Strategic Supply Chain Improvement

Defence Industry Innovation Centre

Andrew Garth

4 December 2013

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

Overview

• Supply Chains – Context

• Development of Individual SMES

• Development of Collective SMES

• Emerging Challenges

• Assistance Programs

Context: Engaging Strategically with a Supply Chain

Individual SME Development Client: PHM

Does innovation and technology equal supply chain success?

Supplier Continuous Improvement Program - SCIP

The structure of the model emphasises not only what a business is achieving (RESULTS) but also how the results are being achieved (ENABLERS).

The maximum points have been allocated to each criterion based on benchmarks from a range of Blue Chip companies

Leadership Processes,

Products &

Services

Key ResultsPeople

Partnerships

& Resources

Strategy

People

Results

Society

Results

Customer

Results

Enablers Results

Learning, Creativity & Innovation

®

Business Excellence

enablers:

approach

deployment

assessment

& review

results:

trends

targets

comparisons

causes

scope

improvement Kanban

Materials ProcessesPeople

Job

Standardisation

Visual Controls

Set-up

Reduction

5 ‘s’ Housekeeping

7 Wastes and SPC / Quality Tools

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).

SCIP Assessment Score Benchmark

0

100

300

400

500

600

0 100 200 300 400 500 600 ManEx Score

BusEx Score

200 .Average

award level delivery quality

sustainable

improvement

programme

improvement

framework

gold 99% – 100% 99.9% – 100%

plan progressed

regular reviews

excellence level >500

silver 95% – <99% 99.5% – <99.9% excellence level >400

bronze 90% – <95% 98% – <99.5%

framework deployed

unclassified <90% <98%

award level delivery quality

sustainable

improvement

programme

improvement

framework

gold 99% – 100% 99.9% – 100%

plan progressed

regular reviews

excellence level >500

silver 95% – <99% 99.5% – <99.9% excellence level >400

bronze 90% – <95% 98% – <99.5%

framework deployed

unclassified <90% <98%

Benchmarking

SCIP: Demonstrated Improvement

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

Performing

Reactive

Co-operative

Collaborative

Collective SME Development

Client: Ferra Engineering

• Client Journey Video

Emerging Issue: Supplier Management Systems

Emerging Issue: Successful Teaming

• Example – Dual Source supply

Assistance Programs

• DMO GSC

• EFIC

• DMTC

• META

• DTC

• AIDN

• STATE GOVERNMENTS

Summary

• Value proposition in a Supply Chain

• Be prepared to seek assistance, engage, change and improve

• Demonstrate that improvement

Phone: 042 096 1486

email: andrew.garth@industry.gov.au web: www.enterpriseconnect.com.au/industrysupport/defenceindustry

Andrew Garth