Sc21 Presentation Phil Curnock Sc21 Programme Manager

1. Sc21 Presentation Phil Curnock Sc21 Programme Manager

2. The challenges of the Aerospace & Defence industry • Global Competition • Waste and duplication • Demand Challenges to aerospace and defence supply chains • Costs • International economy • Market access • People and skills • Regulation and accreditation • Purchasing power • Business behaviours Source: AeIGT; SBAC discussion with members at all scales of business since September 2005

3. What is SC21? • SC21 is an industry change programme designed to accelerate the competitiveness of the aerospace & defence industry by raising the performance of its supply chains. • It is a national strategy, executed regionally

4. 570 company CEOs committed to change including the UK Ministry of Defence The SC21 programme was launched at the Farnborough Airshow 2006 by 19 founder signatories: • Airbus • AgustaWestland • BAE Systems • Bombardier • Cobham • Darchem • Freeman & Proctor • GE Aviation • GKN • Goodrich • Lockheed Martin • MBDA • Marshall Aerospace • Nasmyth • Rolled Alloys • Rolls-Royce • Selex Galileo • Thales UK • Ultra Electronics

5. Regional Summary – October 2009 ADS Scotland: Companies identified and funding support for 2009 by Scottish MAS Prime support by Selex, BAE, Raytheon and Thales North West: Aerospace Alliance: 45 selected companies engaged in ASCE Phase 2 funding secured SC21 support also available Northern Defence Industries North East + Yorkshire: Discussion underway to secure funding ADS Northern Ireland 15 Companies engaged in SC21 Midlands Aerospace Alliance: £1.5 m funding secured and delivered by MAS-WM for the next 3 years. £375k programme launched Sep 09 for East Midlands East of England 100k now available MBDA,Thales, Selex cluster now forming. Next event 18th Nov ADS Project office: National oversight and co-ordination of the programme Aerospace Wales Forum: Access to £500k funding available through AWF – limited uptake to date. Farnborough Aerospace Consortium: £675k funding secured until Apr 11 Strong uptake of SMEs Awareness events Jul / Sep, more planned for Nov, Jan Thales cluster formed 2008 Selex and Safran clusters forming 4 Nov 09 www.aerolinkfarnborough.co.uk West of England Aerospace Forum: £350k funding secured until Mar 10 £65k allocated to date Awareness events planned for New Year Selex and Cobham clusters forming

6. REGIONAL POINTS OF CONTACT

7. SC21 - 4 step model Relationships Metrics alignment Industry recognition Business Excellence Manufacturing Excellence Code of practice

8. Existing four step model Added Skills Should the Improvement plan require skills training then funding can be obtained through NSAM Low impact additional data capture

9. Sc21 Award Winners • We now have award winners in a wide range of businesses. • Metal Machining • Casting/Forgings • Fabrication • Composite • Raw material stockists • Electronic manufacture and packaging • Electrical Assembly • Logistics service support • All with World class sustainable performance

10. SC21 Benefits • "GD are a systems integrator. SC21 has saved us a small fortune on the bottom line, and made us a viable supplier to MoD on land vehicles. SC21 has helped us make100% on time deliveries to MoD, and suppliers have not eroded their margins“ • Dr Sandy Wilson, GD UK President • “Through the SBAC SC21 programme, we are making progress towards achieving a more competitive UK supply chain, but much still needs to be done if companies are to survive. More companies need to sign up ………” • Michael Ryan CBE • Vice President & General Manager, • Bombardier Belfast • “Implementation of SC21 has benefited our business both culturally and financially; At the top line, it demonstrates our capability and differentiates us, increasing our revenues; The bottom line has improved as we use the lean tools to attack waste in our processes both manufacturing and transactional. We do not see SC21 as a cost, we see it as a benefit. • Paul Deehan: CEO, AWS Electronics Group

11. SC21 – Current Status • 570+ companies now signed up. • 350+ active • Sc21 Continues to grow from strength to strength • Companies actively engaged in multiple customer working groups. • Regional aerospace partners have now secured collectively significant funding to roll out SC21 across the country – steering groups established in each region. • Cluster approach now common place in the regions. • Self starters population continues to grow across the country. • Ministry of Defence now using SC21 as the framework to support major partnering agreements and encouraging companies to join the programme. • Eighteen (18) recognition awards made to date – 12 months continuous world-class performance • 3 Silver/ 15 Bronze • 5 Submissions for bronze current • The First site to site major supplier award. • Formally linked with the Skills Agenda – SC21 is a keycontribution to the industry demand signal for skills needs

12. SC21 – Prime Update • Selex now launch cluster of suppliers on SC21 support by Regional funding and Strategic Partners delivering the diagnostics. • Babcock Group currently going through SCOR analysis to determine the company they wish to engage with. • Thales Lead 12 and now formed clusters of suppliers in the region. • General Dynamics Lead six and have formed in Wales ,West Midlands. • Bombardier Cluster now in place in Northern Ireland. • Rolls Royce alignment work continuing. • Ministry of Defence 30+ DQA trained in SC21 overview and have identified six suppliers they would like to engage in SC21. • Seventeen recognition awards made to date – 12 months continuous world-class performance • 3 Silver/ 14 Bronze • The First site to site major supplier award. Selex/Bae Systems • RMM activity now between Agusta Westland and GE Aviation.

13. Many thanks for your attentionAny questions?