MessierDowty Gloucester Supply Chain Groups

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Messier-Dowty GloucesterSupply Chain Groups
David Johnson Team Leader - Systems Supplier
Development
Peter Newbery Supply Chain Facilitator
David Tucker Purchasing Executive
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Summary

• Supply Chain Groups
• A structured process of training, diagnostics,
  workshops and reviews, involving Messier-Dowty
  and supply chain personnel, to achieve mutually
  beneficial supply chain improvements.
• To date this approach has touched 19 Suppliers,
  more than 200 people and will contribute gt500K
  Euros of savings to Messier-Dowty in 2002.

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WHY IMPROVE?

• In early 1999 there was a recognition that we
  were not meeting our customers expectations of

• 100 delivery performance
• Zero defect status
• Total cost competitiveness
• Highly responsive to Customers needs

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How Can we Improve the Supply Chain?

• Apply Lean tools and techniques
• Create Britains first aerospace supply chain
  group - supported by the Society of Motor
  Manufacturers and Traders (SMMT) Industry Forum

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Supply Chain Improvement
PLAN
ACT

• Select Programme
• Select Suppliers
• Identify Champions
• Select Change Agents
• Establish Schedule

• Start new Supply Chains
• Extend Improvements

• 7 Measures - Results
• Roll Out Plans
• QOS Documents - Results
• Economics - Payback

• Train Champions
• Train Change Agents
• Diagnostics
• Workshops
• Follow Ups

DO
CHECK
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THE LEAN APPROACH
Improvement Activity
Lean is a systematic approach of eliminating
waste so every step adds value for the Customer.
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Supply Chain Group Vision 2001/2002
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Structured Process
Company
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Flow

• Roll-out the improvement activity across all OE
  supply into Messier-Dowty
• Concentrate on improving
• Use set reduction to batch sizes
  and improve quality
• the manufacturing process
  into logical blocks
• Use visual management (kanban) to pull the parts
  from block to block

FLOW
reduce
Break
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Kanban Pull
Raw Material
Pull
Pre HT Machining
Pull
2 weeks
Heat Treat
Pull
2 weeks
Post HT Machining
Pull
2 weeks
Surface Finishing
Pull
2 weeks
Customer
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Activity Plan
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Structured Roll Out Control
Strategic Roll Out Plan
QOS Plan Key QCD's
Detail Action Plans
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Roll Out Plan
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Tools Outcomes

• 5S
• 7 Wastes
• Measurement
• Set Reduction
• Load Capacity Assessment
• Visual Management
• Kanban/ Direct Line Feed
• Standard Operations
• Machine Maintenance

• Team work
• Shared knowledge Experience
• Improved relationships with suppliers
• Delivery Improvement
• Quality Improvement
• Inventory Reduction
• Cost Reduction
• Waste Elimination

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SUPPLY CHAIN - Gloucester

• 18 suppliers engaged in the last 2 years
• 35 supplier change agents trained, 5 of them
  participating in Change Management NVQs
• 57 internal change agents trained, 5 of them
  participating in Change Management NVQs
• gt 150 people at suppliers actively involved in
  improvement activities
• kits from 6 suppliers on kanban pull from
  assembly
• gt 200 parts on kanban with 100 on-time delivery
• some suppliers offering price reductions based on
  the improvements

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DELIVERY PERFORMANCE BOARD - AIRBUS A320 ASSEMBLY
SEPTEMBER 2002
MARCH 2002
MAY 2002
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Progress to Date
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Cost/ Benefit Analysis

• External cost to Messier-Dowty 55K Euro for
  consultants
• Internal cost to Messier-Dowty peoples time
  (although no additional people were recruited)
• The Supply Chain Group has significantly
  contributed towards
• Savings as a result of price reductions - Win for
  Messier-Dowty
• 2002 572K Euro
• 2003 675K Euro
• Supply chain work in progress reduction - Win for
  Suppliers
• 2002 454K Euro

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NEXT STEPS - Gloucester

• Value stream map derived actions
• Messier-Dowty and suppliers monitor and report
  progress with QOS documents
• Bring on board new participants as required by
  the value stream maps
• Continue to work with suppliers to eliminate
  waste and reduce costs

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NEXT STEPS - Internationally

• Integrate the process into Optimach
• Roll-out the approach across Messier-Dowty
• Toronto Supply Chain launched in May 2002 in
  association with Boeing on the F18 - Gloucester
  is supporting the development of this programme
• Bidos Supply Chain launch - support available
  from Gloucester

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What people think about the process

• Initially there was some scepticism. Wed made
  attempts at introducing change before, but these
  initiatives had not been followed through with
  sufficient conviction. This was different.
• I confess that neither I nor my colleagues knew
  very much about these techniques, but it seemed a
  practical proposal offering the opportunity to
  improve the performance of the business while
  working with one of our major customers.
• Paul Foulds, Middlesex Group
• This was not just another initiative. Above all
  it was a whole business approach. Here was a
  customer saying it needed to improve. We would
  improve with it.
• David Elliott, Beaufort Engineering
• Our involvement in the Messier-Dowty supply
  chain group has focused our attention on
  improving our manufacturing process by
  significantly reducing waste. At Ultra we have
  been working on improvement activities with the
  aim of sustaining 100 on-time delivery and total
  customer satisfaction.
• Paul Buckley, Ultra Electronics
• Since the start of the initiative I have seen a
  significant improvement in the presentation of
  details to the Airbus assembly by the
  introduction of kit boxes and direct line feed,
  thus reducing the handling of components by the
  fitters and storeman. We have seen an improvement
  in the delivery of both details and kits through
  the recent introduction of kanban with certain
  suppliers, the results of this reduce the
  expediting and other non-value adding activity
  associated with late delivery.
• Mark Tunstall, Messier-Dowty - Airbus Assembly