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1、Improving Supply Chain Management RelationshipsMary SimmermanVice President, Materiel April 23, 2003Acquisition & Logistics Excellence Conference 1Copyright 2003 Northrop Grumman CorporationAgendaIntroductionsSupplierManagement WhatDoes It Mean?TheDefenseBusiness WhatsDriving theTransformation?North

2、rops Model “StrategicRelationships,StrategicAlliances”KeySuccessFactorsFutureVision WhereDoWeGofromHere?Questionsand Answers2Copyright2003NorthropGrumman CorporationMarySimmerman, VP,MaterielOversee Domestic andInternational Procurement andSubcontractManagementVP,SupplierManagementandProcurementatBo

3、eing Space andCommunicationsCo-Lead Supplier Mgmt. ProcessCouncilatBoeingPast LifeatNorthropinAdvancedSystemsDivisionand GrummanAerospaceSMEfor Material OperationsofBoeing Airliftand Tanker1998 MalcolmBaldridgeAwardMBA, KellerGraduateSchool, BA in Business Mgmt.,University of Phoenix3Copyright2003No

4、rthropGrumman CorporationCost-BasedAdversarial“Vendor”“Tug of War”Non-EvaluativeShort-TermEvent-BasedCollaborationJointinvestmentSophisticated EvaluationToolsLong-TermFocusContinuous improvementTrue PartnershipsQualityIssuesPoorCommunic.TQM6SigmaMetricsIntegratedSystemsNewTech.SCMFocusPastPresentSup

5、plierManagement WhatDoes it Mean?4Copyright2003NorthropGrumman CorporationWhat Do We MeanToday?A FormalProcess by Which SuppliersAreEvaluated andCategorizedbyTheirAbility to AddValuetoOurBusinessVia Investment, CollaborativePlanning&Design, Risk-SharingandProductEnhancementSupplierManagement Is Enab

6、ling RelationshipswithProvidersofGoodsand Services to:AttainBusinessObjectivesExpandBusinessOpportunitiesReduce/TransferBusinessRisks5Copyright2003NorthropGrumman CorporationMarketShareSignificantlyEnhancedrevenueBenefitsfrom Supplier ManagementNewProducts/ItemsBroaderName RecognitionReduced CostsNe

7、wDistributionChannelsNewCustomersWhyManage Suppliers?60-70%ofWhatWeBuildIsProcured!CustomerSatisfaction6Copyright2003NorthropGrumman CorporationIndustryConsolidationWarTacticsCulturalIssuesEnhancedCommunicationsWeapons TechnologyTheGenesisTheDefenseBusiness WhatsDriving theTransformation?“Integrated

8、Network”True Partnerships“Systems,Services, Support”PrecisionWeapons& “Real-Time” CommunicationsGoalsCollaboration7Copyright2003NorthropGrumman CorporationTheNorthropModelSupplierEngagementPossess TechnologyThatWouldBeBeneficial to OurFutureBusinessAspirationsAlignwith OurFutureStrategies(e.g.NHA, J

9、IT)Have R&DExpendituresThatAreRelevanttoTechnologies We BelieveAre GapsinOur PortfolioSelectPotential StrategicPartners(Industry/Geography) withCharacteristics ThatWouldBeCriticalDifferentiators forUsinFutureCompetitions (e.g. Skills,Political Strengths,Technologies)8Copyright2003NorthropGrumman Cor

10、porationTheNorthropModelHawkeyeCaseStudyIssues:RadarApproach& TeamSolidifiedWithinthe Navy(NAVAIR,OPNAV, CNO,ASN)Navy FundingProfilestoSupportRMPSD&DandPostMultiyearProductionRMPSD&DProposalSubmission in Juneand Contract Award by DecemberFY2004 NTEProduction Proposal SubmissioninNovemberand AACAward

11、byDecember(3Hawkeye 2000Aircraft)Strategies:PreserveFY2003 BudgetforSD&DandProductionandPreservation in POM-04ContinueHawkeye 2000and Advanced Hawkeye/RMP Advocacy CampaignsWork withthe Customer forPost MYPProduction ViaAffordability OptionsFY2004-2005(Hawkeye2000)FY2006-TBD(RMP LS /TAMD)Hawkeye Ind

12、ustry TeamTactics:LeveragetheStrengthofa“Team”inUSN,OSD, Congress andtheMediaPropagate“Value of RMP”asHighestPriorityofAdvocacyCampaignStress“Value of Hawkeye2000/CEC” to NeartermFleetOperationsDevelop AffordabilityPostureonRMPSD&DandPostMultiyearProductionTargetKey OPNAV FlagsPromote TeamAccomplish

13、mentsStrategicIntent:JointMarketingofthe E-2CHawkeyeandUSN AEW&C Roadmap9Copyright2003NorthropGrumman CorporationTheNorthropModelF-35CaseStudyStrategicIntent:Collaborative DesignandEngineeringwhilepursuing“BestValue”Issues:Cost containment is keyforthe programInvestment structurerequiressourcingstra

14、tegyforparticipatingcountriesRFB/RFQ are“model” basedDesignand productionspecsare evolving as thebidprocessprogressesStrategies:Exploit technologieswhichsupport collaborativedesign andengineeringtoaddress weightandconfigurationchallengesEmploy“ePMO” fordocumentanddatasharing forglobalteamDeploycommo

15、n engineering standards(CATIA)F-35 GlobalTeamTactics:DevelopedJSL “Virtual PMO”for globalproject managementsupportBalance “best value”andcollaborativeengineeringcapabilitiestomeetcost anddesignchallengesDevelop specific incentivesfor teamtoaddresscenterfuselageand weightchallenges.10Copyright2003Nor

16、thropGrumman CorporationContinuous ReviewProcess Based on Performance Measures ReflectingTotalCostofOwnershipMustBeinPlacetoProvide OngoingMonitoringoftheSuppliersEffectiveness“PlatinumSource”Case StudyKeySuccessFactors SupplierRelationship Management11Copyright2003NorthropGrumman CorporationKeySucc

17、essFactors SupplierRelationship Management, Platinum Source12Copyright2003NorthropGrumman CorporationKeySuccessFactors SupplierBenefits13Copyright2003NorthropGrumman CorporationKeySuccessFactors SupplierRelationship ManagementSuppliers/ContractorsAreSelectedStrategically,witha Long-TermFocus,Rather

18、ThanHistoricShort-Term,Transaction-Based.OrganizationMustCommitthe ResourcestoDevelop Mutually BeneficialRelationship.DemandsonSuppliersRequiring CapitalInvestmentsNecessitates theSharing of Plans andSchedulesUtilize SuppliersAsa KnowledgeSourceand Share Benefits of ExpandingInto NewMarkets,Assessin

19、gValue-BasedOpportunities,DiscoveringNew CostSavings,and ExtendingCurrent Functionalities14Copyright2003NorthropGrumman CorporationKeySuccessFactors SupplierRelationship Management(Cont)Involve KeySuppliersinLong-Term StrategicAlliances, Where Specific CapabilitiesMayNeedtoBeDeveloped.MWBEsMayBeaGoo

20、d SourceforThis.Align Suppliers,IR&DtoTechnology Maps15Copyright2003NorthropGrumman CorporationBusinessPartnersWorldEnterpriseGroupSAPR/3BusinessWarehouseOrderEntry,ILS, CSFinancialsHRFulfillment.E-ProcurementStrategicEnterpriseManagementPortal.ExtendingScope(New Dimensions&Add-Ons)COLLABORATIONInte

21、rnetExtranetIntranetENTERPRISEKnowledgeWarehouseSupplierRelationshipMgtCollaborative PLMAPOCRMCustomerRelationshipMgmtMFG,QAProcurementBillingCompleteIESIII/IVFoFKeySuccessFactors TechnologyBlueprint16Copyright2003NorthropGrumman CorporationUser-initiated, catalog-basedrequisitioningStrategicSourcin

22、gOrderExecution andSettlementProductLife CycleManagementOrder Planning andCreationEDIDirectIndirectSupplierCollaboration,Management,ImprovementSpecificationDevelopmentePLM (PDM,CAD/CAM,Proj. Mgmt,collab, etc.)ERPSupplyChainPlanningSupplyChainExecution“e-procurement”IndirectProcurementComponent SupplierManagement (CSM)EngineeringPurchasing, Mfg.Planning,Supply ChainPlant, IT,WarehouseLinkage#1Linkage#2Linkage#3Key LinkagesSupplier/ Part/CategoryMasterDataDetailedCost Ele

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