▪ Suppliers / Contractors Are Selected Strategically, with a Long-Term Focus, Rather Than Historic ShortTerm, Transaction-Based. Organization Must Commit the Resources to Develop Mutually Beneficial Relationship. Demands on Suppliers Requiring Capital Investments Necessitates the Sharing of Plans and Schedules
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The Northrop Model –Hawkeye Case Study
Strategic Intent: Joint Marketing of the E-2C Hawkeye and USN AEW&C Roadmap
Issues:
▪ Radar Approach & Team Solidified Within the Navy (NAVAIR, OPNAV, CNO, ASN)
▪ Propagate “Value of RMP” as Highest Priority of Advocacy Campaign
▪ Stress “Value of Hawkeye 2000/CEC” to Near–term Fleet Operations
▪ Develop Affordability Posture on RMP SD&D and Post Multiyear Production
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Key Success Factors – Supplier Relationship Management, Platinum Source
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Key Success Factors – Supplier Benefits
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Key Success Factors – Supplier Relationship Management
▪ 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
Technologies We Believe Are Gaps in Our Portfolio ▪ Select Potential Strategic Partners (Industry /
Geography) with Characteristics That Would Be Critical Differentiators for Us in Future Competitions (e.g. Skills, Political Strengths, Technologies)
▪ Navy 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)
▪ Target Key OPNAV Flags
▪ Promote Team Accomplishments
Hawkeye Industry Team
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The Northrop Model –F-35 Case Study
Strategic Intent: Collaborative Design and Engineering while pursuing “Best Value”
Issues:
▪ Cost containment is key for the program
▪ Investment structure requires sourcing strategy for participating countries
▪ RFB/RFQ are “model” based
Tanker 1998 Malcolm Baldridge Award ▪ MBA, Keller Graduate School, BA in Business Mgmt.,
University of Phoenix
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Supplier Management – What Does it Mean?
▪ Employ “ePMO” for document and data sharing for global team
▪ Deploy common engineering standards (CATIA)
Tactics:
▪ Developed JSL “Virtual PMO” for global project management support
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Improving Supply Chain Management Relationships
Acquisition & Logistics Excellence Conference Mary Simmerman Vice President, Materiel
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Agenda
▪ Introductions ▪ Supplier Management – What Does It Mean? ▪ The Defense Business – What’s Driving the
Past
Quality Issues
Poor Communic.
TQM
SCM Focus
Integrated Systems
New Tech.
6 Sigma
Metrics
Present
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What Do We Mean Today?
▪ Supplier Management Is Enabling Relationships with Providers of Goods and Services to: – Attain Business Objectives – Expand Business Opportunities – Reduce / Transfer Business Risks
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Why Manage Suppliers?
Benefits from Supplie Share
New Distribution Channels
New Products/ Items
Broader Name Recognition
New Customers
Significantly Enhanced revenue
F-35 Global Team
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Key Success Factors – Supplier Relationship Management
▪ Continuous Review Process Based on Performance Measures Reflecting Total Cost of Ownership Must Be in Place to Provide Ongoing Monitoring of the Supplier's Effectiveness – “Platinum Source” Case Study
Reduced Costs
Customer Satisfaction
60-70% of What We Build Is Procured!
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The Defense Business – What’s Driving the Transformation?
The Genesis
Goals
Collaboration
A Formal Process by Which Suppliers Are Evaluated and Categorized by Their Ability to Add Value to Our Business
Via Investment, Collaborative Planning & Design, RiskSharing and Product Enhancement
▪ Design and production specs are evolving as the bid process progresses
Strategies:
▪ Exploit technologies which support collaborative design and engineering to address weight and configuration challenges
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Mary Simmerman, VP, Materiel
▪ Oversee Domestic and International Procurement and Subcontract Management
▪ VP, Supplier Management and Procurement at Boeing Space and Communications
▪ Work with the Customer for Post MYP Production Via Affordability Options