Select Committee on Trade and Industry Appendices to the Minutes of Evidence



  The processes within a company can be broken down into tiers, for which there are six ranging from 0-5. The lower the number, the more complex the work associated with it.

  BAE SYSTEMS has been looking at the work it undertakes and breaking it down into these six tiers. It then decides which tiers are value adding, ie work that is more profitable if it is done within the business, and that which is not and can be divested.

  As a brief description of the sort of work that can be associated with the various tiers, in relation to the radar work undertaken at the Cowes site, the following has been compiled:

    Tier 0  Product development and design assurance
    Tier 1  Radar system integration and test
    Tier 2  Radar sub-system integration and test
    Tier 3  Antenna, transmitter, motor bearings and turning gear general assembly
    Tier 4  Manufacture of mechanical structures and assembly of electronic units
    Tier 5  Manufacture of brackets, cable assembly and wiring of looms

previous page contents

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2001
Prepared 20 March 2001