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News Release from: BAE Systems
Edited by the Manufacturingtalk Editorial
Team on 18 January 2005
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International defence and aerospace systems company BAE Systems gives an example of its outsourcing policy
International defence and aerospace systems company BAE Systems outsources many of its non core activities to specialist companies to enable it to concentrate on its own specialist competencies One of the companies to benefit from this is Irlam based Morson Projects Limited (MPL)
This article was originally published on Manufacturingtalk on 30 Aug 2002 at 8.00am (UK)
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For over 20 years, MPL has provided multi-disciplined engineering and detailed design services to clients within the General Engineering, Aerospace, Nuclear and Process Industries.
The services it offers range from simple detailing exercises through to complete project management.
Working with MPL allows BAE Systems to continue its policy of working with world leading engineering companies to obtain best practice solutions.
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This expertise meant that at the start of 2002, MPL began working with BAE Systems in undertaking all aspects of technical engineering, including aerostructures design, stress analysis, Numeric Code programming and production planning.
This partnership allows BAE Systems to concentrate on its own core business of development, delivery and support of advanced defence and aerospace systems.
In the two years since its inception, the partnership has proved to be a great success for both parties.
Worth 2.5 million pounds out of an annual turnover of 23 million pounds, it is one of MPL's major contracts, whilst they believe that BAE Systems has made both financial and efficiency improvements as a direct result of the link-up.
One of the most high profile projects involving MPL has been the Eurofighter Typhoon aircraft.
As MPL director Steve Seddon explains: "In March 2002, MPL was asked to place a dedicated team of sixteen designers into the Typhoon team at BAE Systems in Samlesbury".
" After several weeks spent gaining knowledge of the product, the team returned to base to continue the project for a further year".
" Tasks included structural modifications and electrical installations to the aircraft." All the work from the MPL site was carried out using a dedicated direct electronic data link, giving BAE Systems full visibility of progress and enabling delivery times to be reduced.
The introduction of PIMS (Project Information Management System), a bespoke software package linking project management, pay-roll and accounts into one real time system allowed BAE Systems to utilise the expertise of MPL, whilst still giving them access to the work at all times.
Physical and time savings were made due to the Olive factor of the link, as BAE Systems could monitor the work as it happened instead of relying on time-consuming updates.
Ultimately, this saw the project deemed by both parties to be a technical and commercial success.
Steve continues: "Our commitment to providing BAE Systems with a high quality service is reinforced through accreditation to ISO 9001 and the continued use and development of the latest CAD services".
"We use Catia versions 4 and 5, and carry out analysis work using ANSYS and Nastran".
"Utilising modern electronic data transfer tools, MPL became an extension of BAE Systems, a facility that was utilised to great effect during our work on the Typhoon project." Through outsourcing certain specialist work, BAE Systems creates hundreds of jobs in local communities throughout the country.
In the case of MPL, out of a total national workforce of 420, 100 jobs are dedicated to the BAE Systems contract, whilst at its Irlam headquarters, around 40 of the 180 workers are employed on the BAE Systems project.
MPL believe that BAE Systems has made up to 20 per cent savings through effective supply chain rationalisation: effectively dealing with fewer prime suppliers.
In essence, MPL manage the supply chain on behalf of BAE Systems, resulting in lower costs and fewer relationships for BAE Systems to manage.
MPL invest around 1 million pounds per year in hardware and software, improved data links and Computer Aided Design systems.
A substantial chunk of that is dedicated towards BAE Systems, an amount that Steve Seddon believes is more than justified by the results it produces".
"We have invested around 250,000 pounds in our work with BAE Systems, and we estimate that 20 per cent time savings have been realised on our involvement with the Typhoon project over the last two years.".
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