A long-term French program called “Industrial Performance”, coordinated by the aerospace industry association GIFAS, aims to improve the competitiveness of the country’s small and medium-size (SME) aerospace companies. In the midst of an unprecedented production ramp-up, Safran is taking an active role in this initiative, which harbors considerable stakes for the industry and for the Group.
The review meeting for the first phase (2014-2016) of France's SME support plan, "Industrial Performance", was held on the Safran Campus at the end of November 2016. Dedicated to improving the performance of the aerospace industry's supply chain, this national program is designed to support suppliers in their quest for excellence, as expected by sector leaders such as Safran, Airbus, Thales and Zodiac.
Enhancing supply chain performance, a top priority for Safran
"The performance of our supply chain is a critical challenge for Safran, given the current ramp-up in LEAP production and its entry into service," points out Emmanuel Cazali, in charge of program deployment in the greater Paris area, backed by Olivier Horaist, Safran executive vice president for production and purchasing. The Group's supply chain includes over 6,000 French SMEs operating in 1,500 different areas, and representing fully half of Safran's purchasing volume. That's why Safran committed to the Industrial Performance program back in 2014. The first phase of this program involved over 400 small and medium-size enterprises.
Very encouraging results
The program has generally proved beneficial to both Safran and its suppliers. Out of all the SMEs involved, more than half are Safran suppliers. On average, they improved their on-time delivery rate from 76% to 86%, while also cutting in half the number of products delivered that didn't meet quality standards.
The aim of the first part of the program (2014-2017) was to improve supplier performance in terms of on-time delivery and quality. Suppliers were organized in groups of five or six companies, their performance analyzed and an action plan launched – all with an emphasis on sustaining and monitoring performance.
The program's second phase (2017-2019) will focus on improving competitiveness, most notably by offering expert level training courses, tailored to the specific issues facing each company. This second phase will have 300 participants, half of which already took part in the first phase.
Source: Safran S.A. (Paris: SAF.PA)
Date: Jan 6, 2017