Post on 10-Apr-2020
Trusted to deliver excellence
© 2016 Rolls-Royce plc
The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other
than that for which it is supplied without the express written consent of Rolls-Royce plc.
This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning
such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or
associated companies.
“Lean” systems in Supply Management:
Driving a culture
of continuous improvement
to increase performance - BA
Shawn Burkle, Purchasing Development Executive
Rolls-Royce North America
May 22, 2017
10:00 a.m.
Our Business
Direct IndirectGroups
~£5.0 bnSpend £2.0 bn
~750 People in over 12 countriesPeople
% of Product Cost that is Purchasing
Equates to 200,000 engines parts managed per annum.
*excludes MRO
75%
25%
Purchasing Cost
Non-Purchasing Cost
7%
68%
25%
Asia Pacific
Europe
Americas
Spend % byRegion
Purchasing
The importance of Purchasing to the business
• Do we know what “lean” means?
• Is “lean” only for our manufacturing
and assembly facilities?
• How many have a supply management
“lean” system?
10
Lean
11
Supplier Management - Production System
• (4) Focus Area’s
- Step One - Culture Transformation
- Step Two - Performance Management = SQCDP
- Step Three - Supplier Engagement Framework
- Step Four - Continuous Improvement Culture
Embedded by (16) minimal standards of the Production
System
Step One / ‘The Production System’
• It all starts with Culture
- Leadership
Step Two / Performance Management:Goal summarized in one “simple” question:
Did we win?
- Safety
- Quality
- Delivery
- Cost
- People
How do we know?
OBR
OBR
OBR
OBR
SPA
SPASPA
SPA
SABReCompliance
Risk Register
Step Three / ‘Supplier Engagement Framework’
OBR SPARisk
RegisterSABRe
Compliance
Step Three / ‘Supplier Engagement Framework’
Step Four / ‘Continuous Improvement Culture’
Summary / Is the Production System Working?
The aim of the Production System is to improve our business performance and customer satisfaction.
It uses Lean actions and Lean principles to focus on our teams on people, plants, planning and processes
7 Lean Principles16 Minimum Stds
6 Leadership actions
The Future of Suppler Management: Continuous Improvement (3) Year Goals
Coach The Production System to become ‘the way we work’
Increase PE improvement benefits as a percentage of revenue
-Engage all employees in delivering at least one improvement project per year
-Drive a higher rate of ‘active’ participation of accredited belts
-Grow our improvement footprint to meet the needs of the business-Ensure a healthy pipeline of belts
Key sustainment activities of Production System
Governance
▪ Strong and continuing governance
Programme management
▪ Rigorous planning
Coaching
▪ Management and leadership commitment (Go-look-sees)
▪ Functional engagement
Continuous improvement
▪ Functional engagement
▪ Communication and feedback system
▪ Communities of practice
23
Prod System- Footprint
127 Cells 46 SMTs145 Areas
S
Q
C
D
P
So What?Global Purchasing
SQCDP board and team meetings
resulted in better visual management
Completed Yellow Belt / LiFE activities
Sustained refocus on HPC
Increased focus on necessary work
(BCM, Risk Register, etc.)
Waste Reduction: 6,546 man-hours
saved
Standardized way of working enabling
better understanding
Enabled better discussions and
problem resolution as an SMT
Increased visibility of bottlenecks
Improved team working andengagement
Projects yielding £1M in positive MPV
QNs >90 days reduced to ZERO
Ensuring our people have appropriate PPE
for our suppliers
SABRe NCRs reducedfrom 5 to ZERO (90
days)
Overdue Work Q reduced
46 to 0 days
+ 4 stand-up desks to encourage better workplace health
VOC / QUESTIONS?
Y O U R F E E D B A C K I S I M P O R T A N T
Please take a few minutes to complete this brief
survey.
Survey link:
www.instituteforsupplymanagement.org/BA17
or Scan the QR code on your smartphone