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Click to Edit Master Title Style,Click to Edit Master Text Styles,Second Level,Third Level,Fourth Level,Fifth Level,*,Copyright 2003 Northrop Grumman Corporation,Improving Supply Chain Management Relationships,Mary Simmerman,Vice President,Materiel,Acquisition&Logistics Excellence Conference,1,Copyright 2003 Northrop Grumman Corporation,Agenda,Introductions,Supplier Management What Does It Mean?,The Defense Business Whats Driving the Transformation?,Northrops Model “Strategic Relationships,Strategic Alliances”,Key Success Factors,Future Vision Where Do We Go from Here?,Questions and Answers,2,Copyright 2003 Northrop Grumman Corporation,Mary Simmerman,VP,Materiel,Oversee Domestic and International Procurement and Subcontract Management,VP,Supplier Management and Procurement at Boeing Space and Communications,Co-Lead Supplier Mgmt.Process Council at Boeing,Past Life at Northrop in Advanced Systems Division and Grumman Aerospace,SME for Material Operations of Boeing Airlift and Tanker 1998 Malcolm Baldridge Award,MBA,Keller Graduate School,BA in Business Mgmt.,University of Phoenix,3,Copyright 2003 Northrop Grumman Corporation,Cost-Based,Adversarial,“Vendor”,“Tug of War”,Non-Evaluative,Short-Term,Event-Based,Collaboration,Joint investment,Sophisticated Evaluation Tools,Long-Term Focus,Continuous improvement,True Partnerships,Quality,Issues,Poor,Communic.,TQM,6,Sigma,Metrics,Integrated,Systems,New,Tech.,SCM,Focus,Past,Present,Supplier Management What Does it Mean?,4,Copyright 2003 Northrop Grumman Corporation,What Do We Mean Today?,A Formal Process by Which Suppliers Are Evaluated and Categorized by Their Ability to Add Value to Our Business Via Investment,Collaborative Planning&Design,Risk-Sharing and Product Enhancement,Supplier Management Is Enabling Relationships with Providers of Goods and Services to:,Attain Business Objectives,Expand Business Opportunities,Reduce/Transfer Business Risks,5,Copyright 2003 Northrop Grumman Corporation,Market Share,Significantly,Enhanced revenue,Benefits from Supplier Management,New Products/,Items,Broader,Name Recognition,Reduced Costs,New Distribution,Channels,New,Customers,Why Manage Suppliers?,60-70%of What We Build Is Procured!,Customer,Satisfaction,6,Copyright 2003 Northrop Grumman Corporation,Industry Consolidation,War Tactics,Cultural Issues,Enhanced Communications,Weapons Technology,The Genesis,The Defense Business Whats Driving the Transformation?,“Integrated Network”,True Partnerships,“Systems,Services,Support”,Precision Weapons&“Real-Time”Communications,Goals,Collaboration,7,Copyright 2003 Northrop Grumman Corporation,The Northrop Model Supplier Engagement,Possess Technology That Would Be Beneficial to Our Future Business Aspirations,Align with Our Future Strategies(e.g.NHA,JIT),Have R&D Expenditures That Are Relevant to Technologies We Believe Are Gaps in Our Portfolio,Select Potential Strategic Partners(Industry/Geography)with Characteristics That Would Be Critical Differentiators for Us in Future Competitions(e.g.Skills,Political Strengths,Technologies),8,Copyright 2003 Northrop Grumman Corporation,The Northrop Model Hawkeye Case Study,Issues:,Radar Approach&Team Solidified Within the Navy(NAVAIR,OPNAV,CNO,ASN),Navy Funding Profiles to Support RMP SD&D and Post Multiyear Production,RMP SD&D Proposal Submission in June and Contract Award by December,FY 2004 NTE Production Proposal Submission in November and AAC Award by December(3 Hawkeye 2000 Aircraft),Strategies:,Preserve FY 2003 Budget for SD&D and Production and Preservation in POM-04,Continue Hawkeye 2000 and Advanced Hawkeye/RMP Advocacy Campaigns,Work with the Customer for Post MYP Production Via Affordability Options,FY 2004-2005(Hawkeye 2000),FY 2006-TBD(RMP LS/TAMD),Hawkeye Industry Team,Tactics:,Leverage the Strength of a“Team”in USN,OSD,Congress and the Media,Propagate“Value of RMP”as Highest Priority of Advocacy Campaign,Stress“Value of Hawkeye 2000/CEC”to Nearterm Fleet Operations,Develop Affordability Posture on RMP SD&D and Post Multiyear Production,Target Key OPNAV Flags,Promote Team Accomplishments,Strategic Intent:,Joint Marketing of the E-2C Hawkeye and USN AEW&C Roadmap,9,Copyright 2003 Northrop Grumman Corporation,The Northrop Model F-35 Case Study,Strategic Intent:,Collaborative Design and Engineering while pursuing“Best Value”,Issues:,Cost containment is key for the program,Investment structure requires sourcing strategy for participating countries,RFB/RFQ are“model”based,Design and production specs are evolving as the bid process progresses,Strategies:,Exploit technologies which support collaborative design and engineering to address weight and configuration challenges,Employ“ePMO”for document and data sharing for global team,Deploy common engineering standards(CATIA),F-35 Global Team,Tactics:,Developed JSL“Virtual PMO”for global project management support,Balance“best value”and collaborative engineering capabilities to meet cost and design challenges,Develop specific incentives for tea
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