Procurement and Supply Chain Strategy in AleniaAermacchi Keynote Pezzullo.pdf · Procurement and...
Transcript of Procurement and Supply Chain Strategy in AleniaAermacchi Keynote Pezzullo.pdf · Procurement and...
Procurement and Supply Chain Strategy in
AleniaAermacchi
Subect: IPSERA Conference - Naples
Date: 3rd April 2012
Claudio Pezzullo Head of Procurement Subcontracting
Alenia Aermacchi [email protected]
+39 081 887 2606
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Introduction
Finmeccanica Group Key Figures Of
AleniaAermacchi - 2010
Revenues 2,809 M€
EBITDA 205 M€
New Orders 2,539 M€
Backlog Orders 8,638 M€
Employees 12,604
Revenues
2010
18,7 B€
Order
Backlog
2010
48,7 B€
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Aeronautics sector Company geography
SAPHIRE
Italy:
Hallbergmoos
(Munich)
France:
Madison
(Mississippi)
North America:
China:
Greece:
Russia:
Washington, D.C. (USA) /
Ottawa (Canada)
Toulouse
Germany:
Moscow /
Komsomolsk
Athens
Beijing
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Aeronautics sector Lines of business
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Index
Organization and Procurement Strategy
The Make or Buy Process
The Supplier Selection Process
Logistic Improvement and Verticalisation of the Supply
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Procurement Organization
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The Role of the Procurement
Past Today
- Back Office Function
- Contract Negotiation focused
only on prices
- Supply Assurance
- Cost Cutting
-Value Creation Function
- Strategic Long Term
Partnerships
- Leadership in the cross-
functional improvements
- Reduction of Life Cycle Costs
In many Industries Procurement influences more than the half of the annual
operational Budget of a company, and that figures rise up to 80% for
sectors as Manufacturing. Th
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Alenia Aermacchi Sucontracting Forecast
Trends
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Aerostrtuctures Procurement over 2011-2013
0
50000
100000
150000
200000
250000
300000
350000
K€
2011 2012 2013
205 M€
326 M€
384 M€
-The Order Volumes increasing is due to :
- Production rate increase (ATR and 787)
- New Program Starting (SSJ, C-series and JSF)
- New Outsourcing
9
Geographical Procurement forecast trends
60%
16%
7%
11%
6%
50%
20%
15%
5%
10%
40%
17%
20%
7%
15%
0%
20%
40%
60%
80%
100%
2009 2013 2015
Italia Eur Usa MiddleEst FarEast
- The Aerostructure Business is subject to a global competition
- Identifying the Best-in-class in terms of delivery and quality performance,
competitiveness jointly with the structural inefficiency and technological gap of the actual
Supply Chain may accelerate the globalization of the Supply Chain
- It has already been contracted several new International Suppliers and this strategic
decision implies also the consolidation of an Internal Technical Organization aimed to sustain
the activation of the new sources and guarantee a reliable ramp up plan.
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Off-Set ROMAERO - HAI – IAI - TAI
End Items XAIC
CACC
GOTIAR
AIDC
End Items HAL
TATA
Engineering HCL
TATA
Raw
Material PIA
Internazional Collaboration MUBADALA - STRATA
End Items Demat
End Items Aero Vodochody
PZL Italia DEMA
Processi Speciali
GSE
Sicamb
LAER
Moreggia
OMPM
ABETE
SALVER
Exchange Rate €/$ Hitco-Klune-
Synchronous
Osborne-Alcoa-Weber-
Mexmil-Aerospace
Welding
The Aerostructure Procurement Global Scenario
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11
LCC – Focus on China: Aeronautical Market
Aeronautical Market Status in China – AVIC Companies
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LCC – Focus on China: Alenia Activities
Tianjin
Shanghai
Chengdu
Suzhou
Xi an
Beijing
Shenyang
Harbin
Gotiar
ATR – Entry and Service Door
Baoji
Chongqin Raw material - Aluminum
Southwest
Aluminum
Completed Activities:
CCAC
A321 – Sec.14 Panels
Raw material - Titanium
BAOJI
XAIC
ATR – Fuselage Sec.16-18
C27J – Empennages
C-Series – Rudder and Elevator
C- Series – H/S and V/S Leading Edge
B787 – Aux Box and Leading Edge
AIDC
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13
ALENIA
AERMACCHI
1 2 3
4 5 6
“Integrators” (designer and manufacturers) of verticalized parts
1st Tier PARTNER
Engineering Specialists
Mechanical Specialists
A B C
G H I
D E F
L M M
Composite Specialists
2nd Tier SPECIALIST
Evolution to a Partnership Model
Target from the management:
- 30% of First Tiers in three years
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14
Index
Organization and Procurement Strategy
The Make or Buy Process
The Supplier Selection Process
Logistic Improvement
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15
The Make or Buy process
Make (In - House) Buy (Outsource)
Str
ate
gy
- Ensure future competitive
advantage (Core)
- Emerging technology
Ris
k
Eco
no
mic
s
-Not critical material/component -Mature technology -Commercial penetration (Offset)
- No alternative source of supply
- Sensitive IP involved in the
process
- Low switching costs
- Low IP sensitive process
- Geographical position is not an
issue (uncoupling supply chain)
- Internal cost advantage
- Strong Trade Unions
- Investments meet required ROI
- Suppliers have lower cost and/or
better quality
- Weak in house capabilities
- Reduction of investments
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16
The B787 Example
Boeing performs only the final assembly of the aircraft joining parts coming from all
around the world.
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The B787 Alenia Supply Chain
IAI
AIDC
TAI
Hitco, Synchronous, Klune
DEMA, Moreggia, OMPM, Abete, Tesi
50%
50%
-Alenia Aermacchi in order to meet the business plan targets and the technological
constraints on the program implemented a Global Supply Chain
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1997 1998
2007 2009
Sez. 16 XAIC (China)
Sez. 16/18
XAIC(China)
Gotiar (CHI)
The ATR Make or Buy evolution over time
DEMA/GSE(ITA)
Strata(UAE)
LAER (ITA)
Salver(ITA)
CMA (ITA)
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2007 2004
2003 2001
Loading
Door e
Ramp
HAI
(GRE)
/DEMAT
(TUN)
Center Wing Box Assy-
Aero Vodochody (CZE)
Empennages – AIDC
(TAIWAN)
The C27J Make or Buy evolution over time
Outer Wing
Sicamb (ITA)
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Index
Organization and Procurement Strategy
The Make or Buy Process
The Supplier Selection Process
Logistic Improvement
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Aerostructures Work Packages : Toll-Gate process
R.F.Q. (Request for Quotation)
BAFO
(Best and final Offer)
Assessment
Evaluation Matrix
Awarding
In each step of the process
there are Input, tools and
technique and output.
The continuous deployment
of the methodology foster the
capitalization of best
practices and cross-
functional fertilization and
guarantee the Management
Strategy-Operation Alignment
at
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The Supplier Evaluation Matrix
Performance
Costs
Investment Plan
Finance
Technical Evaluation
Quality
Make or Buy Ratio
References
Logistic Flows
The key 9 factors to take in consideration in the multi-functional evaluation should be
weighted according to the Company priorities and to the Program Requirements.
Master Phasing Plan
Interfunctional Evaluation Team
Procurement Marketing & Offset
Program Management
Quality
Technology and Industrialization
Procurement Management
Technical Control of Suppliers
Weight
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Example : Bombardier Cseries - M06 - Rudder
Economics (K$)
Technical-Economica Evaluation
(from 1 to 5)
Must
Cost
XX.X
B A C D
(+8%) XX (+15%) (+27%)
E
(+8%)
B A C E
3.2 3.9 2.6 2.4
D
2.5
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Index
Organization and The Role of the Procurement
The Make or Buy Process
The Supplier Selection Process
Logistic Improvement
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Logistic Improvement
Pilo
t Pro
ject - A
TR
The TCO (Total Cost of Ownership) shall be improved with interfunctional projects such as
Kitting to have cabinet “ready to install in the production line and rationalizing the number
of suppliers that deliver parts for each section of fuselage
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i.
26
Thank you for your attention
Th
e c
on
ten
ts o
f th
is d
oc
um
en
t are
th
e i
nte
llectu
al
pro
pe
rty o
f A
len
ia A
erm
acch
i.
An
y c
op
yin
g o
r co
mm
un
icati
on
of
this
do
cu
men
t in
an
y f
orm
is f
orb
idd
en
wit
ho
ut
the
wri
tten
au
tho
rizati
on
fro
m
Ale
nia
Aerm
acch
i.