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Air Industries has a myriad of tools to ensure just-in-time deliveries, and satisfaction of budgetary requirements. These tools, which are utilized throughout the company, are easily tailored to a program-specific format to assist the Program Manager. A brief overview of the systems that are in place at Air Industries to manage orders and releases, expediting, status, and shortage control are as follows:
Orders and Releases: Air Industries utilizes a twofold tracking system for orders and releases. Production releases are first plotted on our Shop Load Report, which compares current and projected releases against the next 18 months of customer purchase order schedules. The exceptional visibility provided by this report facilitates our long-term requirements planning. On a weekly basis, we publish an exploded version of this report, the Production Meeting Projection, which provides a 4 month look-ahead. This report forms the basis for weekly production meetings which are attended by all members of management. At these meetings, each item appearing on the Production Meeting Projection is discussed in detail.
Secondly, a release is made to the shop. The release is also in an automated format, specifying all of the pertinent information including revision levels, need dates, material type and source, and special manufacturing notes. These releases are issued to the floor through the Quality Control Department which is responsible for verifying the accuracy of the release and the conformance of the allocated raw material. Accompanying each release is a detailed traveler that specifies the sequence of operations, provides for the inspection of first articles, and identifies key characteristics. An SPC Control Plan is also routed with the traveler. Expediting, Status, Shortage Control: Air Industries has systems in place to monitor in-house production, outside processing and purchased items. In-house production is released as described above, and is monitored in the aforementioned weekly production meetings. Senior management and key operations personnel attend these meetings. Further visibility is provided by an automated timekeeping system which makes it possible to obtain real time shop status though the computer network. When an item requires outside processes such as anodize, primer, or penetrant inspection, the cognizant inspector generates a requisition that serves as the source document for a consequent process purchase order. Our processing purchase orders are computer generated and comprehensive. All of the pertinent information including customer specifications and revisions are provided. The following reports are distributed regularly to ensure the timely processing of parts: - "JOBSOUT"
- A listing by AIM reference number of all parts that are out to processing, including the processing source, and the date out.
- "BACKAIR"
- A listing of all parts that have returned from processing within the past two weeks. By monitoring this report, we guarantee that parts will flow smoothly after processing, whether they require assembly, additional machining, or final inspection prior to shipment.
- "EXPEDITE"
- A listing of all parts that are out for processing sorted by processing source, and by date out. This allows our expeditors to call a supplier and discuss the status of all AIM work that they may have in chronological order. As demonstrated with the various reports and activities mentioned, Air Industries has considerable resources available for program management. As a result, we have been extremely successful in managing complex projects encompassing multiple disciplines including prototype manufacturing, sub-contract management, JIT/KIT procurements, and electronic integration.
Purchased items, in addition to being addressed in the weekly production meetings, are also monitored by a purchase requisition system. When a requirement exists for a purchased item, a computerized requisition is generated identifying the item to be purchased, the proper revision levels, special instructions, and need dates. Contractual information is also flowed down to the purchase order level. When a purchase order is issued, the information is automatically posted against the source requisition. Subsequently, we are able to generate timely and accurate status reports, and closely monitor items that have been identified as requiring special attention.
Subcontract management and purchasing are important elements of the Air Industries Development Program and our integrator concept. The Purchasing Department is staffed with four full-time professionals, whose responsibilities include the procurement activity of the following areas:
- Subcontract Machining
- Purchased Items (hardware, raw material, etc)
- Processes and Finishes
Subcontract Machining: Subcontract machining is handled in a formal manner with all of the controls and documentation to assure proper subcontract management. Our process begins with a make/buy decision made by our executive committee, based on many factors including machine loading, critical skill/process requirements, and cost. Decisions are reviewed by Quality operations, with all requirements defined. For all subcontracted items, Air Industries flows down all customer contractual and quality requirements, supplies all raw material, performs 100% inspection, and contracts directly for all processing and finishing.
A formal ITQ/bidders conference is conducted, and subcontractors furnish written proposals. After source selection a meeting is held with the subcontractor to establish an operation sheet and a clear understanding of the subcontract scope. Air Industries subcontractors are selected based on demanding standards, applied by people with excellent insight into machining capability. We have developed a loyal team of excellent and dependable subcontractors.
The following reports are indicative of the type and the quality of the information available to Management:
- "OPENREQ"
- A listing of all unplaced requisitions, sorted by the date issued. This report allows us to identify items with which we may be experiencing difficulty in placing purchase orders and eliminates the possibility of required items "falling through the cracks."
- "EXPEDITE"
- A 45-day look-ahead at all upcoming purchase order deliveries, sorted by supplier. This facilitates our contacting a supplier at regular intervals, and being able to discuss and prioritize all items that the supplier has on order.
- "SCHEDVAR"
- This is a report of schedule variances, which we define as items for which the current purchase order delivery schedule does not support the need date specified on the requisition. This list allows us to place additional emphasis on items that need to be expedited with exceptional effort.
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