A change of pace

Phil Curnock, project manager, SC21 at A|D|S describes the improvement programme that is giving a lift to the aerospace, defence and security industries.

Achieving supply chain improvement is critical to the continued competitiveness of the UK aerospace and defence industry. Currently the UK commands a 17% global share in both sectors making it the leading nation for aerospace and defence in Europe, and only second to the US globally. Consequently it is a huge revenue earner for the UK.
The rising competition coming from nations such as China, India and Brazil in the aerospace and defence markets is potentially a threat to the UK's global market share, and efficient supply chains will help to protect, maintain and increase the nation's position.

In response to these challenges, A|D|S, the trade body advancing UK aerospace, defence and security industries, is overseeing Supply Chains for the Twenty First Century – SC21. SC21 is a change programme aiming to accelerate the competitiveness of the aerospace and defence industry. Founded at the 2006 Farnborough International Airshow by 19 foundation members within the industry, SC21 over the last three years has really begun to take off. With international competition increasing, the participation of companies of all sizes throughout the UK supply chain in schemes to boost the sector is crucial to delivering real results. 

The programme

SC21 focuses on doing what is already being done but in a more efficient and coordinated way. By applying SC21 principles businesses should be able to significantly improve supply chain performance and reduce duplication. SC21 provides the framework for companies to adopt which will allow them to reduce duplication and encourage a standard approach to business process, manufacturing excellence and relationship management.

SC21 signatories have undertaken seven commitments to work towards ensuring the UK supply chain is competitive and delivers increased value to customers. These are:

1. A new SC21 business culture – being open and transparent, through sharing information and working collaboratively, to deliver benefits across the industry.
2. Delivering innovation – pursue the most competitive solutions for our customers, by accessing innovation and specialist expertise.
3. Through life solutions – involve all functions of the supply chain and encourage transparency.
4. Delivering the SC21 plan – adherence to the commitments will be tested annually and our performance will be measured and published.
5. Leadership – encourage colleagues in the industry, including customers and suppliers.
6. Ethical practices – all business is conducted in a principled manner, with the highest degree of integrity.
7. Increased pace of change – that rate of change and improvement is at an accelerated pace.

It costs nothing to subscribe to SC21 but fully engaging in the change programme requires the commitment of resources. As a signatory, businesses become a member of the SC21 taskforce, which meets regularly to review progress in the implementation of the programme. The main aims of the forum are to review progress against the plan and to act as a communications forum for sharing success stories, lesson learned and specific issues.

Recognition of excellence within SC21 is an important aspect of encouraging and driving consistent improvement across all signatories. As part of the programme, SC21 companies have signed up to a formal recognition process that reflects the contribution and commitment of their supply chain.

Organisations achieving and maintaining agreed criteria in terms of delivery, quality, sustainable improvement and the associated improvement frameworks will receive recognition in the form of a bronze, silver or gold award sponsored by an SC21 company. Implementing these four aspects of development and performance achieves a benefit to all parties in the areas of competitiveness, enhanced customer perception and lower internal costs by employing best practise solutions and lean management.

SC21 presents awards that are sustaining and improving world class performance across businesses. Progression through the awards stages is now a regular occurrence with companies going from bronze to silver and silver to gold, with the first gold award likely to be presented by the year's end.

Making headway

By participating in SC21 companies will position themselves as innovative, market leading and willing to develop long term relationships with customers and suppliers. Participating businesses should be able to understand how the industry will change in the future and be aware of the latest developments in the sector.

A growing number of customers, suppliers and competitors are committing to SC21. More than 525 companies have now signed up at CEO or managing director level, including the Ministry of Defence. There has also been a significant increase in the number of small and medium sized enterprises using the self starter option with which to engage with the programme. The self starter option was designed with companies which have no direct contact with the key customers in mind, and paves out the route for them to become involved with SC21 and enjoy funding from the Regional Trade Associations.

This increase in customers has led to increased recognition from government both regionally and nationally. Nationally, SC21 has secured significant funding from Regional Development Agencies and the devolved administrations, such as the Welsh Assembly, Scottish Enterprise and Invest Northern Ireland. Furthermore, following the decision by the MoD to sign up in 2008, MoD personnel are now being trained in SC21 processes and becoming actively involved in the working groups that shape the programme's future.

The skills aspect of SC21 has also received funding that has been aligned through the National Skills Academy for Manufacturing and the Science, Engineering, Manufacturing Technologies Alliance. With the industry facing a large proportion of its workforce approaching retirement age, the need to recruit skilled employees and maintain high levels of continuous training of staff is very high on the industry's agenda and is reflected in its importance within SC21.

On an international level, SC21 recently received recognition at the Paris air show. The Australian government signed a memorandum of understanding to implement SC21 and the next market looking at possible SC21 implementation is Canada.

As a global leader in aerospace and defence, second only to the US, the UK has a real need to ensure that this success continues. The sectors of defence, aerospace and security will play a key role in the country's economic recovery. SC21, through its continued growth, its support from UK regional and national government and its recognition from overseas, is playing an important role in underpinning this success.

The programme is open to all relevant companies in the UK aerospace and defence supply chain. The SC21 team can be contacted at: sc21@adsgroup.org.uk.

(This article was first published in Qualityworld, the official monthly magazine of the Chartered Quality Institute, in December 2009).

A|D|S
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