Coordinated procurement of the EEE parts for European space ...
Coordinated procurement of the EEE parts for European space ...
Coordinated procurement of the EEE parts for European space ...
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PIONEERING WITH PASSION<br />
PIONEERING WITH PASSION<br />
<strong>Coordinated</strong> <strong>procurement</strong> <strong>of</strong> <strong>the</strong> <strong>EEE</strong><br />
<strong>parts</strong> <strong>for</strong> <strong>European</strong> <strong>space</strong> programs<br />
Alex Colquhoun<br />
MEWS 23<br />
1<br />
PROPRIETARY INFORMATION<br />
©Tesat-Spacecom GmbH & Co.KG reserves all rights including industrial property rights,<br />
and all rights <strong>of</strong> disposal ©Tesat-Spacecom such as copying GmbH and & passing Co.KG to 2010 third parties
PIONEERING WITH PASSION<br />
Contents<br />
Introduction<br />
Typical distribution <strong>of</strong> manufacturing <strong>for</strong> a <strong>space</strong> program<br />
Consolidation <strong>of</strong> <strong>parts</strong> lists<br />
Co-ordinated and centralized <strong>parts</strong> <strong>procurement</strong><br />
Advantages and disadvantages <strong>of</strong> coord./centr. Procurement<br />
Examples <strong>of</strong> coordinated and centralized <strong>procurement</strong> in Europe<br />
Centralized <strong>procurement</strong> <strong>for</strong> ATV<br />
Schedule and planning issues<br />
Contractual issues<br />
Standardization & Project PPL<br />
Parts Control Board<br />
Reporting<br />
Conclusions<br />
28.10.2010 Colquhoun, MEWS 23 ©Tesat-Spacecom GmbH & Co.KG 2010 2
PIONEERING WITH PASSION<br />
Introduction<br />
Modern <strong>space</strong>craft require large amounts <strong>of</strong> <strong>EEE</strong><br />
components that typically make up 8-20% <strong>of</strong> <strong>the</strong> cost <strong>of</strong> a<br />
<strong>space</strong>craft.<br />
Space projects <strong>of</strong>ten require >1000 different part types,<br />
several thousand different line items and hundreds <strong>of</strong><br />
thousands <strong>of</strong> <strong>parts</strong>.<br />
The control <strong>of</strong> <strong>the</strong> quality and reliability <strong>of</strong> <strong>the</strong> <strong>EEE</strong> <strong>parts</strong> is a<br />
major issue.<br />
The optimisation <strong>of</strong> <strong>the</strong> overall cost is also a major issue.<br />
Prime contractors have to control <strong>the</strong> quality, reliability and<br />
cost <strong>of</strong> <strong>the</strong> <strong>EEE</strong> <strong>parts</strong> in many different subcontracted units<br />
<strong>of</strong> equipment.<br />
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PIONEERING WITH PASSION<br />
Typical Distribution <strong>of</strong> Manufacturing in a Space Program<br />
End Customer<br />
Prime<br />
Contractor<br />
Subsystem<br />
Manufacturer<br />
Equipment<br />
Manufacturer<br />
Equipment<br />
Manufacturer<br />
Equipment<br />
Manufacturer<br />
Equipment<br />
Manufacturer<br />
<strong>EEE</strong><br />
Parts<br />
Many different equipment manufacturers<br />
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PIONEERING WITH PASSION<br />
Advantages <strong>of</strong> Consolidation <strong>of</strong> Parts Requirements<br />
ADVANTAGES<br />
Parts <strong>for</strong><br />
Equipment<br />
No. 1<br />
Parts <strong>for</strong><br />
Equipment<br />
No. 2<br />
Parts <strong>for</strong><br />
Equipment<br />
No. 3<br />
Parts <strong>for</strong><br />
Equipment<br />
No. x<br />
Consolidated<br />
Parts List<br />
• Lower equipment prices due to<br />
<strong>the</strong> larger purchase quantities<br />
• Lower quality assurance cost<br />
(DPA, Lot charges, etc.)<br />
• Improved quality and reliability<br />
due to standardization <strong>of</strong> <strong>the</strong><br />
<strong>EEE</strong> <strong>parts</strong><br />
• Better control <strong>of</strong> <strong>parts</strong> quality<br />
• Better control <strong>of</strong> <strong>parts</strong><br />
<strong>procurement</strong> schedule<br />
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PIONEERING WITH PASSION<br />
Co-ordinated versus Centralized<br />
CO-ORDINATED<br />
CENTRALISED<br />
Prime<br />
SUPPLIERS<br />
CPPA<br />
Prime<br />
USERS<br />
SUPPLIERS<br />
CPPA<br />
USERS<br />
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PIONEERING WITH PASSION<br />
Co-ordinated Procurement<br />
Prime contractor<br />
• Contracts <strong>procurement</strong> agent<br />
to supply <strong>parts</strong><br />
Central Parts<br />
Procurement Agent<br />
• Collect <strong>parts</strong> lists<br />
• Consolidate <strong>parts</strong> lists<br />
• Harmonise <strong>parts</strong> lists<br />
• Clarify technical requirements<br />
• prepare <strong>procurement</strong> documents<br />
• Negotiate wih supplier<br />
• Per<strong>for</strong>m quality assurance (DPA,<br />
pre-cap etc.)<br />
• Purchase & supply <strong>parts</strong><br />
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PIONEERING WITH PASSION<br />
Centralised Procurement<br />
Prime contractor<br />
• Collect <strong>parts</strong> lists<br />
• Consolidate <strong>parts</strong> lists<br />
• Harmonise <strong>parts</strong> lists<br />
Central Parts<br />
Procurement Agent<br />
• Clarify technical requirements<br />
• prepare <strong>procurement</strong> documents<br />
• Negotiate wih supplier<br />
• Per<strong>for</strong>m quality assurance (DPA,<br />
pre-cap etc.)<br />
• Purchase & supply <strong>parts</strong><br />
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PIONEERING WITH PASSION<br />
Examples <strong>of</strong> Co-ordinated or Centralized Procurement<br />
(with involvement <strong>of</strong> Tesat-Spacecom)<br />
Centralized<br />
Co-ordinated<br />
Columbus<br />
Meteosat<br />
Second<br />
Generation<br />
(MSG)<br />
<strong>European</strong><br />
Robotic<br />
Arm<br />
(ERA)<br />
Automated<br />
Transfer<br />
Vehicle<br />
(ATV)<br />
ExoMars<br />
(preliminary<br />
phase)<br />
Surface<br />
Moisture &<br />
Ocean<br />
Salinity Sat.<br />
(SMOS)<br />
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PIONEERING WITH PASSION<br />
Centralized <strong>procurement</strong> <strong>for</strong> ATV<br />
Largest ESA program<br />
Procurement <strong>for</strong> 7 flight sets<br />
> 7000 line items<br />
> 1.000.000 <strong>parts</strong><br />
45 equipment / 25 users<br />
Procurement in 3 Batches:<br />
PFM<br />
FM 1 to FM 3<br />
FM 4 to FM 6<br />
“rolling spare”<br />
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PIONEERING WITH PASSION<br />
Centralized <strong>procurement</strong> <strong>for</strong> ATV<br />
Time line<br />
Kick<br />
Off<br />
Procurement FM 1-3<br />
(Centralised)<br />
Procurement PFM<br />
(<strong>Coordinated</strong>)<br />
Procurement FM 4-6<br />
(Centralised)<br />
Storage <strong>of</strong><br />
<strong>parts</strong><br />
Flight PFM<br />
Relifing <strong>of</strong> <strong>parts</strong> <strong>for</strong><br />
FM 4+5<br />
Flight FM1<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
Technical Challenges:<br />
Long duration :<br />
Need <strong>for</strong> re-lifing,<br />
Obsolescence <strong>of</strong> key items<br />
Cost / risk optimized quality levels:<br />
Short mission: Grade 2 <strong>parts</strong><br />
Manned <strong>space</strong>flight: risk and safety issues<br />
Applications requiring use <strong>of</strong> commercial <strong>parts</strong> with up-screening<br />
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PIONEERING WITH PASSION<br />
Schedule and Planning Issues<br />
Time in Weeks<br />
Update <strong>of</strong> data base and<br />
preparation <strong>of</strong> SCDs<br />
Distribution <strong>of</strong> SCDs to<br />
Supplier, User & Prime<br />
RFQs to Suppliers<br />
User Ordering<br />
CPPA Ordering<br />
Supplier Lead Time<br />
Incoming Inspection,<br />
Documentation control<br />
and DPA<br />
~<br />
4<br />
2<br />
1<br />
1<br />
1<br />
4<br />
Supplier lead time + 11-14 weeks<br />
Freeze Date<br />
The date at which <strong>the</strong> users<br />
must have confirmed <strong>the</strong>ir<br />
requirement <strong>for</strong> <strong>the</strong> part<br />
type<br />
Cut-Off Date<br />
The date by which <strong>the</strong><br />
users must have placed<br />
<strong>the</strong>ir POs at <strong>the</strong> CPPA<br />
Delivery to Users<br />
1<br />
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PIONEERING WITH PASSION<br />
Contractual Issues<br />
Business Transactions – coordinated <strong>procurement</strong><br />
PRIME<br />
Contract<br />
Agents Cost &<br />
Non-recurring <strong>parts</strong> cost<br />
Quotations<br />
Quotations<br />
USERS<br />
Parts Delivery<br />
Purchase Orders<br />
(Recurring Cost)<br />
Invoices<br />
CPPA<br />
Parts Delivery<br />
Purchase Orders<br />
(Total Vendor Cost)<br />
Invoices<br />
MANUFACTURERS<br />
Payments<br />
Payments<br />
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PIONEERING WITH PASSION<br />
Standardization and Project PPL<br />
By standardization <strong>of</strong> <strong>the</strong> <strong>parts</strong> used in <strong>the</strong> project, <strong>the</strong><br />
overall number <strong>of</strong> part types can be reduced<br />
Main tool <strong>for</strong> standardization is a Project Preferred Parts List<br />
(PPL)<br />
The following criteria are <strong>of</strong>ten used to set up a project PPL<br />
based on <strong>the</strong> <strong>parts</strong> lists <strong>for</strong> <strong>the</strong> equipment used in <strong>the</strong> project:<br />
Find identical <strong>parts</strong> from different manufacturers<br />
Find identical <strong>parts</strong> with different package types or different<br />
quality level.<br />
Define preferred <strong>parts</strong> <strong>for</strong> common functions needed in <strong>space</strong><br />
electronics<br />
Harmonize <strong>the</strong> passive <strong>parts</strong> <strong>the</strong> lowest tolerance and highest<br />
voltage rating needed <strong>for</strong> each package size.<br />
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PIONEERING WITH PASSION<br />
Standardization and Project PPL<br />
EPPL<br />
(Part 1)<br />
NPSL<br />
(Level 1)<br />
Additional<br />
Project Specific<br />
Parts<br />
Filter 1:<br />
Project Quality Level<br />
Filter 2:<br />
Sufficient Qualification<br />
Status<br />
Filter 3:<br />
Standardisation<br />
Project PPL<br />
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PIONEERING WITH PASSION<br />
Parts Control Board<br />
CPPA<br />
End User<br />
Parts Control Board<br />
(PCB)<br />
Prime<br />
Contractor<br />
Tasks <strong>of</strong> <strong>the</strong> PCB<br />
Quality and reliability<br />
assessment<br />
Approval <strong>of</strong> <strong>parts</strong> and<br />
SCDs<br />
Harmonization and<br />
standardization<br />
Monitoring and control <strong>of</strong><br />
<strong>procurement</strong> status<br />
Problem solving<br />
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PIONEERING WITH PASSION<br />
Reporting<br />
CPPA<br />
Common Internet<br />
Reporting Database<br />
Typical CPPA Reports<br />
Parts Control Plan<br />
<strong>EEE</strong> Parts <strong>procurement</strong> status list<br />
Long Lead Item / Critical Item List<br />
Evaluation Plan <strong>for</strong> <strong>EEE</strong> Parts<br />
NCR Status List<br />
CPPA Purchase Order List<br />
Shipping List<br />
DPA Status Report<br />
RVT Plan<br />
Alerts/ problem notification<br />
Failure Analyses Reports<br />
Master Procurements List (MPL)<br />
PADs<br />
......<br />
End User<br />
Prime<br />
Subsystem<br />
Prime<br />
Users<br />
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PIONEERING WITH PASSION<br />
Conclusions<br />
For <strong>space</strong> programs, <strong>the</strong> co-ordinated or centralized<br />
<strong>procurement</strong> <strong>of</strong> <strong>the</strong> <strong>EEE</strong> <strong>parts</strong> can be successfully used<br />
to improve <strong>the</strong> overall quality, reliability and on-schedule<br />
delivery <strong>of</strong> <strong>the</strong> components used in <strong>the</strong> electronic<br />
equipment.<br />
The co-ordinated or centralized <strong>procurement</strong> has been<br />
used to advantage in numerous <strong>European</strong> <strong>space</strong><br />
programs<br />
Cost savings can be achieved by bulk purchasing <strong>of</strong> <strong>the</strong><br />
consolidated <strong>parts</strong> list <strong>for</strong> <strong>the</strong> program due to lower nonrecurring<br />
costs and lower piece prices.<br />
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PIONEERING WITH PASSION<br />
For fur<strong>the</strong>r in<strong>for</strong>mation please contact:<br />
Dr. Alex Colquhoun<br />
Tesat-Spacecom<br />
Gerberstraße 49<br />
71522 Backnang<br />
Tel: +49 7191 930 1082<br />
Fax: +49 7191 930 1819<br />
Email: alex.colquhoun@tesat.de<br />
28.10.2010 Colquhoun, MEWS 23 ©Tesat-Spacecom GmbH & Co.KG 2010 19
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