View
327
Download
4
Category
Preview:
Citation preview
Global Aerospace ChallengesA Meggitt Perspective
December 2015
Ian Bouquet-Taylor, Global Supplier Development Manager
Meggitt overview
December 2015
Smart engineering is second nature to us.
Global Aerospace Challenges
September 2015 | © Meggitt PLC Proprietary.
Meggitt PLC is an international engineering group − Aerospace, defence and energy
3
Meggitt overview
Extreme environment experts− High technology products and systems on
Annual sales of £1.554B in 2014
Global footprint
Aerospace | 48%Defence | 34%Energy | 11%Other | 7%
OE | 41%Aftermarket | 59%
63,000 aircraftc.11,employees across Europe, the Americas and Asia
Global Aerospace Challenges
September 2015 | © Meggitt PLC Proprietary.
Leading technology positionsMeggitt divisions
4
Aircraft Braking Systems Control Systems
Thermal management Fluid and pneumatic controlElectromagnetic controlSafety systems
Polymers & Composites
SealsFuel bladdersFuel systemsIce protection
SensingSystems
Condition- monitoring systemsHigh performance sensorsPower managementFlight displays
Equipment Group
Threat simulation trainingCombat supportSpeciality components
Wheels BrakesBrake controlLanding gear controlNose wheel steeringLanding systems monitoring
Global Aerospace Challenges
September 2015 | © Meggitt PLC Proprietary.
Global presence
5
c.11,000employees worldwide
Asia and RoWEmployees: 1,000Australia, Brazil, China, India, Singapore, UAE and Vietnam
Mainland EuropeEmployees: 1,500Denmark, France, Germany, Spain and Switzerland
UKEmployees: 3,000
North AmericaEmployees: 5,500USA, Canada and Mexico
September 2015 | © Meggitt PLC Proprietary6
The Aerospace Market Trends and Challenges
Global Aerospace Challenges
September 2015 | © Meggitt PLC Proprietary.
The Challenge
During the next 20 years the Global Aerospace Market is going to grow
As primes we have to be sure we can commit to our customers that we can meet their expectations
So how much growth are we expecting?
What will it mean for us as suppliers?
7
September 2015 | © Meggitt PLC Proprietary
Airline market growth prediction
Source – Airbus Global Market Forecast 2012-2032
September 2015 | © Meggitt PLC Proprietary
Airline market growth predictionSource – Airbus Global Market Forecast 2012-2032
September 2015 | © Meggitt PLC Proprietary
Airline market growth predictionMiddle classes to near 5 billion before 2034
Source – Airbus Global Market Forecast 2012-2032
September 2015 | © Meggitt PLC Proprietary
Airline market growth prediction
11
September 2015 | © Meggitt PLC Proprietary
Airline markets resilient to outside influences
12
September 2015 | © Meggitt PLC Proprietary
Airline market growth prediction
13
September 2015 | © Meggitt PLC Proprietary
Airline market growth prediction
14
Source – Airbus Global Market Forecast 2015-2034
September 2015 | © Meggitt PLC Proprietary
Not just AirbusAll the major players are predicting the same
15
September 2015 | © Meggitt PLC Proprietary16
What does that mean for us and the supply chain?
Our customers are demanding better performanceAnd so is the consumer
− Boeing 787 launch issues filled the news− Speed of bad news gets faster – A380− As consumers we expect performance better than we provide now
− 5000ppm just isn’t good enoughAs One business, Meggitt needs to focus it’s SD Activity
− To make the best of our resource− To work with suppliers to build an efficient value stream
The next few years are about − Building one approach, that is used across Meggitt− Bringing suppliers along with us, we learn from each other− Jointly benefitting from improved performance
September 2015 | © Meggitt PLC Proprietary
What would we expect as customers?
99% will not cut it in today’s world! Our customers demand better!
99% a target for delivery and quality – the reality
3.8 Sigma (99% Good)
50 newborn babies dropped at birth by doctors per day
6 Sigma (99.99966% Good)
6 newborn babies dropped per year
Toxic drinking water for 15 minutes per day
Unsafe water for 1 minute per 7 months
5,000 incorrect surgical operations per week
1.7 incorrect surgical operations per week
204,000 wrong drug prescriptions per year
68 wrong prescriptions per year
2 crash landings at Heathrow per day
2 crash landings at Heathrow per 10 years
September 2015 | © Meggitt PLC Proprietary
Aerospace
In the aerospace market we fly on planes quite often
A 777 has 4 million parts – if we achieved world class (6δ) levels of quality around 14 of these would be defective!
I just hope it’s the catch for the tray table!
As it is it’s a lot closer to 3.5 δ – 140,000 parts on a 777
Now that is a sobering thought!
September 2015 | © Meggitt PLC Proprietary
And we need this – because in our market ….. there is no Plan B!
19
September 2015| © Meggitt PLC Proprietary.20
MeggittSupply chain overview
September 2015| © Meggitt PLC Proprietary.21
Supplier Quality today
DPPM = circa 5000Meggitt customers require 250Main supplier non-conformance types:
− Raw material− Dimensional− Aesthetics− Incorrect Part marking− Transport and packaging− Missing or incomplete documentation− Delivery of wrong part
September 2015 | © Meggitt PLC Proprietary
So what’s all this mean?
It means we have to look at everything we do to avoid waste in the marketplace
In our processes
In the time we spend adding value
And work to higher standards than we did before
Without adding cost
September 2015| © Meggitt PLC Proprietary.
Meggitt Simple expectations
Right first time, on time, every time.Quality
− low ppm to all customers continually− capable repeatable processes− fast, robust resolution of concerns− Quality built in – not inspected in later
Delivery− on time in full− good understanding of capacity and any constraints
Know where you are going− have a good business plan that encompasses technology development− cascade goals and targets down, make sure they are understood− use KPIs to manage your business
23
September 2015| © Meggitt PLC Proprietary.
MeggittSimple expectations, shared responsibility
Standard work methods− processes controlled by documentation – not “black book” knowledge
A business wide drive for continuous improvement− led from the top, with results driving the next improvement− make it visible – everyone sees, everyone owns, everyone improves
Operational excellence needs to be a givenMeggitt is investing considerable resources to improve performance. Are you?AS9100 and NADCAP for controlled processes are a base requirement
We need suppliers who can take growth in their strideInvestment in facilities and processesCommitment to improveAppropriate risk sharing
24
September 2015| © Meggitt PLC Proprietary.
So what do we look for in a supplier?What sets our future partners apart?
A current or planned global footprint or the ability to work collaboratively with global partnersA strong forward looking investment strategy to support growth and future technology needsAble to support with technology input at early stages of design and development, having a robust product introduction processA business aware of its limitations in both capacity and skills with plans to address these, ensuring RFTOTET
25
September 2015| © Meggitt PLC Proprietary.
So what do we look for in a supplier?What sets our future partners apart?
A culture of quality in all processes and aspects of the business – it isn’t added its part of daily life,Standard processes removing error, lean is normal not apartA linked system that drives the business goals to the lowest levels and manages them using relevant metricsA desire to become a true partner, managing and improving relationships across all faces of our businessThe ability to say no, and when challenged back it up with dataWhen issues occur, clear resolution in a structured way that means it doesn’t happen again
26
September 2015| © Meggitt PLC Proprietary.27
What is Meggitt doing with its supply chain?
September 2015| © Meggitt PLC Proprietary.
Meggitt and its supply chainSize and structure
Meggitt has approximately 6000 direct suppliers globallyAnnual spend on these is $700m
Suppliers range from 2 people in a small workshop to huge multi-nationals and everything in between
Reducing the impact of failure of these suppliers is paramount
We need to focus on the what we can do and the what we cannot
28
September 2015| © Meggitt PLC Proprietary.
Meggitt and its supply chainFocussing our mind
We cannot influence and change all suppliersWe can however do three things to lessen the risk
− Standardise Supplier Quality Requirements − Which increases the levels of excellence our suppliers have to achieve
− Consolidate spend and reduce supplier tail− In progress but not moving overly quickly
− Focus on improvements in our key suppliers
In our new supplier surveillance process we have defined key suppliers as − Suppliers who when listed in spend order form 90% of a sites spend− Plus others of a lower spend with critical process inputs (single source IP etc)
As an estimate globally this is 1400 suppliers
29
September 2015| © Meggitt PLC Proprietary.
Supply Chain Excellence FrameworkIncreasing the performance of our supply chain
September 2015| © Meggitt PLC Proprietary.
Run Account reviews agree future state radar & prioritise improvements
Business awards linked to performance
MPS for Suppliers InfographicSupply Chain Excellence Framework
Meg
gitt
Site
Gro
upH
eadc
ount
MPS Phase Red Yellow Green Bronze Silver
Assess 90% spend+ significant others. Audit ‘Reds’
Use WASP outputs + identified site strategy to define ‘development suppliers’
WASP Training Process compliance
Run Account Review trainingDevelop “Mentor Modules” (aligned to ESP/STAR/SC21) 1. In supplier by Meggitt or 2. In Meggitt or 3. In supplier by external
Run Supplier Launch Event with site.
Build local improvement Clusters
Supplier form “Clusters” & become self- determining.
Centre led Regional basedSupplier excellence leaders (6?)
Implement CI/Supplier Development job role in “Green sites” – Centre owned, locally directed
Risk TrainingProcess compliance
Supp
lier
Support WASP Close NCR’sWork OFI’s
Improvement plan “ISPP” (CSIP)
Q& D focus
Join
tlySupplier “Partners” are selectively integrated into Meggitt’s tech. roadmaps and strategic planning
Monitor progress against CSIP at account review
Join up key processes eg. Kan-ban, PFEP, SIOP, product inspection
Agree and support the “ISPP” (CSIP)
Clusters share ideas and their benefits with Meggitt – consolidation,, exceed Q&D targets etc.Integrated Value chain – VAVE, etc.
September 2015| © Meggitt PLC Proprietary.
Summary
The opportunity in aerospace and other markets is exceptional
Aerospace is demandingQuality is not just about dimensions, but also aesthetics, packaging and paperworkDelivery on-time in full is not a dream it’s an expectationHigher levels of business excellence, accreditation and efficiency are the only way to make tomorrow betterLong term relationships and contracts will allow us to manage costs
32
September 2015| © Meggitt PLC Proprietary.
Over 150 years of engineering in Meggitt’s DNA
September 2015| © Meggitt PLC Proprietary.
Meggitt PLCAtlantic House Aviation Park West Bournemouth International AirportChristchurch Dorset BH23 6EW UK
Tel: +44 (0)1202 597597 www.meggitt.comRegistered in England and Wales (number 432989).
Cover: High pressure air travelling through the geometry of cast or machined bleed air valves is extremely noisy—as experienced by those who live near airports. In future, air could flow more quietly through a radically new organic structure made possible through additive layer manufacturing, exemplifying the bold use of innovative processes in Meggitt’s technology strategy
34
35
Information contained in this document may be subject to export control regulations of the United Kingdom, European Union, United States or other national jurisdictions, including the US International Traffic in Arms Regulations and/or Export Administration Regulations. Each recipient of this document is responsible for ensuring that transfer or use of any information contained herein complies with all relevant Export Control Regulations.
Recommended