Ontario Global Cluster Accelerator
-
Upload
lilah-schroeder -
Category
Documents
-
view
27 -
download
0
description
Transcript of Ontario Global Cluster Accelerator
Aéro Montréal Innovation Forum6 Dec 11
Innovations in SME Supplier Advancement
Focus on SMEs
Why change?
What to change?
What is “Innovation”?
What is OAC doing to help?
Global market growth Capacity?
Supply chain New and different roles and responsibilities = Business transformation by suppliers
Boeing rate per month Airbus rate per month
2011 2013
737 31.5 38
767 1.5 1.5
747 0 1.5
777 5 8.3
787 2 10
Annual Total
493 688
Backlog 3505
2011 2013
A320 36 42
A330 8 10
A350 0 2
A380 2 2
Annual Total
530 621
Backlog 4233
One to Many
OEM OEM
TIER 1(SystemsIntegrator)
TIER 1(SystemsIntegrator)
TIER 1(SystemsIntegrator)
TIER 2(Product)
TIER 2(Product)
TIER 2(Product)
TIER 2(Product)
TIER 2(Product)
Tier 3
BTP
Tier 4Processing/Materials
One to Few
Primarily direct supplyMany direct suppliersNo real role for “integrators”
Many “supply paths”Fewer, but still many direct suppliersLimited role for “integrators”Larger role for value-adding suppliers
Fewer “ supply paths”Far fewer direct suppliersExtensive role for “integrators”Still larger role for value-adding parts suppliers
Raw materials
Make-to-print parts and assemblers
Large-scale integration
Platform assembly
Small-scale integration
Value-added parts and assemblies
OEM’sSystem Integrators
System Integrators
Past Emerging Future
Source: A.T. Kearney 2002
Innovation is customer-driven, providing a new product or process that adds value to somebody’s life.
Innovations can improve economic, health, or social well being.
Invention can be defined as the creation or discovery of something new to the world.
Inventions are often producer-driven, following an inventor’s curiosity or area of expertise.
Market Pull
Product / Service &/or Manufacturing Process &/or Business Process
Basic ResearchApplied Research
Product + Manufacturing
Method Development
ProductionTechnology
Development / Demonstration
MarketsTechnology
Infusion
Technology Acquisition
Technology Push
Higher attrition rates = higher riskModest investmentsInstitution-centred
Lower attrition rates = lower riskHigher investmentsCompany-centred
Business Maturity
Cluster Tier 1 Tier 2 Tier 3 Tier 4 Employees
Aerostructures 1 13 42 29 12,400
Landing Gear and Flight Control Actuation
4 13 19 18 9,000
Avionics & Flight Management
2 24 12 3 5,500
Turbine Engines 1 6 17 12 2,900
Environmental Conditioning & Electric Power
2 2 3 2 1,900
MRO 7 10 11 2 7,200
11
Assembly InfrastructureRobotics24/7 Operations
T1 Systems Integrator
T1 Systems Integrator
T2 Equipment/Assembly Providers
T3 BTP Component & S/A Suppliers
T4 Processing/Materials Supplier
Future Major Platforms
T2 Design Engineering
GeometryManufacturabilityMaintainability
Environmental
Sustainability
Transformational Manufacturing
Manufacturing Strategies &
Systems
Applied Technology
Development
Supply Network Performance
ProximityQualificationsSchedule SynchronicityMachine Visibility
MAP SME Advancemen
t
MaterialsMachiningProcessing
Energy ReductionHazardous WasteGreen House Gases
Other Sectors
Strategy for GrowthCVP / SCAOrganizational Dev’t
MAP Overview
What is MAP?
Why do companies want / need MAP?
What do MAP partner companies gain through MAP?
What do SMEs do, as they work through the MAP Business Advancement process?
What is MAP?
◦ Structured, adaptable ‘strategy development’ method
◦ Specifically for SME suppliers
◦ Enables SME management to decide how to transform their business
What do SMEs get through MAP?
◦ A short focused process (5 days over 10 weeks)
◦ SME managers set a few strategic priorities and several specific actions
◦ Often, ‘people’ decisions are among the first
◦ “Vision, Value, and Advantage”
◦ Decisions with confidence: improvement investments; new positions; new customers; etc.
◦ Align: Strategic Directions – Company Capabilities – People
SMEs value MAP
◦ Industry-led
◦ Proven in practice (peer recommendations)
◦ Ownership of decision breeds commitment to action
◦ Sustainable
MAP is different
◦ Focused on SMEs
◦ Proven, reliable, consistent, repeatable methodology
◦ All business aspects (strategies – capabilities – people)
◦ Only ‘transformation planning’ – not implementation High quality and integrity
How does MAP work?◦ Teams of trained experienced, professional experts
Business, Operations, Human Resources
◦ “Coaches and mentors” (not ‘advisors’)◦ Company managers define their own future
Future-state Vision
Customer Value Proposition / Sustainable Competitive Advantage
Critical Business Functions (MAP Capabilities Framework) Key Positions to drive critical Capabilities
A few Priority Actions to bridge ‘gaps’ between where they are and where they want to be Marketing, Engineering, Operations, Financing, etc., & People
Hoshin Strategy
Deployment
Element 6. Supply Network ManagementPerformance Levels
Level AMinimal
Level BAwakening
Level CProgressive
Level DAccomplished
Level EExcellent
6.1 Ethics and Attitudes
No relationship, supplier involvement or respect for suppliers
No audits Suppliers squeezed
on price and delivery
Suppliers’ loyalty is encouraged
Supplier care focus Informal loyalty to
suppliers but don’t push boundaries
Fully understand supplier selling policy and how they negotiate purchases
Have proactive supplier programs
Meets commercial obligations
Understand how to add value to supplier
Analyze supply chain with customers/ suppliers
All companies are in strict compliance with the law and are without actual or perceived conflicts of interest
Have full trust of suppliers
Jointly develop strategy with suppliers
Active Supplier Portfolio Management: Respect, development, support, selection, evaluation
Full information sharing, transparency
6.2 Communication Poor, incomplete communication
Flow down of customer requirements; good coordination; electronic links of production information
A seamless customer/supplier electronic interface with some customers or suppliers
With most important customers and suppliers, a seamless customer/supplier electronic interface; communication of future requirements to support strategic planning
A seamless customer/supplier electronic interface with all customers or suppliers
6.3 Selection and Approval of Qualified Suppliers
Infrequent or incomplete audits
In house experts determine suppliers individually
Semi-formal approval process exists and used sometimes
Regular audits No formal supplier
process defined in company
Conduct On-site survey annually
Proactively measure performance
Continuously monitor supplier part of our team
Analysis of supplier capabilities relative to end user "spec" number
Almost always follow and incorporate best practices
Have developed metrics to support continuous improvement
Methodology to support continuous improvement strategy
Suppliers are intimately involved with identifying best practices for us
Suppliers proactively work with our team for win/win
Element 6. Supply Network ManagementPerformance Levels
Level AMinimal
Level BAwakening
Level CProgressive
Level DAccomplished
Level EExcellent
6.4 Commercial Agreements
None exist Basic purchase
orders issued
Some automation in place in order issuance
Basic vendor management agreements
Work with supplier to improve purchase methodology
Vendor management agreements that reinforce supply chain partnership principles
Comprehensive contracts including quality and support
Comprehensive vendor management agreements including quality improvement and product support
Continuous and systematic with acknowledged measures of success (organization specific)
6.5 Life Cycle Management
No Life cycle risk assessment
No check list No management of
supply chain
Some responsibility for sub-tier supplier issues
Have basic check list Responsibility for
supplier issues throughout the life cycle
React to crises Supplier problems
get fixed in reactive fashion using team concept method
Proactively work on containment issues at supplier
Comprehensive check list throughout the life cycle
Containment of issues at supplier source
Supplier constantly works with us to identify issues well ahead of time throughout the life cycle
6.6 Continuous Improvement
Little communication with suppliers regarding performance expectation
Flow down of customer performance requirements to suppliers
Joint problem solving (such as root cause analysis) with suppliers
Has a supplier performance development program with focus on critical suppliers
Company takes a lead in improving the performance of its suppliers
6.7 Performance Metrics
Uncertain what supplier metrics are
Suppliers meets minimum expectations
Suppliers exceeds expectations
Understand supplier long term plans and metrics
Use of supplier metrics to make meaningful change
Align strategy with supplier and customer metrics
Collaboratively work with supplier & customer to develop metrics
Assessment◦ where are you today?
Direction-setting◦ where do you want to go?
Action Planning◦ how can you best get there?
Accessible
Adaptable
Builds confidence
Focused
People-oriented
Secure
Sustainable
Action-oriented
Builds commitment
Comprehensive
Objective
Assured Quality
Simple / Strategic
Team-building
Focus on the ‘critical few’◦ not the ‘trivial many’
It’s all about your insights, your decisions, your commitment ◦ It is not about our analysis or our answers or our
recommendations◦ It is about the MAP Team in the role of catalyst
and facilitator
MAP – your business transformation methodDecisions with confidence: Strategies – Capabilities – People
Questions & Discussion