Since 19 founder companies signed up to the launch of the 21st Century Supply Chains (SC21) programme at Farnborough International Airshow in July 2006, its rise in popularity has been nothing short of meteoric with over 600 signatories on record as of June 2010. Fundamentally it’s not difficult to see why. As a collaborative programme designed to transform and accelerate the competitiveness of the UK aerospace and defence industry, SC21 companies are committed to working together to improve efficiency, remove duplication and lower overheads and costs.

Whilst many companies are actively involved, comparatively few have actually received performance awards so for this roundtable discussion we’ve asked four subcontract companies that have gone the extra mile, integrated SC21 principles into their day to day working practices and been recognised for it to provide an overview.

The participants are: Paul Benham (PB), managing director, Benham Manufacturing (Bronze Award); Sara Dunn (SD), head of operations, Drurys (Bronze Award); Steve Tickner (ST), managing director, High-Tech Engineering (Silver Award); and Andrea Rodney (AR), director, Hone-All Precision (Bronze Award).

DT: First of all, where did you first hear about the SC21 programme?

PB: One of our customers, Cobham, invited us to sign up to SC21 in autumn 2007. The company sponsored and encouraged us throughout the process.
SD: Drurys had been undertaking a two year supply chain improvement with GKN in conjunction with the then DTI. Towards the end of this programme GKN made us aware of the SC21 programme, which was just being launched.
ST: Initially heard about it from GKN.
AR: During 2009 when we attended the Aero Engineering Conference in Manchester.

DT: What made you want to get onboard? Was it customer driven? Were you looking at practical ways of enhancing business levels in the aerospace sector or were there other reasons?

PB: We saw getting involved with SC21 as a valuable opportunity to improve business systems at Benham Manufacturing. There were also good strategic reasons to assess our processes as we wanted to make sure the company was ready to tackle future challenges.
SD: We felt that it was a natural follow-on from the supply chain improvement programme we had been undertaking with GKN. At Drurys we believe that it is vital for us to continually improve and this attracted us to the programme. GKN have given us excellent support throughout.
ST: It was a perfect fit for us. We were looking to attract more aerospace customers and GKN were keen for us to get involved. Essentially it gave us the tools to improve and sustain our business and become more commercially attractive.
AR: We decided to implement SC21 to bring together all of the improvements we had made the previous two years as a result of our move and expansion. It was about achieving the highest levels of excellence from the systems implemented and facilities created. We hoped that the return on investment would be a route into expanding our aerospace and defence clientele.

DT: Once you had made the decision to embark on the SC21 programme, how did you get started? What was the sequence of events?

PB: Benham made an early decision to involve all staff in the process. I started the ball rolling by attending assessor training workshops with my colleagues Chris Dedman and Steve Wells. We soon began to examine relationship management issues and went on to develop a continuous sustainable improvement plan (CSIP) which allowed us to address weaknesses in our existing systems. Cobham provided a SC21 project coordinator at an early stage who worked with us to develop our understanding of the process and help us implement improvements. We reached the relevant level after a year’s work and were delighted to receive the SC21 bronze award.
SD: Getting started was a very simple process. We attended a Task Force meeting to better understand the programme then went online and signed up. You start the journey by either engaging with your sponsor or an approved training partner listed on the SC21 website, which explains what they are approved to provide training on.
Fortunately for Drurys, we, along with several other companies, were able to form a cluster group which was supported by the West Midlands MAS who helped with any available funding – which in our case was a 50-50 scheme.
ST: We appointed an approved training provider who immediately helped us identify improvement activities for our CSIP which then became a driver for us to improve all areas of the business. In my opinion it is vital in the initial start-up stage to have training and assistance in identifying immediate improvements that can be of real benefit. You need to prioritise improvements and set a target for achievement.
AR: We signed our commitment to the programme on 24th December 2009. In February 2010 we contacted TEC to see if they would be our strategic partner as we were applying as a self-starter and therefore required assistance with the diagnostics. They agreed and contacted MAS to seek and arrange match funding towards the implementation costs. We conducted the diagnostics, aligned our business plan with the SC21 principles and within four months, applied for, and received, our bronze award at the Farnborough Airshow in July 2010.

DT: A key ethic that the scheme promotes is companies and businesses working together for the common good of the supply chain and ultimately for the aerospace industry as a whole. In practice, what does this mean for your business?

PB: Preparing for an SC21 award improved our relationships with customers. At an early stage, we completed a Relationship Management Matrix (RMM), examining individual perceptions of our existing business relationships. This detailed analysis revealed issues and gaps, which were then addressed. The entire aerospace industry would benefit from this systematic approach.
SD: Drurys are represented on the SC21 Development and Performance Special Interest Group by its managing director, Richard Dunn, who is also co chair of that group. Within that forum SMEs can air an opinion on how to enhance or improve relations up and down the supply chain through the guidelines of the SC21. We encourage our suppliers to engage with SC21 and give advice wherever we can. Drurys in the past have also advised primes on how to utilise SC21 methodologies.
ST: It’s been said before and the reality is there for all of us. If we don’t improve as an industry emerging countries will all most certainly start to win a bigger portion of what is on offer. We understand that and have given presentations on the benefits of being actively engaged on SC21 to competitors.
Aerospace, like many industries, has predominantly been adverse to sharing information with each other but SC21 is certainly changing this trend as companies are realising the benefits of working together and many of the issues within the supply chain can be solved with clearer and more frequent communication. As a company, we look for suppliers within the SC21 community because we know they are committed to improvement. We also fully support and promote SC21 wherever we can – for example we gave a presentation for MAS East that Hone-All attended at the start of their journey.
AR: The benefits are growing daily as the scheme gathers pace and popularity throughout the industry. The recognition from achieving bronze status has led to numerous enquiries from customers both existing and new. The networking events have proved invaluable for contacts and the sharing of best practice and the principles of SC21 has united our company at all levels.

DT: In your opinion, is SC21 a logical follow on from ISO9001 and AS9100? In fact, taking the question a stage further, is it practical (or even possible) to contemplate SC21 without having an accredited quality system in place?

PB: Both ISO9001 and AS9100 are valuable industry quality standards. I consider it would be very difficult for an aerospace company to consider aiming for SC21 without reaching AS9100 first as SC21 develops many of the processes and tools of AS9100.
SD: SC21 is a standalone programme which encourages members to strive for improved standards. When contemplating joining the SC21 programme companies need to realise that you don’t need ISO9001 or AS9100 to engage with the programme as once you are committed to SC21 it will lead to these standards.
ST: AS9100 and SC21 do complement each other but I think there will always be the need for quality systems especially if you are involved with flight critical parts. I can see SC21 becoming as important as a quality accreditation as it clearly identifies companies with a culture for improvement and customer satisfaction and is starting to become a requirement for some customers. The fact that the MOD is onboard and supports it shows the importance it has now in moving forward.
AR: In my opinion, ISO9001 and AS9100 are systems instructing companies about what they have to do. SC21 is about giving companies the chance to do what they need or want to do, in a formalised system, to be the very best they can be and achieve levels of excellence applicable and appropriate to their business and customer base.
In theory, you could achieve an SC21 award without an accredited system but I think the route would be much more difficult without and I doubt that many of the companies who would value SC21 when selecting suppliers, would use a non ISO accredited company.

DT: An important objective of SC21 is to reduce the number of duplicated quality interventions – largely through the adoption of common standards such as AS9100 and Nadcap. Ultimately this should lead to less customer audits and more streamlined and transparent systems. Have you found this to be the case?

PB: Although companies should take pride in achieving SC21, they must expect potential customers to continue to want to see the processes for themselves. Winning this award has given us greater visibility in the marketplace and customers are increasingly valuing this widely-recognised standard. However, aerospace and defence are still people-based industries and customers will always want to meet their suppliers.
SD: Quality interventions have started to show a reduction, but you will always have product audits from customers to reduce risk.
ST: Most companies we see still require a full audit for approval but we have noticed a trend where auditors are encouraged by our silver recognition as they understand what represents. Without question the audit process is easier now we are actively engaged with SC21.
AR: We haven’t found this to be the case at the current time although we are being told that this will be the ultimate goal. However, for processes carried out on critical components, I doubt that the need for a product/process audit will ever be removed. What SC21 does do is to reassure the customer that we are a company focused on service, excellence and continuous improvement – which ultimately leads to confidence that we are a supplier that they can place their trust in for the long-term.

DT: Operationally, what has embarking on the SC21 programme meant for you? Would you say it has effected large wholesale changes to the way you work, or was it a case of ‘tweaking’ the systems you already had in place?

PB: As a family-owned SME, we considered our systems back in 2007 to be more than adequate to support our business. Since then, through adopting SC21, we have introduced new ways of working, similar to those in a major corporate company. In some cases, it has involved minor tweaks, in others a complete overhaul. Besides important work in quality and delivery, we have also valued the improvements we have made in areas such as communication on the shopfloor and HR.
SD: Drurys had many of the requirements in place so we just had to make some adjustments. In reality if you are a well-run business, most of the SC21 requirements will be in place as the majority of the programme is a common sense business approach.
ST: For us we knew we had to develop and improve to attract new customers and SC21 was a perfect fit. Not only has it enabled us to become more efficient but it has also been a fantastic marketing tool. It has changed the way we do business as we are no longer reliant on individual performance.
AR: Within our company, tweaking is the operative word. The majority of the systems, KPI’s, communication routes and strategies were already in place and simply needed aligning to SC21.

DT: All four companies taking part in this Q&A session have actually achieved SC21 awards – either bronze or silver. Can you explain what performance standards you had to achieve to qualify for these awards? What did the assessment process involve?

PB: The main performance indicators cover quality and on time delivery. We started with an honest self-assessment to discover the areas of business where work was needed. Then, we delegated responsibility for improving each of SC21’s nine important criteria to an individual member of staff.
Our first assessment in early 2008 revealed scores of 205 for business systems and 115 for manufacturing. After more than a year of focusing on these elements, these increased to 280 (business) and 317 (manufacturing). We submitted our application in late 2009 and were awarded bronze standard in December. We are continuing to improve our systems and are on track to achieve silver in 2011.
SD: The initial stage is to audit your business against the requirements of the SC21 metrics and perform a gap analysis. From this analysis you can then set down a plan of action. Standards required such as AS9100 and Nadcap can then be implemented as a first stage if you do not already have them in place.
Then have your business measured against the Business Excellence model and Manufacturing Excellence model (don’t get hung up on the scores at this stage). Start collecting delivery/quality figures for the next or last 12 months on Primes you are engaged with.
Drurys found the most rewarding workshop was the RMM (relationship measurement matrix). This isn’t a mandatory part of the SC21 metrics, but the benefits are enormous in understanding your customers’ requirements in more detail.
ST: Evidence of a rolling twelve months quality and delivery performance with all key aerospace customers has to be achieved before you can submit for a relevant award – bronze being 90-95% on-time delivery and quality 98-99.5%. Silver is now 95-99% and 99.5-99.9% respectively.
On top of that are manufacturing and business excellence scoring levels and the implementation of a robust continuous sustainable business plan and where possible you need to have implemented the Relationship Management Model. The assessment process required us to produce evidence for the above and is a simple gathering of information once you have systems in place.
AR: On-time delivery had to be between 90-95% and quality conformance had to be between 98-99.5%. In addition, the diagnostics had to be completed but only for a silver award do you have to achieve a target of over 400.
You also have to produce a CSIP (Continuous Sustainable Improvement Plan) to show your commitment to the findings of the diagnostics and the overall development of your business.

DT: Signing up to the programme is free but A|D|S says that it does require the commitment of some resources. How would you quantify the commitment necessary?

PB: Commitment right from the top is essential for success along with a recognition that resources and capital will be needed along the way. All staff need to appreciate why their company is working towards an SC21 award and what winning it will mean. They must share ownership of the programme with the management and contribute to its success.
SD: This has always been the area that generates the most attention because to be honest there’s no such thing as a free lunch! Commitment is where the cost comes in – management time, training provider fees, an SC21 Champion, workshops and maintaining the standards. In value terms the amount is probably in the region of £20,000 but not many people will admit to the true cost.
ST: It was what we wanted to do as the benefits were obvious. Implementing improvements will vary from company to company and for us it was a relatively easy process due to the total commitment of senior management. They saw the potential from day one and an immediate focus was placed on working towards a recognition level because that in turn would ensure new efficiency and a more cost effective business model. Cost and resource was never a consideration, it was more a case of we couldn’t afford not to do it.
AR: The commitment varies from company to company. As a self-starter, financially we had to commit to the assistance with implementation and the diagnostics. The majority of our commitment then was time and people resources. However, the requirements do not include anything that is not of benefit to the overall performance of the business and so in order to run a profitable and competitive business, many of these activities should already be in place or being undertaken regardless of SC21 requirements.

DT: When a company signs up to SC21 it has the option of providing a representative to participate on the SC21 taskforce. Effectively this means that member companies can have a positive input into the future development of the programme. Is this something you have supported?

PB: I have attended taskforce meetings and support the development of SC21. I have also taken part in a roundtable discussion about SC21 for an aerospace magazine to highlight and promote the programme.
SD: Absolutely. In fact Drurys have taken this one step further. Our managing director Richard Dunn, sits as co-chair on the Development and Performance Special Interest Group, as well as sitting at steering group level.
ST: Yes we are on the Special Interest Group committee and share our experience with other members and primes who have orchestrated SC21. We actively support the programme and give presentations at awareness events on the benefits of being actively engaged.
AR: I wasn’t aware of this opportunity!

DT: So what is the next step? Is the ultimate objective to achieve gold status?

PB: We are working to meet the requirements of the silver standard, have achieved some of the criteria and are addressing the remaining issues. However, I consider gold status is very difficult for a precision engineering company to attain. Out of the three main elements of the award, reaching more than 500 points and 99-100% in manufacturing quality is possible with hard work. But achieving 99-100% in on-time delivery will be near impossible due to the nature of the work.
SD: Continuous improvement means that all companies should strive for better results. Drurys will always look to continuously improve and so gold status will be of course be our ultimate objective.
ST: The next step is to retain our silver recognition as the metrics have changed since our award last year. That itself will be an improvement as they are now higher than previously. The target has to be gold and is a goal which will be challenging but is something we are determined to achieve.
AR: The next step is to continue improving our business using SC21 principles and techniques and hopefully apply for silver status next year. We will continue to make the most of the opportunities and benefits that the SC21 scheme allows such as supplier clusters and networking events.

DT: A|D|S advocates that the more companies sign up to the scheme, the greater the benefit to the UK aerospace sector in general. Would you agree with this sentiment? What would you say to any company who is perhaps a little undecided?

PB: SC21 is bringing great benefits to the aerospace industry. Winning an award has brought recognition to Benham, but taking part in the programme has also helped us make significant improvements to our company. I cannot understand why a business leader would not want to sign up to SC21.
SD: Drurys would recommend signing up, if only to improve and support the UK manufacturing base, but be prepared to commit resources and give full management backing. This is a total commitment programme from all stakeholders.
ST: Without question the more companies that operate efficiently the greater the impact and if the whole level of supply chain performance improved primes and others would be better placed to win more business.
Wherever we can we now select suppliers who are actively engaged on SC21 because we know they are committed to quality and delivery. My advice to those who are undecided would be to contact award winning companies or go to Task Force events and ask questions about the benefits that can be achieved by engaging on the programme.
AR: I agree wholeheartedly with this sentiment and support it fully with one reservation. Signing up to the scheme is a simple electronic process and requires no commitment from the company to actually progress with implementation of SC21 and its principles of continual improvement.
For the scheme to continue to attract the major players, the integrity of the signatories and the list must be maintained and so a method of confirming commitment and progress must be implemented. To anyone considering SC21, we would say that the benefits far outweigh the commitment and resources required so go for it and be prepared to improve your business in ways you did not even imagine.

DT: Finally, since embracing the programme and successfully receiving your award, what would you say has been the greatest benefit to your company?

PB: Achieving our SC21 award has promoted Benham into another league. We have joined a select band of companies, recognised for their business systems, high quality manufacture and delivery standards. We are now in a position to explore commercial opportunities with major customers and OEMs, thanks to SC21.
SD: For Drurys it’s confirmed that we are as good as we thought we were! The programme demonstrates that the UK still has first class manufacturing companies to call upon and we are proud to have demonstrated that Drurys is one of those companies.
ST: It has enabled us to identify those areas we need to improve and sustain. It has made us more efficient and profitable and importantly has been a fantastic marketing tool. It has not guaranteed us business but we have seen a dramatic increase in new opportunities. The fact that it is industry recognised has helped tremendously in attracting the level of customer we were attempting to target from the outset.
AR: For Hone-All, the greatest benefit has been to unite all of our team, our systems and our improvement activities under one, simple but very effective system.

Benham Manufacturing
www.benhammanufacturing.co.uk

Drurys
www.drurys.co.uk

High-Tech Engineering
www.High-tech-eng.co.uk

Hone-All Precision
www.Hone-all.co.uk