Andrew Garth, Defence Industry Innovation Centre - Assisting SMEs to improve and put their (best foot forward)

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Andrew Garth, Director, Defence Industry Innovation Centre delivered this presentation at the Defence Supply Chains Summit. This Summit focuses on supply chain perspectives from Defence primes, leaders within the DMO, case studies from SMEs, risk and cost mitigation strategies, preparation strategies, and network with an array of Defence stakeholders.

Find out more at http://www.admevents.com.au/DSC2013

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Andrew Garth, Defence Industry Innovation Centre - Assisting SMEs to improve and put their (best foot forward)

  1. 1. Strategic Supply Chain Improvement Defence Industry Innovation Centre Andrew Garth 4 December 2013
  2. 2. To assist Defence SMEs to develop strategies to become more competitive both in Australia and internationally. ATSA technicians maintaining a remote operated vehicle in the fully equipped maintenance facility in Newcastle
  3. 3. Overview • • • • • Supply Chains – Context Development of Individual SMES Development of Collective SMES Emerging Challenges Assistance Programs
  4. 4. Context: Engaging Strategically with a Supply Chain
  5. 5. Individual SME Development Client: PHM Does innovation and technology equal supply chain success?
  6. 6. Supplier Continuous Improvement Program - SCIP
  7. 7. Business Excellence The structure of the model emphasises not only what a business is achieving (RESULTS) but also how the results are being achieved (ENABLERS). Enablers Results ® Leadership People Processes, Products & Services People Results Strategy Customer Results Partnerships & Resources Key Results Society Results Learning, Creativity & Innovation The maximum points have been allocated to each criterion based on benchmarks from a range of Blue Chip companies
  8. 8. Manufacturing Excellence • • • Operational Excellence has been developed from JIT/Lean manufacturing tools & philosophies. The SCIP objective is to embed lean ‘wider and deeper’ than before. Operational Excellence covers both operational and strategic activities via: – A diagnostic (20 questions score 0-4 - 35% of total score) and – A management commitment review (65% of score). People Materials Processes Job Standardisation Kanban Set-up Reduction Visual Controls 7 Wastes and SPC / Quality Tools results: approach 5 ‘s’ Housekeeping enablers: trends deployment assessment & review improvement targets comparisons causes scope
  9. 9. Benchmarking SCIP Assessment Score Benchmark 600 500 400 award level quality 99% – 100% 99.9% – 100% silver 95% – <99% 99.5% – <99.9% bronze 90% – <95% 98% – <99.5% unclassified . 200 delivery gold BusEx Score 300 <90% <98% Average 100 0 0 100 200 300 400 ManEx Score 500 600
  10. 10. SCIP: Demonstrated Improvement
  11. 11. Lets get personal • RMM - Supply Chain Relationships – Do you and your customer agree on the strengths and weaknesses of your relationship? – What areas can be improved on both sides Failing Reactive Performing Co-operative Collaborative
  12. 12. Collective SME Development Client: Ferra Engineering • Client Journey Video
  13. 13. Emerging Issue: Supplier Management Systems
  14. 14. Emerging Issue: Successful Teaming • Example – Dual Source supply
  15. 15. Assistance Programs • • • • • • • DMO GSC EFIC DMTC META DTC AIDN STATE GOVERNMENTS
  16. 16. Summary • Value proposition in a Supply Chain • Be prepared to seek assistance, engage, change and improve • Demonstrate that improvement
  17. 17. Andrew Garth Phone: 042 096 1486 email: andrew.garth@industry.gov.au web: www.enterpriseconnect.com.au/industrysupport/defenceindustry

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