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Thales and SC21IAQG/SC21General Assembly Meeting, 22 October, York
2This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Thales serves three markets
DEFENCE (50%)
Air ● Land ● Naval ● Joint
AEROSPACE & SPACE (25%) SECURITY (25%)
Thales around the world
68,000 employees
in 50 countries
Serving the defence, aerospace and
security markets
More than £11bn revenue
3This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
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
4This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Thales UK
5This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
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
6This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
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
7This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
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’!
8This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Base
0
200
400
600
800
1000
1200
0 500 1000 1500 2000 2500 3000 3500 4000No of Suppliers
M E
uro
Cumulative MEuro
833 M Euro187 (5%) Suppliers
80%
989 M Euro733 (20%) Suppliers
95%1039 M Euro3593 (100%) Suppliers
100%
9This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Base
A - Class Suppliers (80%)
0
20
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012 2013 2014
10This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Base
B - Class Suppliers (95%)
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014
11This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Base
C - Class Suppliers (last 5%)
0
500
1000
1500
2000
2500
3000
3500
2009 2010 2011 2012 2013 2014
12This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Base
Total Suppliers
0
500
1000
1500
2000
2500
3000
3500
4000
2009 2010 2011 2012 2013 2014
13This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Performance
On Time In Full (OTIF)
70%
75%
80%
85%
90%
95%
100%
2009 2010 2011 2012 2013 2014
14This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Performance
Right First Time
80%
85%
90%
95%
100%
2009 2010 2011 2012 2013 2014
15This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy and SC21Strong 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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