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Success Story: Increasing Visibility of Supply Risk and Supplier Performance to drive Rate Readiness (CS260)


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SGS-Maine Pointe worked closely with the client in a 20 week engagement to create a cohesive
and collaborative approach to reduce risk through increased accuracy of supply chain risk


The Challenge

Faced with increasing risk in the supply chain and disruption from poor visibility of supplier issues, senior management needed a comprehensive view of the supply base of their most valuable aircraft program to determine rate readiness viability. SGS-Maine Pointe was brought in to map current supplier landscape with respect to risk, single sourcing, optionality, confirm the population of high-risk categories or suppliers, determine the feasibility of optionality, define the magnitude of the problem and quantify the cost/risk-benefit to the client.

This aircraft industry giant designs, assembles, markets, and sells jet airliners and business jets and also provides product-related maintenance and training to customers worldwide. The manufacturer has more than a dozen engineering, manufacturing, and assembly facilities located throughout the U.S. and internationally. With over 4,000 orders across five different commercial aircraft programs, it is a world leader in single-aisle and twin-aisle production.

 

The Situation

  • Faced with increasing risk in the supply chain and disruption from poor visibility of supplier issues, senior management needed a comprehensive view of the supply base of their most valuable aircraft program to determine rate readiness viability

  • Client brought in SGS-Maine Pointe to map current supplier landscape with respect to risk, single sourcing, optionality,
    confirm the population of high-risk categories or suppliers

  • Determine the feasibility of optionality, define the magnitude of the problem and quantify the cost/risk-benefit to the client

 

The Solution

After an 8-week assessment, SGS-Maine Pointe worked closely with the client in a 20 week engagement to create a cohesive and
collaborative approach to reduce risk through increased accuracy in the following PRA process areas:

  • Create a Supply Risk Model as an initial view for each Category Group for sole source parts to assess risks and potential optionality

  • Implement an approach to Rate Readiness Supply Risk and Supplier Relationship management by improving the
    preparation and execution of the PRA process

  • Develop a framework to stand up a Rate Readiness Center of Excellence to ensure continuous improvement and
    sustainability for all its programs
 
41 percent supplier rate risk indentification increase

The Results

  • Increased supplier rate risk identification by 41% after completing a Production Readiness Assessment (PRA)

  • Increased PRA scheduled adherence from 73% to 90% from Oct to Dec

  • Participated in Pre & Post coaching on 10% of scheduled PRAs to mitigate risks

  • Captured 45 distinct recommendations and converted into reference coaching guide

  • Trained over 300 Procurement Agents (PAs), PA Managers, Industrial Engineers and Sr Managers on Rate Readiness

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