Original Date: 04/20/1998
Revision Date: 01/18/2007
Information : Supplier Integrated Product Development
In 1995, ITT Aerospace/Communications Division (A/CD) set up the Supplier Integrated Product Development (SIPD) process as an improvement technique to ensure a best-value supplier selection. Prior to this process, the company did involve critical suppliers in the Integrated Product Development (IPD) process, but inconsistently tracked best-value measurements. Designed as part of ITT A/CD’s Robust Design Training program, the SIPD process fosters the involvement of suppliers throughout the IPD process.
The SIPD process starts with the selection of a multi-functional team and a senior staff advisor. The team defines its objectives, identifies key part numbers, and selects candidate suppliers. The next phase involves initiating supplier briefings, establishing non-disclosure agreements, and assigning tasks to team members. The SIPD process uses a team approach to address all elements (e.g., design, costs, schedule, quality, supportability, customer expectations) throughout a product’s life cycle, and to work on key issues established by the team members.
During the concept/development phase of the SIPD process, the team develops a winning proposal position via design-to-cost (DTC) and cycle time reduction strategies. The team’s focus is to match supplier solutions to program requirements, establish supplier alliances, and make a best-value supplier selection. Early involvement of the supplier is a key aspect of the process. During the production phase of the SIPD process, the team determines how to reduce cycle time and cost. The team’s focus is to eliminate non-value added requirements and replace these with supplier process improvements.
The SIPD process complements sound procurement practices such as leveraging, global sourcing, negotiations, and long-term agreements. In return, ITT A/CD obtains design improvements; robustness; cycle time and cost reductions; improved quality and reliability; and maintainability. By using the SIPD process, the company reduced its costs by 10% between 1995 and 1997, and estimates an additional 10% reduction between 1997 and 1999.
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