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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.
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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