Adse configuration management in the supply chain v1 final

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Presentation I gave at the CMII Europe 2011 conference

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  • Maturity of organizations A very imprortant aspect the determines the size of a CMIP is the maturity of the organization of the companies involved in the supply chain. Maturity can be compare by the maturity of a human being for, let’s say walking. First we cannot walk at all, then we learn to crawl and we take our first unstable steps and start to walk. After that we learn to run and very fast. Keep in mind that you can not skip a step in this growing process and that it would be very hard for a baby to work with a runner. That implies that you should be aware of the difference in maturity levels when developing a CMIP. That’s why we developed at ADSE a maturity model for Configuration Management that allows us to asses the maturity levels of companies. This model is very powerfull to help
  • Adse configuration management in the supply chain v1 final

    1. 1. Configuration Management in the supply chain Dick Terleth Director Configuration Management CMII Europe 2011 Stuttgart 27 September 2011
    2. 2. Introduction of ADSE <ul><li>ADSE is an independent “make it work” consulting and engineering company </li></ul><ul><li>Founded in 1996 by former Fokker Aircraft engineering managers </li></ul><ul><li>ADSE is active in 3 markets: </li></ul><ul><ul><li>Aerospace industry & Air Transport, </li></ul></ul><ul><ul><li>Defence </li></ul></ul><ul><ul><li>Infrastructure & Rail transport </li></ul></ul><ul><li>Our Offices </li></ul><ul><ul><li>The Netherlands : Hoofddorp </li></ul></ul><ul><ul><li>Switzerland: Basel </li></ul></ul><ul><li>CMII Europe Service Provider and R2 Specialist </li></ul>
    3. 3. We leverage our Aerospace roots into other sectors Complex Transport Systems Infrastructure and Rail Aerospace Defence Certification Architecting & Integration Interiors, avionics/electrics, structures, environmental control systems, mechanical systems Specification Product System thinking Systems Engineering Requirements Management / Supplier Management/ Configuration Management / Safety Management / Risk Management Technical Project Management System Engineering, WBS, Planning, Reviews, Validation & Verification Process Improvements RAMS-LCC /Maintenance Processes / Production Processes / Configuration Management/ Systems Engineering / Safety Management/ Process Systematic working
    4. 4. Let’s start with a little question: What are you???? Customer and supplier?? Customer? Or?? Supplier?
    5. 5. Why do supply chains exist? It’s all about costs.. Economies of Scale Core Business Market Best Shoring
    6. 6. What is a supply chain??? Supplier Raw Materials Manu- facturer End- Customer Material flow Cash flow Information flow Processes Organizational structures Enabling Technologies Network of suppliers, manufacturers, distributors, service providers and customers. 1) Supply Chain Management is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. 2) Adapted from : 1) Henk A. Akkermans, e.a. (2003). &quot;The impact of ERP on supply chain management: Exploratory findings of a European Delphi study&quot;, European Journal of Operational Research 146 :284-301 2) Lambert: SCM-Institute
    7. 7. Supply chains are global.... OEM Design supplier Component manufacturer System supplier Equipment supplier Interesting challenges for CM..
    8. 8. But is it a chains? Or is it a network? Source: Dr. Göschel, BMW Group Automotive Product and Process Network In the 80s In the 90s Today Continuous information Networks } Technology expert Component manufacturer ... Logistics service provider Service provider in the development field Service provider in the development field OEM 1 Technology experts System integrators OEM ...n Logistics service provider System-integrator ... Component manufacturer Logistics service provider Service provider in the development field In the future In den 80er Jahren In the 80s Lieferant 1 Lieferant 2 Lieferant n Lieferant 3 Lieferant 4 OEM Supplier 1 Supplier 2 Supplier n Supplier 3 Supplier 4 OEM
    9. 9. Symptoms of poor CM in a supply chain are the same as in a single company <ul><li>Incompatible procedures </li></ul><ul><li>Incompatible documentation </li></ul><ul><li>Different maturity levels </li></ul><ul><li>Different IT Tools </li></ul><ul><li>Level of expertise and competences </li></ul><ul><li>Different cultures and languages </li></ul>But there additional underlying reasons: Profit x% of Reven. Costs w % of Revenue <ul><li>Corrective actions: </li></ul><ul><li>Rework </li></ul><ul><li>Double work </li></ul><ul><li>Unproductive work </li></ul><ul><li>Source: Institute of Configuration Management </li></ul>Profit x% of Reven. Costs for Corrective Action z% of Revenue „ Regular“ Costs y% of Revenue
    10. 10. The natural reaction is … Contract!
    11. 11. So it’s put in the hands of lawyers (and procurement).. Do they know and understand CM??
    12. 12. Contracts tends to build walls between companies Processes, Organizations and technologies should be connected Supplier Raw Materials Manu- facturer End- Customer Information flow Material flow Cash flow Processes Organizational structures Enabling Technologies
    13. 13. Organizations in a supply chain need to be connected Configuration Management Interface Plan Requirements for CM Supplier Customer
    14. 14. Configuration Management Interface Plan <ul><ul><li>Refers to relevant procedures </li></ul></ul><ul><ul><li>Defines additional procedures: </li></ul></ul><ul><ul><ul><li>Specific for this customer-supplier relation </li></ul></ul></ul><ul><ul><ul><li>Missing in admin hierarchy of either company </li></ul></ul></ul><ul><li>Scope </li></ul><ul><li>Product </li></ul><ul><li>Process </li></ul><ul><li>Changes </li></ul><ul><li>Audit </li></ul><ul><li>Baselines </li></ul><ul><li>As Built Records </li></ul><ul><li>Tools </li></ul><ul><li>… </li></ul>Connecting organizations Configuration Management Interface Plan
    15. 15. So how can this work in a typical program?? Aircraft Systems Interior Avionics Airco Galleys Seats S&F AGU FLE Wing Fixed Structure Tail Fuselage Section1 Section1A Horiz. Vertical Company A Company B Company C Company D
    16. 16. The Physical Item Hierarchy should reflect the work breakdown OEM Supplier A #321 Requirements Interface definition Supplier B #111 Requirements Interface definition
    17. 17. How do we map the CMII baseline on a supply chain? CMII Baseline Change Process OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Aircraft Systems Interior Avionics Airco Galley Toilets Wing … .
    18. 18. What about the CMII Baseline? CMII Baseline Change Process There is a Baseline at the OEM level… OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Aircraft Systems Interior Avionics Airco Galley Toilet Wing … .
    19. 19. … and on the supplier level… OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Aircraft Systems Interior Avionics Airco Galley Toilets Wing … . Careful synchronization of change processes is required CMII Baseline Change Process
    20. 20. Change processes needs to be synchronized <ul><li>Clear rules needs to be established </li></ul><ul><ul><li>Authority for decisions </li></ul></ul><ul><ul><li>Escalations and de-escalations </li></ul></ul><ul><ul><li>Communications between processes </li></ul></ul>Supplier Customer Impact Analysis CRB CIB Change planning Implement change Release change Impact Analysis CRB CIB Change planning Implement change Release change
    21. 21. So: a lot of plugs are required… OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Here And here
    22. 22. What aspects determine the size of a CMIP? <ul><li>Type of customer-supplier relationship </li></ul><ul><li>Number of parties involved </li></ul><ul><li>Project Phase </li></ul><ul><li>Work Breakdown </li></ul><ul><li>Size of contract </li></ul><ul><li>Power and influence in the supply chain </li></ul><ul><li>Type of industry </li></ul><ul><li>Maturity levels of parties </li></ul><ul><li>Tools </li></ul>
    23. 23. Suppliers can play different roles Concept Study Feasibility Study Definition Phase Full Scale Development After Sales Support Business Initiative Review Review Delivery Review Review Review Project Requirements Review Business Opportunity Review Critical Project Review BUILD TO PRINT SUPPLIER MAKE TO SPEC SUPPLIER DESIGN TO SPEC SUPPLIER EARLY INVOLVED SUPPLIER TECHNOLOGY SUPPLIER Released Technology Design process
    24. 24. There are many suppliers Aircraft Systems Interior Avionics Airco Galleys Seats S&F AGU FLE Wing Fixed Structure Tail Fuselage Section1A Horiz. Vertical 11 40+ 120+ Section1
    25. 25. Suppliers and costomers may have different perspectives <ul><li>Supplier->Customer </li></ul><ul><ul><li>Many customers with different requirement sets for CM </li></ul></ul><ul><ul><li>How and where to “uncouple” customer and own processes </li></ul></ul><ul><ul><li>Receipt of information in many forms </li></ul></ul><ul><ul><li>Delivery of information in many required form </li></ul></ul><ul><li>Customer->Supplier </li></ul><ul><ul><li>Impose “one way of working” in supply chain </li></ul></ul><ul><ul><li>Different maturity of suppliers. </li></ul></ul><ul><ul><li>CM as part of supplier selection process </li></ul></ul><ul><ul><li>Delegation of responsibility under conditions </li></ul></ul>
    26. 26. Different tools may hinder smooth flow of information in the supply chain
    27. 27. Organization have different levels of maturity ADSE CM Maturity Model
    28. 28. Configuration Management Maturity determines the size of the CMIP MATURITY Little or no CM Process Oriented Process Integration Process Optimization Organization Integration LEVEL 1 Little or no Configuration Management LEVEL 2 Configuration Management processes and procedures available LEVEL 3 Effective Configuration Management processes LEVEL 4 Continuous process improvement; focus on efficiency LEVEL 5 Full CMII as core business process
    29. 29. The large number of thick CMIP’s are given us headaches
    30. 30. So how do the other flows cope with these issue??
    31. 31. Material Flow concentrates on right side of the V-model.. But what about the requirements and the designs?
    32. 32. Cash flow is well understood Cash flow is managed by a proud profession: Accounting
    33. 33. But what about Product Information? Is Configuration Management seen as a proud and required profession??
    34. 34. A chain is only as strong as it weakest link…
    35. 35. Without CM the supply chain will be broken… … we need to work on preventing the chain to break..
    36. 36. Summary.. We need to work to make CM a significant factor in building supply chains… ..by extending our profession to include the supply chain. CMII can provide the common language for this.
    37. 37. Thank you for you attention... Dick Terleth Director Configuration Management Mobile: +31 (0)6 2708 5986 E-mail: dick.terleth@adse.nl

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