Next Generation Manufacturing Study Arizona Aerospace and Defense Supply Chain

Next Generation Manufacturing StudyArizona Aerospace and Defense Supply Chain

Montreal, CanadaDecember 5, 2011

http://adrc.asu.edu/node/104

Project Sponsor: Arizona Manufacturing Extension Partnership (Arizona MEP)

This project was partially supported by the State of Arizona Governor’s Office of Economic Recovery and the Science Foundation Arizona

Research conducted by the Arizona State University, College of Technology and Innovation under the Cooperative Agreement # 70NANB10H192

Agreement Period: July 1, 2010 through June 30, 2011

Arizona Aerospace and Defense Supply Chain

Project Objective(s):Identify immediate lean manufacturing and supply chain needs of Arizona’s aerospace companies and suppliers.

Operations/Problems Areas Addressed:Build a database of Arizona based aerospace tier 1,2,3 suppliers.

Conduct a survey of suppliers for their use of next generation manufacturing concepts, e.g. lean six sigma; identify and assess needs. People:

Gary R. Waissi, Jane E. Humble

Sponsor(s):Arizona Manufacturing Extension Partnership (AZMEP)Science Foundation ArizonaArizona Governor’s Office for Economic Recovery

Users/User Community:Aerospace suppliers

Future Funding Targets:AZMEP, DoD, aerospace companies

Technology and Impact :•Database of Arizona aerospace suppliers•Current status with respect to next generation manufacturing (NGM)•Can help identify, support and advance competitiveness of the Arizona aerospace cluster.


Value

1.The database includes 1,338 companies. We believe that the database is the most comprehensive single source of Arizona aerospace companies.

This database will be helpful to the companies themselves, to government agencies, to universities and to research institutions, as well as to the Aerospace Defense Research Collaboratory, Arizona Aerospace Commission, Arizona Commerce Authority (ACA) and Arizona MEP.

The database, if fully utilized, will help strengthen the Arizona aerospace cluster. We recognize that we may have missed some important companies.


2. The survey results give a snapshot (current 2011 status) for a relatively broad sample of the aerospace companies relating to their strategic strengths, weaknesses, as well as opportunities and threats.

Because the survey results will be shared with the participating companies, they can then compare themselves in various categories to the other companies.

For example, do they believe that they are competitive globally, are there opportunities for improvement, are there changes within the company or external to the company that should or must be considered, etc?


Core of the study --- Focus on eight areas/ survey question categories as follows:

1.Company demographics2.Leadership3.Customer satisfaction and innovation 4.Workforce strategies5.Supply chain management6.Lean process improvement7.Sustainability and green8.Global engagement.


Source

Enterprise Category Headcount: Number of employees

New Classification(used in this study)

Micro 1-9

Small 10-49

Medium – Low (M-Lo) 50-99

Medium – High (M-Hi) 100-249

Large – Low (Lg-Lo) 250-499

Large – High (Lg-Hi) 500 or more

Table 2-3: The Company Size Classification of this Study: Six Categories


Description of Activity AZ DoC AZ MEP D&B BvD Ref.USA ACC CCR CW

Search for Arizona aerospace suppliers X X X X X

Company ID X X X Headquarters X X X

General Company Information X X X X X X

Employee Information X X X X Company Sales X X X X

Company Demographic X X X X

Certificates and Affiliations X

SIC and NAICS Codes X X X Key Executives X X X X

Parent Company Information X X X

Table 3-1: Data Categories and Primary Data Sources

AZ DoC = AZ Dept. CommerceAZ MEP = AZ Mnf. Ext. PrtnshpD&B = Dunn & BradstreetBvD = Bureau of Van DijkReference USAACC = AZ Corp. CommissionCCR = Central Contractor Reg Systemcw = company website


Figure 3-1: Arizona Aerospace Supplier Database Structure


Approximately how many employees does your company have?

All Firms

Micro1-9

Small10-49

M-Lo50-99

M-Hi100–249

Lg-Lo250–499

Lg-Hi≥500

Number [N] of Respondents by Category 132 21 49 28 14 8 12

Percentage [%] of respondents 100% 16% 37% 21% 11% 6% 9%

Table 4-1.2: Number and Percentage of Respondent Companies by Size Category


Which of the following were produced by your company during the past 5 years? [Check all that apply]

All FirmsN %

ATC Communication Systems & Components 11 9Aircraft Operating & Control Systems 30 24Airframes & Components 38 31Avionics Systems, Instruments & Components 33 27Chemicals 4 3Coatings & Paints 9 7Composites 9 7Computer Software/Services & Databases 8 7Electrical & Electronic Components & Hardware 38 31Engines & Engine Components; Propellers 27 22Crew/Passenger Supplies & Services 6 5Hardware Hydraulic /Pneumatic 23 19Inflatable 5 4Interior Equipment & Furnishings 12 10Landing Gear/Wheels & Brakes 16 13Lighting Systems & Equipment 7 6Metals & Metals Services 21 17Oxygen/Fire Suppression Systems 2 2Test & Inspection Equipment 23 19Tools & Machines 17 14Training Equipment & Services 5 4Other (please specify) 38 31Total Number of Respondents [N] 123

Table 4-1.7: Product Categories During the Past Five


How many suppliers does your organization have for direct materials?

All FirmsN %

Number of Suppliers1-9 13 11

10-19 20 18

20-29 14 12

30-39 10 9

40-49 7 6

>=50 44 38

Don’t know 7 6

Total Respondents by [%] by Category [N] 115

100%

Table 4-5.1: Suppliers for Direct Materials


Figure 4-6.10: What process improvement systems are in place within your organization? [Check all that apply]


To what extent are the following processes automated? [Check all that apply]

Level of Automation 0% Automated

Manual only

25% 50% 75% 100%Automation

Total [%]

Response Count

Material preparation and processing (Shaping, removing, depositing, transforming, finishing…)

38% 16% 10% 24% 12% 100% 79

Testing/inspection for quality 52% 18% 15% 11% 4% 100% 89

Product assembly 75% 8% 9% 7% 1% 100% 80Packaging 84% 6% 5% 4% 1% 100% 85


Figure 4-6.14: What formal certifications does your company have? [Check all that apply]


Figure 4-7.3: Does your company have a green enterprise strategy in place?


Where are your customers located?

[Check all that apply]

All Firms

Micro1-9

Small10-49

M-Lo50-99

M-Hi100–249

Lg-Lo250–499

Lg-Hi≥500

Arizona 62% 63% 62% 70% 80% 50% 25%

Western/SW US 46% 56% 48% 45% 70% 0% 25%

Throughout US 71% 69% 71% 85% 90% 16% 50%

North America 33% 38% 19% 60% 50% 17% 25%

Europe 32% 38% 19% 45% 70% 17% 25%

Asia 29% 31% 17% 45% 60% 17% 25%

Africa 13% 25% 7% 10% 20% 0% 25%

South America 17% 25% 14% 10% 40% 0% 13%

Mixed worldwide 28% 38% 21% 15% 40% 50% 50%

Don't know 1% 0% 0% 0% 0% 0% 12%

Other (please specify) 3% 0% 0% 5% 20% 0% 0%

Mexico 1% 10%

Middle East 2% 5% 10% Total Respondents by Category [N]

102 16 42 20 10 6 8

Table 4-8.1: Where are your customers located?


Where are your suppliers located? [Check all that apply] (N)

All Firms Micro1-9

Small10-49

M-Lo50-99

M-Hi100–249

Lg-Lo250–499

Lg-Hi≥500

Arizona 44% 50% 43% 55% 50% 33% 13%

Western/SW US 41% 50% 38% 50% 60% 17% 13%

Throughout US 74% 81% 74% 80% 80% 67% 38%

North America 29% 31% 21% 45% 30% 17% 38%

Europe 22% 25% 10% 40% 30% 0% 38%

Asia 18% 31% 10% 20% 10% 0% 50%

Africa 2% 6% 0% 5% 0% 0% 0%

South America 3% 6% 2% 0% 10% 0% 0%

Mixed worldwide 18% 6% 14% 15% 10% 33% 63%

Total Respondents [N] 102 16 42 20 10 6 7

Table 4-8.2: Where are your suppliers located?


Is your company planning to expand operations globally? [Check all that apply] (N)

All Firms

Micro1-9

Small10-49

M-Lo50-99

M-Hi100–249

Lg-Lo250–499

Lg-Hi≥500

No 60% 81% 67% 55% 50% 33% 25%

Yes. planning has started17% 0% 21% 25% 0% 17% 25%

Plans are in place for expansion

2% 0% 0% 0% 10% 17% 0%

Global expansion is in process now

15% 13% 5% 20% 30% 17% 38%

Don't know 6% 6% 5% 5% 0% 17% 13%

Total Respondents by Category [N]

102 16 42 20 10 6 8

Table 4-8.4: Is your company planning to expand operations globally?


Next Steps

As a continuation and leveraging from this study we plan to conduct a strategic assessment of selected Arizona based aerospace companies focusing on operational excellence, supplier development, strategic growth, current and future workforce needs and development, technology adoption and integration, as well as green products and practices.

The primary goal of that planned effort is to develop a standardized Strategic Assessment Framework, or Tool, that could be repeatedly utilized by companies in the aerospace industry, or by consultants working with those companies. The secondary goal is to provide immediate value-adding feed-back to the companies assessed.


Questions/comments

Issues:

-Continuous updating and improvement; database will be outdated quickly-Aerospace Small Medium Enterprise (SME) needs-Funding sources for future work

For details and to download the full report go to:

http://adrc.asu.edu/node/104


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Next Generation Manufacturing Study Arizona Aerospace and Defense Supply Chain

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