Case Studies - Supply Chain Management

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Leading Avionics and Defence Company: Supply Chain Design and Implementation

Our Client develops novel system-based products for the European defence market. New manufacturing capability was introduced but, as volumes rose, increasingly dysfunctional processes and inadequate inter-team relationships were revealed that were having a negative effect upon output quality and delivery thereby putting future sales at risk.

To help combat these deficiencies we placed Consultants inside the Client reporting directly to the UK Managing Director. We conducted an in-depth analysis of how the existing business processes and individuals functioned across the relevant segments: sales, commercial, product development, production, logistics and procurement.

We identified that the operation suffered from structural problems with too many process ‘hand offs’ between teams and that critical activity was often delayed or misdirected due to incomplete information exchange. In addition, the teams were split between several corporate hierarchies each with its own culture leading to feelings of ‘them and us’ and exacerbating communication issues.

We proposed a framework for the establishment of a new Supply Chain Group that would take control of the critical processes and provide a single management structure for about sixty staff previously spread across a number of operating teams. We developed the new organisation structure, conducted a skills gap analysis for existing staff and introduced up-to-date business processes.

We managed the project on behalf of the Client and developed the change strategy, a role-by-role impact assessment and implementation plan based upon the required project outcomes and timescales. From this, we created a cascade communications plan with content tailored for delivery at individual, team or group level based upon the degree of impact per staff member; communications packs were also developed for the wider organisation and for parent company management. We assisted the Client’s senior staff team with execution of the transition and communications activities and worked with them to resolve general FAQs and individual issues.

Further, we developed process documentation targeted at individual or team level; this included a pack of business tools and standard templates for use by the Client. Following go-live, individual coaching sessions were used, both off line and ‘at desk’, to ensure understanding and adoption of the new ways of working and to promote a culture of sharing and inter-team cooperation. To be certain that these had become embedded, we monitored changes in operational behaviours and reviewed the way in which business transactions were conducted and fed this back to the Client.

As a result of this work the Client has achieved benefits in terms of improved information flow and tighter control over manufacturing and logistics operations thus increasing quality assurance and reducing business risk. Significantly, there was a greater sense of shared objectives and staff from different teams started coming together to solve problems and identify further improvement opportunity.