Original Date: 07/18/1994
Revision Date: 01/18/2007

Mason & Hanger (M&H) is using a three-level supplier certification program at the Iowa Army Ammunition Plant (IAAAP) to reduce in-house inspection and improve on-time delivery percentages for production items.

M&H began using a three-level supplier certification program at the IAAAP in January 1994. The first level of certification is achieved on a part-by-part basis by scoring a minimum of 85% on a grading scale consisting of quality, delivery, and service items. At this level, M&H benefits by being able to reduce the amount of required incoming inspection, and the supplier benefits through a speedier payment process. The second level certification requires that the supplier pass an audit conducted by M&H personnel, as well as having all supplied parts meet first level certification requirements. At this level, M&H transfers inspection responsibilities to the supplier, and the supplier may be given a 5% price consideration over non-certified suppliers. The third level certification requires that the supplier uses SPC in the production and acceptance of products supplied to M&H, as well as meeting all the requirements for the second level certification. When requested, M&H will help the supplier establish an SPC program for the supplier's production items. Anticipated benefits of this certification level include that the use of SPC will drive down part costs for M&H, and that the supplier may be given a 10% price consideration over non-certified suppliers.

Since the inception of the program, 53 parts and 22 suppliers have achieved first level certification status, and three suppliers are currently pursuing second level certification. M&H has also been actively pursuing a best value procurement focus and has reduced its active supplier base for production items from approximately 100 to approximately 50. M&H is also developing a certification program for service contractors.

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