Aerosud achieves LEVEL 5 BBBEE status
Aerosud understands that demonstrating a genuine commitment and ability to deliver on our transformation objectives is an important basis for fostering trust with all our stakeholders. We believe the progress achieved thus far provides a very good indication of our commitment in this area.
Revised B-BBEE Codes were published in the first half of 2015. The significantly increased requirements were applied to our most recent B-BBEE certification review and we are committed to ensuring that our operations retain and sustain this commitment.
Key facts from the latest B-BBEE report
For the 2016 ownership assessment, the group achieved 20.69 points, which flows down to subsidiary level.
We have developed a strong skills base, particularly at artisan level, as a result of our own accredited apprenticeship training center, where we focus on equipping apprentices with the specialist skills required for the aviation industry and to also absorb them in our business. In the last financial year, our businesses spent 3.76% of payroll on training and meets the definition of a Level 3 contributor towards broad based black economic empowerment in terms of the skills development of the company.
Enterprise and supplier development
We continue to make good progress in development initiatives and our approach to enterprise and supplier development is to nurture, grow and sustain by providing technical and business development support, through mentoring, coaching and funding solutions.
Aerosud is committed to spending 1% of our net profit after tax. Our investments primarily focus on supporting health care, education and training, sports and recreation and welfare initiatives.
Aerosud Aviation participated in the 4th Premier Business award ceremony that took place on 6 December. The Aerosud entry was considered in two categories, namely that of Exporter and Manufacturer. Aerosud was announced the winner of the Manufacturer category for 2016. The Award was received by Johan Steyn at a function held at the Sandton convention centre. Dr Rob Davies, Minister of Trade and Industry, was the guest speaker at the event.
Aerosud has successfully completed an AS/EN 9100 surveillance audit. This audit was performed by Novo Star Management Systems Solutions of India with the scope being the design, development, manufacture & refurbishment of aircraft parts & assemblies. Several strengths and good practices were highlighted in the closing report. Aerosud will now begin to prepare itself for a full re-certification audit in October 2017 to the new revision of the AS/EN 9100 standard.
Aerosud celebrates Gold at the Logistics Achiever Awards
The Logistics Achiever Awards rewards excellence in logistics and supply chain management and recognises outstanding achievements and innovation that have created market advantage.
At the 28th annual Logistics Achiever Awards ceremony, which took place at Monte Casino on 13 October 2016, Aerosud Aviation, in conjunction with its TOC partners Cargo Solutions and Opslogic, were awarded gold status for their submission under the heading EXCELLENCE IN A HIGHLY TECHNICAL PROCUREMENT ENVIRONMENT.
The award ceremony was attended by Brian Ingram and Thabo Magabe from Aerosud aviation, Dawid Janse van Rensburg and Albert van der Wat from Cargo Solutions and Konrad Bartel from Opslogik Solutions.
Judging took place over 3 months with 2 rounds of presentations to different judging panels.
The Aerosud submission was based on our inbound supply chain value stream with specific focus on our TOC implementation, Logistics partnership and Subcontractor TOC Self-Management process.
This highly coveted recognition from the South African Logistics industry proves that we certainly do have “A true end to end solution giving single priority visibility”.
LOGISTICS GOLD WINNERS EXCEL IN HIGHLY TECHNICAL PROCUREMENT ENVIRONMENT
Statement released by Cargo Carriers - 14 October 2016
In a complex manufacturing facility, where the most stringent specification and safety compliance requirements exist, the entire supply chain must work like clockwork.
CargoSolutions, a division of Cargo Carriers, together with Aerosud and Opslogik, won Gold at the 28th Annual Logistics Achiever held at Monte Casino, in Fourways, Johannesburg on 13th October 2016, for their work with Aerosud Aviation.
Aerosud, a proudly South African aerospace component manufacturer, has been servicing large international aircraft manufacturers for a number of years, building complex and often critical components for modern passenger and military aircraft.
In the aircraft component manufacturing industries, raw materials are sourced only from the most reputable and accredited suppliers. The challenge however, is that most of these suppliers are abroad, implying long lead times, and obviously expensive materials.
“Add thousands of expensive raw material items, long lead times, and sometimes even shelf life restrictions, and you face the inevitable challenges of overstocking on a portion of the items, whilst simultaneously experiencing out-of-stocks on other items”, states Head of CargoSolutions Dawid Janse van Rensburg.
Aerosud Aviation embarked on the implementation of the Theory of Constraints based production solution (DBR) a few years ago, but had never expanded the demand-driven replenishment principles in the procurement area. In 2014 Opslogik and CargoSolutions were contracted to assist in the implementation of this functionality. An interface between the ERP system of Aerosud (Syspro) and the TOC enabling Symphony software was developed, and the new business processes followed.
Reducing inventory levels whilst maintaining high levels of availability, in one strategy
The solution essentially consisted of a decoupling of the raw material warehouse, stock and time buffers were sized based on historical consumption, and the dynamic buffer management system was activated. Procurement from then on became purely a function of replenishing the stock buffers as it was issued to production, mitigating for long replenishment lead times with dynamically adjusted stock buffers.
Aerosud embraced the new procurement principles and the system with endless enthusiasm, and new business processes were refined and deployed.
From about 12 months after implementation, a substantial portion of the total raw material inventories was reduced, whilst maintaining the very high levels of availability and then the focus shifted to inventory reductions.
Over a two year period, this excellent example of pin-point accurate procurement, led to impressive downstream success. With very high availability of raw materials, production reached new levels of production success, becoming a world-class supplier to some of the most stringent build environments in the world.
Further benefits are being realised upstream with the Aerosud domestic and international supply base following TOC priorities rather than the traditional ”Delivery to due date” process.
From an Aerosud perspective, the commitment and hard work by all involved certainly made this an easily implementable project.
Reduced inventory levels have obviously made an impact on the financial results through releasing substantial amounts of working capital, making for impressive financial results.
“This is indeed a logistics improvement project placing South African manufacturing companies at the forefront in the world in terms of procurement excellence”, says Janse van Rensburg.
Distributed by CARGO CARRIERS LTD - Elmarie Ollewagen (firstname.lastname@example.org)
Pictures of the Aerosud stores area below:
Aerosud has successfully completed a Technical Development Capability Assessment (TDCA) by AIRBUS Defence & Space (AIRBUS DS) for its A400M Cargo Hold Linings & Galley work packages. The objective of this TDCA was with regard to Design Organisation Approval (DOA) activities in accordance to EASA Part 21.
Aerosud was recently audited by NADCAP for reaccreditation of its heat treatment process. We are pleased to announce that the result of the audit was a merit assessment with 2 year extension.
Aerosud was recently audited by NADCAP for reaccreditation of its composites manufacturing process. We are pleased to announce that the result of the audit was positive with a 1 year extension. Our target for 2017 is a merit assessment with 1.5 year extension.
For the past 10 years Aerosud has been manufacturing slat trackcans for installation on the A320 family of aircraft. This contract is with Spirit Aerosystems Europe, based in Prestwick UK.
We are pleased to announce that as from January 2016 this contract has been secured for another 2 years with a further option for 2 years.
The current rate at which Aerosud is producing these welded assemblies will be significantly increasing over the next 4 years. In order to meet these increased rates we are working hard to improve our manufacturing processes in order to increase throughput. In line with this is a major upgrade to our robotic welding facility as well as the transfer of our hydro-form press facility from its current location with our supplier, Pryer in the USA, to our facility in Pretoria. This transfer will ensure an in-house hydro-forming capability as well as a dual source for trackcan pressed parts.
Aerosud was recently audited by NADCAP for reaccreditation of its chemical processing capability. We are pleased to announce that the result of the audit was a merit assessment with 1.5 year extension.
Aerosud was recently audited by NADCAP for reaccreditation of its welding process. We are pleased to announce that the result of the audit was a merit assessment with 2 year extension.
Aerosud is contracted by Spirit Aerosystems in Prestwick for the manufacture of the A320 Slat Trackcans, the current contract ending in Dec 2015. We have been manufacturing this specialised welding product for 10 years since 2005, and have seen an initial production rate of 24 aircraft a month now double that at 44 per month, which is over a 1000 cans manufactured and delivered every month. This in itself has been a significant achievement to have industrialised this product to the levels where these rates have been sustainable, even with the added challenge of the difficult to achieve weld pass rates.
The A320 production line is set to increase their rates even higher, first to 52 then to 63 per month in the coming years. Aerosud is now in final negotiations with Spirit to secure the next four years contract extension, and for us the challenge will be to extract more efficiency out of this product line to achieve more attractive pricing for our customer to maintain this product in our portfolio.
We are pleased to announce that Aerosud recently won a new contract with SAFRAN Labinal Power Systems. This contract entails the manufacture of approximately 50 welded assemblies for delivery to Labinal Power Systems in France with installation of the deliverables by Airbus UK. Industrialisation activities for these assemblies has begun and the first FAI’s are planned for second quarter 2016.
The awarding of this new contract together with our existing A320 Trackcans and A350 Trackcans contracts further reinforces the market’s confidence in Aerosud’s manufacturing capabilities for welded assemblies.
Aerosud was recently audited by NADCAP for accreditation of its composites manufacturing process. This was our first NADCAP audit for composites and we are pleased to announce that accreditation was received with next assessment due in 1 year.