pitstone. Manufacturer of generator sets for most Airbus models.Eemployees 508, turnover £140m, Material spend £50m. Participating Supplier Precision Magnetics Ltd, a UK leader in the design, manufacture and supply of rare earth permanent magnetic assemblies, with only 30 employees and around £2.5m turnover is a key supplier to all the Goodrich Airbus programmes. The Customer’s need Delivery Schedule Achievement (DSA) for all suppliers in September 2005 was 66%. The supply chain group represented 75% of Goodrich spend on Airbus programme and had a group DSA of only 60%. This endemic poor supplier delivery performance was continually affecting Goodrich’s ability to meet Airbus programme dates. Precision Magnetic’s then DSA of 7% being a significant factor. The IF Solution Supply Chain Groups provided a structured framework approach bringing together customers and suppliers from different tiers in the Supply Chain. Developed by Industry Forum the 3 pronged approach enables individual businesses not only to see real gains in QCD, but also to improve the level of partnership between companies and to develop the improvement skills capability within each company. Overview of Supply Chain Group Structure The “Learning By Doing” Process, linked to a National Vocational Qualification (NVQ) Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Results Overall Supply Chain Delivery Schedule Achievement to Goodrich (OTIF) Before: 60% After: 90% Precision Magnetics Delivery Schedule Achievement to Goodrich Before: 7% After: 100% July 07 Overall Supply Chain Not Right First Time Before: 1500 dppm After: 750 dppm Upskilling for Sustained Continuous Improvement 34 NVQ’s in Business Improvement Techniques across every supplier, (9 Change Agents & 23 Team Leaders) Sustainability of the Improvements: The company has made continuous improvement a strategic objective and appointed senior managers who have the skill and responsibility to coordinate core activities. The company will gain sustainability by continuing to organise workshops at each site in their organisation. Reference file: Download Case Study
