Presentation I gave at the CMII Europe 2011 conference

1. Configuration Management in the supply chain Dick Terleth Director Configuration Management CMII Europe 2011 Stuttgart 27 September 2011

3. We leverage our Aerospace roots into other sectors Complex Transport Systems Infrastructure and Rail Aerospace Defence Certification Architecting & Integration Interiors, avionics/electrics, structures, environmental control systems, mechanical systems Specification Product System thinking Systems Engineering Requirements Management / Supplier Management/ Configuration Management / Safety Management / Risk Management Technical Project Management System Engineering, WBS, Planning, Reviews, Validation & Verification Process Improvements RAMS-LCC /Maintenance Processes / Production Processes / Configuration Management/ Systems Engineering / Safety Management/ Process Systematic working

4. Let’s start with a little question: What are you???? Customer and supplier?? Customer? Or?? Supplier?

5. Why do supply chains exist? It’s all about costs.. Economies of Scale Core Business Market Best Shoring

6. What is a supply chain??? Supplier Raw Materials Manu- facturer End- Customer Material flow Cash flow Information flow Processes Organizational structures Enabling Technologies Network of suppliers, manufacturers, distributors, service providers and customers. 1) Supply Chain Management is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. 2) Adapted from : 1) Henk A. Akkermans, e.a. (2003). "The impact of ERP on supply chain management: Exploratory findings of a European Delphi study", European Journal of Operational Research 146 :284-301 2) Lambert: SCM-Institute

7. Supply chains are global.... OEM Design supplier Component manufacturer System supplier Equipment supplier Interesting challenges for CM..

8. But is it a chains? Or is it a network? Source: Dr. Göschel, BMW Group Automotive Product and Process Network In the 80s In the 90s Today Continuous information Networks } Technology expert Component manufacturer ... Logistics service provider Service provider in the development field Service provider in the development field OEM 1 Technology experts System integrators OEM ...n Logistics service provider System-integrator ... Component manufacturer Logistics service provider Service provider in the development field In the future In den 80er Jahren In the 80s Lieferant 1 Lieferant 2 Lieferant n Lieferant 3 Lieferant 4 OEM Supplier 1 Supplier 2 Supplier n Supplier 3 Supplier 4 OEM

10. The natural reaction is … Contract!

11. So it’s put in the hands of lawyers (and procurement).. Do they know and understand CM??

12. Contracts tends to build walls between companies Processes, Organizations and technologies should be connected Supplier Raw Materials Manu- facturer End- Customer Information flow Material flow Cash flow Processes Organizational structures Enabling Technologies

13. Organizations in a supply chain need to be connected Configuration Management Interface Plan Requirements for CM Supplier Customer

15. So how can this work in a typical program?? Aircraft Systems Interior Avionics Airco Galleys Seats S&F AGU FLE Wing Fixed Structure Tail Fuselage Section1 Section1A Horiz. Vertical Company A Company B Company C Company D

16. The Physical Item Hierarchy should reflect the work breakdown OEM Supplier A #321 Requirements Interface definition Supplier B #111 Requirements Interface definition

17. How do we map the CMII baseline on a supply chain? CMII Baseline Change Process OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Aircraft Systems Interior Avionics Airco Galley Toilets Wing … .

18. What about the CMII Baseline? CMII Baseline Change Process There is a Baseline at the OEM level… OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Aircraft Systems Interior Avionics Airco Galley Toilet Wing … .

19. … and on the supplier level… OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Aircraft Systems Interior Avionics Airco Galley Toilets Wing … . Careful synchronization of change processes is required CMII Baseline Change Process

21. So: a lot of plugs are required… OEM Supp. E Supp. E Supp. C Supp. D Supp. B Supp. A Here And here

23. Suppliers can play different roles Concept Study Feasibility Study Definition Phase Full Scale Development After Sales Support Business Initiative Review Review Delivery Review Review Review Project Requirements Review Business Opportunity Review Critical Project Review BUILD TO PRINT SUPPLIER MAKE TO SPEC SUPPLIER DESIGN TO SPEC SUPPLIER EARLY INVOLVED SUPPLIER TECHNOLOGY SUPPLIER Released Technology Design process

24. There are many suppliers Aircraft Systems Interior Avionics Airco Galleys Seats S&F AGU FLE Wing Fixed Structure Tail Fuselage Section1A Horiz. Vertical 11 40+ 120+ Section1

26. Different tools may hinder smooth flow of information in the supply chain

27. Organization have different levels of maturity ADSE CM Maturity Model

28. Configuration Management Maturity determines the size of the CMIP MATURITY Little or no CM Process Oriented Process Integration Process Optimization Organization Integration LEVEL 1 Little or no Configuration Management LEVEL 2 Configuration Management processes and procedures available LEVEL 3 Effective Configuration Management processes LEVEL 4 Continuous process improvement; focus on efficiency LEVEL 5 Full CMII as core business process

29. The large number of thick CMIP’s are given us headaches

30. So how do the other flows cope with these issue??

31. Material Flow concentrates on right side of the V-model.. But what about the requirements and the designs?

32. Cash flow is well understood Cash flow is managed by a proud profession: Accounting

33. But what about Product Information? Is Configuration Management seen as a proud and required profession??

34. A chain is only as strong as it weakest link…

35. Without CM the supply chain will be broken… … we need to work on preventing the chain to break..

36. Summary.. We need to work to make CM a significant factor in building supply chains… ..by extending our profession to include the supply chain. CMII can provide the common language for this.

37. Thank you for you attention... Dick Terleth Director Configuration Management Mobile: +31 (0)6 2708 5986 E-mail: dick.terleth@adse.nl