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Supplier Improvement Program Update

Supplier Improvement Program Update. PIA Government Systems Meeting Reno, NV 11 February 2011. Outline. Background Approach Data Analysis 4 Phase approach Current status Results. Background. Team origin started with MC-6 and T-11 Prime contractor’s Originated out of PIA discussions

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Supplier Improvement Program Update

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  1. Supplier Improvement Program Update PIA Government Systems Meeting Reno, NV 11 February 2011

  2. Outline • Background • Approach • Data Analysis • 4 Phase approach • Current status • Results

  3. Background • Team origin started with MC-6 and T-11 Prime contractor’s • Originated out of PIA discussions • Driven by increased Government scrutiny during First Articles and First Production Lots • Evidence of common issues across supply base • Team Objectives • Enhance the performance of the Parachute Industry supply base • Leverage our shared resources to address systemic or critical shared supplier issues • Strengthen communication of supplier related issues across the Parachute Industry • Identify issues proactively and work on preventive actions

  4. Approach • Meet regularly via teleconference • Agree upon most significant supply chain issues facing the industry • Use data to guide decisions • Consider frequency, severity, and likelihood of detection • Establish prioritization (pareto principle) • Determine action plans for top one or two issues • Spread the actions across the team as much as possible • Document meeting with minutes and actions

  5. Data Analysis Results Data overwhelmingly revealed - Paperwork #1 issue 70% of rejections for paperwork 80% of rejections for paperwork

  6. Paperwork Improvement Phases Phase 4 Credit Withhold ($250) 4th Defect Each defective lot leads to the next step… Phase 3 Delivery Release 3rd Defect Phase 2 Corrective Actions 2nd Defect 5 consecutive acceptable lots Phase 1 Notification 1st Defect Starting point

  7. Current Status No suppliers in Phase 3 or 4 to date…

  8. Results Reductions in paperwork issues reported by every Prime

  9. Summary • Joint prime manufacturers team created to improve systemic supply base issues • Data identified Paperwork as largest supply chain issue by frequency • Team jointly implementing Paperwork Improvement Program that has 4 phases • Significant improvement seen to date across entire supply chain • Continued monitoring performance going forward Focused efforts resulting in systemic improvements

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