What do we mean by “Work Transfer?”
Aviation, Space & Defense companies continuously change the source of supply or manufacturing of a component, a component package, or assembly across a company or its external supply chain. That’s an inevitable fact of doing business, no matter what sort of manufactuyring environment you’re in.
Simply put, Work Transfer is the movement of work – products and associated activities – from one manufacturing site to another.
Sounds trivial, and yet, it can be a complex process requiring careful consideration around changes and risk mitigation.
AS9100 is the international Quality Management System standard for the Aviation, Space, and Defense (AS&D) industry, created by the International Aerospace Quality Group (IAQG). AS9100 Rev D (2016) is the most recent version, and focuses on improving the safety and reliability of al related products.
The standard provides suppliers with requirements for creating and maintaining a comprehensive quality system for providing safe and reliable products to the ASD industry, as well as civil & military aviation requirements. “AS9100 Certified” means an organization has met the requirements of AS9100D.
Best practices and activities around this work transfer apply in two major ways:
- Establishing, implementing, and maintaining a process to plan and control the transfer of work (whether temporary or permanent).
- Ensuring the conformity of the work to requirements.
Examples of work transfer include:
- From one supplier facility to another.
- From one supplier to another supplier
- From a customer to a supplier (“make to buy”)
- From a supplier to a customer (“buy to make”)
Any time work transfer is not properly managed, businesses increase their risk of issues regarding timeliness, cost, and quality.
IAQG provides the Supply Chain Management Handbook to further quantify best practices and guidelines for the application of effective risk management through structured and staged approach. Section 7.1 of the SCMH covers Work Transfer.
Why would Work Transfer occur?
There are a number of possible reasons indicating work transfer as a solution, including:
- Capacity, or better availability of required parts.
- Procurement strategy, such as approving a second source to secure a supply chain.
- Cost reduction.
- Performance improvements.
- New Technology, possibly with limited availability.
The standard does not require an orgnaization to have a procedure specifically around work transfers. However, transferring work to a supplier is basically the same as any other purchase from a supplier. Key elements of the process to qualify that supplier include:
- Qualifying the supplier.
- Assessing risks for that supplier.
- Determining which controls you need for that supplier to ensure receiving the right product or service.
When it comes to Supplier Management, there are many aspects to consider, and the process can become complicated and confusing.
At Thurman Co., we embrace the PMI certification principles and core activities as part of the foundational framework driving how we operate and interact with clients, suppliers, and partners.
We help businesses manage projects to significantly impact their success and growth. When you’re ready to put your project in the hands of a trusted professional organization, contact us to learn more about working together.