A MEAN TO AN END by ProQuest

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The UK aerospace and defense industry is working hard to raise the performance of its supply chains and, in so doing, accelerate its competitiveness within the global marketplace. Reduced auditing via recognized supply chain accreditation, a consistent approach to supply chain development and performance measurement, and improved supply chain relationships are all in the mix. The industry needs to focus far more time and energy on supply chain business leaders. Success will be truly demonstrated when the process owners are really working together, regardless of the involvement of improvement teams. Improvement plans need to become a part of how businesses routinely communicate and will only be truly effective when they are central to the behavior of managers at all levels of the organization. Leaders need to create the management structure in which strict rules are applied and an environment in which teams understand the issues and can be helped to manage the implementation of the solution.

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									 defence procurement



A meAns
 to An enD
Jamil Rashid explains why supply chain change programmes could be key to transforming how
the whole defence and aerospace industry works.


T        he UK aerospace and defence industry is working hard
         to raise the performance of its supply chains and, in so
         doing, accelerate its competitiveness within the global
marketplace. Reduced auditing via recognized supply chain
accreditation, a consistent approach to supply chain development
                                                                        Develop Improvement Structures
                                                                        Improvement plans need to become a part of how businesses
                                                                        routinely communicate and will only be truly effective when
                                                                        they are central to the behaviour of managers at all levels of the
                                                                        organization. Again, this is where leaders have a critical role to
and performance measurement, and improved supply chain                  play. They need to be involved, to ensure that all key continuous
relationships are all in the mix. A significant number of industry
suppliers are now being consistently measured and assessed
by most of the primes. This means that they are likely to have           Case study
                                                                         A tier one UK aerospace manufacturer was experiencing longstanding poor delivery
to undergo fewer audits, saving time through duplicated effort.
                                                                         performance, despite several internal improvement initiatives focusing on manufacturing
For the same reason, the primes save resources … because the             processes. An organization-wide business improvement process identified the supply of
lower tiers of the supply chain are doing some of these audits           PCBs as the key factor influencing on-time delivery. Three critical suppliers were invited
on behalf of the industry. Although the primes are now working           to join the project team, which created improvement actions focusing on the deployment
more closely together to reduce confusion in the supply chain,           of strategic stock, better forecasting and demand pull on high volume parts. Work orders
there is a much greater prize: changing how the industry works —         launched on time increased from 50% to 80%; on time delivery improved by 10%; and
                                                                         communication (plus relationships) was improved. These are good results, but a closer
how it is managed and how it communicates — transforming all
                                                                         look at the leadership behaviours of the three businesses concerned points to missed
business-to-business transactions, not just the supply chain.            opportunities:
                                                                          • The three managing directors had very little contact after the initial improvement
Focus on Leaders                                                             initiative. This is not untypical, because many business leaders see supply chain
To fulfil this potential, the industry needs to focus far more               initiatives as a means to short-term improvements and industry recognition rather than
time and energy on supply chain business leaders. One of                     a way of changing how the business works.
                                                                          • The improv
								
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