Transcript class a

Achieving Credible Information to
make Intelligent Business Decisions!
Mark Alston
DARA
Maintenance, repair and
overhaul experience and
skills supporting aerospace,
marine, defence, civil,
electronics, engine and
mechanical component
Customers across
international markets.
One of the largest repair maintenance and overhaul
organisations in the world
Commercial operations
3800 employees
backed by UK MOD
£200m annual turnover (plus spares)
Merger of UK’s Royal Air
Force Maintenance Group
Defence Agency and the
Naval Aircraft Repair
Agency
60 years experience
Became a Trading
Fund on 1 April
2001
The Institute of Internal Auditors
Commitment to Quality Improvement
Award 2003
Chartered Institute of Personnel
Development (CIPD) People
Management Award 2002
Wholly owned by UK
Ministry of Defence
DARA Almondbank
DARA Sealand
•Mechanical components
Electronic
DARA St Athan
•Aircraft
DARA Head Office
DARA
Fleetlands
•Aircraft
•Engines
Market Segmentation
ENGINES &
COMPONENTS
AIRCRAFT
Front Line Aircraft
Fixed-wing jets (eg.
Tornado, Jaguar,
40%
Hawk, Harrier)
Rotary-wing (e.g.
Lynx, Sea King,
Chinook
8%
Helicopters)
Large Fixed-wing
e.g. VC 10
1%
Long Term
Maintenance
Aircraft Storage
ELECTRONICS
• Rolls Royce Engines
6%
• Transmissions
4%
• Mechanical
Components
4%
• Structures
/ General Engineering
5%
• Avionics Radar,
Electrical and
Instruments (E&I),
Communications and
Nav. Aids (CNA)
• Test Equipment
TEPL, Automatic Test
Equipment (ATE)
• Cryptography
• Cable Assembly
• Honeywell Engines
3%
18%
9%
1%
1%
DARA : The Transformation
The decision was taken by the DARA Board to implement a
business wide Planning and Management system showing a
projected return on investment in less than three years.
The business wide Planning and Management system was
seen NOT as a software implementation.
It was viewed as a critical part of our commitment to a
Business Transformation Programme.
the challenges we faced.…
From
To
hierarchical
flatter structure
command & control
empowerment
- poor teamworking
innovative
- poor leadership
- lack of participation
risk averse
inflexible
costly &
uncompetitive
flexible & responsive
reduce overheads
competitive market
customer focused
massive cultural change required
Why ERP for the DARA?

Increased integrated forecasting and planning capabilities
–
Through increased visibility of the DARA pipeline
–
Accurate data from across the business
–
Less use of ‘a crystal ball’ and guess work – fact based


Inventory reduction
–
Through buying “just in time” instead of “just in case”
–
Through knowing what you have, and therefore what
you need
Reduced IT costs
–
By reducing the cost of having to constantly “tie up” disparate
systems
Why ERP for the DARA
 Reduced constant re-training of staff
Because only one system is used across the
organisation
–
 Improved customer management
Through increased customer
service, increased knowledge of
the customer and their needs
–

Single source of real-time data
–
Integrated and consistent data, available in one place
and ensuring customers have better data to improve
decision making quality and speed
Business Goals and Objectives
•
•
•
•
•
•
•
•
Integrated planning and management information
Financial integration
Better material planning
Enhanced procurement information
Cost cutting
Increased commercial competitiveness
On time delivery to our customers
Increased quality performance
“One set of numbers”
Business Methodology
Class A – What is it and Why?
Getting Started
We are going to get better (Hopefully)
Work on closing the gap
Not so good
Demonstrated capability
Disconnected Planning
Process
Production Planning focused on the Capacity Planning Short term
short term and reacting to
and used to plan today
customer orders
and next week
Shortage and priority lists
used to drive
day to day Schedule activity
CLASS D/C
Qualitative Characteristics
•CLASS D:
Strategic planning is nonexistent or
totally removed from driving customer,shareholder,and
employee satisfaction
•CLASS C:
Strategic planning is done infrequently,
but provides some direction to how the business is run
VISION, CREATED
FUTURE &
SIZE OF GAP
DISCOVERY
AWARENESS &
UNDERSTANDING
CREATE EXPERTS &
‘AGENTS OF CHANGE’
INVESTMENT IN SKILL
DEVELOPMENT &
BEHAVIOUR CHANGE
UNDERSTAND
BENEFITS
REDESIGN
IMPLEMENTATION
REALISATION
DEPLOYMENT
PLAN
ALIGNMENT
TO
VISION
0
LEARN
BY
DOING
EARLY
BENEFITS
PEOPLE &
BEHAVIOURS
PROCESSES
PROCESSES
TOOLS
TOOLS
CLASS B
Qualitative Characteristics
•CLASS B:
A formal process, performed by line
executives and managers at least once a month. Major
decisions are tested first against the strategic plan. The
company’s vision statement is widely shared
CLASS B
Basic Planning Process
Professional Planning Culture
Capacity is understood
In place,
and Capacity Planning
Master Schedule being used
is a Master Scheduling Process
A formal process of using
integrated schedules
(work centre schedule, etc)
shortage lists gone
Supplier base reducing,
larger suppliers
beginning on schedule
CLASS A
Qualitative Characteristics
•CLASS A:
Strategic Planning is an ongoing process
and carries an intense customer community, shareholder,
and employee focus. The strategic planning process
provides direction to all elements of the company and
drives decisions and actions.
Employees at all levels can articulate and share the
company’s vision and its overall strategic direction.They
can also articulate their roles in implementing and
execution of the strategic plan
CLASS A
CLASS A Planning Process
Master Schedule in Control
Planning use Capacity Planning
Of Change, used for
Using
Promising the
Demonstrated Capacity
Customer 95% +
(95%)
Key Planning roles
All Key Suppliers
All Schedules are integrated with
Working to supplier schedules & Plans.
The Master Schedule
Schedule hit 95%
And hit 95% +
integrated
with Master Schedule
(Master Scheduler
,Material Planners)
STRATEGY
DEMAND
MANAGEMENT
PRODUCT
MANAGEMENT
DEMAND
CREATION
CREATIVITY /
TECHNOLOGY
SOURCING
MANAGEMENT
(INT. & EXT.)
DEMAND
PLANNING
OPPORTUNITY
ANALYSIS &
SELECTION
SUPPLY POINT
MANAGEMENT
SALES
PLANNING
PROJECT &
RESOURCE
MANAGEMENT
SUPPLY
EXECUTION
DEMAND
EXECUTION
EXECUTION
SUPPLY
MANAGEMENT
STRATEGIC
CAPABILITY
DISTRIBUTION
LOGISTICS
STRATEGY
EAME 0029
• One set of numbers to run the business
• Realistic plans
• A passion for accuracy
• A passion for simplification
• Business process performance measurements
• Democracy in planning, autocracy in execution
Silence is approval
• Educated workforce who understand and have
clear roles and responsibilities
Mar
CUSTOMER SERVICE
April
May
June
Monthly Report
95
97
96
97
PRODUCTION PLAN PERFORMANCE
Monthly production Volume - 98%
98
98
98
102
MASTER SCHEDULE PERFORMANCE
Monthly MPS Forecast - 95%
97
100
99
100
MANUFACTURING SCHEDULE PERFORMANCE
Monthly Number of orders on time - 95%
96
96
95
96
SUPPLIER DELIVERY PERFORMANCE
Monthly Supplier delivery performance - 95%
98
98
99
98
Monthly BOM Check - 98%
98
98
99
99
ACCURATE INVENTORY RECORDS
Monthly Cycle Count Accuracy - 95%
96
99
99
97
98
98
98
98
BILL OF MATERIAL ACCURACY
ROUTING ACCURACY
Monthly DWO Routing Accuracy - 95%
PEOPLE &
BEHAVIOURS
PROCESSES
PROCESSES
TOOLS
TOOLS
Business Reporting
ERP gives the opportunity to provide
one set of numbers
BIS (including Waterfall) is the
reporting tool to extract that data
and turn it into executive information
Business Reporting
Baan BIS Waterfall is a customised solution specific
to DARA centred around the key principles of Sales
and Operations Planning (S&OP).
Key Business Drivers for BIS & Waterfall
• Provide a consolidated and common reporting
strategy at DARA
• Fully support ‘Class A’ reporting requirements
• Implementation of a data warehouse solution
• Provide DARA a single set of numbers solution
What is Waterfall ?
Dara bespoke design using standard BIS functionality
Configured Cubes to support S&OP reporting
Captures and presents data over time ranges that allows
trend analysis to take place
Data is retained & not overwritten
The requirement is to give an ability to view the analysis at
many different levels the organisation. This will include a
views by Operating Unit, Business Partner, Product Family
Groups, Product Type, Planning Scenario and Planner.
Waterfall Concepts
Plan Item – EPT1
Extract Month
Family - Lynx
FEB
OU - RW
Forecast
Month
MAR
APR
MAY
FEB
12
MAR
15
14
APR
15
14
11
MAY
20
17
16
12
JUN
16
14
16
15
JUL
14
16
17
19
JUN
JUL
PI Dimensions and Measures
PI Waterfall Analysis Cube
Dimensions
Product Family,
Product Type,
Planner,
Extraction Time,
Total Demand Qty,
Customer Deliveries Qty,
Feed In Qty
Forecast Time
Measures
1
Quantity
2
Hours Measures
Total Demand Hours ,
3
Revenue Measures
Total Demand Revenue,
4
Customer Deliveries Hours
Customer Deliveries Revenue
Percentage Change Measures
The percentage change in any given value, month to month, is calculated in number of instances.
PI Capacity Analysis Cube
Dimensions
Trade Group,
Equipment,
Extraction Time,
Measures
Required Capacity,
Available Capacity
Forecast Time
Demand Plan View
•
Waterfall Cube
•
Forecast in 3
measures
•
Supports
S&OP
•
Derived from
top level
numbers
•
Compares
Demand and
Supply
Demand Plan in £ Profit Centre Revenue
•
Waterfall Cube
•
Demand Plan in £
•
Forward looking
S&OP Periods
•
Total company
with Division
breakdown
•
Could be used for
Profit Centre
Income Analysis
View for Operating Unit Level S&OP
•
Waterfall Cube
•
Waterfall Concept
•
Extraction v
Forecast
•
Comparing
Demand and
Supply Plans
•
Demand
Quantities
Data Mining/Trend Analysis
Root Cause Analysis, Derived from top level numbers,Produces
Statistics through Aggregations
Current Reporting Infrastructure
Fleetlands
Materials
MS Access
Database
Repeated at FWOU
and EOU
Manual Entry
SQL
USAS
Baan
Beaver
Thuia
iCRM
Rebus
Shire
SHE
Assyst
Outlook
Nightly SQL Exchange Schema
(Managed By CGEY)
SIMS
Sealand
SQL
Database
Fleetlands
Managers
MS Access
Database
Fleetlands
Customer
MS Access
Database
Data
Warehouse
Data Analysis Data Mining
FSSC
Corporate
Reports
Sysis
NSP/ Commercial
Future Reporting Roadmap
Summary of Total Solution
USAS
Reporting
Data Mart
SQL
Baan
Beaver
Thuia
iCRM
Data
Warehouse
Rebus
Web
Server
Shire
SHE
Assyst
Outlook
Sysis
Data Analysis Data Mining
Corporate
Reports
Customer
Reports
Ops/Managers
Reports
Quality Awards and Certifications
AS9100 Aerospace
Sector Quality Award
ISO 14001 Environmental
Management System
National Training
Award
Special National
Training Award
The Chartered Institute of Personnel
and Development (CIPD)
People Management Award
Oliver Wight ‘Class A’
(Almondbank and the Manufacturing
Facility at St Athan)
PEOPLE &
BEHAVIOURS
PROCESSES
PROCESSES
TOOLS
TOOLS