New England Supply Chain Conference & Exhibition

APICS - The Association for Operations Management North Shore Chapter 20 and Boston Chapter 10    --   The Council of Supply Chain Management Professionals (CSCMP) New England Roundtable    --    The Northeast Supply Management Group, A Special Interest Group of ISM®

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Six Sigma in Supplier Development and Integration

by Steve Case

Historically, companies have focused a great deal of effort on internal cost reduction and quality improvement efforts while largely ignoring the largest component of cost passed on to their customers - the cost of supplied material. We will discuss the "Raytheon Six Sigma with Suppliers" Process, a demonstrated technique that leverages key supplier technical expertise with proven cost reduction tools to significantly reduce development and production costs. Involvement of system engineers and application early in the product lifecycle are critical to success. The extremely positive results emphasize the criticality of partnering with suppliers to significantly impact the bottom line and product performance.

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