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Chartered Quality Institute

Chartered Quality Institute. Supply chain globalisation … … the challenge and opportunity Faslane 9 th June 2010. Rolls-Royce, Submarines. Scope of supply. Submarines Design, procurement and manufacture of NSSS for all UK submarines 50 years PWR experience

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Chartered Quality Institute

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  1. Chartered Quality Institute Supply chain globalisation … … the challenge and opportunity Faslane 9th June 2010

  2. Rolls-Royce, Submarines • Scope of supply

  3. Submarines Design, procurement and manufacture of NSSS for all UK submarines 50 years PWR experience ~100 reactor cores delivered 27 reactor plants delivered 2 Nuclear licensed sites 3 factories Largest single UK employer of design authority / technical authority skills Full lifecycle NSSS capability 1,800 people, 860 engineers Rolls-Royce, Nuclear Defence Nuclear Civil Nuclear • DS&S • Safety Instrumentation and Control (I&C) for civil nuclear plants • System in operations in >100 plants worldwide • 35 years experience in safety critical I&C • Reference in 15 countries in Europe, USA and Asia • 260 people, 110 engineers • Wider Rolls-Royce* • Sizewell B component and vessel manufacture and support • Current design support to Westinghouse • Current licensing support to EdF • High Temp Gas Reactor Turbine (Gen IV) • Support to British Energy in-service fleet *Sizewell work conducted by Rolls-Royce Industrial Group. Current activities being addressed by Submarines and SRC

  4. Rolls-Royce, Markets

  5. Rolls-Royce, Global approach

  6. Rolls-Royce, Products and services

  7. Rolls-Royce, Growth implications • Change from UK based to Globally based • Customers • Employees • Supply Chain • The Supply Chain is ‘Mission Critical’

  8. Supply Chain globalisation • Drivers to globalise • Capacity • Capability • Cost • Government offset / countertrade • Market influence • Customers • Partnerships • Risk mitigation

  9. Supply Chain globalisation • Can lessons from other Rolls-Royce sectors be read across? Consider • A Trent gas turbine high pressure turbine blade • Single crystal casting, orientation controlled • Complex hollow configuration • Thermal barrier coating • Operating 400 degrees above the alloy melting point • Travelling 7 million miles between services • Creating same power as F1 racing car, per blade • The centrifugal force it generates is equivalent to hanging a double-decker bus from its tip • Think of … the supply chain complexity from • Research institutions to universities • Material scientists, metallurgists, mathematicians, aerodynamicists, combustion engines, manufacturing engineers, procurement specialist, logisticians, … • Alloy suppliers, ceramic core suppliers, casters, machinists, thermal coating suppliers, … • When this supply chain changes from local to global … … then the risks need to be understood and managed HP Cooling air LP Cooling air

  10. Supply Chain globalisation • Experience shows • Significant proportion of ‘major quality investigations’ follow source and method change activities • Common causes • Business & Supply Chain strategy • Linkage to make/buy decisions • Communications • Language • Time zones • Planning • Management review • Risk management • Resourcing • Order clarity • Product definition • Standards • Engagement • Exited supplier • Technical Authority • Supplier approval / surveillance • Basic capability of new supplier • Frequency / duration • Local presence / knowledge • Sub-tier supplier control • Devolved Technical Authority • Scope creep • Unauthorised activity • Management of non-conformance • Process equivalence • Export control • Assumptions • Don’t know what you don’t know • Business pressure • Cost, delivery, lead-time

  11. Supply Chain globalisation • Actions for success • Recognise that source and method change can be a significant risk • Align business and supply chain strategies • Early visibility of requirements, maximise lead-time • Match drivers with supply chain capabilities • Narrow and deep approach • Establish robust source and method change controls • Establish adequately resourced multi-disciplined teams to manage the task • Develop a presence in ‘region’ / shared service concepts • Standardised and embedded contractual requirements • Extra focus on sub-tier controls • Eg requirements flow down, supplier change control of their sub-tiers • Ensure product definition / standards are up to date and unambiguous • Standardise and simplify • Work with other industry players

  12. Rolls-Royce Reliability, integrity, innovation

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