Original Date: 04/20/1998
Revision Date: 01/18/2007

Previously, ITT Aerospace/Communications Division’s (A/CD’s) Purchased Material Inspection (PMI) department tested samples from all incoming part lots regardless of quality history. The company’s inspection philosophy was primarily reactive, and any decision to waive an inspection was made solely by PMI engineers. During its efforts to reduce cost and increase throughput, ITT A/CD determined that receipt inspections were being performed on parts with excellent quality histories. Looking for a way to eliminate non-value added inspections, the company developed the Dock-to-Stock (DTS) Program in 1996.

ITT A/CD uses a multi-functional team of component, quality, reliability, manufacturing, and supply liaison engineers to review each part’s incoming acceptance history. The top performers are then submitted for further evaluation. Once the team approves a part for inclusion into the DTS Program, the part’s acceptance information is loaded into a database. The database is used to identify DTS material upon receipt, enabling these parts to be sent directly to the stockroom without a formal incoming inspection. ITT A/CD also uses a tracking system to maintain and update all material acceptance information.

Since implementing its DTS Program, ITT A/CD realized a cost savings of approximately $134,000 in 1996 and $225,000 in 1997. The company now focuses inspections on critical parts and problem suppliers. This effort resulted in a constant decrease in cost per lot from $85 in 1996 to $58 in 1998. ITT A/CD’s inspection philosophy is becoming proactive, and the top performing suppliers are being identified, recognized, and used on future orders.

For more information see the Point of Contact for this survey.