Goodrich Power Systems Interim Report
A case study in implementing the Supply Chain Group Framework Product
"In September 2005 the Goodrich Electric Power Systems business launched a TI sponsored "Whole Supply Chain Group" programme, this was branded as "10 Suppliers, 4 Tiers, 1 Aim: Customer satisfaction throughout a world class supply chain". Not only did this programme engage 9 suppliers & the manufacturing module at Pitstone, thus embracing 4 tiers of Supply Chain, it also engaged our customer Airbus. Our whole supply chain improvement in OTIF from 75% to 100% and delivered quality from 1500 dppm to 750 dpm, has resulted in a further DTI sponsored extension to the programme and an award recognising the professional project management applied by Goodrich Electrical Power Systems.
The Goodrich Electric Power Systems business is now in year 5 of a 5 year business turnround, we are on plan to do this and Industry Forum has been a significant contributor to our success, we look forward to continuing to work with them in the future" Emmett C.I. Team
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The Customer
The Host
Goodrich Power Systems, Pitstone.
Manufacturer of generator sets for most Airbus models.
employees 508, turnover £140m, Material spend £50m.
Participating Supplier
Precision Magnetics Ltd, a UK leader in the design, manufacture and supply of rare earth permanent magnetic assemblies,
with only 30 employees and around £2.5m turnover is a key supplier to all the Goodrich Airbus programmes.
The Customer's need
Delivery Schedule Achievement (DSA) for all suppliers in
September 2005 was 66%.
The supply chain group represented 75% of Goodrich spend
on Airbus programme and had a group DSA of only 60%.
This endemic poor supplier delivery performance was
continually affecting Goodrich's ability to meet Airbus
programme dates.
Precision Magnetic's then DSA of 7% being a significant
factor.
The IF Solution
Supply Chain Groups provided a structured framework approach bringing together customers and suppliers from different tiers in the Supply Chain. Developed by Industry Forum the 3 pronged approach enables individual businesses not only to see real gains in QCD, but also to improve the level of partnership between companies and to develop the improvement skills capability within each company.
Overview of Supply Chain Group Structure
The "Learning By Doing" Process, linked to a National Vocational Qualification (NVQ)
Return on Stakeholders' Investment
Seven Measures of QCD Competitiveness
| Overall Supply Chain Delivery Schedule Achievement to Goodrich (OTIF) | |||
|---|---|---|---|
| Before: | 60% | After: | 90% |
| Precision Magnetics Delivery Schedule Achievement to Goodrich | |||
| Before: | 7% | After: | 100% July 07 |
| Overall Supply Chain Not Right First Time | |||
| Before: | 1500 dppm | After: | 750 dppm |
| Upskilling for Sustained Continuous Improvement | |||
| 34 NVQ's in Business Improvement Techniques across every supplier, (9 Change Agents & 23 Team Leaders) | |||
Sustainability of the Improvements:
The company has made continuous improvement a strategic objective and
appointed senior managers who have the skill and responsibility to coordinate more
activities.
The company will gain sustainability by continuing to organise workshops at each
site in their organisation.
Working in Partnership with:
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