22 nd October 2010 IAQG Conference

1. Mike Berridge – Director of Business Improvement SC21 - perspectives from an award winning supplier 22nd October 2010 IAQG Conference

2. AWS - Our perspective…….. • Qualify our perspective (our credentials) • An Overview of AWS • What we have done • Our perspective on SC21 • Timelines (History) • Why we adopted SC21 • Evaluation of SC21 • The Benefits to AWS

3. AWS Electronics Group - overview • Turnover in excess of £35m with over 400 people • 3 UK sites - 1 site in Slovakia • Electronics Manufacturing Solutions (EMS) offering whole life support • Development and design support • ‘Fast track’ prototyping • Leading edge PCB manufacturing (10 SMT lines) • Complex box build assembly • Cable / harness assembly • Repair/Refurbishment/Diagnostics and reverse engineering • Operating in a wide range of industries: defence, aerospace, scientific, medical, telecoms, satellite, transport infrastructure, security, controls, instrumentation and vending.

4. AWS - Defence & Aerospace work • Defence and Aerospace >20% of turnover (£8m) & growing • Manufactured aerospace and defence products since 1999 • Aerospace & defence work examples: • Ship borne and land based Satcom RF & PSU units • Control units military vehicles • Nimrod flight simulator harnesses • Modem cards for satellite communications • Weapon control PCB assemblies • RF cards for military applications • Bowman cable design, prototype and manufacture • Land static platform design, prototype and manufacture • Training Simulators • UAV power and control systems • CCTV and data storage

5. AWS – SC21 history • May 2007 - Signed up for SC21- GDUK Sponsors • August 2007 – AS 9100 accredited • November 2007 – SC21 First Diagnostic completed • February 2008 – ISO 14001 accredited • May 2008 - Silver Award – MOD Abbey Wood • February 2010 – Silver award – Agusta Westland • October 2010 - Short Listed – WCM (The Manufacturer) • Q1 2011 – NADCAP - AC7120 PCB Electronic Assemblies • Gold – next 12 months

6. Why did we adopt SC21…… • Several acquisitions from 2005 • CEO who knows the value of driving Continuous Improvement • Benchmarking across all sites (taking Best Demonstrated Practice) • Involved with Aerospace/Defence – but wanted to do more • The SC21 toolbox has all the things we wanted: • Attack – Waste (ManEx) • Engage ALL managers in CI (Management commitment) • Business balanced scorecard ( EFQM) & BusEx) • Relationships Management (Customer) • Vehicle for Change Plan

7. AWS - Accreditations…IMPORTANT ISO 9001: 2000 ISO 14001: 2004 AS 9100 • The challenges for defence & aerospace are significant • Delivery, quality, cost, structure, economic • All stakeholders need to champion change

8. Our perspective…4 Key points • The challenges for defence & aerospace are significant • Delivery, quality, cost, structure of the industry, economic, political, through life cost (TLC), etc – it requires change • All stakeholders in the supply chain need to execute the change MOD, Primes, Tier Ones and SME’s……..suppliers. • We need a vehicle for change and the Flagship is SC21 • SC21 has everything– systems, quality improvement, accreditation, benchmarking, management commitment, attack waste (Lean), balanced scorecard (EFQM), relationships………

9. SC21 Model……has it all! CUSTOMER ENGAGEMENT DIAGNOSTICS CONTINUOUS SUSTAINABLE IMPROVEMENT PLAN RECOGNITION Business group formation Quality certification Award metrics CSIP Manufacturing Excellence Metrics alignment Industry recognition Business Excellence Code of practice Relationships

10. Challenges of the industry Need to create competitive supply chain Drive a Common set of metrics Benchmarking Create continuous improvement Sustainability The ‘primes’ need for improved supplier performance Proven model – standard world class tools The ‘Fit’ with an organisation seeking change Not just a systems approach but a ‘way of working’ Building long term relationships Maintaining a competitive position Why we see SC21 as important….

11. What are the critical success factors for any supplier going for SC21? Leadership Linked to strategy of the business Clear understanding of continuous improvement On the AWS monthly board agenda Seen as benefit not a cost Improve top line Improve bottom line Experiences of change leadership Knowledge (training) in Lean tools Real change at shop floor – not a white coat exercise Becomes the way of working – not a bolt on Realization of the need to change

12. How will this help your business? Externally Differentiates you from the rest of the pack You will be more competitive You will develop stronger and more sustainable relationships with both customers and suppliers You will sell capability not product or service It helps your top line………. Internally You stop being minimalist – ie just going for system accreditation Sustainable improvement follows – embedding a lean culture You ‘attack’ waste in all processes Performance measurement becomes the norm……. It helps your bottom line……

13. Thank You

14. Mike Berridge biography Mike Berridge – AWS Group – Director of Business Improvement Mike joined AWS in September 2006 with specific responsibilities at board level for implementing Continuous Improvement across the group. He has spent 10 years in ‘results based’, process and business improvement. He specializes in converting business strategy into operational reality, using a wide range of world class tools. He is trained in six sigma, lean and BPR and applies this in both manufacturing operations and transactional environments. He has worked extensively in Europe and the Middle East with blue chip companies, across several industry sectors. Companies who have benefited from his work are Scania, BT,T Mobile, Aventis, Hercules, BICC, Volvo, Ericsson, Corus, Ford and BMW. Mike’s previous industrial background is in Automotive, spanning 28 years, where he held positions as Operations Director and Quality Director for both OEM, Tier One and SME manufacturing and engineering companies. He has an MBA and Masters Degree in Total Quality Leadership.