1. Supply chain Progress towards Aeronautical Community Excellence
11/10/2017
Supply chain Progress towards Aeronautical Community Excellence
SPACE
An Independant and a non-profit Association focused on:
-  European industry,
- Small and medium companies 1

2. Missions
Develop world class standards for supply chain performance improvements based on « C.I.D » i.e Corrective - Improvement – Development referential
Support mainly small and medium companies for implementing C.I.D projects at their facilities
Improve SC skills by providing training solutions and coaching to its members and developing experience sharing
Benchmark SC performances using KPIs coming from members
Organize communication network within its members on risks and other various subjects of interest and provide an information hub

3. A non profit association of aeronautical entities
SPACE members
Associate Members
Executive Members
Associate Members
On board aeronautic product suppliers
Willing to improve their industrial & Supply Chain performances
A non profit association of aeronautical entities
Executive Members
Dedicate skilled resources to implement common supplier development action plans
Honorary Members
Honorary Members
Professional organizations willing to support and promote this initiative

4. Environment, global supply chain improvement & risk management…
11/10/2017
Supply chain performances have to improve
Global costs of acquisition have to decrease
Ramp up increases the risk
Environment
Ramp up
$/€
Perfomances
Improve the whole Supply Chain performance by collaborative actions
Reduce risks on Supply Chain (increased with ramp up)
Decrease global Cost of acquisition
Ease sub-tiers life (one action face to one supplier)

5. Plan of common CID actions Establish Entitlement
Organization
CID
Referential
Training
Plan of common CID actions
Resources
Sharing practices
CID projects
Sales
CSR
Mfg QC
Ship
Critical Measures and
Goals 16 8
Capability Plot
Process Tolerance
Specifications
StDev: I 14 13 12
Capability Histogram
Process Capability
Establish Entitlement
GOAL l
As Is
Should Be
Competitive
Advantage
($$$$)
KPI’S
Benchmark
CID compliance
Qualification
Experts from
executive members
Why and how
Improve industrials KPI’S (Quality, delivery)
Ease sub tier's life (one action face to one supplier)
Develop Corrective Improvement Development standard & skills
Share skilled resources to improve SC

6. Usual strengths and weaknesses
Situation our Supply Chain (Quality:97%, Delivery:70%)
Usual strengths and weaknesses
Lack of strong planning (tier-1 flow down)
5. Limitated preventive actions
3. Weak supply chain monitoring
4. Non efficient physical organization
2. No flow management

7. Services for Associate members
11/10/2017
SPACE services
Services for Associate members
The Members can also benefit from …..
Trainings
To increase skills for suppliers and tier-1 experts
Planning function APICS certifications (3 days)
Quality sigma green belt certification (9 days)
Lean lean green belt certification (4 days)
Improvement tools ½ day specific trainings
12 months :
50 APICS trainings (60% tier-1 experts / 40% suppliers)
60 MRPII 1 or 2 day trainings (100% suppliers) 7
Page 7

8. SPACE 18 months activity SPACE implementation and suppliers selection
1,5 year activity : 30 commitments –– 25 launched projects
OTD +30%
Average OTD : 63%
Returns : ppm
Average OTD : 83%
Returns : ppm
Returns -50%

9. When people lead to success
First results – French electronics
When people lead to success
Déc 06
Fev 07
Mar 07
May 07
dec 07
Plan d’action
Roadmap
ANALYSIS DESIGN
Implementation phase
Work package 1
Demand management
Work package 2 – QA & Lean management
Work package 3 –
Operational management
KOM
Work package 4
Suppliers & purchasing
COPIL
July 07
sept 07
Follow up phase
march 08
nov 07
oct 07
2008
supplier
Action
Plan
Follow up
Thales
Expert
Messier-Bugatti
Airbus
Thales/Airbus
experts
End 2006
End 2007
Variation
End 2008
03/20009
Raw materrial inventory NC
-11%
-20%
Work In Process
-24%
-18%
Suppliers critical delays
200 9
-96% 10
+11% 0%
Deapth of delay (days) 15 5
-66% 4
Suspended Works orders (shortage)
250
110
-56% 80
-27%
100
+25%
Customer service level
64%
84%
31%
90% 7%
92% 2%
Schedule adherence
62%
88%
42% 5%
93% 1%
S&OP adherence NA
97%
100% 3%
Page 9

10. Master Production Schedule
First results – Italian small equipments
When methodologies support progress
Efficient
Master Production Schedule
MRPII training
OTD
Problem solving
methodologies
Returns
Page 10

11. When capacity is managed
First results – French castings
When capacity is managed
Input/output control
Bottleneck identification
Rough-Cut Capacity Planning
OTD
Available-To-Promise 11

12. Objectives 2010 Push Projects
push : maintain number of projects around 30
develop in UK
develop in Germany
Pull Projects
develop with regions
Training
2 groups BASICS
2 groups Lean
2 groups 6s
CPIM
project management

13. As a CONCLUSION After more 1 year : processes are in place and SPACE is operational
Such a type of cooperation is new in our industry.
This will help our suppliers to address the current and difficult situation,
we must be strongly supported,SPACE has to carry on its development
in Europe to implement robust fondation.
To day, Space works with the fees and resources from executive members: 1.1M€
We need to boost the process to better support our European SME industries
For that:
We need to develop our capacities : budget x 2 - training in the methodological tools - increase number of experts
- share industrial progress,
our goal is twice as fast.

14. Appendix 14

15. Pilot study results: Customer returns: Automotive: Customer Returns:
Unit: p.p.m. (Parts Per Million)
Definition: total quantity of unacceptable products rejected by the customers during the last three months and acknowledged as such by the Supplier, divided by the total quantity of components delivered to all customers during the same period, multiplied by 1 million.

16. Pilot study results: Customer delivery achievements: Automotive:
Unit : % - percentage
Definition : total quantities delivered on-time* during the last three months, in acceptable quality, divided by total number of “lines of order” supplied during the same period, multiplied by 100.
On-time = +2 days to -7 days of the due date.

17. Pilot study results: Added Value per employee: Automotive:
Unit : K€/person
Definition : sales value of all products manufactured excluding trading, less cost of raw materials, purchase of components and overheads for the year, divided by the total number of employees including interim and temporary hired people.

18. Pilot study results: Turnover per employee: Automotive:
Unit : K€/person
Definition: sales value of all products manufactured excluding trading, divided by the total number of employees, including interim and temporary hired people.

19. Pilot study results: Cost of waste: Automotive:
Cost of Waste, Scraps & Reworks:
Unit : % - percentage of Turnover
Definition: total annual costs of internal waste, scrap & internal rework divided by the total annual cost of goods sold, excluding trading, and multiplied by 100.

20. Pilot study results: Supplier under evaluation:
Automotive: no information
Supplier under evaluation:
Suppliers under evaluation :
Unit : % - percentage
Definition : Number of suppliers under evaluation* divided by total number of suppliers.
* OTD and/or quality achievement of their own suppliers

21. Pilot study results: Inventory turns: Automotive: Inventory Turns:
Unit: number
Definition : Annual cost of goods sold divided by the appropriate value of total inventory (raw materials, work in-progress and finished goods). This indicator should be calculated on a calendar year basis i.e. from 1st January to 31st December. All products owned or controlled should be taken into account even if they are not physically located on-site e.g. consignment stocks held at customers.

22. Pilot study results: Space Utilization: Automotive: Space Utilization:
Unit : K€/m²
Definition: Annual cost of goods sold divided by the total production floor space including all storages and production offices areas, but excluding specialist R&D facilities. period,

23. FREYSSINET – Diagnostic –
COMPANY
SPIDER
Freyssinet Aéro Equipment S.A.S
Zone des Massiès
81800 COUFFOULEUX – France
Phone : (33) – Fax : (33)
Contacts: Philippe PARSOIRE (PDG)
DIAGNOSTIC
October 30th, 2008
René COLIN (SPACE)
David LOMBARDI (RATIER FIGEAC)
STRENGTHS
Sales, master scheduling and sequencing .
Contract requirement flow down
Order management and logistics
Manufacturing, process control, inspection
Control of non-conformities, corrective and preventive actions
WEAKNESSES
Supply sourcing selection and approval
Supplier operational management and product validation
Planning of product realisation
BASELINE
MAIN CUSTOMERS OBJECTIVES
OTD average 85%
OTD 95%

24. FIGEAC AERO- monthly project report
May 19th, 2009
COMPANY
MAIN EVENTS OF THE PERIOD
Figeac Aero
ZI de l’Aiguille FIGEAC
tel
contacts: Jean-Claude MAILLARD (PDG) – Didier ROUX (DP)
SPACE
Gérard CLIQUET
Pierre PRETE
Pascal FOLIOT
René COLIN
Planning : All PNs added in the MPS for hard metal production. 35% of the assembly parts under MPS.
Manufacturing : Beginning of the “Cadre 42” VSM – Current state drawing.
Suppliers : Improvement process launched.
Non conformities : no progress due to resources unavailability.
Assembly layout : Karman lean event action plan follow up.
NEXT STEPS
MAIN OBJECTIVES
Planning : More PNs to be added – Implementation of the Windev tool. KANBAN implementation for large size machines.
Manufacturing : Current State validation on “Cadre 42”.
Suppliers Management : Resources and alert process workshop to be launched. Classification to be updated and pilot suppliers to be validated.
Non Conformities : Planning and resources allocation to be redefined.
Assembly layout : Lean event action plan follow up and physical layout implementation preparation.
Planning : anticipate capacity requirements
Manufacturing : develop lean concepts
Suppliers management : improve control
Non-conformities : develop root cause analysis structured methodology
PERFORMANCE RESULTS
ACTIONS PLAN / WORKSHOPS PROGRESS
Planning : regular progress on the MPS (April 09 : 91% of MPS adherence for machining, 100% of MPS adherence on assembly).
Manufacturing : VSM and KANBAN methodology appropriation on progress.
Suppliers Management : Processes defined, to be now tested with pilot suppliers.
Non Conformities : no progress in the last month.
Assembly layout : very good participation and appropriation of the different team working on Strategic processes to be adapted.
RISKS / COMMITMENT/SUPPORT REQUIRED
Crisis effect might affect level of resources and involvement.

25. ESKULANAK - monthly project report
MAI 2009
COMPANY
MAIN EVENTS OF THE PERIOD
Eskulanak :
Mikel Charriton (General Manager,) Bertrand Carpuat ( Supply Chain Manager)
Space : Guillaume Bissez ,Mathieu Trenit
-Calculation of OTD in place
-5S : training completed , 5S audit process in place in all areas
-pull flow mangement : clips : standardization of fixed bactch size
-MPS training performed
MAIN OBJECTIVES
NEXT STEPS
-OTD : 95%
-5S
-Transfert and Implementaion of lean management in new facility
-reduction of lead time
-reduction of WIP
- pull system generalisation
-Development of SOP process
-Development of MPS process
-OTD : root cause analysis of late items
-Raw material management: kanban labels data to update
-general lead time : reduction of 1 week more if confident in raw material management
-Pull flow : Clips family : to extend standardization of operation sheet( number of operations, fixed and optimized batch size, lead time, packaging) , reduction of 3 days lead time in june(contouring operation)
-MPS to extend to hight flow items : to buid a progress schedule
-5S: ckecking , review of internal audits
PERFORMANCE RESULTS
General OTD calculated on last 4 months
5 S : 210 people trained
Results are visual
Lead time:
-reduction of general lead of one week (10%) (by reducing security lead time of 1 week)
Pull flow : clips family : batch size fixed on 30 p/n (preparation to pull flow):
savings on : programming operation , raw material….
Raw material : management parameters calculated and updated ( reduction of shortage)
ACTIONS PLAN / WORKSHOPS PROGRESS
OTD: to dispach to management
5S : to check if internal audit applied
raw material : parameters updated (fixed batch size, level of minimum stock): shortage supervision
MPS : extend number of P/N (high flow)
Pull flow : clip family : extend number of p/n to standardize ( management parameters)
RISKS / COMMITMENT/SUPPORT REQUIRED