Document

Report
Supply Chain Development
A step-change in Supply Chain performance
Supply Chain Focus Group – 17th September 2014
Vic Carlill
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Our drivers for change
• Need excellence in our key strategic themes – safe, secure site
stewardship, demonstrable progress, and return on investment
• Accelerate hazard reduction, deliver to plan, ensure value for
money to the UK taxpayer
• Supply Chain vital link - deliver products and services safely, to
schedule, at correct quality and to agreed cost
• Step-change needed in Supply Chain performance, inc. SL’s role
• Supply Chain Development programme established to catalyse
and deliver this step-change
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Programme synopsis and next steps
Scope –a step-change in the relationship between SL and the Supply Chain at all
levels. Adopt a continuous improvement cycle, embedded from baseline assessment,
the measuring of performance and then identifying the need for further supplier
assessments and improvement activities.
September to December - mobilisation, design, assessment
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Contract awarded to KPMG - Arup
Partners induction - nuclear safety and culture ,security
Baseline performance data-gathering of our suppliers
Review assessment matrix, using best practice and parent body support
(AREVA)
Design assessment method
First assessment planned November - selected from our Strategic
Supplier Relationship identified listing
Developing training partner resources, KPIs, ROI and performancetracking models
Target – up to five assessments by February in first phase
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Principles of our approach
Principles
Attitudes &
Behaviours
ROI &
Benefits
Realisation
Capability
Building
Improvement activities
are embedded in the
normal way of working.
Assessment
Performance
Tracking
Robust
Method
The assessment
process includes
technical conformance
and operational
performance.
Improvement
Activity
Enabling
IT
Benefits are tracked in
cost, scheduling and
maturity.
Supplier performance
improvement should be
enabled by IT system
to support this
SocioEconomic
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Selection and operating principles
• Consistent criteria for qualification and programme roll-out priority
– transparent approach to programme schedule
• Selection process – risk, value, medium/long-term involvement
• Coaching and training provided to raise standards and build future
preparedness
• Behavioural engagement approach to enable innovation
• Consolidating existing approaches – single engagement
programme in conjunction with Supply Chain
• Integrated approach, aligned with support areas (e.g. Commercial,
EHS&Q)
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Performance tracking
Structured way of monitoring performance - key component of the
programme. Three key elements to monitoring:
Safe, secure
site
stewardship
Performance-tracking of each supplier / group, using
dashboards with consistent KPI structure and metrics that
are applicable and appropriate to the area. Metrics aligned
with SL strategic goals
Demonstrabl
e progress
Assessments identify improvement opportunities; resulting
plans managed within the software platform, including
progress against plan and performance outcomes
Return on
investment
Jointly find and develop opportunities - save time, effort, cost
and resources (benefit for all, no detriment to end objectives).
E.g. improving delivery capability, streamlining processes,
reducing waste, and / or value engineering
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Performance
Programme goal
Team (including the strategic supplier base) autonomously conduct a range of key activities,
including assessments and a range of Improvement activities (developmental, proactive, and
remedial).
Suppliers are
managed
consistently
but in line with
their strategic
importance to
SL.
Assessment – all
suppliers
consistently
‘conform’ to the
requirements of SL
and the nuclear
industry:
Assessments are
now also focused
upon performance
and the
‘Operational
Excellence’ of the
supplier.
Trusted T2 suppliers
are self-assessing
and developing T3/4
suppliers and are
competent in training a
steady pipeline of
assessment and
development
professionals.
Remedial
Improvement activities
are the exception;
developmental
Improvement
activities are the
norm, mostly
performed by T2
suppliers independent
of SL (e.g. Supplier
associations).
There is a stable and
constantly improving
supply base that
collaborate to deliver
material performance
change
There is full end to
end visibility of
supplier performance
with metrics aligned to
SL high level goals
updated through
remote apps
reporting to cloud
based dashboards
enabling effective realtime working.
Suppliers have
confidence to invest
in longer term
improvement
activities and benefits
are shared with SL.
Focus of SL supply
chain effort is on
collaborative
solutions to the
problems of the next
30-50 years and
fixing the issues that
are caused by SL
themselves jointly.
A supply chain
Centre of
Excellence exists in
SL that co-ordinates
knowledge transfer
across the supply
base and accredits
practitioners.
Maturity
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