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Thales and SC21

Thales and SC21. IAQG/SC21General Assembly Meeting, 22 October, York. Thales serves three markets. Thales around the world 68,000 employees in 50 countries Serving the defence, aerospace and security markets More than £11bn revenue. DEFENCE (50%). Air ● Land ● Naval ● Joint.

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Thales and SC21

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  1. Thales and SC21 IAQG/SC21General Assembly Meeting, 22 October, York

  2. Thales serves three markets Thales around the world • 68,000 employees in 50 countries • Serving the defence, aerospace and security markets • More than £11bn revenue DEFENCE (50%) Air ● Land ● Naval ● Joint SECURITY (25%) AEROSPACE & SPACE (25%)

  3. Thales UK participates in all three market segments In top five leading suppliers to UK MoD 4,000 engineers & technicians 90% qualified to degree level or above Invested more than £3bn in UK over last 10 years 90% of sales to the MoD are UK sourced 2009 sales: £1.5bn Backlog of orders circa £4bn 60% turnover from defence: 40% from civil 2008 was 120th anniversary of Thales in the UK Thales UK

  4. Thales UK

  5. SC21 Activities • One of the 19 founder signatories in 2006 • Actively involved in the original design of the SC21 tools and techniques • Hold seats on both SC21 steering committees (ADS/Scotland) • Thales led Tranche I implementations, 7 suppliers • Active Electronics, ACW, Aeroflex, Astute, Kenard, Paramount Precision, Paramount Panels • Four awards secured to date; ACW – Silver, Astute Electronics – Bronze; Active Electronics – Bronze; Paramount Precision - Bronze • Seven further Thales led Tranche II companies being taken through programme, all have published CSIPs • Chess Dynamics, ITT ICS UK, Di-Spark; Labtech Microwave, Merlin Flexible Circuits, New Chapel Electronics, Ilford Engineering

  6. SC21 Activities • Regional cluster approach in conjunction with RDA’s adopted as Thales preferred approach to widen deployment throughout Thales UK supplier base • Thales led Tranche III South West Cluster, 4 suppliers • Westminster Engineering, NFF Precision Ltd, J+S Ltd, AB Precision (Poole), • All companies working towards publishing CSIP • Thales led Tranche IV South East Cluster launched 4th October, 7 suppliers • Thales Optronics actively involved in Scottish SC21 programme

  7. SC21 Activities • Six SC21 awareness seminars/workshops held throughout Thales UK businesses • Workshop feedback used to help re-design Thales UK supplier management/performance processes • These processes reflect SC21 principles, and contain all SC21 tools and techniques • Redesigned processes being embedded throughout Thales UK • Whilst SC21 engagement will not be mandatory for our suppliers, it will be seen as a ‘virtue’!

  8. Purchasing Strategy – Supplier Base

  9. Purchasing Strategy – Supplier Base

  10. Purchasing Strategy – Supplier Base

  11. Purchasing Strategy – Supplier Base

  12. Purchasing Strategy – Supplier Base

  13. Purchasing Strategy – Supplier Performance

  14. Purchasing Strategy – Supplier Performance

  15. Purchasing Strategy and SC21 • Strong need to rationalise and consolidate; Target – reduce by 60% by 2014 • 3,593 suppliers; ‘exaggerated’ Pareto, 5% of spend with 95% of supplier count • Only 11% of suppliers used by more than one business • Strategy is to outsource at a higher level • Sub-assembly/assembly level, to focus on core systems integrator capability • Tier/‘C’ Class service solutions • Performance improvement critical • UK average OTIF 82% - target >95% • UK average supplier quality 92% - target >99% • SC21 engagement will play a key role: selectable 40% • Competitive (typically lean, customer focused, adaptive) • Demonstrable, sustainable high performance

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