BAE Systems - Military Air & Information

Transcription

1 BAE Systems - Military Air & Information F-35 Vertical Tail manufacture in Australia Winner: International Procurement Project of the Year Gary Burns Head of Procurement & Supply Chain, F35 Mike Langner Procurement Manager, F35 International Participation January 2015

2 BAE Systems At BAE Systems, we serve the needs of our customers by delivering a wide range of advanced defence, aerospace and security solutions that provide a performance edge. We work together with local partners to develop, engineer, manufacture and support the innovations that increase defence sovereignty, sustain economies and safeguard commercial interests. With some 84,600 employees in six continents, we are committed to creating solutions that protect and strengthen nations, commerce, communities and people. Key facts Global capability One of the worlds leading defence companies A world leading innovator Over 84,600 employees worldwide Customers in more than 100 countries 2013 sales of 18.2billion Working with universities worldwide (over 30 in the UK) 70m+ invested annually in education and skills globally 9bn+ spent with over 33,000 suppliers globally 2

3 F-35 Programme F-35 is the largest defence programme in the world, estimated total value >$1.5 trillion US Lead with 8 International Participant Nations UK, Italy, Netherlands, Australia, Canada, Denmark, Norway and Turkey Lockheed Martin is Aircraft Prime Contractor, with Partners Northrop Grumman and BAE Systems Pratt & Whitney is Prime Contractor for Propulsion Three F-35 variants: A - Conventional Take Off and Landing (CTOL), B - Short Take Off and Vertical Landing (STOVL) and C - Carrier Variant (CV), Israel, Japan and South Korea and have selected F-35 under FMS UK has funded part of the development programme and has ordered 4 LRIP aircraft the only Level 1 partner Full UK acquisition numbers will be determined as part of the next SDSR, planning assumptions remain at 100+ Projection of 3,000 aircraft plus additional Foreign Military Sales. F-35B STOVL Length 51.1 ft Span 35 ft Wing Area 460 ft 2 Internal Fuel 13,888 lb F-35A CTOL Length 51.1 ft Span 35 ft Wing Area 460 ft 2 Internal Fuel 18,073 lb F-35C CV Length 51.4 ft Span 43 ft Wing Area 668 ft 2 Internal Fuel 19,570 lb

4 BAE Systems Roles on F-35 Military Air and Information - Workshare agreement with LM covering all phases of the lifecycle Leadership Roles: Aft fuselage & empennage Wing tips for CV variant Fuel, Crew Escape & Life Support CTOL Structural Test Structural and Vehicle Systems Prognostic Health Management UK National Sustainment Queen Elizabeth Class Carrier Integration Support Supporting Roles: Global Sustainment UK Weapons Integration STOVL Flight Test Electronic Solutions (managed via BAE Systems Inc) Electronic Warfare (EW) System Active Inceptor System Vehicle Management Computer Alternative Helmet Mounted Display BAE Systems Australia Vertical Tails Corrosion Monitoring EW Sub-assemblies

5 International Industrial Participation BAE Systems was requested by Lockheed Martin to establish second source IIP suppliers sufficient to achieve a 20% contribution, by value, of the total BAE Systems work share, focusing on Australia, Canada and Denmark. Thereby ensuring international second sources are in place and that partner nations in the programme receive industrial benefit from the programme. UK BAE Systems plus 500+ Companies deliver around 15% of the work on the overall F-35 Lightning II programme Canada CTOL HT s & CV Outboard Wing Qty 1300* Denmark Carbon Composite Qty 590* Australia CTOL VT s & Tooling Qty 722* *quantities subject to variation

6 Why did we submit this award? Nominated by the Programme Head of Procurement & Supply Chain as a JOINT award. The activity was seen many as a truly outstanding achievement our Customer Lockheed Martin, the US and Australian Government, and multi-functional senior managers within BAE systems. The activity was seen as Best Practice The team transformed a Company with no Aero-structures experience into a world class F35 Assembly business in less than 4 years. The team developed best practice capability insertion processes and techniques, which now paves the way for other such projects. Admirable focused behaviours of the team who truly embraced the principle of a transparent, joint working supplier collaboration. A start-up saving of US $8 million, and created an affordable baseline that will stand the test of future rate production quantities and affordability challenges.

7 What has winning the award done for us? Pride for the company and our function An honour for the people involved in the award Raised the profile of the Procurement function within our Company Attracted positive publicity for the F35 programme and the companies involved Political kudos for the Australian Government Strengthened Marand s business and market standing Significant press focus

8 Introduction to Marand Marand Australia Selected as the manufacturer of the F35 CTOL Vertical Tails following supplier selection in Sets to be sourced in Australia with supporting supply chain. Marand had no prior experience in Aero-structures. Privately owned Australian company which opened in 1969 as a small tooling company based in Melbourne Australia 8000 square metre engineering facility provides: CNC machining for large capacity milling Precision turning and grinding Advanced assembly bay and tryout facilities Product development areas Currently employ circa 150 employees

9 Project Objectives To ensure that a complex, major aircraft assembly was successfully transferred into Australian industry whilst ensuring cost, schedule and quality remained on target. 1st Delivery Year Australia (Marand) BAE Systems wanted the Marand Facility in Australia to be an extension of the manufacturing facility at BAE Systems Samlesbury, and governed as such i.e. mini-me To rapidly transfer product and technical capability into the supplier who hasn t previously supplied any aircraft products To identify and deliver cost reductions to ensure long-term affordability targets are achieved. Establish Advanced Manufacturing capability in Marand in order to deliver the programme at full rate production (see table). To ensure that lessons learnt and best practice are captured such that these can be implemented with future IIP Suppliers. Collaborate in an open, ethical and mutually beneficial relationship focused on achieving joint objectives. LRIP LRIP LRIP LRIP LRIP LRIP MY1.1 MY 1: MY1.2 MY 1: MY1.3 MY 1: MY1.4 MY 1: MY2.1 MY2: MY2.2 MY2: MY2.3 MY2: MY2.4 MY2: MY2.5 MY2: MY3.1 MY3: LRIP Programme Quantities - Marand F-35 Program Information Non-Export Controlled Releasable to Foreign Persons 9

10 Marand Development Timeline 2011 Started CTOL VT Capability Insertion Fundamental Training (FTDP) Demo Box Readiness Review (DBRR) Jan th / 7th December 2012 Qualitative (R/Y/G) Scoring for integration of Affordability and Risk/Issue identification/mitigation into functional categories Quantitative (1-10 Range) Scoring for Production Readiness related category elements 1.0 FACTORY SYSTEMS & PROCESS - Dave Tierney Wt Rate 4.0 QUALITY - Tony McCabe Wt Rate 6.0 PROCUREMENT - Richard Dewar Wt Rate 0. General R/Y/G Y 0. Quality Process Improvement R/Y/G Y 0. Supply Chain/Lead Time Improvement R/Y/G G Initiatives Initiatives 1. Engineering 10% 9 0. Risks / Issues R/Y/G G 0. Risks / Issues R/Y/G G Document Receipt 2. Purchasing 10% 9 1. Quality Mgmt System 25% 9 1. Supplier Procurement Processes 50% 6 3. Receipt 10% 7 2. Supplier Oversight 15% 5 2. Sub-tier Management & Readiness 35% 7 4. Create Engineering 10% 9 3. Verification / Validation / Demonstration 30% 9 4. Lead Time 15% Shop Floor Management 15% 9 4. Process Control / Variation Management 30% MANUFACTURING - Vanessa Bickerstaff Wt Rate 6. Reconcilliation 15% MATERIALS & PROCESS - Paul Fletcher Wt Rate 0. IIP Major Unit Capability Assessment R/Y/G G 7. MRB Activities 10% 8 1. Facility Approvals R/Y/G G 0. Risks / Issues R/Y/G R 8. End Item Deliverables 20% 9 2. Operator Competencies R/Y/G G 1. Manufacturing & Repair Processes 20% PROGRAMMATIC - Richard Dewar Wt Rate 3. Assembly Approvals 25% 9 2. Manufacturing Process Maturity N/A N/A 1. Affordability Management 15% 9 4. Spec & SWI configuration 25% 9 3. Capacity 30% 10 & review 3. Staffing 20% 8 5. In-coming Receipt Testing Process 5% 6 4. Producibility 30% 7 / Manufacturability 4. Training 20% 9 6. In-Process Repair & CFC handling 15% 6 5. Production Metrics 20% 9 5. Corporate Responsibility 5% Equipment Calibration 15% 9 6. Continuous Improvement N/A 9 6. Security 10% 8 8. Local supplier approvals (IRT / NDI) 15% Misc - All Wt Rate C1. Contract Authorization 10% 10 Walk around R/Y/G R C2. BFE / GFE 10% 8 R/Y/G G D1. Change 10% SCHEDULE Wt Rate - Richard Dewar 0. Risks / Issues R/Y/G G 1. Delivery Perf 25% Schedule Management 75% 10 Marand Assy Facility Development Pass at the Production Readiness Review June 2013 Started LRIP 7 Production July 2013

11 Capability Staircase Capability Insertion Activities April 2014 Lessons Learnt on IIP Supplier Build Lean, Process Mapping Transferring BAES and Supplier CIs, in conjunction with Procurement Productionisation Production Phase 1 Capability Assessment & Gap Analysis Phase 2 Qualification and Planning Demonstration Article, Data Transfer Phase 3 F35 Process, Production Data Transfer, Burn-down, Readiness Initial Build Line Support Transition to Rate Phase 3 Phase 2 Pre-Production Capability Maturity Level 0 Initial Production Capability Maturity Level 1 Repeatable Capability Maturity Level 2 Systems Architecture Support (Full Duration) Production Start Gate Review BAES M&P Governance Support (Full M&P Governance Support (Full Duration) Grey Beards. (Q2) Duration) ME Governance Support (Full Duration) M&P Governance Support (Full ME Governance Support (Full Technical Transfer Build Support Duration) Duration) LOT 7 Marand HMS Capp Planning LH & RH ME Governance Support (Full LOT 7 Marand HMS Capp Planning (Full Duration) Duration) LH & RH (Full Duration) F35 Product Engineering Data Transfer (eg LOT 7 Marand HMS Capp Planning SQN Answering, and transfer to Specs, SWIs, ASOs & F35 Processes etc) LH & RH (Full Duration) MEQN s ME (Core EC&T), Design, Demo Box Planning Generated & Transferred to NC Programming Support for LOT 7 Structures, M&P the supplier Tape Transfer. (Q2) Technical Transfer Build Support Identification of Operator and Technical Training SQN Answering, and transfer to Transfer of Skill s matrix and training plans MEQN s ME (Core EC&T), Design, Provide BAES training for supplier operators and Structures, M&P technical personnel Technical Transfer Build Support First Article Verification (FAV) In Country Support Demonstration Article Spar Manual Drilling First SQN Answering Part Qualification. Daily Progress Meetings NC Programming Support for Demo Box (Q1) Free Issue of Equipment & Engineering Gate Review, ME (Core EC&T), Hardware where required Quality & M&P Post Demo Box (Q1) Build-line support Lessons Learnt Review ME (Core EC&T), Change Management Quality & M&P Post Demo Box (Q2) AEAs SQN Answering, and transfer to MEQN s ME Change Requests (Core EC&T), Design, Structures, M&P Governance Notes Support to Demo Box Build Specs / SWI s / COSVs 1st Aircraft Engineering Burn Down Plan Tool Solution & Quantity Lessons learnt on 1st Production Build First Article Inspection (FAI) Define the Capability Maturity Level 3 Workshops with the Entire Team (Eng & Ops), Process Map activities Including Lean Principles Transferring BAES CI Including Procurement responsibility Identifying Supplier CI Build-line support SQNs Change Management AEAs Change Requests Governance Notes Specs / SWI s / COSVs Manage the Capability Maturity Level 4 Span-time Reduction Facility Layout BAES Continuous Improvement (CI) Stockable Subs Engineering data Plannings Change Management AEAs Change Requests Governance Notes Specs / SWI s / COSVs Optimise the Capability Maturity Level 5 BAES Continuous Improvement (CI) Supplier CI Audits Monitoring Build-line knowledge in the Supplier company, only BAES advise sought Change Management AEAs Change Requests Governance Notes Specs / SWI s / COSVs BAES-JSF-DOC SOW Issue 001 The Capability Insertion Framework / Staircase is a tool developed by the BAE Systems team which allows gaps in capability to be identified and plans for their closure to be worked. BAE Systems worked closely with Marand to identify gaps in capability not just within engineering and manufacturing, but also in project management, procurement and supply chain management. F-35 Program Information Non-Export Controlled Releasable to Foreign Persons 11

12 How did we do it? A significant amount of planning has been crucial to the success of the programme. This has encompassed: technical issues, ITAR (International Traffic in Arms Regulations), Export Controls, manufacturing licences, scheduling, capacity planning, supply chain management and extensive manufacturing capability insertion. By utilising an approach known as Mini Me, suppliers used critical processes already developed by BAE Systems. This ensured that: Non-Recurring Costs were minimised Process/Product consistency & structural equivalency Focussed technology transfer The plan was then delivered and matured by the establishment of an IPT (Integrated Project Team) multi-skilled organisation focussed on: Detailed technical transfer framework and business review structure Integrated suite of project plans jointly owned by BAE Systems and Marand RFP documents being developed in conjunction with supplier F-35 Program Information Non-Export Controlled Releasable to Foreign Persons 12

13 Training BAE Systems developed training modules outside of the normal IIP capability insertion process to grow Marand as an Airframe Supplier. This pushed the boundaries of knowledge transfer and created a partnered approach. There was also close working with the Trade Union and the F-35 Production Operations Business to allow the trained Marand operators to work alongside BAE Systems Skilled Fitters on the F-35 production builds. This is a first for BAE Systems, where an outside supplier has actually had hands-on experience in building the components and demonstrates the special relationship developed with Marand. The process has developed trusted relationships between other areas of the BAE Systems business, outside of GP&SC such as F-35 Production Operations Business and the Supplier. F-35 Program Information Non-Export Controlled Releasable to Foreign Persons 13

14 Benefits / Savings We have successfully delivered an IIP solution into Australia allowing Marand to build the F-35 Vertical tails on time and on cost (initially thought impossible). We have supported the customer by delivering an aero-structures capability from a tooling supplier with zero experience in aerospace to a 1st class F-35 assembly business in less than 4 years. We have enhanced our reputation with the Customer by achieving the key programme milestone of the first CTOL VT delivery in March We have delivered a saving in excess of $8m to the programme. Solicitation of available grants, use of scrap parts and matured our approach based on previous learning We have enabled a rapid transfer of technical capability by extensive sharing of best practice approaches from BAE Systems which allowed Marand hands on training in the UK. BAE Systems developed an innovative training programme for Marand technicians that facilitated a consistent baseline approach across both organisations with respect to Project Management, Supply chain management, Engineering & Manufacturing etc. BAE Systems and Marand have established a manufacturing capability that meets current programme requirements and is positioned to face the future challenges of full rate production and affordability F-35 Program Information Non-Export Controlled Releasable to Foreign Persons 15

15 Quotes Quotes Lockheed Martin has the utmost confidence that BAE Systems will maintain aircraft structural integrity using their benchmark process. Lockheed Martin IP Director Jim Shidler Success would not be assured without the outstanding dedication and leadership of the BAE Systems project team. The comprehensive training provided by BAE Systems to the Marand team has been a key contributing factor to the progress made to date. The NACC would like to commend BAE Systems for their dedicated contribution to the project Department of Defence Director JSF Industry - John Wilshire BAE Systems have been instrumental in the success of the project with the delivery of the demo box They have facilitated detailed training of Marand staff. And provided a benchmark and rigorously controlled project management plan for the insertion of manufacturing capability within the Marand facility. Marand Managing Director David Ellul BAE Systems stand up approach is recognised as Best Practice by the F-35 Customer, Joint Program Office. F-35 Program Information Non-Export Controlled Releasable to Foreign Persons 16

16 REAL PERFORMANCE. REAL ADVANTAGE. Questions?