A SpeciAl RepoRt
Human capital Management
December 2011
Human Capital Management
December 2011
Developed by:
E-Business Steering Group
© 2011 Aerospace Industries Association of America, Inc.
1000 Wilson Boulevard, Suite 1700, Arlington, Virginia 22209 n www.aia-aerospace.org
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Ta b l e o f C o n T e n T s
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The Business Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Capability Maturity Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Capture Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Manage Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Use Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
eDiscovery/Preserve Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Tools and Technologies Capability Maturity Matrix Levels . . . . . . . . . . . . . . . . . . . . 14
Networking Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Wiki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Web-Collaboration Work Spaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Product Data Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Database & Audio-Video Knowledge Capture . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Knowledge Search Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Storage Systems (Data, Audio, Video) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Social Media Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Individual Consumer Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Key Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Improving the Management of Human Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Appendices
Appendix A: The Human Capital Management Maturity Matrix . . . . . . . . . . . . . . . . 19
Appendix B: The Tools to Support Maturity Levels . . . . . . . . . . . . . . . . . . . . . . . . 24
About AIA and Member Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Human Capital Management 1
e x e C u T i v e s u m m a ry
The intellectual capital of an organization is defined as the sum of all its recorded “explicit” knowledge and the collective “tacit” knowledge of all its employees and supply chain. a company’s capability to manage its human capital and that of its suppliers and team members will affect its ability to compete in the future and to respond to the requirements of contracts and legal proceedings.
The aerospace industries association has identified the loss of intellectual capital caused by a changing workforce as a critical issue for the future success of the industry and a strategic priority for action. Personnel changes occur with retirement or unexpected events such as death or illness, workforce reduction or natural disaster.
This report provides a framework of Key Performance indicators (KPi) for an organization to assess its ability to retain the critical knowledge that it needs, both internally and within its supply chain. it is recommended that an enterprise should assess its maturity against the KPis and establish the level of capability that is required to effectively manage its risk as identified by internal business process requirements or mandated by contractual obligations.
any gaps or shortfalls can then be assessed to establish an improvement plan, which may involve the development and implementation of enterprise policies and processes, and the corresponding training of staff.
one key mitigation is to record the tacit knowledge of employees in an explicit form so that it can be used by others. in 2010, aia published an initial statement of the likely impact of a number of emerging disruptive information technologies and the business, technical, cultural, operational and security implications for our industry, with the claimed benefits, risks and mitigations. The report, “Disruptive information Technologies” [http://www.aia-aerospace.org/assets/report_ebiz_2010_web.pdf] concluded that there are business advantages to utilizing these new technologies for tasks such as the capture of critical business knowledge.
This report identifies a number of tools and technologies that can be deployed by an organization to increase the level of maturity and reduce the business risk where required, and shows which technologies can be applied to each Key Performance indicator.
risks arising from the supply chain can also be mitigated by appropriate contractual arrangements to ensure continued access to their knowledge.
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T h e bu s i n e s s P ro b l e m
The intellectual capital of an organization is defined as the sum of all its recorded information and the knowledge of all its employees. The sources of knowledge available to a company are:
n explicit knowledge stored in data repositories
• internal Knowledge base
• managed and unmanaged repositories within a company
• external Knowledge sources
• managed and unmanaged resources available. such as those on the internet
• supply chain repositories
n Tacit knowledge only stored in the brain of one or more of its individual employees
• not explicitly stored in any physical or electronic form
• based on experiences and lifelong learning
Tacit knowledge may be articulated, codified and stored as explicit knowledge where it becomes available in a manner that is readily accessible.
aia has identified the loss of intellectual capital caused by a changing workforce as a critical issue for the future success of the industry, and a strategic priority for action. The following is a quote from aia’s 2008 report, “launch into aerospace: industry’s response to the Workforce Challenge” [http://www.aia-aerospace.org/assets/workforce_report_1_sept08.pdf].
“The aerospace community risks the loss of intellectual capital and will be unable to meet the forecasted needs for business….From the top of every organization, industry must embrace the systemic changes required to rebuild the foundation of America’s aerospace workforce.”
The human capital management problem has a number of inter-related aspects and causes:
n aging and retiring workforce
n Workforce reductions
n Gen-x tendency to switch jobs
n alternative work strategies (mobile devices)
n virtual work space inhibits mentoring
n loss of critical skills
Human Capital Management 3
n alternative sourcing strategies
n immigration laws
n binary event – loss of manpower to outsourcing
n Culture of knowledge hoarding
This situation is exacerbated by the diminishing pool of trained resources that are available to fill the gap. it is no longer possible to rely on an adequate supply of new graduates and experienced players.
aia’s 2009 “electronic Knowledge management” paper [http://www.aia-aerospace.org/assets/report_ekm_052010.pdf] stated that:
“Knowledge Management is the discipline of enabling individuals, teams and entire organizations to collectively and systematically capture, store, create, share and apply knowledge to better achieve their objectives.”
electronic Knowledge management facilitates the capture and protection of an enterprise’s critical knowledge retained by an individual via electronic media.
a company’s capability to retain the knowledge it has invested so much in attaining internally and by its suppliers and team members will affect its ability to compete in the future and to respond to the legal requirements of contract and legal proceedings.
This report provides a framework for an organization to assess the maturity and security of its capability to retain the critical knowledge that it needs, both internally and within its supply chain. it also highlights emerging information technologies that can be used to increase the level of maturity and reduce the business risk where required, and shows which technologies can be applied to each KPi.
The assessment can be applied within an organization or to its suppliers in order to assess the risks of loss of critical knowledge.
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T h e C a Pa b i l i T y m aT u r i T y m aT r i x
The human Capital management maturity matrix in appendix a identifies a number of KPis for effective human Capital management. These KPis are divided into the four main categories of electronic Knowledge management:
n Capturing knowledge
n managing knowledge
n using knowledge
n Preserving knowledge (eDiscovery)
The following figure is taken from the aia 2009 “electronic Knowledge management” paper.
Figure 1: Knowledge Management and eDiscovery Processes
Human Capital Management 5
for each KPi listed below by category, the matrix gives a set of evidence that allows an enterprise to assess their current and desired capability. The levels of maturity follow a common pattern:
n level 0 – no policy, awareness or capability
n level 1 – individual application of best practice
n level 2 – uncoordinated application in group(s) within the organization
n level 3 – enterprise-wide policy qualitatively defined
n level 4 – Policy applied and quantitatively managed across the enterprise
n level 5 – systematic optimization of related practices across the enterprise
Capture Category
Employee skills are identifiedThis KPi establishes the extent to which an enterprise identifies and manages the available skills of its workforce.
Level 1 Level 2 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No action Employees know their own skill set, however they have not captured them
Unstructured identification and capture of skill set (e.g., resume)
Structured skills identification and capture (e.g., recorded in HR System)
Annual employee skills identified, captured, and managed
Skills identified, captured, and managed continuously
Critical business skills are identifiedThis KPi establishes the extent to which an enterprise identifies and records the skills that it needs to operate its business, and the sources of its knowledge.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No action Immediate manager knows skills needed for job
Immediate manager defines critical vs. non-critical skills
Enterprise-wide process for identifying critical skills with knowledge sources defined
Critical skills and knowledge sources defined, captured and reviewed annually by the enterprise
All current critical skills and knowledge sources defined and future requirements identified
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Critical skill sets are maintainedThis KPi establishes the extent to which an enterprise actively manages and evolves its critical skills set. The enterprise has a plan to retain existing critical skills and acquire new critical skills as needed.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No plan exists Immediate manager addresses each case as needed
Immediate manager has template plan in place to retain critical vs. non-critical skills
Enterprise-wide plan to retain critical skills with knowledge sources defined
Enterprise-wide plan to retain in explicit form critical skills with knowledge sources implemented and reviewed annually
Enterprise-wide plan to retain existing and acquire new critical skills with explicit knowledge sources implemented and reviewed annually
Preparedness for unexpected loss of an employeeThis KPi establishes the extent to which an enterprise is prepared for the unexpected loss of critical tacit knowledge because of the immediate loss of an employee. (e.g., death, health issues, legal action, etc.)
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Unprepared for any employee separation from the enterprise scenario
Immediate manager addresses each case as needed
Immediate manager has established some job function redundancy
Enterprise-wide tacit knowledge retention with succession plan in place
Enterprise-wide tacit knowledge retention in an explicit form and succession plan reviewed annually and adjusted as required
Enterprise-wide system that routinely captures and retains tacit knowledge in an explicit form
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Preparedness for planned or expected loss of critical tacit knowledgeThis KPi establishes the extent to which an enterprise is prepared for the expected loss of critical tacit knowledge through the departure of an employee such as through a reduction in force or a retirement.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Unprepared for any employee separation from the enterprise scenario
Immediate manager addresses each case as needed
Immediate manager has established some job function redundancy and executes a knowledge exchange
Enterprise-wide policy for executing a knowledge retention plan when a employee is known to be leaving
Enterprise-wide human resources is aware of an employee’s unavailability because of retirement eligibility, illness, dismissal, force reduction, etc. and takes the action to inform management of a potential knowledge loss to ensure a knowledge retention plan is executed as per policy
Enterprise-wide system that routinely captures and retains, and manages tacit knowledge in an explicit form
Tacit knowledge is retainedThis KPi establishes the extent to which an enterprise is prepared for retaining captured tacit knowledge.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No capability Immediate manager addresses each case as needed
Immediate manager has established some job function redundancy
Enterprise-wide tacit knowledge retention with succession plan in place
Enterprise-wide tacit knowledge retention in an explicit form and succession plan reviewed annually and adjusted as required
Enterprise-wide system that routinely captures and retains tacit knowledge in an explicit form
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Technical documents are retainedThis KPi establishes the extent to which an enterprise is prepared to retain technical knowledge through documents and objects that are captured as a required action per policy.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Non-enforced individual retention of documents and objects only
Ad hoc enforcement for individual retention of documents and objects
Local policies for retention of documents and objects in a shared repository
Enterprise-wide technical data retention policy defined
Enterprise-wide technical knowledge is captured as a required action per policy
Enterprise-wide technical knowledge, documents and object are captured as a required action per policy (automated application of policy where applicable)
Business documents are retainedThis KPi establishes the extent to which an enterprise is prepared to retain business knowledge through documents and objects that are captured as a required action per policy.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Non-enforced individual retention of documents and objects only
Ad hoc enforcement for individual retention of documents and objects
Local policies for retention of documents and objects in a shared repository
Enterprise-wide business information retention policy defined
Enterprise-wide business knowledge is captured as a required action per policy
Enterprise-wide business knowledge, documents and object are captured as a required action per policy (automated application of policy where applicable)
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Collaborative knowledge is retainedThis KPi establishes the extent to which relevant communications and collaboration (such as email, chat, recorded audio, recorded video and letters) are retained.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Non-enforced individual retention of communications and collaboration objects only
Ad hoc enforcement for individual retention of communications and collaboration objects
Local policies for retention of communications and collaboration objects in a shared repository
Enterprise-wide retention policy defined for communications and collaboration content
Enterprise-wide communications and collaboration knowledge is captured as a required action per policy
Enterprise-wide business knowledge, documents and object are captured as a required action per policy Automated application of policy where applicable
Manage Category
Disaster recovery plans for explicit knowledge are maintained internallyThis KPi establishes the extent to which disaster recovery plans are in place to prevent the loss of accessibility to explicit knowledge maintained internally.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No action Ad hoc individual back-up of retention of relevant explicit knowledge, documents and objects
Local policies for back-up, archival and retrieval of relevant explicit knowledge, documents and objects
Enterprise-wide policies and procedures are defined for back-ups, archival and retrieval of relevant explicit knowledge, documents and objects
Enterprise-wide policies and procedures are implemented for back-ups, archival and retrieval of relevant explicit knowledge, documents and objects
Automated fail-over practices in place
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Disaster recovery plans for tacit knowledge are maintained internallyThis KPi establishes the extent to which disaster recovery plans are in place to prevent the loss of accessibility to tacit knowledge maintained internally.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Unprepared for any employee separation scenario
Immediate manager is aware of need for cross-training and rotation of duties
Local policies for geographic distribution of human capital and their tacit knowledge
Enterprise-wide geographic distribution of human capital and their tacit knowledge policy defined
Enterprise-wide geographic distribution of human capital and their tacit knowledge required action per policy
Geographically dispersed staff that can support critical tasks
Disaster recovery plans for knowledge are maintained externallyThis KPi establishes the extent to which disaster recovery plans are in place to prevent the loss of accessibility to tacit and explicit knowledge maintained externally by third parties.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Unprepared loss of a third party service
Individual specific plan defined for unexpected loss of a third party service
Local site plan defined for unexpected loss of third party services
Enterprise-wide policy and procedures defined for unexpected loss of any third party services
Enterprise-wide policy and procedures applied with third party to insure access to all needed knowledge
Assured access to external knowledge supported (e.g., escrow for explicit knowledge)
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Employee training is providedThis KPi establishes the extent to which training in place for all employees to ensure awareness of the importance of knowledge retention.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No training Ad hoc training for specific task
Local site-based training
Enterprise-wide systemic based training policy
Enterprise-wide systemic based training applied to all staff
Well-trained employees with regular training refresh
Knowledge retained electronically is accurate and completeThis KPi establishes the extent to which knowledge systematically reviewed for accuracy and completeness.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Not validated Ad hoc validation of knowledge accuracy and completeness
Planned validation of knowledge accuracy and completeness
Enterprise-wide policy and procedures defined for validating accuracy and completeness of knowledge
Enterprise-wide policy and procedures applied for validating accuracy and completeness of knowledge
Knowledge systematically reviewed for accuracy and completeness
Knowledge retained electronically is kept relevantThis KPi establishes the extent to which knowledge is systematically tracked and reviewed for continued relevance (e.g., social media tagging for useful content).
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Not validated Ad hoc validation of knowledge relevance assessment
Planned validation of knowledge relevance assessment
Enterprise-wide policy and procedures defined for validating relevance of knowledge
Enterprise-wide policy and procedures applied for validating relevance of knowledge
Knowledge is systematically tracked and reviewed for continued relevance (e.g., social media tagging for useful content)
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Explicit knowledge is reliably storedThis KPi establishes the extent to which knowledge retained electronically is stored in a reliable way, taking into account integrity and access control while maintaining it in an accessible and usable form.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Knowledge is stored in an unmanaged way
Individuals reliably manage knowledge storage and access control
Local site-based reliably managed knowledge storage and access control
Enterprise-wide policy and procedures defined for reliably managed knowledge storage and access control
Enterprise-wide policy and procedures applied to reliably manage knowledge storage and access control
Knowledge systematically reviewed for integrity, access control and usability
Use Category
Relevant knowledge is usableThis KPi establishes the extent to which knowledge is seamlessly available, accessible (Pull) and/or distributed (Push) to those who need to know in a convenient and timely manner.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Knowledge is not used because it is not easily accessible or it is not distributed
Ad hoc distribution and access
Local awareness of how to effectively access and use knowledge repositories
Enterprise-wide awareness, availability of knowledge repositories and distribution channels for knowledge defined
Enterprise-wide awareness, availability and use of knowledge repositories and distribution of knowledge
Knowledge is seamlessly available, accessible and/or distributed to those who need to know
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eDiscovery/Preserve Category
Knowledge retention practices are compliant with eDiscovery/PreserveThis KPi establishes the extent to which knowledge retention policy and processes comply with legal requirements (e.g., spoliation prevention).
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Knowledge retention policies do not exist
Individual identification and retention of relevant objects only
Local policies for retention of communications and collaboration objects
Enterprise-wide communications and collaboration data preservation retention policy defined
Enterprise-wide communications and collaboration data preservation retention policy implemented
Integrated search for and preservation of knowledge seamlessly supports eDiscovery
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T o o l s a n D T e C h n o l o G i e s C a Pa b i l i T y m aT u r i T y m aT r i x l e v e l s
This matrix identifies a number of tools and technologies that can be deployed to raise the level of maturity of an organization for one or more KPis. This is not necessarily an exhaustive list, but indicates the minimum level of technology that is required to achieve the corresponding Capability maturity matrix level. appendix b shows the tools and technologies that can be applied to improve maturity in each KPi.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Tools & Technology
None Individual non-shared storage on a local computer drive
Local policy and/or basic computer file system Some shared or networked file system capability
Enterprise-wide policies, procedures and standards for knowledge capture, management and use of knowledge
Enterprise-wide policies, procedures and standards for knowledge capture, management and use of knowledge
Networking Technologiesaccess to networking technologies is a fundamental requirement that enables electronic communication in a business environment.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Hardcopy Individual Personal Computer (PC) input, storage and creation
Computers on network
Computers on network
Thin client Consumerized smart device (tablets and smart phones) See “Disruptive Information Technologies” report
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WikiWikis allow employees to convert their tacit knowledge into an explicit form that can be used and enhanced by others (e.g., dynamic web content).
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Wiki limited exposure
Internal wikis used to create a common Store of explicit knowledge.
Enterprise-wide use of Internal wikis
Enterprise-wide use of internal and industry wikis
Web-Collaboration Work SpacesWeb-based collaboration tools allow teams of employees with common goals to work together and convert their tacit knowledge into an explicit form (e.g., structured and unstructured files).
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
None None Local workspaces Integrated workspace
Available enterprise-wide integrated collaborative workspace
Mature use of an integrated collaborative workspace
Product Data Management SystemsProduct Data management and product life cycle systems manage the explicit form of product knowledge (e.g., metadata and artifacts).
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
None Local file storage Local management
Defined product data management systems and tools
Enterprise-wide usage of defined product data management systems and tools
Systematic usage of PDM
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Database & Audio-Video Knowledge CaptureKnowledge capture tools allow employees to record their tacit knowledge into an explicit audio or video form and store it in a database that can be used by others.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
None Unmanaged individually captured and in potentially unsharable and unreadable formats
Locally managed, individually captured and in potentially unsharable and unreadable formats
Enterprise-wide defined policy for knowledge capture, management and sharing
Enterprise-wide policy for knowledge capture, management and sharing implemented
Systematically optimized knowledge capture review and rationalization across the enterprise
Knowledge Search Toolssearch systems that crawl through knowledge repositories allow employees to more easily discover and use explicit forms of knowledge (e.g., as opposed to needing to know a priori where it has been stored by others).
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
None Search Locally managed and/or individually searched within a tool
Defined enterprise-wide integrated search capability
Integration of knowledge management
Ongoing execution of adding internal and external knowledge repositories to the enterprise-wide search environment
Storage Systems (Data, Audio, Video)storage systems provide a scalable mechanism to store and manage vast amounts of knowledge electronically for future use.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No storage system
Local storage Shared storage Enterprise policies for storage management are defined
Deployed strategic storage management across the enterprise
Systematic Long-term Archival and Retention (LOTAR) of knowledge
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Social Media Solutionssocial media (e.g., blogging, micro-blogging (tweeting), friending, liking) allow employees to build and share tacit awareness of knowledge links as well as linked explicit knowledge repositories.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No social media Ad hoc used of social media by individuals, disregard for any risk associated with its use
Use of social media locally managed, with little or no guidance from enterprise policies
Defined policies for use of social media for enterprise collaboration through the linking of tacit and explicit knowledge
Use of social media according to enterprise-defined policies for the linking of tacit and explicit knowledge
Ubiquitous, optimized and effective use of social media, integrated with existing knowledge management tools
Individual Consumer Devicesindividual consumer devices (e.g., smart phones and tablets) used for business allow employees to maintain a more comprehensive online connectivity and awareness to all forms of knowledge.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Initial Managed Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
No policy or awareness of risk
Some awareness of risk with little or no use management
Local management of consumer-based devices in use
Policy for the use and risk management of consumer-based devices is defined
Policy for the use and risk management of consumer-based devices are implemented
Consumerized devices are an enabler to enhance mobility and connectivity
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K e y C o n s i D e r aT i o n s
Improving the Management of Human Capitalit is recommended that an enterprise should assess its maturity against the KPis and establish the level of capability that is required to effectively manage its risk.
any gaps or shortfalls can then be assessed to establish an improvement plan, which may involve the development and implementation of enterprise policies and procedures and the corresponding training of staff.
using the matrix in appendix b, an enterprise can also identify the specific technologies that may contribute to the necessary improvement.
Governancefor business and national security reasons, it may be necessary to ensure that an enterprise’s human Capital management maturity matrix level be maintained at some minimum level. in these cases a specific minimum level of human Capital Capability maturity matrix may be identified by an enterprise’s internal business process requirements or mandated by contractual obligations.
The enforcement of contractual obligations to Capture/use/manage intellectual capital must be pushed down to the lowest tier supplier. lower tier suppliers who cannot reach/maintain the human Capital Capability maturity matrix level mandated on their organizations must do one of the following. The lowest tier supplier has the option to:
n store knowledge escrow with third party.
n allow immediate prime to store the knowledge.
n establish the capability to store the knowledge themselves.
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a P P e n D i x a : T h e h u m a n C a P i Ta l m a n aG e m e n T m aT u r i T y m aT r i x
Category CMM Level-> Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Key Performance Indicator Initial Managed
Qualitatively Defined
Quantitatively Managed and Validated
Systemically Optimized
Capture
Appendix B
Employee skills identified
No action Employees know their own skill set, however they have not captured them
Unstructured identification and capture of skill set (e.g., resume)
Structured skills identification and capture (e.g., recorded in HR system)
Annual employee skills identified, captured, and managed
Skills identified, captured, and managed continuously
Capture
Appendix B
Critical business skill requirements Identified
No action Immediate manager knows skills needed for job
Immediate manager defines critical vs. non-critical Skills
Enterprise-wide process for identifying critical Skills with knowledge sources defined
Critical skills and knowledge sources defined, captured, and reviewed annually by the enterprise
All current critical skills and knowledge sources defined and Future requirements Identified
Capture
Appendix B
The enterprise has a plan to retain existing critical skills and acquire new critical skills as needed
No plan exists
Immediate manager addresses each case as needed
Immediate manager has template plan in place to retain critical vs. non-critical skills
Enterprise-wide plan to retain critical skills with knowledge sources defined
Enterprise-wide plan to retain in an explicit form critical skills with knowledge sources implemented and reviewed annually
Enterprise-wide plan to retain existing and acquire new critical skills with explicit knowledge sources implemented and reviewed annually
Capture
Appendix B
Preparedness for unexpected loss of critical tacit knowledge Unexpected loss of an employee
Unprepared for any employee separation from the enterprise scenario
Immediate manager addresses each case as needed
Immediate manager has established some job function redundancy
Enterprise-wide tacit knowledge retention with succession plan in place
Enterprise-wide tacit knowledge retention in an explicit form and succession plan reviewed annually and adjusted as required
Enterprise-wide system that routinely captures and retains tacit knowledge in an explicit form
20 Human Capital Management
Category CMM Level-> Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Capture
Appendix B
Preparedness for planned or expected loss of critical tacit knowledge—expected loss of an employee
Unprepared for any employee separation from the enterprise scenario
Immediate manager addresses each case as needed
Immediate manager has established some job function redundancy and executes a knowledge exchange
Enterprise-wide policy for executing a knowledge retention plan when a employee is known to be leaving
Enterprise-wide Human Resources is aware of an employee’s unavailability because of retirement eligibility, illness, dismissal, force reduction, etc. and takes the action to inform management of a potential knowledge loss to ensure a knowledge retention plan is executed as per policy
Enterprise-wide system that routinely captures and retains, and manages tacit knowledge in an explicit form
Capture
Appendix B
Tacit knowledge retention
No capability
Ad hoc tacit knowledge transfer between individuals
Immediate manager manages tacit knowledge transfer (e.g., job rotation plan, mentoring, etc.)
Enterprise-wide tacit knowledge capture capability and policy are defined
Enterprise-wide tacit knowledge capture is performed as per policy
Enterprise-wide tacit knowledge is routinely captured stored, and managed in explicit form
Capture
Appendix B
Copies of all technical documents and objects are retained
Non-enforced individual retention of documents and objects only
Ad hoc enforcement for individual retention of documents and objects
Local policies for retention of documents and objects in a shared repository
Enterprise-wide technical data retention policy defined
Enterprise-wide technical knowledge is captured as a required action per policy
Enterprise-wide technical knowledge, documents and object are captured as a required action per policy Automated application of policy where applicable
Human Capital Management 21
Category CMM Level-> Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Capture
Appendix B
Copies of all business related documents and objects are retained
Non-enforced individual retention of documents and objects only
Ad hoc enforcement for individual retention of documents and object
Local policies for retention of documents and objects in a shared repository.
Enterprise-wide business information retention policy defined
Enterprise-wide business knowledge is captured as a required action per policy.
Enterprise-wide business knowledge, documents and object are captured as a required action per policy. Automated application of policy where applicable
Capture
Appendix B
Relevant com-munications and collabora-tion (such as email, chat, recorded audio, recorded video and letters) are retained
Non-enforced individual retention of communica-tions and collabora-tion objects only.
Ad hoc enforce-ment for individual retention of communica-tions and collabora-tion objects
Local policies for retention of communi-cations and collaboration objects in a shared repository.
Enterprise-wide reten-tion policy defined for communica-tions and collaboration content
Enterprise-wide commu-nications and collaboration knowledge is captured as a required action per policy
Enterprise-wide business knowledge, documents and object are captured as a required action per policy. (automated application of policy where applicable)
Manage
Appendix B
Disaster recovery plans are in place to prevent the loss and maintain accessibility to explicit knowledge maintained internally
No action Ad hoc individual back-up of retention of relevant explicit knowledge, documents and objects
Local policies for back-up, archival and retrieval of relevant explicit knowledge, documents and objects
Enterprise-wide policies and procedures are defined for back-ups, archival and retrieval of relevant explicit knowledge, documents and objects
Enterprise-wide policies and procedures are implemented for back-ups, archival and retrieval of relevant explicit knowledge, documents and objects
Automated fail-over practices in place
Manage
Appendix B
Disaster recovery plans are in place to prevent the loss and maintain accessibility to tacit knowledge maintained internally
Unprepared for any employee separation from the enterprise scenario
Immediate manager is aware of need for cross-training and rotation of duties
Local policies for geographic distribution of human capital and their tacit knowledge
Enterprise-wide geographic distribution of human capital and their tacit knowledge policy defined
Enterprise-wide geographic distribution of human capital and their tacit knowledge required action per policy
Geograph-ically dis-persed staff that can sup-port critical tasks
22 Human Capital Management
Category CMM Level-> Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Manage
Appendix B
Disaster recovery plans are in place to prevent the loss and maintain accessibility to all knowledge maintained externally by third party
Unprepared loss of a third party service
Individual specific plan defined for unexpected loss of a third party service
Local site plan defined for unexpected loss of third party services
Enterprise-wide policy and procedures defined for unexpected loss of any third party services
Enterprise-wide policy and procedures applied with third party to insure access to all needed knowledge
Assured access to external knowledge supported (e.g., escrow for explicit knowledge)
Manage
Appendix B
Training in place for all employees to ensure all are aware of the importance of knowledge retention
No training Ad hoc training for specific task
Local site based training
Enterprise-wide systemic based training policy
Enterprise-wide systemic based training applied to all staff
Well trained employees with regular training refresh
Manage
Appendix B
Knowledge retained electronically is accurate and complete
Not validated
Ad hoc validation of knowledge accuracy and com-pleteness
Planned validation of knowledge accuracy and completeness
Enterprise-wide policy and pro-cedures defined for validating accuracy and com-pleteness of knowledge
Enterprise-wide policy and proce-dures applied for validating accuracy and completeness of knowledge
Knowledge system-atically reviewed for accuracy and complete-ness
Manage
Appendix B
Knowledge retained electronically is kept relevant
Not validated
Ad hoc validation of knowledge relevance assessment
Planned validation of knowledge relevance assessment
Enterprise-wide policy and procedures defined for validating relevance of knowledge
Enterprise-wide policy and procedures applied for validating relevance of knowledge
Knowledge is systemati-cally tracked and reviewed for continued relevance (e.g., social media tag-ging for use-ful content)
Manage
Appendix B
Knowledge retained electronically is stored in a reliable way, taking into account integrity and access control while maintaining it in an accessible and usable form
Knowledge is stored in an unmanaged way
Individuals reliably manage knowledge storage and access control
Local site based reliably managed knowledge storage and access control
Enterprise-wide policy and procedures defined for reliably managed knowledge storage and access control
Enterprise-wide policy and procedures applied to reliably manage knowledge storage and access control
Knowledge system-atically reviewed for integ-rity, access control, and usability
Human Capital Management 23
Category CMM Level-> Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Use
Appendix B
Relevant knowledge is accessible (Pull) or distributed (Push) in a convenient and timely manner
Knowledge is not used because it is not easily accessible or it is not distributed
Ad hoc distribution and access
Local awareness of how to effectively access and use knowledge repositories
Enterprise-wide awareness, availability of knowledge repositories and distribution channels for knowledge defined
Enterprise-wide awareness, availability and use of knowledge repositories and distribution of knowledge
Knowledge is seamlessly available, accessible and/or distributed to those who need to know
eDis-covery/Preserve
Appendix B
Knowledge retention policies and processes are compliant with eDiscovery
Knowledge retention policies do not exist
Individual identifica-tion and retention of relevant objects only
Local policies for retention of communi-cations and collaboration objects
Enterprise-wide com-munications and collabo-ration data preserva-tion reten-tion policy defined
Enterprise-wide commu-nications and collaboration data preser-vation reten-tion policy implemented
Integrated search for and pres-ervation of knowledge seamlessly supports eDiscovery
24 Human Capital Management
a P P e n D i x b : T h e T o o l s T o s u P P o r T m aT u r i T y l e v e l s
Category CMM Level-> Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Tools Tools to support maturity level
None Individual non-shared storage on a local computer drive
Local policy and/or basic computer file system some shared or networked file system capability
Enterprise-wide policies, procedures and standards for knowledge capture, management and use of knowledge
Enterprise-wide poli-cies, proce-dures and standards for knowl-edge cap-ture, man-agement and use of knowledge
Enterprise-wide policies, procedures and standards for knowledge capture, management and use of knowledge
1 Network Hardcopy Individual Personal Computer (PC) input, storage and creation
Computers on network
Computers on network
Thin client Consumer-ized smart device (tablets and smart phones) See “Disruptive Information Technologies” report
2 Wiki Wiki-limited exposure
Internal wikis used to create a common store of explicit knowledge
Enterprise-wide use of internal wikis
Enterprise-wide use of internal and industry wikis
3 Web-collaboration work spaces
None None Local workspaces
Integrated workspace
Available enterprise-wide inte-grated col-laborative workspace
Mature use of an integrated collaborative workspace
4 PDM None Local file storage
Locally management
Defined product data management systems and tools
Enterprise-wide usage of defined product data man-agement systems and tools
Systematic usage of PDM
Human Capital Management 25
Category CMM Level-> Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
5 Database, audio-based, video-based knowledge capture
None Unmanaged individually captured and in potentially unsharable and unreadable formats
Locally managed individually captured and in potentially unsharable and unreadable formats
Enterprise-wide defined policy for knowledge capture, management and sharing
Enterprise-wide policy for knowl-edge cap-ture, man-agement and sharing implemented
System-atically opti-mized knowl-edge capture review and rational-ization across the enterprise
6 Knowledge search tools
None Search Locally managed individually search within a tool
Defined enterprise-wide integrated search capability
Integration of knowl-edge man-agement
Ongoing execution of adding internal and external knowledge repositories to the enterprise-wide search environment
7 Storage (Data, Audio, Video)
No storage system
Local storage Shared storage
Enterprise policies for storage management are defend
Deployed strategic storage manage-ment across the enterprise
Systematic Long-term Archival and Retention (LOTAR) of knowledge
8 Social media solutions (Such as: blogging, micro blogging, friending, tweeting, favoriting)
No social media
Ad hoc use of social media by individuals, disregard for any risk associated with its use
Use of social media locally managed, with little or no guidance from enterprise policies
Defined policies for use of social media for enterprise collaboration through the linking of tacit and explicit knowledge
Use of social media according to enterprise-defined policies for the linking of tacit and explicit knowledge
Ubiquitous, optimized and effective use of social media, integrated with existing knowledge management tools
9 Individual consumer devices used for business
No policy or aware-ness of risk
Some awareness of risk with little or no use management
Local management of consumer-based devices are in use
Policy for the use and risk management of consumer-based devices are defined
Policy for the use and risk man-agement of consumer-based devices are implemented
Consumer-ized devices are an enabler to enhance mobility and connectivity
26 Human Capital Management
a e ro s PaC e i n D u s T r i e s a s s o C i aT i o n
founded in 1919, the aerospace industries association of america is the most authoritative and influential trade association representing the aerospace and defense industry. The association is the leading voice for the industry on Capitol hill, within the administration, and internationally.
in times like these, aia’s strong representation and advocacy is essential to protecting the business interests of the nation’s aerospace and defense industry, while helping to establish new opportunities for growth.
aia represents nearly 350 aerospace and defense manufacturers and suppliers. The association is at the forefront of critical issues, such as ensuring a strong u.s. industrial base, advocating for defense modernization and acquisition reform, increasing deployment of next Generation air Transportation system technologies and equipment, modernizing export controls, and obtaining additional resources for aeronautics research and space exploration.
unlike many other associations, chief executive officers of member companies and their senior managers define and drive aia’s agenda. Working together, the association shapes regulatory and legislative policies, and is a leader in developing and publishing national aerospace standards that are used in aerospace design and manufacturing across the globe.
The aerospace and defense industry supports and drives our nation’s economy. it fuels innovation, creates competition, and employs millions of americans. aia is proud to represent our members and our nation.
To learn more about aia and the benefits of membership, visit www.aia-aerospace.org
Human Capital Management 27
aar manufacturing, inc.
accenture
acutec Precision machining
aero-mark, llC
aerojet
aerovironment, inc.
aGC aerospace & Defense
airDat llC
alcoa Defense
align aerospace, llC
alion science & Technology
allfast fastening systems, inc.
alliant Techsystems, inc. (aTK)
allied barton security services
american Pacific Corporation
amsafe aviation
amT ii Corporation
analytical Graphics, inc.
ansys, inc.
aurora flight sciences
ausCo, inc.
b&e Group, llC
b/e aerospace, inc.
bae systems
barnes Group
belcan advanced engineering and Technologies
boeing Company
bombardier aerospace
broad reach engineering Company
brs aerospace
Cae usa inc.
Castle metals aerospace
Celestica Corporation
Certon software, inc.
Chromalloy
CirCor international inc.
Click bond, inc.
Cobham
Colt Defense, llC
Computer sciences Corporation (CsC)
Comtech aeroastro, inc.
Crown, inc.
Cubic Defense applications, inc.
Curtiss-Wright Corporation
Curtiss-Wright Controls, inc.
metal improvement Company
Deloitte Consulting llP
DigitalGlobe
Ducommun incorporated
DuPont Company
eaton Corporation
elbit systems of america
embraer aircraft holding inc.
erickson air-Crane incorporated
esi north america
esis, inc.
esterline Technologies
exostar llC
flextronics international usa
flightsafety international inc.
fTG Circuits, inc.
Galactic ventures llC
General atomics aeronautical systems, inc.
General Dynamics Corporation
General electric aviation
Gentex
Goodrich Corporation
Groen brothers aviation inc.
Guardsmark, llC
harris Corporation
hCl america
heiCo Corporation
hexcel Corporation
hi-shear Technology Corporation
hiTCo Carbon Composites
honeywell aerospace
hP enterprise services, aerospace
hydra electric Company
ibm Corporation
ieC electronics Corp
infotech
integral systems, inc.
iTT exelis
Jabil Defense & aerospace services llC
Kaman aerospace Corporation
KemeT
KPmG llP
l-3 Communications Corporation
lai international, inc.
lmi aerospace inc.
lockheed martin Corporation
AIA Member Companies
28 Human Capital Management
lord Corporation
marotta Controls, inc.
meggitt-usa, inc
metron aviation inc.
micro-Coax, inc.
moog, inc.
natel engineering Co. inc.
nobleTek
norDam
northrop Grumman Corporation
nyloK Corporation
o’neil & associates
omega air, inc.
oracle usa, inc.
osi systems, inc.
Pacifica engineering, inc.
Pall aeropower Corporation
Paragon space Development Corporation
ParTsolutions, llC
Parker aerospace
Pinkerton Government services, inc.
Plexus Corporation
PPG aerospace-sierracin Corporation
PrTm, llC
PTC
PWC aerospace & Defense advisory services
Qwaltec
raf Tabtronics, llC
raytheon Company
realization Technologies inc.
remmele engineering, inc.
rhinestahl Corporation
rix industries
rockwell Collins
rolls-royce north america inc.
rTi international metals, inc.
sanmina-sCi Corporation
saP Public services
satair
sCb Training Center, inc.
science applications international Corporation
siemens Plm software
sierra nevada Corporation, space systems
sifCo industries, inc.
sila solutions Group
siTa
sm&a
space exploration Technologies Corporation
sparton Corporation
spirit aerosystems
Tech manufacturing llC
Textron inc.
The si organization, inc.
Therm, inc.
TimCo aviation services inc.
Timken aerospace Transmissions, llC
Triumph Group, inc.
aerospace systems Group
aftermarket services Group
ufC aerospace
united Technologies Corporation
Pratt & Whitney
sikorsky
hamilton sundstrand
valent aerostructures
vermont Composites inc.
W. l. Gore & associates, inc.
Wesco aircraft hardware Corp.
WiPro Technologies
Woodward, inc.
xerox Corporation
Human Capital Management 29
300 below
3m Company
a.T. Kearney Public sector & Defense services llC
acme industrial Company
aDi american Distributors, inc.
aeronautical systems, inc.
aerospace alloys, inc.
aerospace Joint apprenticeship Committee (aJaC)
aerospacemall.com
air industries machining Corporation
airborn operating l.P.
alcoa fastening systems
allen aircraft Products, inc.
altemp alloys, inc.
american brazing
ami metals, inc.
aPv manufacturing & engineering Co.
arinC engineering services llC
arkwin industries, inc.
asia Pacific engineering Consulting services, llC
astro-med, inc.
astronautics Corporation of america
aTC aerospace
athena manufacturing, lP
banneker industries, inc.
benchmark electronics, inc.
brogdon Tool & Die, inc.
brPh architects & engineers
bTC electronic Components
California manufacturing Technology Consulting
CDG
Celltron inc.
Cherokee nation Distributors
CiT aerospace
CmC electronics
Co-operative industries Defense, llC
Coalition solutions integrated, inc.
Consolidated Precision Products
CPi aero
Crawford & Company (formerly furniture resources)
Crestwood Technology Group
Dassault systemes
Data Conversion laboratory, inc.
Dayton T. brown inc.
electronic/fasteners, inc.
embry-riddle aeronautical university
emhart Teknologies
black & Decker Company
ensCo, inc.
essner manufacturing, l.P.
eTa Global, inc.
exotic metals forming Company llC
fluor Corporation
freedom alloys
frontier electronic systems Corporation
future metals, llC
G.s. Precision, inc.
General Products
Glovia international
h&s swansons’ Tool Company
haas TCm/avchem
hCl Technologies
hDl research lab, inc.
hi-Temp insulation inc.
houlihan lokey
hughes bros. aircrafters, inc.
industrial metals intl. ltd.
infotech enterprises america inc.
infoTrust Group
ingenium
inmedius
interConnect Wiring
international Technegroup inc. (TranscenData Division)
intrepid learning solutions
iTW CiP
Janes Capital Partners
Jrh electronics, llC.
Kennametal inc.
Kubotek usa
Kulite semiconductor Products, inc.
lintech Components Co., inc.
loos & Co., inc.
maG industrial automation systems, llC
AIA Associate Member Companies
30 Human Capital Management
maine machine Products Co., inc.
materion
mcCann aerospace machining Corporation
meehan electronics Corporation
meyer Tool inc.
microsemi Corporation
mid-state aerospace inc.
millitech, inc.
moritz aerospace, inc.
monogram aerospace fasteners
montana metal Products, llC
morris machine Company, inc.
morton manufacturing
national machine Group
national utilities Company
new breed Corporation
norfil manufacturing, inc.
north shore Components, inc.
o’neil & associates, inc.
oceanit
ohio aerospace institute
orion industries
P3 – north america Consulting limited
Parkway Products, inc.
PCC airfoils, llC
Pelican Products, inc.
Perillo industries, inc.
Phillips screw Company
Plymouth engineered shapes
Precision Gear
Precision Tube bending
Premier Precision Group
ram Company
renaissance services
renaissance strategic advisors ii, llC
rocker industries
rubbercraft
safran usa
samuel aerospace metals
scot forge Corporation
sDl (formerly xyenterprise)
sea air space machining & molding ( formerly named north Cape rim manufacturing)
seaKr engineering
seal science, inc.
sechan electronics, inc.
selex Galileo inc.
senior aerospace
serco inc.
service steel aerospace
servotronics, inc.
shapes aerospace international
sigma metals, inc.
smT Corp
southern manufacturing Technologies
spincraft
spirit electronics, inc.
sPx Precision Components
sugasawa Corporation
sulzer metco (us) inc.
sunshine metals, inc.
swift engineering
synchronous aerospace Group
sypris electronics
systec
Tactair fluid Controls
TCs america
Techsolve, inc.
TeK Precision Co. ltd.
Telephonics Corporation
The ferco Group
The World academy
Thermacore, inc.
ThyssenKrupp aerospace north america
TiGhiTCo, inc.
Tiodize Co., inc.
Tri Polus inc.
Tsi Group inc.
Tsi Plastics, inc.
TTi, inc.
TTm Technologies, inc.
TW metals
ufP Technologies
umbra Cuscinetti, inc.
university of Tennessee – aerospace Defense Clearing house
venture aircraft, llC
visTaGy
vT Group, inc.
vulcanium metals incorporated
Whitcraft llC
Windings, inc.
x-ray industries
yarde metals
Aerospace Industries Association1000 Wilson Boulevard, Suite 1700
Arlington, VA 22209-3928703-358-1000
www.aia-aerospace.org