The highly-engineered and highly-regulated supply chain of A&D necessitates the meticulous management across the whole part lifecycle.
Unlike Automotive, A&D manufacturers have a relatively small, and trusted, customer base.
Though the Aerospace & Defense and Automotive sectors share many of the same processes, they differ greatly. Unlike Automotive, A&D manufacturers have a relatively small, and trusted, customer base. Further, with recent a CAGR expectation of 4-5%, A&D manufacturers manage towards a different acceptance level of innovation, speed to market, and risk.
It may be a good problem to have, yet it does come with its own set of issues. Undelivered orders are at an all-time high. In 2016, for example, Boeing reported a backlog of 5,715 orders. By the time suppliers are now expected to meet demand, the sourcing effort may have been completed many months, or years, prior. Ensuring that there is effective collaboration, across the supply base and across internal functions, of upcoming expectations becomes critical in order to prevent disruption.
First Article Inspection (FAI) and Advanced Product Quality Planning (APQP)
Though FAI (evidence of the article) is well established within A&D, the Production Part Approval Process (PPAP) has quickly become the standard where demand for quality and consistent delivery over time exists. While A&D is fairly new to implementing these processes in a systematic method, having the proper infrastructure to support the tool and part readiness plan, while ensuring efficient knowledge sharing, is critical to the future A&D part/material lifecycle efficiency.
With large ticket items, amongst a relatively small customer base, the concept of a failed launch, delay, cost overrun or, worst, a product failure is unacceptable at best. Not only does the production readiness have to be well executed, staying in front of supply risk has to be “top of mind”. In today’s global market, supply risk doesn’t just appear due to financial viability or raw material cost. Supply risk is influenced by natural disasters, geopolitical environments, shipping lanes, etc. To assure a dependable delivery of finished product to the customer, A&D manufacturers rely on quality risk insights that account for supplier, facility, part, logistics, and more.
Federal Risk and Authorization Management Program (FedRAMP)
“The Cloud” is not going away. And, A&D manufacturers are digitizing more now than ever. With the shift towards the cloud it is becoming more and more important to ensure that your suppliers support FedRAMP standards.
We have successfully helped aerospace and defense customers navigate these growing challenges.