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Overview of my Background




Thierry Verlhiac
  19/04/2012
                       March 2012
                              1
Several Backgrounds
1.    Technical
2.    Customers
3.    Markets
4.    Project Management
5.    Contract Management
6.    Site Procurement Manager
7.    Procurement Target achieved
8.    Strong and weak points
9.    Conclusion
19/04/2012                 Thierry Verlhiac   2
1. Technical




19/04/2012      Thierry Verlhiac   3
1 - Technical
1 – 1 First job: Turner
     – Horizontal
     – Vertical

But also on
     – Milling machine
     – Grinding machine




19/04/2012                Thierry Verlhiac   4
1 – Technical / Quality
        1 – 2 Organized and Managed Audit in
USA                                                         Middle East
•       West coast to East Coast,                           •        Israel,
                                                            •        Turkey,
Canada
                                                            Europe
•       Quebec and Ontario,
                                                            •        Switzerland,
Mexico                                                      •        UK,
•       Sonora state,                                       •        Germany,
India                                                       •        Benelux,
                                                            •        Austria,
•       Karnataka state (Bangalore and around),
                                                            •        Italy,
China                                                       •        Spain,
•       Liaoning (Shenyang), Guizhou (Liyang),              •        Norway.
        Shaanxi (Xi’an), Sichuan (Chengdu)



19/04/2012                                        Thierry Verlhiac                  5
1 – Technical / Products
            1 – 3 different categories of products
•         Forgings                                                       •            Small Assys
      –         Compressor blades, flash welding rings, die                       –       Sheet metals and machined parts
                press forgings, rolled forgings,                         •            Fasteners
      –         Titanium, steel, nickel-based alloy and aluminum,                 –       Bolts, nuts, Inserts, Studs, rivets, pins and
•         Castings                                                                        screws
      –         Die casting (lost wax)                                   •            Sheet Metals
      –         Titanium, steel base and aluminum                                 –       From a small bracket to a big frame
•         Machining                                                      •            Harnesses
      –         All types of machining (Turning, milling, grinding,               –       Electrical harnesses
                drilling (deep), polishing,….)
      –         All materials
                                                                         •            Special processes
•         R/M
                                                                                  –       FPI, Coating, anodizing, painting, shoot peening,
      –         Plates, sheets, strip, bars,                                              heat treatment, marking, X-ray, welding…




    19/04/2012                                                 Thierry Verlhiac                                                           6
1 – Technical / Documentation
      1 – 4 type of customers documentation

• Mainly built to print
But also
• Built to specification




19/04/2012                     Thierry Verlhiac   7
2. Customers




19/04/2012      Thierry Verlhiac   8
2 - Customers
• For Snecma                                        Corbeil/ Evry and Gennevilliers
      – General Electric (CFM56, CF6-50, 80A, C & E LM2500, 6000)
      – Snecma (All programs)

• For RUAG Aerospace                                Plan-Les-Ouates
      –      Snecma (SAM146, TP400, GP7200)
      –      General Electric (CFM56, CF34-10A & E, F404 )
      –      Dassault ( Falcon 900 & 7X )
      –      Eurocopter (NH90)
      –      Boeing (F/A 18 C/D & E/F)
      –      Nortrop Grumann (F/A 18 C/D)

• For RUAG Technology                               Emmen (Lucerne)
      –      Airbus -UK, Germany and France- (A320/330/340/380)
      –      General Electric (CF34-10E)
      –      Dassault (( Falcon 900 & 7X & Rafale)
      –      Bombardier (CRJ700/900 & 1000)
      –      Boeing Military (F/A 18 C/D )
      –      Nortrop Grumann (F/A 18 C/D)
      –      SAAB (Gripen)
      –      Pilatus (PC12, 21)
19/04/2012                                        Thierry Verlhiac                    9
3. Markets




19/04/2012     Thierry Verlhiac   10
3 - Markets
• Sourcing
      – India March 2011
      – Engineering and production approach
• Benchmarking
      – Sheet Metals for Bombardier CRJ series project
             • Started in July 2009
             • October 2009 proposals
                 –   80 suppliers approached
                 –   60 NDA and RFI received
                 –   42 quoted (partial or completed): +400 P/Ns
                 –   4 recommendations to the RUAG Management
                        » South Africa, South Korea, Los Angeles and France (Tunisia)
                           (Aerosud) (-)              ( Swift Cor)   (Auvergne Aeronautique)

19/04/2012                                   Thierry Verlhiac                                  11
3 - Markets
• Surveillance
      – Visit Air show
      – Aerospace network open
• Technological watch
      – During suppliers or customers visit
• RFI
      – regularly sent RFI in the market for new suppliers
• Suppliers data base up-to-date
      – Request to my suppliers yearly update of their qualification,
             machines, new customers contracts, etc…
19/04/2012                          Thierry Verlhiac                    12
4. Project Management




19/04/2012           Thierry Verlhiac   13
4 - Project Management
  4 – 1 Snecma                                                               1998 – 2005
• Canada, Israel                                                                 1998 - 2000
      – Team:      Leader: Myself - Quality product
      – FAI and Ramp up
• China (3 different locations)               K-Projects: Offset                 2000 - 2005
      – Team:       Leader: Myself - Quality product - Expatriate in China – Local Engineers
      – FAI and Ramp up
• Turkey                                      K-Projects: Offset                 2000 - 2005
      – Team:       Leader: Myself - Quality product
      – FAI and Ramp up
• USA, Europe                                                                    2000 - 2005
      – Team:        Leader: Myself - Quality product
      – FAI and Ramp up
• Norway K-Projects: most competitive Snecma Competitor                          2003
      – Team:         Leader: Myself - Quality product – Production - Engineering
      – Productivity plan
19/04/2012                                   Thierry Verlhiac                                  14
4 - Project Management
    4 – 2 RUAG                                                                      2005 - 2011
• Sheet Metals welded
    – Production Transfer from UK to Canada                                   8 P/Ns
          •    Transfer of tooling with modification
          •    B/P not updated from the latest customer
          •    Continue to deliver the assembly line (old source had a delay > 4 months)
          •    Approved the new FAIR and have a very quick ramp up


• Sheet Metals
    – Production Transfer from UK to US (Los Angeles)                        300 P/Ns
          •    Transfer of tooling without modification
          •    Build a buffer stock (from 1 to 4 months: depending of the complexity of the parts)
          •    Approved the new FAIR and have a quick ramp up
          •    Build a buffer stock of 3 months production in 6 months




  19/04/2012                                              Thierry Verlhiac                           15
4 - Project Management
  4 – 3 RUAG                                                                 2010 - 2011
• Lead a built to spec project
      – Participate to the Customer reporting meeting                 (Quarterly meeting)
             • responsible for purchasing procedures up-to-date
      – Report to the project Leader                                  (Weekly meeting)
      – Managed all the procurement issues                            (Weekly meeting)
             • 4 strategic Buyers and their operative
                   1.     Turning, Milling and R/M
                   2.     Fasteners
                   3.      Tooling
                   4.     Sheet Metals, Harnesses (myself)
             •     Keep the prices into the Budget
             •     Suppliers approvals
             •     Lead-times
             •     Export / import Licenses
             •     KPI’s for the Project Leader
             •     Provisory B/P’s with the engineering

19/04/2012                                         Thierry Verlhiac                         16
5. Contract Management




19/04/2012           Thierry Verlhiac   17
5 – Contract Management
• Snecma
     – Negotiated and signed LTA
             • 3 years in general, 5 for few                 CFM56-7B

                 – New         or
                 – Renewal frame contract (China)
             • 10 years for spare parts
• RUAG
     – Negotiated and signed LTA
             • 5 years

19/04/2012                                Thierry Verlhiac              18
6. Site Procurement Manager




19/04/2012              Thierry Verlhiac   19
6 – Site Procurement Manager
• Plan-Les-Ouates                                              2005 – 2009
             • Managed 2 Buyers
                 – One was responsible for all the cutting tools (10% of the budget)
                 – One for the indirect procurement (5% of the budget)




19/04/2012                                  Thierry Verlhiac                           20
7. Procurement Target achieved




19/04/2012               Thierry Verlhiac     21
7. Procurement Target achieved 1/8
• 1990 – 1994: Strategic and operative (Diamonds, abrasives, graphite and copper electrodes &
  broaching tools)
      – In 1990: 1000 P/Os – 100 suppliers
             1.   Put 90% of my portfolios in contract (15 suppliers)
             2.   The rest of 10% in 2 brokers
             3.   In average between -4% to -20% for the prices per commodity
             4.   Sold my strategy to the main stakeholders in 2 sites


• 1994 – 1996: Strategic and operative (Turbine Castings)
      1.     For the department
             •    Recovered 60% of the cost of the Non Quality Events of the suppliers – 1989/1994 (3 M€)
      2.     Reduced the delay of my 3 suppliers
             • In binomial with quality representative
                   – Weekly reports and phone call
                   – Monthly visit to check physically the production
                        » Inventory
                        » Final quality inspection


19/04/2012                                              Thierry Verlhiac                                    22
7. Procurement Target achieved 2/8
• 1996 – 1998: Strategic (Flash Welded Ring)
      – Benchmarking of the commodity (5 suppliers in the world)
          1. Renegotiated 3 years LTA’s with 2 main suppliers + one for
              specific production
          2. Put in place buffer stock of 2 weeks in the suppliers
          3. In average -2% for the prices per year
• 1998 – 2000: Strategic (Compressor blades and Vanes)
      – Transfer parts from a end customer facility to a monopolistic supplier (quality and price
        issues)
      – Renegotiated a LTA with a monopolistic supplier in Israel
             • Mainly formula for the titanium R/M (50% of the price) and labor +1%/year
             • Reduce drastically the assembly line stoppage by
                   – Buffer stock in the suppliers (partially successful)
                   – Daily phone call + Excel reporting then weekly
                   – Quarterly visit with one assembly line operative buyer for a complete week


19/04/2012                                              Thierry Verlhiac                            23
7. Procurement Target achieved 3/8
• 2000 - 2005: Strategic (Rotating parts: Disks, Blisks, shafts, spools, shrouds, etc…)
    – Renegotiated LTA 3 (years) with 3 companies in China with Offset obligations for:
        – Parts still in development
        – New parts transferred from
             – French suppliers: divide the price by 2
             – Internal production: divide the price by 2.5
        – Mass production parts for 80% of the volume (20% in France) of the program.
        – Small volume 100%
        – Most of the operative business was thru our expatriate and local Snecma representative in
           China with weekly reporting to me.
        – Responsible of the KPI’s with reporting to the top management monthly




   19/04/2012                               Thierry Verlhiac                                   24
7. Procurement Target achieved 4/8
• 2000 - 2005: Strategic (in addition)
    – Negotiated a LTA (5 years) in Turkey
       – By Make or buy approach
            – Price reduced by 40% for the 1st year then -2% /year,
       – Mass production parts from 20% (3rd supplier) to 100% of the program,
           – Quarterly visit with a quality products representative for a complete week,
           – Responsible of the KPI’s with reporting to the top management monthly,
    – Negotiated a LTA (10 years) in Switzerland
       – End life Spare parts
    – Negotiated several LTA (3 years) in USA, Germany, Italy,



  19/04/2012                                  Thierry Verlhiac                             25
7. Procurement Target achieved 5/8
• 2000 - 2005: Strategic (in addition)
      – Negotiated a productivity plan in Norway,
          – Leader for a group of 3 persons: Quality + Engineer
          – Study the process in detail


• 2005 – 2009: Strategic
      – Negotiated LTA with forging and casting companies
                   – logistics and quality issues for Customers LTA
                   – 5 years LTA for titanium plates
      – Formalized all the special processes strategy
             • Initiated Double sources,
             • Used new approved customer sources,
             • Negotiated logistics terms and reporting



19/04/2012                                         Thierry Verlhiac   26
7. Procurement Target achieved 6/8
 2005 – 2009: Site Procurement Manager (Engine and structure parts)

Re-organized the department
• Before:                                                                • After:
  –       R/M were managed by the CEO,                                         –   I was responsible for the R/M (for the division from
  –       the special processes by the logistic (reporting to the                  2006: 3 sites),
          production manager) and                                              –   had one specific technical buyer for the cutting tools
  –       the rest by the engineering                                              (1MFr./year) and
                                                                               –   One operative buyer for the indirect procurement .
                                                                               –   Create and put in place internal procedures

  • Before:                                                              • After:
      –     R/M P/O placed when the suppliers had capacities or                –   R/M: Linked between sales P/O the lead-times for
            when some stock of plates of titanium were available                   the production and our subcontractor . With in
            and prices interesting (stock till 5 years of                          addition a buffer stock to avoid the production
            production)                                                            stoppage (divide by 5 the value the stock in 3 years).
      –     The parts shipped in express (from France and USA)                 –   Schedule the parts for our subcontractors with
            –      when available from the suppliers (no respect                   weekly forecasts (+/- 2 days) and a shuttle for the
                   of the schedule of the P/O)                                     transport (France)
            –      After a request from somebody from the                      –   Create a procurement request to be signed by the
                   production (free production capacity)                           M+1 for the requirement, yearly prices and
                                                                                   conditions approved with the suppliers with 2
                                                                                   suppliers maximum per main products.

 19/04/2012                                                 Thierry Verlhiac                                                      27
7. Procurement Target achieved 6/8
 2005 – 2009: Site Procurement Manager (Engine and structure parts)

• Before:
  –   R/M P/O placed when the suppliers had capacities or         • After:
      when some stock of plates of titanium were available              –   R/M: Linked between sales P/O the lead-times for
      and prices interesting (stock till 5 years of                         the production and our subcontractor . With in
      production)                                                           addition a buffer stock to avoid the production
  –   The parts shipped in express (from France and USA)                    stoppage (divide by 5 the value the stock in 3 years).
      –      when available from the suppliers (no respect              –   Schedule the parts for our subcontractors with
             of the schedule of the P/O)                                    weekly forecasts (+/- 2 days) and a shuttle for the
      –      After a request from somebody from the                         transport (France)
             production (free production capacity)                      –   Create a procurement request to be signed by the
                                                                            M+1 for the requirement, yearly prices and
                                                                            conditions approved with the suppliers with 2
                                                                            suppliers maximum per main products.




 19/04/2012                                          Thierry Verlhiac                                                      28
7. Procurement Target achieved 7/8
• 2005 – 2009: Site Procurement Manager (in addition)
          • Develop the synergies with the division by using the umbrella contracts
          • “Sold” the procurement to all the internal Leaders (complete new approach for the
            site)
                   – Production , Quality, engineering, program, finance and Site Manager

• 2009 – 2011: Strategic procurement manager (structure parts)
               • Managed an UK supplier unable to deliver 500 FAIRs in 6 months
               • In parallel, launched a world benchmarking (see slide 11)
                   – Shown that the Low Cost market is not necessary in China but can be somewhere else.
                        » 55% in average of reduction of the cost by transferring 400 P/Ns in L.A. in a supplier
                           already approved for the complex parts with the customers (Transfer plan: 6 months for all
                           the FAIRs with 100 parts using tooling from the old source).
                   – Procurement Leader for a “Built to Spec” project /Dassault
                        » Managed the schedule of this project with the procurement team (See slide 16)


  19/04/2012                                         Thierry Verlhiac                                             29
7. Procurement Target achieved 8/8
• Nov. 2011 to Now: Procurement Business Partner at Syngenta Crop Protection
      1.     Direct leadership of major categories/sub-categories of indirect procurement (Capex
             and Opex)
             • Piping,
             • Civil Construction,
      3.         Sourcing projects strategy by market analysis,
             • Fire protection/detection
      4.         Support stakeholders for suppliers choice,
      5.         Contracts negotiation,
      6.         Improvement of the performance of the Key suppliers,
             •       Simplification of processes
             •       Load / capacity analysis
             •       SRM
      7.         Propose global approach strategy to my colleagues
      8.         Procurement co-leader for the preparation of the
                 ISO 9001 certification,

19/04/2012                                         Thierry Verlhiac                                30
8. Strong and weak points




19/04/2012             Thierry Verlhiac   31
8. Strong points                                      1/2
• Some characteristics which describe my personality (In disorder):
    –   Has the ability to predict accurate results.
    –   Trustworthy and has a stabilizing presence.
    –   Loyal, conscientious and work hard to produce results.
    –   A good mediator in the settlement of conflicts.
    –   Seen by most as a person of integrity and sincerity.
    –   Fits assuming its function and responsibilities.
    –   Comfortable in personal reflection and in relations with others
    –   Good listening. Can help others achieve their goals.
    –   Tolerant and generous.
    –   Respectful of the needs of others.

19/04/2012                         Thierry Verlhiac                       32
8. Weak points                                       2/2
• Some characteristics which describe my personality (In disorder):

    –   Tendency to focus on past failures rather than successes,
    –   May unknowingly sacrifice her own needs for others,
    –   Often feel responsible for others,
    –   Has a low level of German




 19/04/2012                        Thierry Verlhiac                 33
To Summarize                                  30 years in the
                                                Aerospace
                                                 Business




                                              12 years in Project


                                                 Management




                                              Only 48 Years old


                                              w ith my strong and


                                                 w eak points



             22 years of
             experience
                 3


              Markets



19/04/2012                 Thierry Verlhiac                         34
9. Conclusion




19/04/2012       Thierry Verlhiac   35
8. Conclusion
• Experiment Professional with
             • Focus in
                 –   Stakeholders satisfaction,
                 –   Partnership with the suppliers
                 –   Objective and result oriented
                 –   Work for the Team and the company not for me
             • Motivated and young spirit
             • Like to transfer my knowhow to the group


• Would be happy to enter in a strong Aerospace company

19/04/2012                                 Thierry Verlhiac         36

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My Background Thierry Verlhiac

  • 1. Overview of my Background Thierry Verlhiac 19/04/2012 March 2012 1
  • 2. Several Backgrounds 1. Technical 2. Customers 3. Markets 4. Project Management 5. Contract Management 6. Site Procurement Manager 7. Procurement Target achieved 8. Strong and weak points 9. Conclusion 19/04/2012 Thierry Verlhiac 2
  • 3. 1. Technical 19/04/2012 Thierry Verlhiac 3
  • 4. 1 - Technical 1 – 1 First job: Turner – Horizontal – Vertical But also on – Milling machine – Grinding machine 19/04/2012 Thierry Verlhiac 4
  • 5. 1 – Technical / Quality 1 – 2 Organized and Managed Audit in USA Middle East • West coast to East Coast, • Israel, • Turkey, Canada Europe • Quebec and Ontario, • Switzerland, Mexico • UK, • Sonora state, • Germany, India • Benelux, • Austria, • Karnataka state (Bangalore and around), • Italy, China • Spain, • Liaoning (Shenyang), Guizhou (Liyang), • Norway. Shaanxi (Xi’an), Sichuan (Chengdu) 19/04/2012 Thierry Verlhiac 5
  • 6. 1 – Technical / Products 1 – 3 different categories of products • Forgings • Small Assys – Compressor blades, flash welding rings, die – Sheet metals and machined parts press forgings, rolled forgings, • Fasteners – Titanium, steel, nickel-based alloy and aluminum, – Bolts, nuts, Inserts, Studs, rivets, pins and • Castings screws – Die casting (lost wax) • Sheet Metals – Titanium, steel base and aluminum – From a small bracket to a big frame • Machining • Harnesses – All types of machining (Turning, milling, grinding, – Electrical harnesses drilling (deep), polishing,….) – All materials • Special processes • R/M – FPI, Coating, anodizing, painting, shoot peening, – Plates, sheets, strip, bars, heat treatment, marking, X-ray, welding… 19/04/2012 Thierry Verlhiac 6
  • 7. 1 – Technical / Documentation 1 – 4 type of customers documentation • Mainly built to print But also • Built to specification 19/04/2012 Thierry Verlhiac 7
  • 8. 2. Customers 19/04/2012 Thierry Verlhiac 8
  • 9. 2 - Customers • For Snecma Corbeil/ Evry and Gennevilliers – General Electric (CFM56, CF6-50, 80A, C & E LM2500, 6000) – Snecma (All programs) • For RUAG Aerospace Plan-Les-Ouates – Snecma (SAM146, TP400, GP7200) – General Electric (CFM56, CF34-10A & E, F404 ) – Dassault ( Falcon 900 & 7X ) – Eurocopter (NH90) – Boeing (F/A 18 C/D & E/F) – Nortrop Grumann (F/A 18 C/D) • For RUAG Technology Emmen (Lucerne) – Airbus -UK, Germany and France- (A320/330/340/380) – General Electric (CF34-10E) – Dassault (( Falcon 900 & 7X & Rafale) – Bombardier (CRJ700/900 & 1000) – Boeing Military (F/A 18 C/D ) – Nortrop Grumann (F/A 18 C/D) – SAAB (Gripen) – Pilatus (PC12, 21) 19/04/2012 Thierry Verlhiac 9
  • 10. 3. Markets 19/04/2012 Thierry Verlhiac 10
  • 11. 3 - Markets • Sourcing – India March 2011 – Engineering and production approach • Benchmarking – Sheet Metals for Bombardier CRJ series project • Started in July 2009 • October 2009 proposals – 80 suppliers approached – 60 NDA and RFI received – 42 quoted (partial or completed): +400 P/Ns – 4 recommendations to the RUAG Management » South Africa, South Korea, Los Angeles and France (Tunisia) (Aerosud) (-) ( Swift Cor) (Auvergne Aeronautique) 19/04/2012 Thierry Verlhiac 11
  • 12. 3 - Markets • Surveillance – Visit Air show – Aerospace network open • Technological watch – During suppliers or customers visit • RFI – regularly sent RFI in the market for new suppliers • Suppliers data base up-to-date – Request to my suppliers yearly update of their qualification, machines, new customers contracts, etc… 19/04/2012 Thierry Verlhiac 12
  • 13. 4. Project Management 19/04/2012 Thierry Verlhiac 13
  • 14. 4 - Project Management 4 – 1 Snecma 1998 – 2005 • Canada, Israel 1998 - 2000 – Team: Leader: Myself - Quality product – FAI and Ramp up • China (3 different locations) K-Projects: Offset 2000 - 2005 – Team: Leader: Myself - Quality product - Expatriate in China – Local Engineers – FAI and Ramp up • Turkey K-Projects: Offset 2000 - 2005 – Team: Leader: Myself - Quality product – FAI and Ramp up • USA, Europe 2000 - 2005 – Team: Leader: Myself - Quality product – FAI and Ramp up • Norway K-Projects: most competitive Snecma Competitor 2003 – Team: Leader: Myself - Quality product – Production - Engineering – Productivity plan 19/04/2012 Thierry Verlhiac 14
  • 15. 4 - Project Management 4 – 2 RUAG 2005 - 2011 • Sheet Metals welded – Production Transfer from UK to Canada 8 P/Ns • Transfer of tooling with modification • B/P not updated from the latest customer • Continue to deliver the assembly line (old source had a delay > 4 months) • Approved the new FAIR and have a very quick ramp up • Sheet Metals – Production Transfer from UK to US (Los Angeles) 300 P/Ns • Transfer of tooling without modification • Build a buffer stock (from 1 to 4 months: depending of the complexity of the parts) • Approved the new FAIR and have a quick ramp up • Build a buffer stock of 3 months production in 6 months 19/04/2012 Thierry Verlhiac 15
  • 16. 4 - Project Management 4 – 3 RUAG 2010 - 2011 • Lead a built to spec project – Participate to the Customer reporting meeting (Quarterly meeting) • responsible for purchasing procedures up-to-date – Report to the project Leader (Weekly meeting) – Managed all the procurement issues (Weekly meeting) • 4 strategic Buyers and their operative 1. Turning, Milling and R/M 2. Fasteners 3. Tooling 4. Sheet Metals, Harnesses (myself) • Keep the prices into the Budget • Suppliers approvals • Lead-times • Export / import Licenses • KPI’s for the Project Leader • Provisory B/P’s with the engineering 19/04/2012 Thierry Verlhiac 16
  • 17. 5. Contract Management 19/04/2012 Thierry Verlhiac 17
  • 18. 5 – Contract Management • Snecma – Negotiated and signed LTA • 3 years in general, 5 for few CFM56-7B – New or – Renewal frame contract (China) • 10 years for spare parts • RUAG – Negotiated and signed LTA • 5 years 19/04/2012 Thierry Verlhiac 18
  • 19. 6. Site Procurement Manager 19/04/2012 Thierry Verlhiac 19
  • 20. 6 – Site Procurement Manager • Plan-Les-Ouates 2005 – 2009 • Managed 2 Buyers – One was responsible for all the cutting tools (10% of the budget) – One for the indirect procurement (5% of the budget) 19/04/2012 Thierry Verlhiac 20
  • 21. 7. Procurement Target achieved 19/04/2012 Thierry Verlhiac 21
  • 22. 7. Procurement Target achieved 1/8 • 1990 – 1994: Strategic and operative (Diamonds, abrasives, graphite and copper electrodes & broaching tools) – In 1990: 1000 P/Os – 100 suppliers 1. Put 90% of my portfolios in contract (15 suppliers) 2. The rest of 10% in 2 brokers 3. In average between -4% to -20% for the prices per commodity 4. Sold my strategy to the main stakeholders in 2 sites • 1994 – 1996: Strategic and operative (Turbine Castings) 1. For the department • Recovered 60% of the cost of the Non Quality Events of the suppliers – 1989/1994 (3 M€) 2. Reduced the delay of my 3 suppliers • In binomial with quality representative – Weekly reports and phone call – Monthly visit to check physically the production » Inventory » Final quality inspection 19/04/2012 Thierry Verlhiac 22
  • 23. 7. Procurement Target achieved 2/8 • 1996 – 1998: Strategic (Flash Welded Ring) – Benchmarking of the commodity (5 suppliers in the world) 1. Renegotiated 3 years LTA’s with 2 main suppliers + one for specific production 2. Put in place buffer stock of 2 weeks in the suppliers 3. In average -2% for the prices per year • 1998 – 2000: Strategic (Compressor blades and Vanes) – Transfer parts from a end customer facility to a monopolistic supplier (quality and price issues) – Renegotiated a LTA with a monopolistic supplier in Israel • Mainly formula for the titanium R/M (50% of the price) and labor +1%/year • Reduce drastically the assembly line stoppage by – Buffer stock in the suppliers (partially successful) – Daily phone call + Excel reporting then weekly – Quarterly visit with one assembly line operative buyer for a complete week 19/04/2012 Thierry Verlhiac 23
  • 24. 7. Procurement Target achieved 3/8 • 2000 - 2005: Strategic (Rotating parts: Disks, Blisks, shafts, spools, shrouds, etc…) – Renegotiated LTA 3 (years) with 3 companies in China with Offset obligations for: – Parts still in development – New parts transferred from – French suppliers: divide the price by 2 – Internal production: divide the price by 2.5 – Mass production parts for 80% of the volume (20% in France) of the program. – Small volume 100% – Most of the operative business was thru our expatriate and local Snecma representative in China with weekly reporting to me. – Responsible of the KPI’s with reporting to the top management monthly 19/04/2012 Thierry Verlhiac 24
  • 25. 7. Procurement Target achieved 4/8 • 2000 - 2005: Strategic (in addition) – Negotiated a LTA (5 years) in Turkey – By Make or buy approach – Price reduced by 40% for the 1st year then -2% /year, – Mass production parts from 20% (3rd supplier) to 100% of the program, – Quarterly visit with a quality products representative for a complete week, – Responsible of the KPI’s with reporting to the top management monthly, – Negotiated a LTA (10 years) in Switzerland – End life Spare parts – Negotiated several LTA (3 years) in USA, Germany, Italy, 19/04/2012 Thierry Verlhiac 25
  • 26. 7. Procurement Target achieved 5/8 • 2000 - 2005: Strategic (in addition) – Negotiated a productivity plan in Norway, – Leader for a group of 3 persons: Quality + Engineer – Study the process in detail • 2005 – 2009: Strategic – Negotiated LTA with forging and casting companies – logistics and quality issues for Customers LTA – 5 years LTA for titanium plates – Formalized all the special processes strategy • Initiated Double sources, • Used new approved customer sources, • Negotiated logistics terms and reporting 19/04/2012 Thierry Verlhiac 26
  • 27. 7. Procurement Target achieved 6/8 2005 – 2009: Site Procurement Manager (Engine and structure parts) Re-organized the department • Before: • After: – R/M were managed by the CEO, – I was responsible for the R/M (for the division from – the special processes by the logistic (reporting to the 2006: 3 sites), production manager) and – had one specific technical buyer for the cutting tools – the rest by the engineering (1MFr./year) and – One operative buyer for the indirect procurement . – Create and put in place internal procedures • Before: • After: – R/M P/O placed when the suppliers had capacities or – R/M: Linked between sales P/O the lead-times for when some stock of plates of titanium were available the production and our subcontractor . With in and prices interesting (stock till 5 years of addition a buffer stock to avoid the production production) stoppage (divide by 5 the value the stock in 3 years). – The parts shipped in express (from France and USA) – Schedule the parts for our subcontractors with – when available from the suppliers (no respect weekly forecasts (+/- 2 days) and a shuttle for the of the schedule of the P/O) transport (France) – After a request from somebody from the – Create a procurement request to be signed by the production (free production capacity) M+1 for the requirement, yearly prices and conditions approved with the suppliers with 2 suppliers maximum per main products. 19/04/2012 Thierry Verlhiac 27
  • 28. 7. Procurement Target achieved 6/8 2005 – 2009: Site Procurement Manager (Engine and structure parts) • Before: – R/M P/O placed when the suppliers had capacities or • After: when some stock of plates of titanium were available – R/M: Linked between sales P/O the lead-times for and prices interesting (stock till 5 years of the production and our subcontractor . With in production) addition a buffer stock to avoid the production – The parts shipped in express (from France and USA) stoppage (divide by 5 the value the stock in 3 years). – when available from the suppliers (no respect – Schedule the parts for our subcontractors with of the schedule of the P/O) weekly forecasts (+/- 2 days) and a shuttle for the – After a request from somebody from the transport (France) production (free production capacity) – Create a procurement request to be signed by the M+1 for the requirement, yearly prices and conditions approved with the suppliers with 2 suppliers maximum per main products. 19/04/2012 Thierry Verlhiac 28
  • 29. 7. Procurement Target achieved 7/8 • 2005 – 2009: Site Procurement Manager (in addition) • Develop the synergies with the division by using the umbrella contracts • “Sold” the procurement to all the internal Leaders (complete new approach for the site) – Production , Quality, engineering, program, finance and Site Manager • 2009 – 2011: Strategic procurement manager (structure parts) • Managed an UK supplier unable to deliver 500 FAIRs in 6 months • In parallel, launched a world benchmarking (see slide 11) – Shown that the Low Cost market is not necessary in China but can be somewhere else. » 55% in average of reduction of the cost by transferring 400 P/Ns in L.A. in a supplier already approved for the complex parts with the customers (Transfer plan: 6 months for all the FAIRs with 100 parts using tooling from the old source). – Procurement Leader for a “Built to Spec” project /Dassault » Managed the schedule of this project with the procurement team (See slide 16) 19/04/2012 Thierry Verlhiac 29
  • 30. 7. Procurement Target achieved 8/8 • Nov. 2011 to Now: Procurement Business Partner at Syngenta Crop Protection 1. Direct leadership of major categories/sub-categories of indirect procurement (Capex and Opex) • Piping, • Civil Construction, 3. Sourcing projects strategy by market analysis, • Fire protection/detection 4. Support stakeholders for suppliers choice, 5. Contracts negotiation, 6. Improvement of the performance of the Key suppliers, • Simplification of processes • Load / capacity analysis • SRM 7. Propose global approach strategy to my colleagues 8. Procurement co-leader for the preparation of the ISO 9001 certification, 19/04/2012 Thierry Verlhiac 30
  • 31. 8. Strong and weak points 19/04/2012 Thierry Verlhiac 31
  • 32. 8. Strong points 1/2 • Some characteristics which describe my personality (In disorder): – Has the ability to predict accurate results. – Trustworthy and has a stabilizing presence. – Loyal, conscientious and work hard to produce results. – A good mediator in the settlement of conflicts. – Seen by most as a person of integrity and sincerity. – Fits assuming its function and responsibilities. – Comfortable in personal reflection and in relations with others – Good listening. Can help others achieve their goals. – Tolerant and generous. – Respectful of the needs of others. 19/04/2012 Thierry Verlhiac 32
  • 33. 8. Weak points 2/2 • Some characteristics which describe my personality (In disorder): – Tendency to focus on past failures rather than successes, – May unknowingly sacrifice her own needs for others, – Often feel responsible for others, – Has a low level of German 19/04/2012 Thierry Verlhiac 33
  • 34. To Summarize 30 years in the Aerospace Business 12 years in Project Management Only 48 Years old w ith my strong and w eak points 22 years of experience 3 Markets 19/04/2012 Thierry Verlhiac 34
  • 35. 9. Conclusion 19/04/2012 Thierry Verlhiac 35
  • 36. 8. Conclusion • Experiment Professional with • Focus in – Stakeholders satisfaction, – Partnership with the suppliers – Objective and result oriented – Work for the Team and the company not for me • Motivated and young spirit • Like to transfer my knowhow to the group • Would be happy to enter in a strong Aerospace company 19/04/2012 Thierry Verlhiac 36