1. © Assent 2022 / assent.com
Applying some simple system
design concepts to aid better
planning: SIPOC, System
Boundary Context Diagram,
Business Canvas Model
A worked example from the Aerospace
Sector exploring ‘How Do We Identify
Use of Chemical Substances and Any
Potential Risks Posed To My
Organisation?’
Presented on: IET & INCOSE Joint Seminar: Systems
Engineering in Transport Part 1, Thursday 27th October 2022
Presented by: Eur Ing. Raj Takhar, MSc, CEng, PhD, Regulatory
& Sustainability Expert. Email: Raj.Takhar@assent.com.

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Agenda – 27th October 2022
1. Introduction.
2. The Problem / Task at Hand.
3. Identify Stakeholders.
4. Suppliers, Inputs, Processes, Outputs, Customers
Analysis.
5. Some Simple System Context Diagram
Examples.
6. Business Model Canvas Example.
7. Q&A.
Applying some simple system design concepts to aid
better planning: SIPOC, System Boundary Context
Diagram, Business Canvas Model
A worked example from the Aerospace Sector exploring:
‘How Do We Identify Use of Chemical Substances and
Any Potential Risks Posed to My Organisation?’

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1 Introduction

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Raj Takhar
About Me
Regulatory &
Sustainability Expert:
Product Sustainability
Assent Inc.
❏ Education: MSc, PhD.
❏ Professional: Chartered Engineer, European Chartered
Engineer.
❏ Doctoral Research: ‘The effect of chemical regulations on
the Aerospace and Defence sector’.
❏ Standards: IPC, BSi, ASD, CENELEC, ISO.
❏ Trade Associations: IPC, MedTech Europe, Digital Europe,
IET.
❏ Stakeholder Groups: (numerous workshops related to
updates to EU REACH), SCIP IT User Group, UK REACH IT
Stakeholders group.
❏ Contact:
❏ Raj.Takhar@assent.com.
❏ https://www.linkedin.com/in/raj-takhar-4791134/

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2 The Problem /
Task At Hand

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The Problem / Task At Hand (i)
‘How Do We Identify Use of Chemical Substances and Any Potential Risks Posed
to My Organisation?’
Are The Safe?
Are The Regulated?
Should We Keep Using Them?
What Do We Use?
Where Are The Used?

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3 Identify Stakeholders

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Identify Stakeholders & Roles (i)
Step 1: Identify key stakeholders and roles within your organisation who are likely
to be impacted by the problem / task at hand:
Stakeholder (or function) Description (role)

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Identify Stakeholders & Roles (ii)
Worked Example (Internal Stakeholders)
Stakeholder (or function) Description (role)
Materials. • Define the chemical substances, mixtures and materials used to produce
products
Design. • Design products.
Engineering. • Define how products and services are produced.
Manufacturing. • Transform raw materials into finished articles.
Purchasing. • Responsible for all organisational purchases.
Sales • Maintain customer relationships and generate new sales.
Health, Safety and the
Environment (HSE)
• Ensure the safety and protection of employees, consumers, and the environment.
Compliance. • Maintain compliance to applicable environmental and product regulations.

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Identify Stakeholders & Roles (iii)
Worked Example (External Stakeholders)
External Stakeholder Description (role)
Chemical sector. • Chemical extractors
• Chemical manufacturers.
• Chemical importers.
• Chemical formulators.
• Chemical compounders.
• Chemical mixture manufacturers.
• Material manufacturers.
Specialist processes and
services.
• Machining.
• Bonding.
• Heat Treatment.
• Plating.
• Tools and tooling providers.
• Surface finishing.
• NDT testing and inspection.
• Certification services.

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Identify Stakeholders & Roles (iv)
Worked Example (External Stakeholders)
External Stakeholder Description (role)
AD manufacturing supply chain. • Component manufacturers.
• Semi-component manufacturers.
• Equipment manufacturers.
• AD article manufacturers.
• AD article assemblers.
• Assembly manufacturers.
• Original Equipment Manufacturers (OEMs).
End consumers. • Airframe Manufacturers.
• Maintenance Repair and Overhaul (MROs).
• Airline operators.
• Aircraft lessors.
• Airfreight couriers.
• Private users.
• Defence (air, land, sea).

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4
Suppliers, Inputs, Outputs,
Processes, Customers
(SIPOC) Analysis

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Suppliers, Inputs, Processes, Outputs, Customers (i)
Been around for a very long while!
Inputs Processes Outputs
Input Output
Wassily Leontief published the Input-
Output Model in 1941 as means to describe
production and consumption of goods to
examine potential cause and effect type
analysis.
Input-Process-Output model then
emerged during the 1970’s within the
systems analysis and software
engineering environments.
Failure Error Mode Analysis (FMEA) which was first developed by US Armed Forces during the late 1940’s also adopted
similar approach in terms of it’s cause and effects analysis, with additional matrix and prioritization analysis.
A bit too complicated for the purposes of this presentation.

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Suppliers, Inputs, Processes, Outputs, Customers (ii)
PFMEA à SIPOC
Process Failure Error Mode Analysis (PFMEA) further extended FMEA within the automotive sector in the
early 1970’s.
I was first introduced to PFMEA analysis at Rolls-Royce Aerospace as part of a root cause analysis
training course.
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
I actually applied it in the context of validating global system operating procedures (Sys OPs) to ensure the
activities for each stakeholder were clearly identified and agreed prior to developing the actual SyS OP
documents.

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Suppliers, Inputs, Processes, Outputs, Customers (iii)
Step 2: From identifying key stakeholders, now begin to look at the interactions
flowing from one stakeholder (supplier) to another (customer):
Stakeholder
(or function)
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
Materials. • Suppliers of
chemical
substances,
mixtures,
materials and
products.
• SDS sheets.
• Material
declaration
statements.
• Supplier
specifications
• Customer specific
requirements.
• Define chemical
substances,
mixtures and
materials within
Material / Process
specifications.
• Material / Process
specifications.
• Data to be used
in Safe use
guidance /
disposal
instructions.
• Design.
• HSE.
• Manufacturing.
• Compliance.
Design. • Materials. • Material / Process
specifications
• Industry standards
(COTS).
• Customer specific
requirements.
• Define the fit,
form and function
of products
defined by the AD
organisation
(Technical
Design Authority).
• Geometry
drawings.
• Engineering.

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Suppliers, Inputs, Processes, Outputs, Customers (iv)
Step 2: From identifying key stakeholders, now begin to look at the interactions
flowing from one stakeholder (supplier) to another (customer):
Stakeholder
(or function)
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
Engineering. • Materials.
• Design.
• HSE.
• Geometry
drawings.
• Examine
geometry
drawings to
determine how to
produce products.
• Machine
programs.
• Testing
procedures.
• Inspection
procedures.
• Manufacturing.
• HSE.
• Compliance.
Manufacturing. • Design.
• Engineering.
• Sales.
• Raw materials. • Machining.
• Specialist
processes.
• Testing.
• Inspection.
• Manufactured
products that are
tested and
inspected to meet
requirements.
• Sales.
• Compliance.
• HSE.
Purchasing. • Design.
• Engineering.
• Sales.
• Supply chain.
• Resourcing
requirements from
ERP systems
(sales order book).
• Make / Buy
decision making.
• Supplier
contractual terms.
• Supplier
assessments.
• Agreed supplier
criteria, expected
behaviours,
performance
indicators,
remedial actions.
• Manufacturing.
• Compliance.
• HSE.
• Sales.

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Suppliers, Inputs, Processes, Outputs, Customers (v)
Step 2: From identifying key stakeholders, now begin to look at the interactions
flowing from one stakeholder (supplier) to another (customer):
Stakeholder
(or function)
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
Sales. • Manufacturing.
• HSE.
• Compliance.
• Understand
customer demand
for products and
services.
• Maintain
relationships with
customers.
• Generate sales of
products.
• Manufacturing.
• Purchasing.
HSE
(chemical use
context only).
• All
organisational
functional areas.
• Outputs from all
organisational
functional areas.
• Work with the
Materials function
to assess
chemical
substances used
on their own,
within mixtures,
materials and on
finished products
• Occupational
exposure limit
(OEL)
assessment.
• Employee safe
use guidance.
• Consumer safe
use guidance,
handling, and
disposal
instructions.
• Enforcement of
procedures.
• All organisational
functional areas.

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Suppliers, Inputs, Processes, Outputs, Customers (vi)
Step 2: From identifying key stakeholders, now begin to look at the interactions
flowing from one stakeholder (supplier) to another (customer):
Stakeholder
(or function)
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
Compliance. • All
organisational
functional area,
in terms of
products
procured,
defined, ordered
from the supply
chain, and
provided to end
consumers.
• Substances and
reporting
obligations as
defined in
regulations.
• Product
definitions.
• Supply chain
chemical
substance
reporting data.
• SDS sheets.
• Test reports.
• Analyse data
from internal and
external sources
to identify
compliance
scope.
• Request chemical
substance
reporting
information from
the supply chain
for procured
articles.
• Notifications to
regulators (if
applicable).
• Generate any
legally required
compliance
statements to be
provisioned to
customers
(downstream
users).
• All organisational
functional areas.

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Suppliers, Inputs, Processes, Outputs, Customers (vii)
Step 2: From identifying key stakeholders, now begin to look at the interactions
flowing from one stakeholder (supplier) to another (customer):
External
Stakeholder
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
Chemical
Sector.
• Others chemical
extractors,
manufacturers,
processors (as
applicable).
• Customer
requirements.
• Research and
Development
(R+D).
• Chemical
regulations (EU
REACH, TSCA,
CEPA, California
Prop 65, etc.).
• Labelling
regulations (UN
GHS, EU CLP).
• Creation of new
chemicals.
• Reformulation of
mixtures
(removing any
restricted
chemicals).
• Risk assessment
of new chemicals
/ updated
formulations.
• Notifications to
regulators (if
applicable).
• Chemical Safety
Reporting.
• Safety Data
Sheets (acting as
compliance
statements).
• Safe use
guidance.
• Disposal
instructions.
• Registration of
chemical
substances.
• All relevant
consumers of the
chemical
substances,
mixtures, materials
and products.

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Suppliers, Inputs, Processes, Outputs, Customers (viii)
Step 2: From identifying key stakeholders, now begin to look at the interactions
flowing from one stakeholder (supplier) to another (customer):
External
Stakeholder
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
Specialist
Processes and
Services.
• Chemical sector.
• AD organisation
(semi-finished
products).
• AD / Other
manufacturing
supply chain(s).
• Materials / semi-
finished products
requiring the
application of a
specialised
process / service.
• Chemical
substances,
mixtures or
materials to be
applied.
• Application of a
specialised
process / service.
• Identification of
any hazardous
chemicals that
may have been
utilised.
• Compliance
statements.
• Safe use
instructions.
• Disposal
instructions.
• AD organization
(semi-finished
products).
• AD / Other
manufacturing
supply chain(s).

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Suppliers, Inputs, Processes, Outputs, Customers (ix)
Step 2: From identifying key stakeholders, now begin to look at the interactions
flowing from one stakeholder (supplier) to another (customer):
External
Stakeholder
Suppliers
(to stakeholder)
Inputs Processes Outputs Customers
(of stakeholder)
AD
Manufacturing
Supply Chain.
• Chemical sector.
• Other
manufacturing
supply chain(s).
• Specialist
processes and
services.
• Chemical
substances,
mixtures or
materials to be
applied.
• Identification of
any hazardous
chemicals.
• Compliance
statements.
• Safe use
instructions.
• Disposal
instructions.
• AD organisation.
• AD / Other
manufacturing
supply chain(s).
End Consumers. • AD organisation. • AD products. • Identification of
any hazardous
chemicals.
• Compliance
statements.
• Safe use
instructions.
• Disposal
instructions.
• OEMs.
• Maintenance,
Repair and
Overhaul (MRO)
facilities.
• Airline operators.
• Airline lessors.

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5 Simple System Context
Diagram Examples

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System Context Diagram: Example (a)
Extrapolate the data
from the stakeholder
analysis and SIPOC
analysis to generate a
high-level diagram
depicting current known
state of a system in
relation to the original
task / problem in hand
‘How Do We Identify Use
of Chemical Substances
and Any Potential Risks
Posed to My
Organisation?’

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System Context Diagram: Example (b)
Extrapolate the data
from the stakeholder
analysis and SIPOC
analysis to generate a
high-level diagram
depicting current known
state of a system in
relation to the original
task / problem in hand
‘How Do We Identify
Use of Chemical
Substances and Any
Potential Risks Posed
to My Organisation?’

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6 Business Model Canvas

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Business Model Canvas: Overview
▸ Developed by Alexander Osterwalder.
▸ 9 key building blocks to help formulate a project a strategy against a given problem / task at hand:
▹ 01 Customer segments.
▹ 02 Value propositions.
▹ 03 Channels.
▹ 04 Customer relationships.
▹ 05 Revenue streams.
▹ 06 Key resources.
▹ 07 Key activities.
▹ 08 Key partners.
▹ 09 Cost.
Getting Executive Level Buy-In To Tackle the Task / Problem in Hand

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Business Model Canvas: Worked Example (a)
(08) Key Partners:
• Joint ventures.
• COTS suppliers.
• Build to print / specification
suppliers.
• Chemical sector suppliers.
• Semi-finished component /
product suppliers.
• Finished product suppliers.
• Assembly suppliers.
• Distributors.
(7) Key Activities:
• Identify all chemicals
(substances, mixtures, materials
and products) substances used
across the entire organisation
(internal definitions) and supply
chain (material declarations)
• Assess risks associated with all
identified chemical substances
(HSE / Occupational health
assessments).
• Produce applicable safe use and
handling instructions (employees,
end consumers).
• Assess potential impact to AD
organisation in terms of a given
chemical substance becoming
further controlled via a legislative
instrument which may introduce
further measures to limit the use of
the chemical substance.
(6) Key Resources:
• Regulators (regulations / list
of chemical substances).
• Materials, Design,
Engineering, Manufacturing.
Purchasing, Sales, HSE,
Quality. Compliance.
(2) Value Propositions:
• Avoiding any potential
business continuity risks
in the event of a chemical
substance becoming further
controlled which may result
in associated mixtures,
materials and articles
consuming the chemical no
longer to be used, sold or
placed in given region.
• Upon identification of
hazardous / toxic chemicals,
take affirmative steps to
investigate the use of non-
toxic chemical substances,
to protect future state
revenue streams (potential
new USP!)
• Prevent any potential
brand loyalty / reputation
loss – where product data
may be required in publicly
available databases (EU
WfD SCIP Database).
(4) Customer
Relationships:
• Customers are
requesting from the AD
organisation the same
data on hazardous /
toxic chemicals in
products supplied, to
make their related risk
assessments and
chemical substance
notifications.
• Technical publications /
safety bulletins / material
declarations
(3) Channels:
• Direct sales: (i) new
products or services for
first time use; (ii) new
spare products or
services, and or; (iii)
refurbished / repaired
products.
• Indirect sale of products or
services via (i) MROs, or;
(ii) other affiliate sales.
(1) Customer
Segments:
• Airframe / Aircraft
manufacturers.
• Airline operators.
• Aircraft lessors.
• AD Assembly
manufacturers.
• Airfreight couriers.
• Defence agencies (if
applicable).
• Private aircraft
owners.
• Maintenance Repair
and Overhaul
(MROs).
(9) Cost:
• Avoid supply chain disruption / brand reputation costs in the event
of given chemical substance becoming more controlled in use and/or
potentially being restricted, which may hinder the ability to produce and
sell a given AD product(s).
(5) Revenue
Streams:
• Sales of existing
AD products and
services.
• Sales of spare
parts and
associated support
services for
customers.
Business Canvas Model Analysis:
• How Do We Identify Use of Chemical Substances and Any Potential Risks Posed to My Organisation?

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Business Model Canvas: Worked Example (b)
Key Activities:
• Identify all chemicals (substances, mixtures,
materials and products) substances used across
the entire organisation (internal definitions) and
supply chain (material declarations)
• Assess risks associated with all identified
chemical substances (HSE / Occupational health
assessments).
• Produce applicable safe use and handling
instructions (employees, end consumers).
• Assess potential impact to AD organisation in
terms of a given chemical substance
becoming further controlled via a legislative
instrument which may introduce further
measures to limit the use of the chemical
substance.
Key Resources:
• Regulators (regulations / list of chemical
substances).
• Materials, Design, Engineering, Manufacturing.
Purchasing, Sales, HSE, Quality. Compliance.
Value Propositions:
• Avoiding any potential business continuity
risks in the event of a chemical substance
becoming further controlled which may result in
associated mixtures, materials and articles
consuming the chemical no longer to be used,
sold or placed in given region.
• Upon identification of hazardous / toxic
chemicals, take affirmative steps to investigate
the use of non-toxic chemical substances, to
protect future state revenue streams (potential
new USP!)
• Prevent any potential brand loyalty /
reputation loss – where product data may be
required in publicly available databases (EU WfD
SCIP Database).
Cost:
• Avoid supply chain disruption / brand
reputation costs in the event of given chemical
substance becoming more controlled in use
and/or potentially being restricted, which may
hinder the ability to produce and sell a given AD
product(s).
BMC can be broken down further at stakeholder (function) level to set agreed targets and actions:
Stakeholder / Function / Task Description:
• Compliance function creation of a chemical reporting system (CRS).
• CRS needs to be implemented to support identification of chemical substances used within the organisation to address risks.

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7 Questions