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1、Improving Supply Chain Management Relationships,Mary Simmerman Vice President, Materiel,April 23, 2003,Acquisition & Logistics Excellence Conference,Agenda,Introductions Supplier Management What Does It Mean? The Defense Business Whats Driving the Transformation? Northrops Model “Strategic Relations

2、hips, Strategic Alliances” Key Success Factors Future Vision Where Do We Go from Here? Questions and Answers,Mary Simmerman, VP, Materiel,Oversee Domestic and International Procurement and Subcontract Management VP, Supplier Management and Procurement at Boeing Space and Communications Co-Lead Suppl

3、ier 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., University of Phoenix,Cost-Based Adversarial “Vendor”

4、“Tug of War” Non-Evaluative Short-Term Event-Based,Collaboration Joint investment Sophisticated Evaluation Tools Long-Term Focus Continuous improvement True Partnerships,Quality Issues,Poor Communic.,TQM,6 Sigma,Metrics,Integrated Systems,New Tech.,SCM Focus,Past,Present,Supplier Management What Doe

5、s it Mean?,What Do We Mean Today?,A Formal Process by Which Suppliers Are Evaluated and Categorized by Their Ability to Add Value to Our Business Via Investment, Collaborative Planning & Design, Risk-Sharing and Product Enhancement,Supplier Management Is Enabling Relationships with Providers of Good

6、s and Services to: Attain Business Objectives Expand Business Opportunities Reduce / Transfer Business Risks,Market Share,Significantly Enhanced revenue,Benefits from Supplier Management,New Products/ Items,Broader Name Recognition,Reduced Costs,New Distribution Channels,New Customers,Why Manage Sup

7、pliers?,60-70% of What We Build Is Procured!,Customer Satisfaction,Industry Consolidation War Tactics Cultural Issues Enhanced Communications Weapons Technology,The Genesis,The Defense Business Whats Driving the Transformation?,“Integrated Network” True Partnerships “Systems, Services, Support” Prec

8、ision Weapons & “Real-Time” Communications,Goals,Collaboration,The 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

9、 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),The Northrop Model Hawkeye Case Study,Issues: Radar Approach & Team Solidified

10、Within the Navy (NAVAIR, OPNAV, CNO, ASN) 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),Strategies:

11、 Preserve FY 2003 Budget for SD&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 Team,Tactics

12、: Leverage the Strength of a “Team” 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 Pro

13、mote Team Accomplishments,Strategic Intent: Joint Marketing of the E-2C Hawkeye and USN AEW&C Roadmap,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 so

14、urcing strategy for participating countries RFB/RFQ are “model” based 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 Employ “ePMO” for document a

15、nd data sharing for global team Deploy common engineering standards (CATIA),F-35 Global Team,Tactics: 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 t

16、eam to address center fuselage and weight challenges.,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 Study,Key Success Factors Supplier Relationship Manage

17、ment,Key Success Factors Supplier Relationship Management, Platinum Source,Key Success Factors Supplier Benefits,Key Success Factors Supplier Relationship Management,Suppliers / Contractors Are Selected Strategically, with a Long-Term Focus, Rather Than Historic Short-Term, Transaction-Based. Organi

18、zation Must Commit the Resources 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 Opportuniti

19、es, Discovering New Cost Savings, and Extending Current Functionalities,Key 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

20、 to Technology Maps,Business Partners,World,Enterprise Group,SAP R/3,Business Warehouse,Order Entry, ILS, CS,Financials,HR,Fulfillment,.,E-Procurement,Strategic Enterprise Management,Portal,.,Extending Scope (New Dimensions & Add-Ons),COLLABORATION,Internet,Extranet,Intranet,ENTERPRISE,Knowledge War

21、ehouse,Supplier Relationship Mgt,Collaborative PLM,APO,CRM,Customer Relationship Mgmt,MFG, QA,Procurement,Billing,Complete,IES III/IV,FoF,Key Success Factors Technology Blueprint,Direct,Indirect,Supplier Collaboration, Management, Improvement,Specification Development,Supplier / Part / Category Master Data Detailed Cost

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