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1、Improving Improving Supply Chain Supply Chain Management Management RelationshipsRelationshipsMary SimmermanVice President, Materiel April 23, 2003Acquisition & Logistics Excellence Conference 1Agenda Introductions Supplier Management What Does It Mean? The Defense Business Whats Driving the Tra

2、nsformation? Northrops Model “Strategic Relationships, Strategic Alliances” Key Success Factors Future Vision Where Do We Go from Here? Questions and Answers2Mary Simmerman, VP, Materiel Oversee Domestic and International Procurement and Subcontract Management VP, Supplier Management and Procurement

3、 at Boeing Space and Communications Co-Lead Supplier Mgmt. Process Council at Boeing Past Life at Northrop in Advanced Systems Division and Grumman Aerospace SME for Material Operations of Boeing Airlift and Tanker 1998 Malcolm Baldridge Award MBA, Keller Graduate School, BA in Business Mgmt., Unive

4、rsity of Phoenix3 Cost-Based Adversarial “Vendor” “Tug of War” Non-Evaluative Short-Term Event-Based Collaboration Joint investment Sophisticated Evaluation Tools Long-Term Focus Continuous improvement True PartnershipsQualityIssuesPoorCommunic.TQM6SigmaMetricsIntegratedSystemsNewTech.SCMFocusPastPr

5、esentSupplier Management What Does it Mean?4What Do We Mean Today?A Formal Process by Which Suppliers Are Evaluated and A Formal Process by Which Suppliers Are Evaluated and Categorized by Their Ability to Add Value to Our Business Categorized by Their Ability to Add Value to Our Business Via Invest

6、ment, Collaborative Planning & Design, Risk-Via Investment, Collaborative Planning & Design, Risk-Sharing and Product EnhancementSharing and Product Enhancement Supplier Management Is Enabling Relationships with Providers of Goods and Services to: Attain Business Objectives Expand Business O

7、pportunities Reduce / Transfer Business Risks5Market ShareSignificantly Enhanced revenueBenefits from Supplier ManagementNew Products/ItemsBroaderName RecognitionReduced CostsNew DistributionChannelsNewCustomersWhy Manage Suppliers?60-70% of What We Build Is Procured!60-70% of What We Build Is Procu

8、red!CustomerSatisfaction6Industry ConsolidationWar TacticsCultural IssuesEnhanced CommunicationsWeapons TechnologyThe GenesisThe Defense Business Whats Driving the Transformation?“Integrated Network”True Partnerships“Systems, Services, Support”Precision Weapons & “Real-Time” CommunicationsGoalsC

9、ollaboration7The Northrop Model Supplier Engagement Possess Technology That Would Be Beneficial to Our Future Business Aspirations Align with Our Future Strategies (e.g. NHA, JIT) Have R&D Expenditures That Are Relevant to Technologies We Believe Are Gaps in Our Portfolio Select Potential Strate

10、gic Partners (Industry / Geography) with Characteristics That Would Be Critical Differentiators for Us in Future Competitions (e.g. Skills, Political Strengths, Technologies)8The Northrop Model Hawkeye Case StudyIssues: Radar Approach & Team Solidified Within the Navy (NAVAIR, OPNAV, CNO, ASN) N

11、avy Funding Profiles to Support RMP SD&D and Post Multiyear Production RMP SD&D Proposal Submission in June and Contract Award by December FY 2004 NTE Production Proposal Submission in November and AAC Award by December (3 Hawkeye 2000 Aircraft)Strategies: Preserve FY 2003 Budget for SD&

12、D and Production and Preservation in POM-04 Continue Hawkeye 2000 and Advanced Hawkeye/RMP Advocacy Campaigns Work with the Customer for Post MYP Production Via Affordability Options FY 2004-2005 (Hawkeye 2000) FY 2006-TBD (RMP LS / TAMD)Hawkeye Industry TeamTactics: Leverage the Strength of a “Team

13、” in USN, OSD, Congress and the Media Propagate “Value of RMP” as Highest Priority of Advocacy Campaign Stress “Value of Hawkeye 2000/CEC” to Nearterm Fleet Operations Develop Affordability Posture on RMP SD&D and Post Multiyear Production Target Key OPNAV Flags Promote Team AccomplishmentsStrat

14、egic Intent: Joint Marketing of the E-2C Hawkeye and USN AEW&C Roadmap9The Northrop Model F-35 Case StudyStrategic Intent: Collaborative Design and Engineering while pursuing “Best Value”Issues: Cost containment is key for the program Investment structure requires sourcing strategy for participa

15、ting countries RFB/RFQ are “model” based Design and production specs are evolving as the bid process progressesStrategies: Exploit technologies which support collaborative design and engineering to address weight and configuration challenges Employ “ePMO” for document and data sharing for global tea

16、m Deploy common engineering standards (CATIA)F-35 Global TeamTactics: Developed JSL “Virtual PMO” for global project management support Balance “best value” and collaborative engineering capabilities to meet cost and design challenges Develop specific incentives for team to address center fuselage a

17、nd weight challenges.10 Continuous Review Process Based on Performance Measures Reflecting Total Cost of Ownership Must Be in Place to Provide Ongoing Monitoring of the Suppliers Effectiveness“Platinum Source” Case StudyKey Success Factors Supplier Relationship Management11Key Success Factors Suppli

18、er Relationship Management, Platinum Source12Key Success Factors Supplier Benefits13Key Success Factors Supplier Relationship Management Suppliers / Contractors Are Selected Strategically, with a Long-Term Focus, Rather Than Historic Short-Term, Transaction-Based. Organization Must Commit the Resour

19、ces to Develop Mutually Beneficial Relationship. Demands on Suppliers Requiring Capital Investments Necessitates the Sharing of Plans and Schedules Utilize Suppliers As a Knowledge Source and Share Benefits of Expanding Into New Markets, Assessing Value-Based Opportunities, Discovering New Cost Savi

20、ngs, and Extending Current Functionalities14Key Success Factors Supplier Relationship Management (Cont) Involve Key Suppliers in Long-Term Strategic Alliances, Where Specific Capabilities May Need to Be Developed. MWBEs May Be a Good Source for This. Align Suppliers, IR&D to Technology Maps15 Bu

21、siness PartnersWorldEnterprise GroupSAP R/3Business WarehouseOrder Entry, ILS, CSFinancialsHRFulfillment.E-ProcurementStrategic Enterprise ManagementPortal.Extending Scope (New Dimensions & Add-Ons) COLLABORATIONCOLLABORATIONInternetExtranetIntranetENTERPRISEENTERPRISEKnowledgeWarehouseSupplier

22、Relationship MgtCollaborative PLMAPOCRMCustomer Relationship MgmtMFG, QAProcurementBillingCompleteIES III/IVFoFKey Success Factors Technology Blueprint16User-initiated, catalog-basedrequisitioningStrategicSourcingOrderExecution andSettlementProductLife CycleManagementOrder Planning andCreationEDIDir

23、ectIndirectSupplier Collaboration, Management, ImprovementSpecificationDevelopmentePLM (PDM,CAD/CAM,Proj. Mgmt,collab, etc.)ERPSupplyChainPlanningSupplyChainExecution“e-procurement”IndirectProcurementComponent SupplierManagement (CSM)EngineeringPurchasing, Mfg.Planning,Supply ChainPlant, IT,WarehouseLinkage#1Li

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