Winning with the SEA Integrated Supply Chain · 2017. 5. 31. · Accelerating Supply Chain Performance 8 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 1 9 9 9 2 0

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Winning with the SEAIntegrated Supply Chain

Mickey L. Wiebe - SEABrad Hart - Roberts Tool

Accelerating Supply Chain Performance 2

AgendaIntroductionsSupplier ResultsCharacteristics of a SEA supplierWhy your company wants SEA

suppliersHow does a company become a SEA

supplier?Questions?

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Introductions Who is behind SEA?

SEA is an industry alliance that is prime-empowered and supplier led – SEA is owned and operated bythe industry

Who is SEA for?

SEA benefits the entire industry and its focus is sub-tier production suppliers

What is SEA’s Intent?

To accelerate supply chain performance

How does SEA work?

Suppliers serious about improvement make investments to accelerate their performance using the SEARoadmap – as they begin to produce results they gain more visibility and increased opportunity to buildtop line business reducing their overhead.


Roberts Tool Overview

Founded 1957 in Southern California, 79employees in one 45,000 square feet facility

Precision Manufacturer of Complex AerospaceComponentsSpecializing in cellular machining of high tolerance

hydraulic assemblies

Complex machining of castings and forgings

SAE AS9100B Registered April 2005

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Company OverviewCustomers

Parker Hannifin

Northrop Grumman

Eaton

Raytheon

Boeing

ATK

Moog

Cessna

Aerojet

DRS Training & Control

Capstone Turbine

Ducommun

US Air Force

US Navy

Walt Disney


Various Products

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A Few Simple QuestionsHow many people think that your company will

have to reduce sourced material costs to remaincompetitive next year?

How many think suppliers labor and raw materialcosts are going to be less next year?

So if your company will pay less and costs will beup, what’s going to happen to supplier margins?

How many think suppliers can increase theirservice and performance next year whilereducing their price by 10-20%?

How many of your suppliers want to sign up forthat scenario?


$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

(est

)

Sales

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Sales per Employee

$0

$50,000

$100,000

$150,000

$200,000

$250,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

(est

)


RTC Lean Results Last 5 Years

Average Revenue Growth last 7 years 20% perYear

Average Annual Sales per Employee Growth 11%

Average OTD Improved from 55% to 98%

Internal Scrap Rate reduced from 5% to 1% Inventory Turns increased from 4 to 15

Average Lead Time reduced from 16 weeks to 3weeks

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Benefits of SEA to Roberts Tool Co.

1. Performance Improvement(World Class levels)

2. Visibility throughout Industry(All Prime and Tier One Players)

3. Collaboration with Customers, Peers andSuppliers(Development of “World Class” Supply Chains)


Win Win Scenario

Cessna – Dramatic Improvement to Total Value of Acquisition

Supplier- Dramatically Improved Margins

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Cessna Model Cell GoalsReduce Cessna Cost by immediate 10%Reduce Lead Time by 80%Reduce Setup by 90% for all 30 parts in cellMaintain 6 Sigma quality and be able to monitor the

process real time over the internet using Net-Inspect.Operate the cell with Standard Work using unskilled

labor.Document every facet of the process so that anybody

can be trained to run the cell.MAKE AT LEAST TWICE AS MUCH MONEY AS

OTHER SUPPLIERS


Cessna Cell Results

Date

Takt Time

Team Leader

Start* Target Progress** Progress Progress

Space 240 sq ft

Inventory 57 shipsets WIP 3 shipsets WIP

Walking Distance ft 10 ft

Part Travel Distance ft 10 ft

Leadtime 87 days/shipset 4 days/shipset

Quality CPK 1.3 or better

Productivity (Cycle Time) 39.7 hrs/shipset 9.8 hrs/shipset

5s Rating

Average setup time 70 hrs/shipset 0

Cessna Cost per Shipset $4,078.00 $3,570.00

Supplier Net $/hr $76.29 $286.65 *=Actual Before Improvements

**=Actual Results

Remarks

5/1/2007

30.2 hrs

Eric Satterthwaite

Target Progress Report

Product / Process Cessna Clips

Department

Team Lean Solutions

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Cessna Model Cell HighlightsTakt Time 44 minutes (per component)Cycle Time 21 minutes (cell at < 50% capacity)Thirty part numbersKanBan replenishment of all suppliesVisual supermarket / No scheduleVisually controlled toolingOne minute exchange of toolingConsumes 240 sq FeetOperator travel 10 Feet per cycleFull TPM


Cessna Clip Cell Combo Sheet

Man. Auto. Walk

1 0.50 92

2 2.00

3 0.50

4 0.10

5 0.50

6 2.00

7 0.50

8 0.10

9 4.00

10 2.00

11 6.00

12 2.00

13 4.00

TOTAL24.20 92.00 0.00

Set up drill Jig & Drill opp3

Chamfer opp 3 holes

Inspect per SFIP

Unload op 1 load block top and bottem

Deburr opp 1 w ork

Part No. and Name 7021018,7022107 Cessna Clips

STANDARD WORK

COMBINATION

SHEET

Date

Prepare 3/20/2007

Quota

per shif t

Takt

Time 45 Min

Step

No. Operation Name

TIMEOPERATION TIME

Work Sequence Machining Dept.

Deburr opp 1 w ork

Write dash number on the tw o f inished parts




Write dash number on the tw o f inished parts

Deburr opp 2 w ork

Chamfer opp 2 holes

= 1 Min

9

EC300 HAAS

QuickchangeTooling

DeburrBuffer

DrillPress

Inspection

Supermarket

Raw Stock

Cessna Clip Cell


Feature Comparison Chart

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Lessons LearnedTop management involvement vitalEveryone participates - cultural changeContinuous improvement - steady pace of

improvementWorkforce development (people) is KEYLeaders believeReturn on investment is huge


Our FutureThrive, not just SurviveAbility to grow the business

strategicallyCapability to compete globallyProcesses not partsCollaboration vs. competition

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How does a company become a SEA supplier?


Characteristics of a SEA Supplier

LeadershipLeadershipLeadershipInvestmentSustained Effort

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Where SEA Suppliers are Headed

What happens to a supplier after several years? The supplier can produce small batch sizes with very little inventory. All work is organized in to cells or work areas that are very effective and

have little waste or downtime. Setup times are very fast. Machine downtime is minimal. Inventory turns are 12-15 turns, on-time delivery is 99.9%. Defective Parts Per Million Opportunities are mostly at six sigma levels. Sales per employee are over $200,000. Volume is two to three times what it was and production requires the

same or less space and equipment. Overtime is minimal. The workforce goes home at night. There are very few crisis, and managers get a good nights sleep and go

on vacations.


What’s Different About SEA Significant industry

involvement in thedevelopment and monitoringof LES implementation

Process Maturity Modelhas industry-wide support asa framework for processmanagement

Enterprise-wide approachhas industry-wide support forits ability to sustainperformance improvements

Standard Work implementationis most neglected lean disciplinein the industry

LES Production Modeladdresses job shop or low-volume high-mix environment

Authorized Service Providerscertified US-wide to address thespecific needs of suppliersthroughout our supply chains

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Why SEA Suppliers?The best supply chain winsThe best suppliers choose their

customersThe best suppliers invest in process

maturity Investing in supply chains has a high

return on investmentSuppliers who compete on process

maturity are global competitors


SEA Begins with NominationIf you wish to have your suppliers

participate in SEA, please see yourSEA representative.

Honeywell - Carol Nicholls, Dan FinkDresser-Rand - Ejoe ChenCessna - Don Beverlin, Teresa

Kirkendoll

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SummationSEA is much more than lean

The SEA Roadmap is a provenRoadmap that anyone can use to guidetheir improvement effort

In order to remain competitive, you willneed SEA suppliers

Integrated Supply Chains will capturemore and more business


Why SEA suppliers are in demand

SEA suppliers are the only supplierswho will sign up to reducing costs whileimproving performance…and mean it!

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Questions?Brad Hart, President

Roberts Tool Company818-407-0291

[email protected]

Mickey Wiebe, Executive DirectorSupplier Excellence Alliance

949 476-1144 [email protected]

Documents

Winning with the SEA Integrated Supply Chain · 2017. 5. 31. · Accelerating Supply Chain Performance 8 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 1 9 9 9 2 0