Next Generation Manufacturing Study Arizona Aerospace and Defense Supply Chain
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Transcript of Next Generation Manufacturing Study Arizona Aerospace and Defense Supply Chain
Next Generation Manufacturing StudyArizona Aerospace and Defense Supply Chain
Montreal, CanadaDecember 5, 2011
http://adrc.asu.edu/node/104
Project Sponsor: Arizona Manufacturing Extension Partnership (Arizona MEP)
This project was partially supported by the State of Arizona Governor’s Office of Economic Recovery and the Science Foundation Arizona
Research conducted by the Arizona State University, College of Technology and Innovation under the Cooperative Agreement # 70NANB10H192
Agreement Period: July 1, 2010 through June 30, 2011
Arizona Aerospace and Defense Supply Chain
Project Objective(s):Identify immediate lean manufacturing and supply chain needs of Arizona’s aerospace companies and suppliers.
Operations/Problems Areas Addressed:Build a database of Arizona based aerospace tier 1,2,3 suppliers.
Conduct a survey of suppliers for their use of next generation manufacturing concepts, e.g. lean six sigma; identify and assess needs. People:
Gary R. Waissi, Jane E. Humble
Sponsor(s):Arizona Manufacturing Extension Partnership (AZMEP)Science Foundation ArizonaArizona Governor’s Office for Economic Recovery
Users/User Community:Aerospace suppliers
Future Funding Targets:AZMEP, DoD, aerospace companies
Technology and Impact :•Database of Arizona aerospace suppliers•Current status with respect to next generation manufacturing (NGM)•Can help identify, support and advance competitiveness of the Arizona aerospace cluster.
Arizona Aerospace and Defense Supply Chain
Value
1.The database includes 1,338 companies. We believe that the database is the most comprehensive single source of Arizona aerospace companies.
This database will be helpful to the companies themselves, to government agencies, to universities and to research institutions, as well as to the Aerospace Defense Research Collaboratory, Arizona Aerospace Commission, Arizona Commerce Authority (ACA) and Arizona MEP.
The database, if fully utilized, will help strengthen the Arizona aerospace cluster. We recognize that we may have missed some important companies.
Arizona Aerospace and Defense Supply Chain
2. The survey results give a snapshot (current 2011 status) for a relatively broad sample of the aerospace companies relating to their strategic strengths, weaknesses, as well as opportunities and threats.
Because the survey results will be shared with the participating companies, they can then compare themselves in various categories to the other companies.
For example, do they believe that they are competitive globally, are there opportunities for improvement, are there changes within the company or external to the company that should or must be considered, etc?
Arizona Aerospace and Defense Supply Chain
Core of the study --- Focus on eight areas/ survey question categories as follows:
1.Company demographics2.Leadership3.Customer satisfaction and innovation 4.Workforce strategies5.Supply chain management6.Lean process improvement7.Sustainability and green8.Global engagement.
Arizona Aerospace and Defense Supply Chain
Source
Enterprise Category Headcount: Number of employees
New Classification(used in this study)
Micro 1-9
Small 10-49
Medium – Low (M-Lo) 50-99
Medium – High (M-Hi) 100-249
Large – Low (Lg-Lo) 250-499
Large – High (Lg-Hi) 500 or more
Table 2-3: The Company Size Classification of this Study: Six Categories
Arizona Aerospace and Defense Supply Chain
Description of Activity AZ DoC AZ MEP D&B BvD Ref.USA ACC CCR CW
Search for Arizona aerospace suppliers X X X X X
Company ID X X X Headquarters X X X
General Company Information X X X X X X
Employee Information X X X X Company Sales X X X X
Company Demographic X X X X
Certificates and Affiliations X
SIC and NAICS Codes X X X Key Executives X X X X
Parent Company Information X X X
Table 3-1: Data Categories and Primary Data Sources
AZ DoC = AZ Dept. CommerceAZ MEP = AZ Mnf. Ext. PrtnshpD&B = Dunn & BradstreetBvD = Bureau of Van DijkReference USAACC = AZ Corp. CommissionCCR = Central Contractor Reg Systemcw = company website
Arizona Aerospace and Defense Supply Chain
Figure 3-1: Arizona Aerospace Supplier Database Structure
Arizona Aerospace and Defense Supply Chain
Approximately how many employees does your company have?
All Firms
Micro1-9
Small10-49
M-Lo50-99
M-Hi100–249
Lg-Lo250–499
Lg-Hi≥500
Number [N] of Respondents by Category 132 21 49 28 14 8 12
Percentage [%] of respondents 100% 16% 37% 21% 11% 6% 9%
Table 4-1.2: Number and Percentage of Respondent Companies by Size Category
Arizona Aerospace and Defense Supply Chain
Which of the following were produced by your company during the past 5 years? [Check all that apply]
All FirmsN %
ATC Communication Systems & Components 11 9Aircraft Operating & Control Systems 30 24Airframes & Components 38 31Avionics Systems, Instruments & Components 33 27Chemicals 4 3Coatings & Paints 9 7Composites 9 7Computer Software/Services & Databases 8 7Electrical & Electronic Components & Hardware 38 31Engines & Engine Components; Propellers 27 22Crew/Passenger Supplies & Services 6 5Hardware Hydraulic /Pneumatic 23 19Inflatable 5 4Interior Equipment & Furnishings 12 10Landing Gear/Wheels & Brakes 16 13Lighting Systems & Equipment 7 6Metals & Metals Services 21 17Oxygen/Fire Suppression Systems 2 2Test & Inspection Equipment 23 19Tools & Machines 17 14Training Equipment & Services 5 4Other (please specify) 38 31Total Number of Respondents [N] 123
Table 4-1.7: Product Categories During the Past Five
Arizona Aerospace and Defense Supply Chain
How many suppliers does your organization have for direct materials?
All FirmsN %
Number of Suppliers1-9 13 11
10-19 20 18
20-29 14 12
30-39 10 9
40-49 7 6
>=50 44 38
Don’t know 7 6
Total Respondents by [%] by Category [N] 115
100%
Table 4-5.1: Suppliers for Direct Materials
Arizona Aerospace and Defense Supply Chain
Figure 4-6.10: What process improvement systems are in place within your organization? [Check all that apply]
Arizona Aerospace and Defense Supply Chain
To what extent are the following processes automated? [Check all that apply]
Level of Automation 0% Automated
Manual only
25% 50% 75% 100%Automation
Total [%]
Response Count
Material preparation and processing (Shaping, removing, depositing, transforming, finishing…)
38% 16% 10% 24% 12% 100% 79
Testing/inspection for quality 52% 18% 15% 11% 4% 100% 89
Product assembly 75% 8% 9% 7% 1% 100% 80Packaging 84% 6% 5% 4% 1% 100% 85
Arizona Aerospace and Defense Supply Chain
Figure 4-6.14: What formal certifications does your company have? [Check all that apply]
Arizona Aerospace and Defense Supply Chain
Figure 4-7.3: Does your company have a green enterprise strategy in place?
Arizona Aerospace and Defense Supply Chain
Where are your customers located?
[Check all that apply]
All Firms
Micro1-9
Small10-49
M-Lo50-99
M-Hi100–249
Lg-Lo250–499
Lg-Hi≥500
Arizona 62% 63% 62% 70% 80% 50% 25%
Western/SW US 46% 56% 48% 45% 70% 0% 25%
Throughout US 71% 69% 71% 85% 90% 16% 50%
North America 33% 38% 19% 60% 50% 17% 25%
Europe 32% 38% 19% 45% 70% 17% 25%
Asia 29% 31% 17% 45% 60% 17% 25%
Africa 13% 25% 7% 10% 20% 0% 25%
South America 17% 25% 14% 10% 40% 0% 13%
Mixed worldwide 28% 38% 21% 15% 40% 50% 50%
Don't know 1% 0% 0% 0% 0% 0% 12%
Other (please specify) 3% 0% 0% 5% 20% 0% 0%
Mexico 1% 10%
Middle East 2% 5% 10% Total Respondents by Category [N]
102 16 42 20 10 6 8
Table 4-8.1: Where are your customers located?
Arizona Aerospace and Defense Supply Chain
Where are your suppliers located? [Check all that apply] (N)
All Firms Micro1-9
Small10-49
M-Lo50-99
M-Hi100–249
Lg-Lo250–499
Lg-Hi≥500
Arizona 44% 50% 43% 55% 50% 33% 13%
Western/SW US 41% 50% 38% 50% 60% 17% 13%
Throughout US 74% 81% 74% 80% 80% 67% 38%
North America 29% 31% 21% 45% 30% 17% 38%
Europe 22% 25% 10% 40% 30% 0% 38%
Asia 18% 31% 10% 20% 10% 0% 50%
Africa 2% 6% 0% 5% 0% 0% 0%
South America 3% 6% 2% 0% 10% 0% 0%
Mixed worldwide 18% 6% 14% 15% 10% 33% 63%
Total Respondents [N] 102 16 42 20 10 6 7
Table 4-8.2: Where are your suppliers located?
Arizona Aerospace and Defense Supply Chain
Is your company planning to expand operations globally? [Check all that apply] (N)
All Firms
Micro1-9
Small10-49
M-Lo50-99
M-Hi100–249
Lg-Lo250–499
Lg-Hi≥500
No 60% 81% 67% 55% 50% 33% 25%
Yes. planning has started17% 0% 21% 25% 0% 17% 25%
Plans are in place for expansion
2% 0% 0% 0% 10% 17% 0%
Global expansion is in process now
15% 13% 5% 20% 30% 17% 38%
Don't know 6% 6% 5% 5% 0% 17% 13%
Total Respondents by Category [N]
102 16 42 20 10 6 8
Table 4-8.4: Is your company planning to expand operations globally?
Arizona Aerospace and Defense Supply Chain
Next Steps
As a continuation and leveraging from this study we plan to conduct a strategic assessment of selected Arizona based aerospace companies focusing on operational excellence, supplier development, strategic growth, current and future workforce needs and development, technology adoption and integration, as well as green products and practices.
The primary goal of that planned effort is to develop a standardized Strategic Assessment Framework, or Tool, that could be repeatedly utilized by companies in the aerospace industry, or by consultants working with those companies. The secondary goal is to provide immediate value-adding feed-back to the companies assessed.
Arizona Aerospace and Defense Supply Chain
Questions/comments
Issues:
-Continuous updating and improvement; database will be outdated quickly-Aerospace Small Medium Enterprise (SME) needs-Funding sources for future work
For details and to download the full report go to:
http://adrc.asu.edu/node/104
Arizona Aerospace and Defense Supply Chain