In This Issue
Keep an eye open for changes at your suppliers
The failure of common objective in multi-party work solutions
AS&D News
AS&D Events
Featured Articles
 
Keep an eye open for changes at your suppliers
By: Dr. Michael J. Dreikorn
 
------------------- 

The failure of common objective in multi-party work solutions
 By: Alden B. Davis
 

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May 2009
 
AS&D Quality, Safety and Regulatory
 Newsletter
 
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The objective of this newsletter is to provide perspective to the Aviation, Space, Defense (AS&D) and Maritime industry on current and relevant quality, safety, and regulatory matters.
Keep an Eye Open for Changes at Your Suppliers
By: Dr. Michael J. Dreikorn
 Michael Dreikorn

Over the past two decades, our industry has undergone a significant change in the way it accomplishes its work process.  When I started out, most aviation, space and defense (AS&D) organizations were vertically integrated.  Meaning, though they employed suppliers, the majority of work performed was within its own four walls.  Today, the landscape has significantly changed.  Organizations trend towards outsourcing their production and service activities and focus on integration, assembly, and customer interface. 
 
However, in addition to various other risks in such a business model, not keeping your eye on the changes that suppliers are engaged in can deliver disastrous results.  A supplier that was performing well last year may not be able to sustain positive performance today.  Consider for a moment how much change is realized within your own organization.  Your suppliers are realizing the same changing environment your organization is, and possibly more so.
 
The concept of the food-chain is real.  If your organization finds itself high up the chain, there are most likely fewer predators that will cause you grief.  The lower an organization is in the chain, the more opportunities there are for overwhelming challenges to be realized.  Here are a few examples:
 
Intellectual Drain: The average age of a professional in our industry is 60 years old. That means that many of our people can leave the industry when the economy improves or they find something better to do.  As we all know, the majority of the knowledge our organizations have are imbedded in the minds and hands of our people.  Keep an eye of talent drain at your suppliers.
 
Quality Leadership: The knowledge base that is required to understand product and process conformance, as well as, compliance to various regulations, standards, and specifications is broad and complex.  Keep an eye on the key Quality people at your suppliers.
 
Organizational Leadership:  The fastest way to put change performance is through key leadership changes.  Leaders make decisions about personnel, money, strategies, and process, so they can have a direct and immediate influence on performance.  Keep an eye on changes of key leadership positions within your supplier base.
 
Financial Capability:  In our downturn economy, we all struggle with our budgets.  Suppliers are in the same boat.  As they engage in cutbacks, keep an eye on what it is they are cutting.  And realize that sometimes it takes years to recognize the failures of poorly selected cutbacks.
 
Multi-tier Outsourcing:  If it's good for your organization to outsource your work, then why wouldn't your supplier do the same?  Keep an eye on what is being outsourced and how sub-tier suppliers are being qualified and monitored.
 
My point is simple; do not assume that performance is a constant.  Organizations have the ultimate responsibility for their suppliers and assumption is not a means of measurement.  Ongoing monitoring of changes within the supplier base, by people who have experience in recognizing red flags and distress, is necessary to prevent unwanted surprises.  The cost of a product failure in operation can easily dwarf the cost of prevention by more than 100 times.  This is one of those processes that we can apply the pay-me-now or pay-me-later scenarios.  So, please keep an eye on changes within your supplier base and create robust processes for doing such.
 
 
Michael J. Dreikorn, Ed.D.
President, The IPL Group, LLC
 

The Failure of Common Objective in Multi-Party Work Solutions
by Alden B. Davis
 
 

Alden Davis "Results" become non-negotiable for today's managers.  Using the ValueTree™ as our reference point we see why managers are pushed to drive up earnings while simultaneously driving down invested capital.  This leads people to make decisions that optimize their immediate situation while increasing risk to the total system.  The NTSB's analysis of Air Midwest Flight 5481 dramatically demonstrates this point. http://www.ntsb.gov/events/2003/AM5481/default.htm


The plane crashed as a result of three deviations to the aircraft maintenance manual.   The case study reminds us that the work must be central to our thinking and the team of people doing the work must be seen as integral to success.  USAirways contracted with Air Midwest for flights who contracted maintenance work to Raytheon Aerospace (majority owned by Veritas Capital) who sub-contracted labor from SMART, Inc.  On the actual shop floor where the maintenance work was conducted, Air Midwest, SMART and Raytheon were represented to varying degrees. The financial climate drives objectives that become common for each business.  Managers make decisions that optimize their results, but when it comes to the shop floor where three companies are present to do the work, the work can get compromised as seen on Flight 5481. 
 
I see two trends emerging that need our immediate attention.  First, personnel in shop management positions are rotating every two years.  The technical complexities and the centrality of the work and workers become underappreciated and decisions to reduce costs and capital get made with fewer rigors.  Second, the outsourcing of work to reduce headcount and labor costs is being pushed by senior managers.  However, the new work of contracts, contract management, service level agreements and auditing is not seen as necessary work to add.  Trust becomes the basis for cross-company working relationships.  Trust that certifications are current.  Trust that workers are trained and performance is managed.  Trust that inspections are conducted according to the manuals.  Trust that workers have sufficient work instructions and help solving problems.  Trust that everyone is available at the right time to do their piece of the work.  Trust that someone is accountable for the final results. 
 
Our businesses demand attention to detail, a relentless focus on quality, clarity of command and a unified team of people doing the work.  Financial pressures will continue to drive new and creative responses and we must be ready to provide steady guidance and counsel so that quality is never compromised.

Be well and keep adding value!

 

Alden B. Davis

Visionary Consultant with The IPL Group, LLC
 
(The IPL Group has the talent and experience to help you improve quality and increase your bottom-line.) 
AS&D News
 
Army RobotsThe following are news links relevant to quality, safety, and regulatory matters in the Aviation, Space, Defense and Maritime industries.  These are events which have been reported in the month of May 2009.  As a professional, it's your responsibility to remain relevant. 
 
 Workforce
 
Gulfstream, affiliate to lay off workers at Love Field facilities (USA)
 
Most of the 219 job cuts will come at the end of July from Gulfstream's midsize aircraft completion center, which installs interiors and other features on the company's G150, G200 and G250 business jet models.
 
  
Regulatory and Safety
 

BabbittThe Senate confirmed former Air Line Pilots Association president Randy Babbitt as the next FAA Administrator for a five-year term. 
 
 
 
A federal investigation into the crash of a Colgan Air commuter plane that killed 50 people in New York state has put the focus on regional airlines at a particularly vulnerable time for a business travel industry coping with recession.
 
 
A flight safety officer divulged a secret Monday about why he has worn a beard and moustache for the past six years -- from the day he discovered the pivotal piece of evidence that solved the mystery about the disaster of China Airlines' Flight 611 that disappeared May 25, 2002.
 
 
India AirlinesFor the last three years, the number of accidents/incidents taking place during a landing or a take-off-- involving Indian carriers at Indian airports--has been on a steady rise. 
 
Gulfstream International AirlinesGulfstream International Airlines has been fined $1.3 million for improper scheduling of flight crew time and for installing unapproved automotive rather than approved aircraft air-conditioner compressors on its aircraft.
 
 
CASA Aus LogoThe faults were discovered by the International Civil Aviation Organisation during an inspection under its universal safety oversight audit programme (USOAP).
 
 
A federal airline safety program that began as a way to reduce accidents devolved into an ineffective mess and, worse, turned into what airline workers came to understand as way of avoiding discipline if they made errors.
 
 
GAMA is praising the passage of the FAA Reauthorization bill but expressing concern over a provision that would invalidate a bilateral aviation safety agreement with the European Union (EU), threatening safety cooperation with Europe and potentially jeopardizing thousands of US jobs across the country.
 
 
DGCA IndiaA DGCA official said that the regulator had overcome in about two months 54 of the 89 shortcomings pointed out by the FAA.
 
 
Federal safety regulators advised AMR Corp's American Airlines to fix problems in its internal safety program revealed in 2007 when a jetliner crashed in St. Louis after catching fire.
 
 
The Civil Aviation Safety Authority has received funding in the 2009-10 Budget to allow it to establish a new board of experts to oversee the safety of Australia's aviation industry.
 
Civil Aviation
 
 
Jet America AirlinesJetAmerica will begin flying July 13, serving Toledo as well as Lansing, Mich.; South Bend, Ind.; Newark, N.J.; and Melbourne, Fla. Three times weekly, there also will be flights between Toledo and Minneapolis.
 
 
Many of these mechanics continue to work in the commercial airline industry, as well as for aircraft manufacturers and privately owned aircraft maintenance facilities, according to records and interviews obtained by WFAA-TV. 
 
 
Dart A119Dart Helicopter Services announces that their affiliated partner, DART Aerospace Ltd., has received ANAC approval for their A119 / AW 119MKII Heli-Access-Steps™. Transport Canada, FAA and EASA certification has been previously received.
 
AA AirplaneSince 1999, 22 pilots have appealed to the National Transportation Safety Board in the United States after the Federal Aviation Administration took action against them for alcohol consumption.

Carriers could face GPS software glitch next month (EU)
 
A software bug resident in a wide range of multi-mode GPS receivers (MMR) built by Rockwell Collins could cause datalink and other problems during the chronological transition from 20 to 21 June, cautions the European Aviation Safety Agency.
 
 
CSafe, provider of technology solutions for the temperature sensitive airfreight market, announced its AcuTemp RKN received approval from the European Aviation Safety Agency, making it the first and only active RKN of its kind to obtain approvals from both EASA and the FAA.
 
 
Eclipse 500There are still no viable bidders for Eclipse Aviation nearly 90 days after its creditors petitioned the U.S. Bankruptcy Court for the District of Delaware on Feb. 24 to liquidate the Albuquerque VLJ start-up's assets in accordance with Chapter 7 of the federal bankruptcy laws.
 
First Chinese-made Airbus takes off (China)
 
Airbus ChinaThe first Airbus passenger jet built at a new factory in China has made its maiden flight in a step the company hopes will help boost its share of aircraft sales in the expanding Chinese market.
 
 
Aviation safety professionals including pilots, air traffic controllers, researchers, aviation executives, government leaders and labor officials from around the world will convene in Washington, D.C., Dec. 1-3, 2009, for the premier International FAA Runway Safety Summit hosted by FAA.

 
Maritime
 
The first pleasure boat to be built in the Subic Bay Freeport has passed its sea trial with impressive performance, setting another milestone for the Subic Bay Metropolitan Authority (SBMA), which is building up this former US naval base as globally-competitive maritime hub.
 
 
Sydney Ports Corporation has announced modest increases to navigation service, container wharfage and security charges, effective 1 July 2009 to help fund record levels of infrastructure investment.
 
The dispute is over a California Air Resources Board regulation that takes effect July 1 and mandates all ships that come within 24 miles of the coast use cleaner burning fuel. 
 

Defense 
 
 
D.C. ranked No. 3 due to the presence of the government, which employs one in eight workers in the D.C. area and supports nearby companies across various industries. Northern Virginia technology firms and Maryland biotechs also offer many job opportunities, noted the magazine.
 
 
Army ArmourManufacturers of body armor say the U.S. Army's decision to move testing from private companies to in-house has increased costs by more than 500 percent and undermined research and development of life-saving equipment. 
 
 
The Raytheon warhead is the critical weapon in the $35.5 billion U.S. network of ground-based interceptor missiles linked by satellites, radar
and communications.
 
Bath Iron Works lays DDG 111 keel (USA)
 
Arleigh-BurkeMaine-based Bath Iron Works has laid the keel of the Navy's new Spruance (DDG 111) Arleigh Burke-class destroyer. 
 
 
The chief executive of the military contractor under scrutiny in the electrocution of U.S. troops in Iraq said the electrical codes it used in the buildings it maintained in the war zone "were known and thought to be acceptable" by the Pentagon.
 
 
An Indonesian military transport plane carrying soldiers and their families has crashed into homes and burst into flames, killing at least 78 people.

 
Space  
 
 
BoldenGen. Bolden would be the first African American to lead NASA and only the second astronaut to lead the administration in its 50-year history.
 
 
 
NASA LaunchEstimates are that anywhere from 3,500 to as many as 10,000 members of the space center's total workforce of 14,800 could ultimately lose jobs. And the National Aeronautics and Space Administration estimates that each job at Kennedy creates 1.8 jobs elsewhere in Florida -- meaning a total of up to 28,000 jobs could be at risk statewide.
 
 
AresThe Constellation program is gearing up as the shuttle winds down. But other shuttle replacements have been scuttled before.
 
 
India RocketWestern analysts seem to believe that India's resurgent space programme is a reaction to China's growing success in the field. But Indian officials deny this, saying its programme is entirely based on India's own needs.
 
 
House Science Committee members from both parties expressed alarm that NASA's proposed funding will not allow it to carry out its assigned mission, with the greatest concern over the space agency's ability to develop a new generation of manned space vehicles.

 
Technology & Process
 
 
SC21 - an improvement programme developed by the Society of British Aerospace Companies (SBAC) - is dedicated to optimising supply chain performance within the aerospace and defence industries and to enhance competitiveness. 
 
The options open to aerospace and defence OEMs and their suppliers as they weigh up the sourcing options (UK)
 
While CEMs working in the defence sector are being driven hard to deliver projects in days, rather than weeks, those with civil contracts are facing the ever present threat of offshoring. 
 
 
Army WaterThe U.S.Army is utilizing state-of-the-art membrane water purification technology to support highly mobile military operations and humanitarian missions.
 
 
AS&D Events
The following is a listing of upcoming events relevant to the AS&D industry.
 
 
IAQG Meeting - Munich, Germany, October 13-16, 2009
 
 
CQSDI
 
Conference on Quality for the Space & Defense Industry and the Civil Aviation Safety Symposium will be held together in Florida (Save the date 3/15-18/2010) 
Dreikorn Awarded with William Goeller Award  
Michael at CQSDI
 
During the 2009 Conference on Quality for the Space and Defense Industries (CQSDI), Dr. Michael J. Dreikorn was awarded the American Society for Quality - Aviation, Space, & Defense Division's highest award, The William Goeller Award of Excellence.  The inscription reads "For distiguished and dedicated service to the Quality profession in the advancement of Quality principles and practice."
 
(In photo: Debra Harrison - Chair, Dr. Dreikorn, and Steve Meyer - Chair-Elect) 
This newsletter is brought to you by The IPL Group, LLC.  We hope you find the content informative and useful.  If there are other features of this newsletter that you would like to see, let us know.  The power of our industry is not solely driven by mechanical means, it is our intellectual base which brings innovation and strength.
 
 
Sincerely,
 
Michael Dreikorn, Ed.D. 
President
The IPL Group, LLC