Helping Supply Chain Resolve Their Own Problems

/Helping Supply Chain Resolve Their Own Problems
Helping Supply Chain Resolve Their Own Problems 2018-09-19T17:37:26+00:00

Rolls-Royce plc. – Aerospace Power Solutions.

Formerly Allison Engines, Rolls-Royce Corporation manufactures, assembles, tests and engineers a variety of aerospace engines for Civil, Defence and Marine applications. This includes both fixed and rotary wing engines.

The Business Challenge

In an expanding business, the time the supplier development team was spending at suppliers solving problems was becoming untenable. The need for an effective problem resolution process and capability to manage suppliers remotely by using that process was essential to protecting time for other important issues.

A process, governance framework (for escalation and review) and an internal capability for problem solving methods were required.

How We Helped

– Developed a step-by-step process which had 3 levels of escalation
– Trained Supplier Quality engineers to train/coach suppliers in the process
– Trained management to use a tracking tool to review status fast and effectively
– Evaluated the process at suppliers to ease the burden – keep it simple principle
– Incorporated the process document and tracker into the ERP system

The Results

– Reduced supplier ppm by 85% and concessions by 70%, over 18 month period
– Reduced repeat problems. Over 18 months only 2% of problems repeated
– Supplier delivery performance improved from 13-67% to a consistent 100%
– Engineers travel time/cost reduced as suppliers solved their own issues
– Management were asking support questions without trying to solve the issue

The Customer’s View

“[The process] raised the expectations and involvement of our suppliers regarding quality issues. Meaning, we are now demanding that suppliers become actively involved in the containment stage of 3-in-1 such that now supplier are aware we expect them to come into Rolls-Royce and help contain problem product.”

T Grey – Area Manager, Rolls-Royce plc.