Andrew Graves

Implementing Lean in aerospace—challenging the assumptions and understanding the challenges

Lean manufacturing appears to hold considerable promise for addressing a range of simultaneous, competitive demands including high levels of process and product quality, low cost and reductions in lead times. These requirements have been recognised within the aerospace sector and efforts are now well established to implement Lean practices. Lean manufacturing was initiated within the automotive sector. However, since the publication of the influential book, The Machine That Changed the World (Womack et al., 1990) there has been a range of documented cases of Lean implementation in a variety of sectors. Despite this evidence, the perception remains that Lean manufacturing is to some degree, an ‘automotive idea’ and difficult to transfer to other sectors especially when there are major differences between them. In this paper we discuss the key drivers for Lean in aerospace and examine the assumption that cross-sector transfer may be difficult. A Lean implementation case comparison examines how difficulties that arise may have more to do with individual plant context and management than with sector specific factors.

Quality failure costs in civil engineering projects

A methodology was developed to measure cost of quality failures in two major road projects, largely based upon a work‐shadowing method. Shows how the initial data were collected and categorised into definable groups and how the costs were estimated for each of these categories. The findings suggest that, if the projects examined are typical, the cost of failures may be a significant percentage of total costs, and that conventional means of identifying them may not be reliable. Moreover, the costs will not be easy to eradicate without widespread changes in attitudes and norms of behaviour within the industry and improved managerial co‐ordination of activities throughout the supply chain.

Build to order: the road to the 5-day car

Visit any modern car production line and you will be faced by a showcase of modern technology and advanced logistics combining in a clinical environment to produce rows of automobiles, each significantly different from the one before and after it. From stamping out the sheet steel body to driving a finished car off the line typically takes under 30 hours. However, if you try and buy a car to your specification you can expect to wait around 55 days, despite production lines frequently running below capacity. Why can’t you have your car in 30 hours plus delivery time? The challenge of mass customisation, building cars to customer order, brings great value to both the customer and the automotive industry. Building cars to customer order eliminates the need for companies to hold billions of dollars worth of finished stock. Any company able to free this capital would improve their competitive position and be able to reinvest in future product development. The benefits to all are clear and the first to market an operational build-to-order system will generate a significant cost advantage that may be difficult to emulate. The question for many automotive executives is not when but how exactly will such a radically ‘different’ business model operate? This book addresses the conceptual and practical aspects for achieving the automotive industry’s next goal: the rapid delivery to the customer of a bespoke vehicle only days after placing an order.

Through-life management: the provision of total customer solutions in the aerospace industry

The concept of through-life management, a complex combination of manufacturing and service operations, is being widely promoted throughout the aerospace industry. However, there is no clear understanding of how this approach is being implemented in practice. This paper presents the findings of an exploratory study undertaken within the aerospace industry which investigates the drivers for through-life management, the development of strategies and services to support through-life management and the transition of aerospace companies to through-life total service providers. The paper concludes by highlighting the theoretical and practical implications of this research.

Private finance, public roads: configuring the supply chain in PFI highway construction

Abstract During the 1990s the UK witnessed a change in public procurement strategy. Under the private finance initiative (PFI) the obligation of the UK Government shifted from procuring capital assets to purchasing (directly or indirectly) the flow of supply services from such assets. The concomitant change within the private sector requires its involvement not only in the construction of an asset, but in its conception, its long-term financial viability and its operational integrity. What is supplied through the construction chain to the client is not an asset or components thereof, but services. The attitudes prevalent within the tender, design and construction phases of a current PFI variant (the design build finance operate or DBFO) road project were investigated in order to establish the potential impact upon the quality, cost and function of supply resulting from the change in procurement form. Attention was paid to the crucial links in the supply chain, from the client through the first and second tier suppliers, analysing the changes instilled in those parties by their being exposed to the DBFO from of procurement. Significant differences were found in how the suppliers regarded the tender, design and construction phases. Where previously suppliers’ attention was paid to claims positioning and the potential for leveraging profit through the identification of liabilities, under the DBFO problem-solving attitudes overrode those of problem avoidance. This confirmed the prevailing opinion among the construction industry that DBFO road schemes constitute a valuable influence over the mode of supply, worthy of development.

The importance of knowledge management for ERP systems

Enterprise resource planning (ERP) software provides a coherent integrated electronic business management environment, frequently controlling all logistics and billing for an enterprise. Many companies are now reliant upon these systems for their daily operations; maintaining and adapting them in parallel with their business as it evolves, adding new suppliers and customers. The process of managing the development of the ERP software requires detailed knowledge of systems. ERP systems often become unique to an enterprise and may have tens to millions of pounds being invested in their development. The value of knowledge management (KM) specifically for the management and operation of ERP systems is becoming evident. Managing ERP systems knowledge has been identified as a critical success factor if a firm, its suppliers and logistics providers are to retain control of their business and not be controlled by their systems. Case studies of KM practice for three global organisations from within the UK Aerospace and Defence industry have been undertaken. This study identifies leading practices, with references to the literature, for effective KM of ERP systems.

Outsourcing engineering commodity procurement

Purpose – The purpose of this paper is to introduce and provide an insight into the benefits of outsourcing the procurement function for engineering commodity items.Design/methodology/approach – Research into the literature presents the development of outsourcing procurement functions and this manuscript adds to the body of knowledge through introducing the outsourcing of engineering commodity procurement, illustrated with the case study example.Findings – A US Aerospace Fortune 50 company has made savings by outsourcing the procurement of commodity engineering parts. This has occurred in two stages. Firstly the commodity procurement was locally outsourced and staff migrated to the service provider to whom commodity procurement was a core competence enabling them to offer cost savings. Secondly the back office and telephone service was moved to India, further reducing cost whilst enhancing the service through an increased headcount.Originality/value – The paper provides the first example of the two stages...

Decentralised site management—a case study

Where projects are complex, there may be a need for greater decentralisation of control in order to avoid the bureaucratic inefficiencies of central direction. Decentralisation does not, however, dispense with the need to co-ordinate activities. This paper shows how a major UK construction company successfully implemented a balance between cellular autonomy and overall project risk management in a major road project.

The threat to core competence posed by developing closer supply chain relationships

Supply bases have been rationalised and now fewer “preferred” suppliers are in direct contact with customers, who demand more personal attention and greater responsiveness from them. In developing closer supplier relationships, the exchange of proprietary information becomes more likely and also the potential loss of core competences. This paper assesses the applicability to UK aerospace companies of supplier models by Cox and Kraljic that link relationship types to core competence. During the research a method of procurement was uncovered in which the customer placed a team of engineers to work with competing suppliers to develop their bids. In doing so, the customer absorbed technical knowledge from the supplier. The customers objective was to obtain acceptable technical offers from both suppliers. This method delivered best value to the customer, but may be in breach of competition law.

Towards the 3Daycar: vehicle design and its impact on rapid build-to-order

This paper identifies the key technological opportunities for rapid build-to-order in vehicle design. It questions the ability of conventional volume car production methods to deliver total customer order fulfilment. It examines the link between body construction, vehicle complexity and capacity as a means of reducing the current average 48-day lead time, from order placement through manufacture to delivery to the customer. Four case studies of new models at European automotive manufacturing plants suggest that emerging technology offers a significant contribution towards meeting customer demand and shortening order-to-delivery lead time.