The North West Pilot of the SC21

Competitiveness & Growth Programme

Dr. David W. Bailey FRAeSChief Executive

North West Aerospace Alliance

Aerospace Forum1st November 2018, 11:30 – 11:45

Advanced Engineering 2018

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Content

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Overview of NWAA

NW Aerospace Sector

Global Aerospace Market

Competitiveness & Growth Programme

Supply Chain Improvement

The Northwest Aerospace Alliance

▪The Northwest Aerospace Alliance was incorporated in 1994 and is the Cluster Organisation for the Aerospace Industry in the North West of England.

▪NWAA has over 240 fee paying members with around £8 Billion in revenues and employing over 26,000 highly skilled people.

Our Vision

“To be the trusted advisor to our members providing them with the support they

need to improve their skills, technology, capability and performance

and to sustain and grow their businesses.”

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The North West Aerospace Industry

▪ The North West of England’s aerospace industry has a combined turnover in excess of £8 Billion and employs over 26,000 people.

▪ Airframe & engine component orientated

▪ 7% of regional GDP

▪ Average GVA per Aerospace employee, £73,000

Wing Centre of

Excellence

Broughton, Nr Chester

Barnoldswick

Preston

Warton & Samlesbury

ManchesterLiverpool

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Ref: AIRBUS Global Market Forecast 2018

Air Traffic has been Resilient to Global Shocks

and Doubles every 15 Years

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Global Aerospace Markets

Ref: AIRBUS Global Market Forecast 2018 , Aircraft over 100 Seats

20 Year Demand for 37,400 new aircraft worth $5.8 Trillion

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Global Aerospace Markets

7

However,

A report published by the Department of Business Energy and Industrial Strategy in July 2016 showed that;

▪ Whilst, the global aerospace market is growing at a rate of over 5% per year.

Global Aerospace Markets

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▪ The UK aerospace supply chain is only growing at a rate of 1.4% per year.

▪ Whilst 1.4% growth is relatively healthy compared to some sectors, the UK supply chain is losing market share.

AGP Supply Chain Charter

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NWAA’s Response – 12 Months Ago

• We knew the supply chain needed to start improving immediately.

• We recognised that the SC21 Competitiveness & Growth programme using the National Manufacturing Competitiveness Levels (NMCL) model could provide us with a national standard.

• We felt NWAA had the right skills and capability to lead a group of suppliers and that we would try to convince ADS and SMMT to support us to deliver the pilot.

• We felt we could engage key customers such as AIRBUS, BAE Systems, Rolls-Royce, Safran and Boeing.

• We believed companies would contribute to the costs of running a programme.

Competitiveness & Growth

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Our Partners Today!

• Objective : To pilot the supply chain improvement programme “SC21 Competitiveness & Growth” with 20 aerospace suppliers in the North West of England.

• Using : The new cross-sector assessment tool “National Manufacturing Competitiveness Levels” developed by the Aerospace (ADS) and Automotive (SMMT) sector bodies.

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National Trade Bodies

Industry Primes

Our Suppliers

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How Does it Work?

Companies are assessed against the new cross-sector NMCL model which involves;

• A thorough capability assessment of each aerospace supplier.

• A competitiveness review with three of the key customers of each supplier to assess their performance in terms of Quality, Cost, Delivery, Technology, Flexibility, and Customer Experience.

• Development of a detailed improvement plan and financial impact analysis.

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How Does it Work?

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Customer Competitiveness Reviews

To date we have completed competitiveness reviews with;

• BAE Systems

• Bombardier

•GKN

•Marand (Australia)

•MBDA Missile Systems

• Rolls Royce

• Safran

• Senior Aerospace

• Spirit Aerosystems

•MTU Aeroengines (Germany)

•Our next review is with Kawasaki Heavy Industries (Japan)

3 hour reviews;• Quantitative Analysis• Qualitative Discussion

Hugely valuable insights into not just the hard performance metrics, but where there are opportunities for collaborative improvement and how suppliers could provide additional value to customers

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What have we found so far?

The aerospace supply chain can significantly improve in areas such as;

1. The deployment of strategy into all levels of the business. Ensuring that all teams and individuals genuinely understand how they contribute.

2. The effective use of ERP systems to plan production within a Sales, Inventory, Operations and Planning (SIOP) Process.

3. Optimising our manufacturing facilities by better understanding Overall Equipment Effectiveness (OEE) and how to improve it using Asset Management and TPM

4. The development of robust New Product Introduction process to demonstrate process capability at rate (APQP/PPAP)

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▪ Whilst the global aerospace market is growing by 5% year on year, the UK supply chain is growing at a much lower rate.

▪ NWAA recognised the need to support its members with a Competitiveness & Growth Programme.

▪ NWAA gathered the support of national trade bodies (ADS, SMMT) and industry primes (BAE Systems, Boeing, Rolls Royce and Safran).

▪ NWAA members have agreed to share the costs of the programme and have committed to improving their businesses.

▪ The members of the programme are now working together to market their capability and commitment to improvement nationally and internationally.

Summary

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Collaboration

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Left – Dr Mark Carney, Governor of

the Bank of England talks to John

Toner (Teledyne CML) and Darren

Ingram (Velocity Composites) about

the North West SC21 Competitiveness

& Growth Programme

Right – Simon Barker (Senior Vice President

– Leonardo and AGP Board Member) talks to

Richard Holdcroft (Teledyne CML) and

Andrew Sims (Unilathe) about the North West

SC21 Competitiveness & Growth Programme

Thank Youfor

Listening

Dr. David W. Bailey FRAeSChief Executive

North West Aerospace Alliance

Aerospace Forum1st November 2018, 11:30 – 11:45

Advanced Engineering 2018

www.aerospace.co.uk